qq-3
Product TechnoloLyv - ni-piect review
1. Mentholated nroducts. A matrix studv hms been conducted to cvaluatc the
effects of menthol loss and smoking quality using thme tobacco blends. 6
application mchniquim the ciTcct or storage temperature and grade of tobacco.
The products have been madc and the physical and chcmical characteristics or
menthol loss reported. The crlect or thcsc parameters on smoking quality wilk
be reported during the next rcvicw period. Flavour work is continuitv! to
and stabilizc mcnthol once applicd to the product.
2. Stem studies. A series of stem studies arc in progress to modiCy and
stem smoking quality. Current highlights include MdUCLion e-jl set.
procissing moisture toacthcr with a correspondingly higher lamina processing
moisture resulting in maintained stem smoking quality and reduced spotting
potential. The higher lamina moisture level provides a weight saving on
tobacco and providcs; potential ror incrcascd procc3iing capacity through the
[TM drver. Thcse modifications have been implemented by BAT(UK)E on a
trial basis.
3. Variation 2f File desien varinbles and e
Proiect Aoua. A scrics of studics; have been conducted to cvaluatc the
cffect or 6--aretti: dcsign on the watcr content of smoke and hence its
contribution to sensory properties. A whole smoke water method was
developed for this purposc. Conventional Filter ventilation reduces the water
Content or smakc whilst progressive movement of ventilation holes away from
the mouth end of the Filter leads to a rctum or the water content to levels
equivalent to unventilatcd products. The nicotine content or the smoke
fiailowsancquivalcmpaftrn. Positionorvcniiiationhoicsiscontinuingtobc
Studied as a Cigarette dcsi-n variable ror improving the sensory properties of'
lowcr delivery product.-,
'i) Proiect Siik. The smoking quality or standard SE 555 FK produced in 9
countries was studied in a CPT. Two additional products were included in
this studv. a low stem Malawi product and a product containing a Flom blend
(i.e. clcvatcd Oriental tobacco. induced stcm and increased SRT). The
products were tcstcd amongst UK Gallaher B&H SF smokers. The Findings
have becit mpartcd and show that for the commercial products thoic with the
highest blend Chloride lcvc[s show gmatcst scnsory cfTccts (Malaysia and
Matiritius)wiih the Kcnvan and Malawian products showing intcnnCdlatc
differences. The non commercial Malawian product with reduced stcm
showed orcatest -crisory di[Tcrcnccs. High smokc pH was a Feature or 3
products and Lracc: Ic%,cls of menthol were round on Lhc Kenyan product.
(iii) Proka_C=. This Project has been reported in rull with the =jor
highlights being that when DEER is -substituted for SRT, (2.9%) them we= no
significant differences with any specific scniory attribute whilst a small
reduction in overall acceptability was observed. A further product was tested C@
whem the k-%-ci of DEER was increased further (61A) by substituting for 3%
stem No significant difTcmnccs wcm observed compared with SE 5145(GT).
co
C7@
BATCO CO.NFTDENTTAL - CATEGORY 1: MINNESOTA TOBACCO LMGATION.
BATCo document for Province of Brifth Columbia 15 April 1999

Further products were evaluated in which an Oriental Nub%IILUtC was used to
mplacc Agrinion 0.3%) and showed no significant sensory diff=nccL
Durin- this study products %%-crc manul'hcLUmd by BTC rrorn cut mg supplied
by Southampton Plant. No significant difrcmnces were obscrved berwccsi
t" products and ftsc made during conventional manufacture and further
suggest that cut rag could be sent rrom Southampton for product manufacturz-
by a receiving Op. Co. as a match ror SE 555(GT).
(iv) Proiect Eternity An IN month progranuric is in progress to support
continuous improvcmcnt in SE 555 Lo enhance product smoothness consistent
with srnoking SatiSfaCLion with a focus on I'lavour smoothness and product
mechanics. A scrics or products arc under development in support or these
ok@cctivcs and Include:
(i) climination or DIET and possible mplacament with sheer material-
6i) the introductionorvcritilation and potential use or lower permicability
citratc paper.
(iii) evaluation and usc of I ITD technologies.
Flavour smoothness will be specifically addm--=d in the following marincr
(i) use or 11avour b1crid mWificn, use L)rpmtcctivc casings and Lop
flavours.
(ii) variation or stcrTVIamina proportions at rmcd blend cost and use of
stem additives.
(iii) through LTR sheet improvements and/or DEER substitution.
Proiect Ounint (monitoring or product quality). Biannual monitoring of SE
555. B&H and PGL is continuing according to agreed schedules and includes
cross checks or Op Co panel assessmcnis. Blend analyses of those
international brands are being conducted to a&%c%s product consistency. the
initial rnea%urcmcnts include nicotine and sugam and will be extended as
appropriate. Rcrcrcncc products arc being stared dccp frozen ror use as a
long-term control for Ns programme. The PQRS is being extended to
include a comparison or product conl'ormanci: against product specifications
including a range of physical and chemical cigarette properties.
The rolling averages for PQRS rcsulLs by brand. by Op Co and by comparison
with specific competition products am @cing determined and circ'ulatcd an an
on-going basis. The product specification data base continues to be developed
for Marketing Dcpt.
CD
C)
J@h-
Co
C3
BATCO CO&NFTDE.NnAL - C.ATEGORY 1: &'*-11'%-,ESOTA TOBACCO LMGATIOLN-
BATCo document for Province of BritiSh Columbia 15 April 1999

