Press Release

December 7, 2004 at 12:00 AM EST

Vector Group Declares Quarterly Cash Dividend

VECTOR GROUP DECLARES QUARTERLY CASH DIVIDENDMIAMI, FL, December 7, 2004 – Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The dividend is payable on December 30, 2004 to holders of record as of December 17, 2004.

Vector Group is a holding company that indirectly owns Liggett Group Inc., Vector Tobacco Inc. and a controlling interest in New Valley Corporation. Additional information concerning the Company is available on the Company’s website, www.VectorGroupLtd.com.