Asia PR News

SEOUL, Korea, Feb. 28 /PRNewswire-AsiaNet/ –

Steel Partners II, L.P. and Icahn Partners LP, Icahn Partners Master Fund
LP and High River Limited Partnership, collectively known as The KT&G Full
Value Committee (the "Committee") announced today that they were disappointed
to learn by press release that KT&G Corporation ("KT&G"), (Korea Stock Exchange
033780 KS, 033780.KS) rejected its proposal to enter into friendly negotiations
to acquire KT&G.

Warren Lichtenstein, Chairman of the Committee, commented: "Given that the
offer represented in excess of a 17% premium to KT&G’s then current market
price, we believe that the proposal warranted a serious discussion and are
disappointed to see that the Board failed to seek any additional information
about the offer or to follow up with us in any manner. In addition, Mr.
Lichtenstein observed that KT&G’s statement that the Committee proposal lacked
information as to ’structure, timing, financing or future plans’ begs the
question: Why didn’t you ask us for those details before rejecting our
proposal? Our letter stated that we were prepared to meet and answer
questions. We are still awaiting your call!"

Although KT&G’s press release stated that the "KT&G Board has thoroughly
considered" the Committee’s acquisition proposal, Mr. Lichtenstein observed
that "if the Board’s lack of communication with us reflects the manner in
which the KT&G Board conducts itself when it has ‘thoroughly considered’
something, then we can only surmise what level of Board ‘review’ occurred
regarding our earlier proposals to maximize shareholder value."

The Committee noted that the proposal set forth in its February 23 letter
has been misconstrued by members of the media as the commencement of a tender
offer, which it was not. However, the Committee is assessing its options in
view of KT&G’s summary and unwarranted rejection of its proposal to negotiate.
The Committee reserves the right to take any and all action with respect to
its investment in KT&G in the future, including the commencement of a tender
offer if it determines to do so.

SOURCE The KT&G Full Value Committee

CONTACT: Michael Sitrick or Jason Booth
both of Sitrick And Company
+1-800-714-0289
for The KT&G Full Value Committee