SlIeciric Product development activities
1. A series of' studies leave bLcn implemented to improvc time mechanics or
BATCo's kcv Middic East products by modirying density. diet reduction and
papcrivcntilaLlon modification.
2. As pan or the proccssursircrigthcning the image and standing of the PGL
brand as an international category I product. a modified parent version with
new pack design. cigarette dic print. proposed tipping shade packed in the
proposed ITLC and tmtcr incorporating new graphics and colour were
=nuf=turcd in BTC ror review by Ihc User Group Meeting in Colombo.
Bascd on UG and IBG considerations. speciric product and packagin,
improvements have been adopted together with a requirement ror inner Lun--';z:
embosiIng, am being prepared ror test marketing.
3. A report has been prepared ror Marketing DcpL. on the development of a low
cost USB ruil navour =tcgory 11 product within agreed cost constraints
tp
(<US S31K* and <US S4/K,,). One product rrom each or the blend categories
or a
has been Identified ror u%c.
4. The Premium Select SE, 555 KS product development exercise has been
terminated bv the Brand Group,
5. As part of the process or B&I 1 development in support or the brand image or
goldcn/mclinw Smoking quality and the establishment of the 'gold standard
for the brand. products arc being tested in Nigeria. Australia and Malaysia.
Consumer research data arc awatted.
6. Proiect Scomia. 27 mm circumference products in an 84 mm format and
manufactured using two blend options (Spanish and Swim blends) arc
available rar CPT evaluations. Samples will be available for TOT in October.
7. eroiect Aguarius, A series or n-cdium delivery products (Intcmational full-
flavour) orpotcritial use within the Dutch market have been developed. and
following sensory evaluation in September a limited number of products will
be available ror CPT later in 1993.
S. Proiect Delight (Lights 555). Following cxtcmal sensory evaluation of
existing 555 mild/light product-. a series or redesigned lights products have
been developed that have similar cigarette design relationship to the parent as
Marlboro FF has to Its Lights version. Masked competitive products and
freshly made test products will be available fiar CPT by August for assessment
in FE markets.
9. Strategies have been developed and implcmentcd for the staged reduction of
B&H ultra lights for SA. currently at 3 mg to compete with a new Rcmbrandt
product introduced at I mg.
co
Cr
BATCO CONFIDE.YnAL - CATEGORY 1: MINNESOTA TOBACCO LaiGAT101N.
BATCo document for Province of BritiSh Columbia 16 April 1999

10. A protocol rorcnsuring optimal product shclf-lirc in an UP. Co. situation has
been produccd for review and issue subject to the approval or the Product. and
Process Stratct,,y Group.
11. Based on the recommendation of Industries Chairman. a product with tllr-
original smoking quality of Du Mauricr Supcrkings has been mproduccd fmr ,
original blend rccord@ and a pmduct summary has been pf%-,srrju:,' zt.)
Marketing.
12. Prem@ium sector mild products havc bccn developed for Bangladcsh. Pr-,-...
have been analysed ror dclivcrv charactcrisLics and submitted for pant!
assessment Selected products will be passed to Bangladesh Tobacco
Company Ltd.. rot evaluation and potential consumer test.
CO
13ATCO Cor*ME".AL - CATEGORY 1: MINNESOTA TOBACCO LrnGATIOIN-
BATCo document for Province of BritiSh Columbia 16 April 1999

