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SKYCIG, a Leading UK Electronic Cigarette Brand, Announces Acquisition by Lorillard

  SKYCIG, a Leading UK Electronic Cigarette Brand, Announces Acquisition by
                                  Lorillard

  PR Newswire

  LONDON, October 1, 2013

LONDON, October 1, 2013 /PRNewswire/ --

Acquisition is expected to significantly further SKYCIG e-cigarette innovation
                      and availability on the UK market

SKYCIG, a leading premium electronic cigarette brand, today announces its
acquisition by Lorillard, Inc., the third largest manufacturer of cigarettes
in the United States and owner of the best- selling e-cigarette brand in the
U.S. , blu eCigs. This venture is expected to support the growth of the SKYCIG
brand and further improve its status as an innovation leader in the UK
e-cigarette market.

SKYCIG, a brand which maintains a high level of control over its supply chain
and product development, will become the second e-cigarette brand owned by
Lorillard following its acquisition of the USA-based blu eCigs last year. The
acquisition of SKYCIG provides Lorillard with a significant European presence
in the e-cigarette market, which, alongside its USA presence, positions it as
a leading worldwide e-cigarette company.

"We are very excited about this development and what it means for both the
SKYCIG brand and for our loyal customers," says Tom Rolfe, Co-Founder of
SKYCIG. "We chose to move forward with Lorillard for the exceptional resources
and expertise which the company can provide to enable SKYCIG to further both
our product innovation and availability. This acquisition will allow us to
continue to progress as both the best and the most widely available
e-cigarette brand in the UK."

It has been agreed that SKYCIG will function independently as a separate brand
under Lorillard's ownership, with current operations continuing as normal for
staff, retailers and customers. SKYCIG's current premises in Great Britain
will be retained, and further investment in the UK e-cigarette market is
expected as the SKYCIG brand continues to grow.

FF&P Advisory advised SKYCIG on the transaction with Mark Winkler as Lead
Adviser.

About SKYCIG

SKYCIG has been the most trusted electronic cigarette brand within the United
Kingdom for a number of years. It has established a large market share in the
growing industry and has been voted 'Best Electronic Cigarette in the UK' for
two years running in 2011 and 2012 by Smoking.com. Electronic cigarettes are
regarded as the nation's top smoking alternative and SKYCIG are currently the
largest UK based brand, with plans to expand further into other EU e-cigarette
markets. Electronic cigarettes have the potential to play an important role in
the harm reduction dialogue. As well as SKYCIG providing an attractive
alternative to smoking traditional cigarettes, they also offer a variety of
different flavours to accommodate everyone's taste buds from Crown Vanilla,
Crown Cherry, Crown Menthol, Cinnamon, Tobacco Gold, Crown Tobacco and Classic
Tobacco.

About Lorillard, Inc.

Lorillard, Inc. (NYSE: LO), through its Lorillard Tobacco Company subsidiary,
is the third largest manufacturer of cigarettes in the United States. Founded
in 1760, Lorillard is the oldest continuously operating tobacco company in the
U.S. Newport, Lorillard's flagship premium cigarette brand, is the top
selling menthol and second largest selling cigarette in the U.S. In addition
to Newport, the Lorillard product line has four additional cigarette brand
families marketed under the Kent, True, Maverick and Old Gold brand names.
These five brands include 41 different product offerings which vary in price,
taste, flavour, length and packaging. Lorillard, through its LOEC, Inc.
subsidiary, is also the leading electronic cigarette company in the U.S,
marketed under the blu eCigs brand. Newport, Kent, True, Maverick, Old Gold
and blu eCigs are the registered trademarks of Lorillard and its subsidiaries.
Lorillard maintains its headquarters and manufactures all of its traditional
cigarette products in Greensboro, North Carolina.

For further information or to arrange an interview with a SKYCIG
representative please contact:

Dani Boskovic / daniela@pha-media.com

Jessica Herman / jessicah@pha-media.com

Contact: Dani Boskovic, T : +44(0)207-025-1375; Jessica Herman, T:
+44(0)207-440-0780