Amer Tobacco's employer/employee negotiations concluded


Amer Tobacco Ltd has concluded the employer/employee negotiations initiated on 26 November 2003, following the announcement of Amer Group's intention to withdraw from its Tobacco business on 18 November 2003. Due to production being discontinued, 250 employees will be made redundant. Production itself is expected to end on 26 March 2004.

Negotiations with Philip Morris continue with regard to terminating the license agreement prematurely as well as in respect of Philip Morris taking over Amer Tobacco's own trademarks, sales and marketing functions, stocks, machinery and equipment. Functions that are under consideration to be transferred to Philip Morris employ 70 persons.