Review of Panel activities, sensorv evaluation anti smokine behaviour stlldie$
1. As part of mainmining pancl perlormancc pancilists have bccn cvaluatcd
against product cvcmplam and soma am undcr-,oing a process or rr,
calibration. Work is In progrcss to dcvc1op and expand pancilists vocabuinry
for Virginia flavour character. Due to work dcmands the panel will bc
enlarged using staff from the Production Division and rmm rccn3its from stair
relocating to Luthampton sitc. Durilng the rcvic%v period a pairwisc sensory
test methodology has been introduced Lo determine the relative
diflercriccs bctwccn products.
2. A programme for up-grading OMEGA sorrwarc to racifitaLe data entry. d,.#:,.
analysis and graphical pm=ntationalindings has been initiatcd. ;
software irnp;@vcmcnts arc bcing distributed to BATCo Op Cos together With
operating manuals and furthcr impn)vcmcnts to the OMEGA III sorkwarc
based on Souza Cruz revisions will be is%vcd during the next review period.
Z
3. Smokin-, bchaviour studies have providcd confirmalory quantitative evidence
for the tl@n= dilTcrcnccs bct%vccn Marlboro Full 'Flavour vs. Marl;_-.)ro
Lights. State Express KS vs. State Express SM and State Express KS vs. State
Express Li-,'hts indicating that total pressure drop and actual puff volumes
taken bv smokers providcs the primary basis ror explaining scnsory
di[Tercnccs between products.
4. Detailed analvs1s of a scrics or smoking behaviour studies involving t@-!
U
interaction o@ product dcsign parameters and sensory di(Tcrcnccs have
revealed complex mlationsl@ps between total p.d.. lithcr/rod pd rat"',
cigarette rod density and ventilation. The interaction of these variables can
have significant afiects% on smoker behaviour and hcncc perceived sensory
characteristics or Lhc product. A matrix analysis is being used to build a
knowledge base Lo compliment cigarette design parameters in an attempt to
produce products with cnhanccd positive characteristics.
S. A series of smoking Studies havc bcen compacted in which smokcrs wcn:
allowed to smoke a common product with and without rcfcmncc to visual
cues. These studies c1carly revealed that smokcrs respond. to product
rncchanIcs and the dclivcrv ol'LhC product at the tirric or taking the puff (i.e.
delivery varies along cigarette rod). Work 'is continuing to understand tlr-
physic@-chcmicnl basis or smoke that ar[ects smoke quantity perception
during pulTing as a mechanism for Improving low dclivcry product sensory
characteristics.
6. A series of strategies arc under invcst igation to enhance the sensory properties
of low delivery products. One aspect of this work involves the pulsed
addition of scn%ory modificrs at spccirtc locations 'along the cigarette rod rN
dufing manufacture. The pmlotvpc System 1% now OpClIlfional and lat
products arc being manufactured ar;Ii will undcr-.o sicnsor.v evaluation.
co
BATCO CONFIDENTIAL - CATECORY 1: MINNESOTA TOBACCO LITIGATION.
BATCo document for Province of British Columbia 15 April 1999

7. Significant progress has. been made in respect of recording and simuLating
(duplicating) untiking behaviour to determine product dcli%-crics both at the
wholc cigarcitc and puff by puff level to the smoker.
CD
lc@
J:&
-9:11.
C*
BATCO CONFIDENTIAL - CATEGORY 1: Ml',%'N.'ESOTA T013ACCO LMIGATION.
BATCo document for Province of BritiSh Columbia 15 April 1999

