News Release

Vector Group Ltd. Extends Exchange Offer Deadline For 11% Senior Secured Notes in the Aggregate Principal Amount of $85 Million

June 7, 2010 at 12:00 AM EDT
VECTOR GROUP LTD. EXTENDS EXCHANGE OFFER DEADLINE FOR 11% SENIOR SECURED NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $85 MILLION MIAMI, FL, June 7, 2010 -- Vector Group Ltd. (NYSE: VGR) (the “Company”) today announced that it has extended the expiration of its exchange offer from 5:00 p.m., New York City Time, on Friday, June 4, 2010 to 5:00 p.m., New York City Time, on Friday, June 11, 2010. Pursuant to the exchange offer, the Company’s 11% Senior Secured Notes due 2015 (the “new notes”) which have been registered under the Securities Act of 1933, as amended, are offered for exchange for the $85 million of outstanding 11% Senior Secured Notes due 2015 which were issued on September 1, 2009 in a transaction exempt from registration (the “old notes”).

As of 5:00 p.m., New York City time, on June 4, 2010, approximately $84,970,000 in aggregate principal amount of the old notes (or approximately 99.96% of the old notes) had been tendered pursuant to the exchange offer. The exchange offer has been extended in order to allow additional time for the holders of the remaining $30,000 aggregate principal amount of the old notes to participate in the exchange offer.

Except for the extension of the expiration date of the exchange offer for the $85 million of outstanding 11% Senior Secured Notes due 2015, all other terms, conditions and provisions of the exchange offer remain effective as of the date hereof.

The Company’s exchange offer for its 11% Senior Secured Notes due 2015 that have been registered under the Securities Act of 1933, as amended, in the aggregate principal amount of $75,000,000, expired at 5:00 p.m., New York City time, on Friday, June 4, 2010.

Questions concerning the delivery of appropriate documentation and the old notes should be directed to the exchange agent, U.S. Bank National Association, attention Specialized Finance Department, at (800) 934-6802.

The old notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Vector Group is a holding company that indirectly owns Liggett Group LLC and Vector Tobacco Inc. and directly owns New Valley LLC.

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Contact:
Paul Caminiti/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080