ON BEHALF OF NJOY, CEO Jack Leadbeater
July 23, 2009
NJOY RESPONSE TO FDA CONFERENCE CALL

NJOY’s products have been on the market since at least April 2007 with no reports of significant
adverse health consequences. We do not market our products to children, and indeed take
affirmative steps to ensure that our products are not sold to minors by requiring retailers to agree to where the product is placed and request verification of appropriate age as it pertains to each state law.

NJOY has been tested by an independent third-party laboratory, Exponent. This testing, as well
as our consultation with medical experts, gives us confidence that our products are appropriate
alternatives for traditional cigarettes for the committed smoker. We are therefore surprised the
FDA’s testing has resulted in the Agency suggesting that our products represent a health risk on
par with conventional cigarettes. We will provide more information on NJOY’s testing and the
results in the next few days.

The FDA’s report admits its conclusions don’t apply to all products.

* Broad statements were made on the call that Diethylene glycol (DEG) was detected in
the test samples, but the specific report shows that DEG was not found in NJOY’s
products.

* The results touted by FDA related to antifreeze are inapplicable to NJOY’s products (per
the FDA report) .

* FDA’s report simply shows that the products contain certain tobacco-specific impurities
(at much lower levels than conventional cigarettes, and this is something we are having
our experts compare in the reports conduct by NJOY and the FDA).

We find it interesting the FDA’s report is dated May fourth and is only now being released. The
FDA has not asked us to relabel our product, or to remove it from product shelves, at any point in the two years we have been in the market.

We remain willing to work with FDA to address the Agency’s concerns.

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For more information, read How The FDA Misled The Public About Electronic Cigarettes which also includes a link to the actual FDA study.

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