Process Technolriuy Proiect Review
1. The ncw BTC dcvciopmcni WI primary priocassing facility commissioning is
cxpcctcd to bc cumplctcd and opcrational by the cnd ormy 1993.
2. The DEER plant has, b=n fully commissioned Following m-insiallation and
the sheet optimisation prograrrimc has been initiated. Thcsc studies will be
cxtcndcd to includr. shc,-t dcvclopmcnt-, rur both Virginia and USB products.
Product development trials have been completed in Vcnczuela looking for
alternatives ror RCB shccL material. DEER shcct formulations made in the
BTC containing ROOT icchnology (RI;AP) were round to be an accrptab-
altcMt1ve to RCB. Products containing REAP am to be uscd in an c.-amidta
consumer trial prior to rull commcmial introduction.
Despite initial diMicultics. a b1crid containing DEER for usic in the Kcavan
product ROOSTER has bccn found to bc prrfr-rmd by consumers. Fur@hcr
blending work is rcquimd with rcspcct to DEER usc in Sportsman.
a
Imperial Tobacco UK who arc %ccking a liccrisc firim BAT to usc DEER arc
completing con%umcr acccpiability trials.
Initial mporLs rrorn the China CPT 'Indicate that DEER can bc: uscd as a
satisfactory alternative to current SRT manufactured by LTR. In-house
studies involving stmight gradc smoking or DEER. current LTR sheet and an
experimental improved LTR sheet indicate that DEER has preferred
properties. LTR am continuing to improvc their SRT materials.
3. Following a comprehensive rcvicw or mconstitution technologies. recon
tobacco properties and Options lbr future work. it is recommended that 3TC
acquire a hnnd cast system for mcon sheet manufacture. Discussions arc
planned with PP&D to pur%uc this option. As partorthis programme orwork.
simulation studies involving paper based mcon manufacture am being
conducted to explain spccific: and unexpected PM sheet propertiCL A series of
tobacco cnzvmic tmatiricrits; arc bcing used to partially digest proteins and
cellulosic components as a means of modifying/enhancing sensory
characteristics or tobacco. Thcsc includc posttreatment modification to
enhance Maillard flavour reactions reading to pricration or smoke enhancing
compounds (Arnadori tvpc).
4. 02timisation of Southam2ton Plant 012=tim
The ITM drvcr has bccn m-cvnluatcd and srt to pcrrorrn in optimal mode. an;4
cutting moisture reduction evaluated as a potential option f" increasing
throughput or this mic controlling step 'in the PMD. Further modificuion of
the ITM operating modcs and the larnina de-casing line am being investigated
to provide optimal throughput ratcs.
5. Irmversiblee changes am known Lo occur when tobacco is heated during 4n.
C)
primary processing and those am well documented. Thcsc changes can be
both advantageous and deleterious and thcmrom the specific context needs to
Ln
BATCO CONFTEIENTIAL - CkTEGORY 1: MINNESOTA TOBACCO LITIGATION.
BATCo document for Province of British Columbia 15 April 1999

he defined when attempting Lo decide state,,' s for process modification to
IC
achieve smoking quality improvement An experimental matrix is being
developed in order to establish appropriate processing parameters to achtcvc
desired product objective--,
A series or mports arc being written with the objective or bringing to,-,Cthcr
a a
the accumulated know1cdgc of BAT and the undcrstanding we have on the
crrccts or changing pmccw; variables and the consequences for the product.
a a
The first reports will addrcm lamina cutting andstcm cutting ciTccts.
6. Project RANSA has bccn conducted to evaluate the cffcct of using 1-rrD fto
replace rrM drying and achicvc highcr fill values) as a basis ror substit'.::ing
DIE'r in the bIcnd. Sensory testing of I [ANSA samples indicated that all
products developed using HYD relative to the [TM controls had reduced draw
resistance. and draw c(Tort coupled with increases in mouthful. impact and
/0-1 irritation. It war. concluded that products madc: using HTDIO conditions. the
most mild form or the process. am a masonabic match ror the Control product.
Further trials arc bcine conductcd on products made back-to-back using IITD
and ITM drvinL, in Singapore in ordcr to Fully evaluate the utility or the HTD
technology.
7. lmoraved casing implication. A uonvcnLional two-stagc conditioning and
casing system was apfimised and compared to an improved Dickenson system.
The results. using both visual and chemical markets. indicated that both
systems perform equally well. The new -system has both capital and operating
cost benefits and a commercial scale system is undergoing production trials in
BAT Benelux.
S. Bicndin-, ctTir;icncv trials arc continuing using both chemical tric.--, studies
and physical bicndscparation analysis. Rcsults to date indicate that blending
efficiencies arc highcr than expected and indicate that sub-casc blending
M
should be a practical goal.
9. BTC am working in co-operation with the ChIlworth Tcchnolog Ccntm to
a
develop experimental systems ror scpamfing clean tobacco from contaminates
such as paper. carbon particles. filter materials and silica. The motle of
separation will involve charging the particles by mcans of electrical induction
Followed by separation of the diffcmntially c6ged particles. A 'Prototype
'li be available fior cxpcr'=ntal
svStcm WI I evaluation during the next mvtcw
period.
10. Investigations into tobacco strand length in Finished product have indicated
that no differences exist between own and competitive international products
although sorm differences in pitrticlc shape. wcm Observed. Th=
observations and their significancc am being studied in greater dctail.
11. An 'in-house designed. off-linc: laser ventilation system is about to be
commissioned. This system will extend BTCs product dcvclopnwnt facilities
particularly when Inch in conjunction with an additional in-house Ll=igncd
system ror rapidly varying the position or the ventilation holCL Both of these C_-
CC)
co
Or
BATCO COtNFME.NMAL - CATEGORY 1: MUNNESOTA, TOBACCO LMGATIO,-;.
BATCo document for Province of British Columbia 15 April 1999

