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Exhibit 99.1
CITIGATE SARD VERBINNEN NEWS
FOR IMMEDIATE RELEASE
Contact: George Sard/Anna Cordasco/Paul Caminiti
Citigate Sard Verbinnen
212/687-8080
NEW VALLEY TO RECEIVE $58 MILLION DISTRIBUTION FROM
SALE OF INTEREST IN RUSSIAN TOBACCO BUSINESS
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MIAMI, FL, JUNE 15, 2000 -- New Valley Corporation (OTC: NVAL)
announced today that its affiliate, Vector Group Ltd. (NYSE: VGR), has entered
into a definitive agreement to sell Vector Group's Russian tobacco business,
Liggett-Ducat Ltd., to Gallaher Group Plc (LSE: GLH) for $400 million. Through
its investment in Western Realty Development LLC, New Valley will receive
approximately $58 million in cash proceeds from the sale.
Under the agreement, Gallaher will purchase Western Tobacco Investments
LLC, through which Vector Group holds its 99.9% interest in Liggett-Ducat, and
additional land adjacent to the new factory. The proceeds generated from the
sale will be divided among Vector Group and Western Realty Development, a joint
venture between New Valley and Apollo Real Estate Investment Fund III, L. P.,
which provided financing. Of the cash proceeds from the transaction after
expenses, Vector Group will receive approximately $200 million. New Valley, in
which Vector Group owns a 55.6% controlling interest, will receive approximately
$58 million and Apollo will receive approximately $69 million.
The transaction is expected to close in the third quarter of 2000 and
is conditioned upon receipt of Russian antitrust and environmental approvals and
other customary closing conditions.
New Valley is principally engaged in the investment banking and
brokerage business, through Ladenburg Thalmann & Co. Inc., the real estate
business in Russia, through BrookeMil Ltd. and Western Realty, and investment in
Internet-related businesses.
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