SyMM-1 Mav proviLIC Iu--V CL*A- rxgcntial ror Use in Op Co's with limited
rcquircrncnts for lascr ventilation
U The - , Its or -studies involving the evaluation of non-nuclconic weight and
dcnsitv control svstcms. so called Rod Control Systems (RCS) have be--n
completed. The trial in Spain indicated that the RCS did not match Lk curmr.!
system The results rrorn Nigcria and Swit7mr1and were inconclusive. Further
work is planned with Wm Red Engineering to improve the perforrmancc:
characteristics or the RCS. This pm*t will be incorporated into the State
F-cpress Quality Task Force activities,
13. Attempts to mlatc Ix-Ah the Lvpc and speed or maker greets on product quality
have been limited bv a lacl@of response to mqucsts for relevant protocol an .'
evaluation reports from the BATCo group. Further cfforts will be made to
obtain relevant data.
Z".
C--)
CZ)
.C::b
13ATCO CONFMENMAL - CATEGORY 1: MINNESOTA TOBACCO UTIGATTON-
BATCo document for Province of BritiSh Columbia 15 April 1999

SE Quality Task FarjM: Review of R& D contribution
1. Obiectionable Stem in Cienrettes. Bascd on libcIfing, (cchniqucs the SOLTCC Of
and contribution firom specific blend components to stcm in cigarettes has
been identified with the primary contribution bclng stem in lamina. QC
procedures for acccicrating sampling and analyses ror objectionable stcrn have
been developed.
2. Pressure droo variability. The sourccs of rxL variability have been identified
and charactcriscd. the main hcing cigarctic wcight and Mier pd. A systc. - for
on-line monitoring of6garcuc pd 6 bcln,,, evaluaftd.
3. Ash' Formation, Significant difTcmnccs in ash quality between products
manuf=turcd using Wattcns and PDM papers have bccn identified. PDM
have undertaken a scrics of studies Lo improve the ash quality of their paper.
A short term solution has been impic=ntcd by manufacturing papcrs on a
small paper making machine wnrking to Lighter QC procedures. This has
givcnparjtywithWattcn,spapcrs. I'DMarcinvalwdinaprogrammeorwork
to furthcr lmpfx)vc ash quality. focusing primarily on use archalk fillcrs with
different msLallisc structures. modifications or inorganic salt levels and to
Consider thcir usc or cafionic starch (believed to be included in Wattcns
papcrs).
4. JoU. BASF have reformulated thcir 'purple' ink. improving colour
pi-mcritation. Initial tcsts havc: bccn inconclusive. In establishing the control
Print for this study it became appamnt that batch to batch variations in current
ink does occur and is a contributor to print intensity variations.
5. Printers. The variability in prinicr opcrating conditions particularly
Lcmpcraturc and hardness o f tk- imprc%sion rollcr is being evaluated. The
print quality or the Pmtc)% is superior to the GD machincs. (ID have been
informcd of this ract.
6. On-line Print Monitoring- 5TC arc attempting to pcrsuadc Allen Bradly,
suppliers of colour photo detection systems. to improve the -sensitivity of their
systems to monitor print quality during cigarette manufacture. Should they
fail to respond. BTC am taking confingcney measures to modiry their system
in-house.
421.
co
SATCO CONFIDENTIAL -CATEGORY I.- MENNESOTA T013ACCO LMGAT10N_
BATCo document for Province of BritiSh Columbia 15 April '1999

Review of Environmental Fraiects
(i) ve been made containing a ranac of I'lavour materials with tFc-
r rnwirvim- sidcstrcam arorna and ilic sub-cqucnt allcr ojour r -i
. a
materials. Sensory evaluation or these modified products is
There is sagnificatIL competitor 2CLiVitV in this area as judged by
(ii rove the ash quality or low sidesircam products in
collaboration with PDIA. Alternative sources or the fair used '!n
sidestmarn products arc bcing identified. A low sidcstrcarn viriaw
Bamlav is available.
(iii) Work to identify gold printed material to replace laminated foil wrapper is
approaching completion. Based on 21 dilTercrit, ink and board combinations
two final options have bccn,,cicctcd Lo undergo market trials.
(iv) OTC have sourced and evaluated a range of eco-friendly cigarcft papem
tipping and paper filters. These materials arc available ut support rnarket
objectives.
(v-7 -A scrics; of potential filter tvpcs have been evaluated. or these two provide a
basis for runhcr evaluation. These arc cxLrudcd Filters made rrom starch and
cellulose acclatc flake. and paper filters rnadc from highly modified crimped
disperses in simulated weather conditions whilst
ter over a longer time period. Work is continuing
cc properties orthcsc materials in productL
The effectiveness of odour/pollution abatement equipment (rive t3rpcs)
currently in use within the group has been determined. Optimisation studies
am in progress to improve the per(ormaricc characteristics or chemical and
water scrubbers. Factors influencing the pcrrormance characteristics or Bio
IF iltcr Svstcms in respect of critical dcsi-,n fcaturc: arc being determined.
a
(vii) Technical suprA)m has f=n provided by BTC 10 the BATCo Enviro
Manager in the dcvclopmcnt of the environmental Policy docurnentation.
Review or the Smoking and Health 2nd the Group blologrical nro-gramme
(i) External Rrograrnme monitored and directed by the SRO
A scrics of studies are funded by the Group and monitored by the SRO in
order to discharge the company's duty of care in rcspccL or S&k area The
studios = conccrticd with pmviding insight into leading edge science in the
areas or cpidcm,oiogv
I chemical carcinogens. molecular genetics.
cardiovascular disease and nicotine pharrmacology. The details or the studics;
am presented in the OTC Work Programme and Status Rcvicw Notes.
Da
--J0
13ATCO CO.N'FIDF-'VnAL CATEGORY I.. r.11,N.NlESOTA TOBACCO LrrIGATION-
BATCO doCUMent for Province of BritiSh ColuMbia 16 April 1999

(ii) In-house bioloeicil proummme
A scrics of gcnotoxicltv assavs mcoaniscd and utilized bv rc--ulatorv
auiboriiics in rcq=t of' ci-amucs and additive% assmmcnt havr brrr
established in-housc. Curmntiv a%,.css=nt is limited to condensate rather
than whoic smoke. Following an approach rrom the Fraunhorrcr Institute,
work is being suppancd in collaboration with BATCF to evaluate the
fcasibilitv of csiablish'na %vstcms ror whole smoke asscssmcrit.
Regulatory authorities am inercasingty looking at cytotoxicity assays as P.
meam orcvalunting the irrinant properties of chemicals and am applying that
tests to our pmduct. These ". cms air curmntiv being evaluated and
established in-house.
A Series of State of the art review-. have b=n prcpamd in rcspcct of DNA-
adducL formation anti the role of dict in development of cancer. Thew
mvimvs have been submitted to the SRG. As part of ft Company's dury or
cam msponsibility the Biology Group is responsible ror monitoring scientific
dcvclop=nLs in the Fields of toxicological assessment.
(iii) Additives and Materials Guidance Panel
New prorx)%als wcrc rcc;civcd ror 155 additives and 26 matcrials- during the
First 6 months of 1993. Thc principle activities or the AMP havc been
concerned with satisrving legislative nceds. product assessment, the additives
data base and the product data basc. A significant amount of support has been
Wed to Pn)jcct Tcst in selecting materials for use in the project.
prove
(iv) Regulatory developments on Additives land MaLqXials
In a climate or Increasing regulatory control. this group provides in puts for
use in discussion with Governments and industry representatives to ensure
awarcricss of ncw proposals and regulations and Lo ensure product conformity
with legislation. Significant activity has kcn -,ivcn to supporting
developments in France. Ncw Zcaland. Hungary and the UK during the
review period.
X-%
CX)
BATCO CONFIDENTIAL - CATEGORY 1: MEN N ESOTA TOBACCO LIT1GATIOM
BATCO document for Province of BritiSh Columbia i6 April 1999

Review or AnaNtical Chemistry acffiiiies
(i) Analytical method development
Dcvelopment oranalytical tcchniqucs and improvcmcnt of existing ones am
undertaken to support the wc)rkarBTC. In addition. developments in new
analytical techniques and equipment am Monitored to idcntiCv innovations
which havc potential for 3TC or Opcrnting Company laboratories
Current development activities am:
Asscssmcnt of supcmritical fluid cxtraction as a mom cf-r&.cti--,!!
rrwthod of extraction. This is also being used to &tictmine
solubilities or casing mawrinis in liquid C02. mimicking
condition-:. in a DIET planL
U= of infrared probes ror on-line nicasurrmcnt or sugar and
nicotine In LhC factorv.
Vapour phase ticans rrorn, cigarcues spiked with traces of fartory
materials to determine the ciTcctoraccidcntal inclusion, in support
ofAddkIvc7b-JMalcriaIs Guidancc Pancl.
A scmi-automatcd IIPLC method for analysis or rricthoprew on
tobacco.
Ion-chromatography and atomic absorption spectroscopy methods
developed [br mutinc analysis orions in board.
New methods for analysis of phcnols by HPLC and humcctants by
capillary GC.
0 Analysis of Amadori compounds by FIPLC mcthod using post
column dcrivatiu.Lion with tctrazoliurn, chloridc.
. Determination or amino acids by GC mcthod involving
dcrivaLisaLlon with a slang agcnL
0 Rcducing the cc)%t and complexity or 3-methyl valcric acid analysis
by improving the extraction and sample c1can-up, steps.
(ii) A regular analytical service is provided to the Technology Centre and
Southampton piant in the areas or product analysis and materials testing.
Work on Supplier Quality-Assurancc in the laitcr arc2 has expanded with the
introduction of regular supplicr audits and a supplicr rating systcm.
(iii) NAMAS accreditation or the Product Analytical laboratory has b=n retained
and extended and the Materials Tcchnoi0gv Laboratory has also =hkvcd
acc=ditation. All or the routinc tests provided by the analytical laboratories
BATCO CONFIDENTIAL - CATEGORY 1: MINNESOTA TOBACCO LMGATIOLN.
BATCo document for Province of British Columbia 15 April 1999

arc now =crcditcmL This has improved laboratory practices and given t@@
laboratory an effectively indqxndcnt staim.
(iv) The I-aboratorv Inrormation Management Sy-ucrn used within all the,
analytical laboratories is MN cstablisbcd and operational Response tinwm
have been improved bv the 'introduction or a larger central computers T1,-,
LIMS has improved operational efficiency and accuracy.
(v) Support has continued to be providcd to BATCo Operating Companies in the
form of analyses. advice and recommendations on all ateas of Laboratory
operation and n==gcmcnL The Inter 1-2boratory Cross Check and Oven
Cross Check tests have continued and improved with positive fecd-back frorn
the Opcrating Companics. A QC laboratory Cross Check is being instil;arcd.
(vi) Reviews or a number of Operating Company Laboratories havc: brrn
performed and termrts produccd giving recommendations on improvement
In two instances the mvicw was c.,xtcndcd Lo cover the whole or the company's
Quality System rather than 'u--A the lalmratory.
co
r1j
BATCO CONFIDENTIAL - CATEGORY 1: MINNESOTA TOBACCO LrnGATiOt-q-
BATCo document for Province of British Columbia 15 April 1999

Review or Flavotir Development act ,fyifies
(i) During the first half or I"3 various llavtmrs have been developed for
Pakistan. Cameroon. New Zealand. Denmark and India.
(ii) The Midas I'lavour. consisting rconibinations or c,.3mfx)ncnts such aa wa,
honev andcrca'm: has the cffcct or increwing the salivation of the smoker.
When applied to %tcm. a considerable impro%-crrx:nt in smoking quality
achieved. Further applicution opportunities ror the Ilav'.Mr arc being sought.
including its potential u-c in DEER material.
(iii) A flavour mixture has bccn developed based on relevant analyses orscict-.tt.?
Oriental tobac-cos and SZ 555 (without agrinkin). The fla@our dc;vcI,;jxe1
improved the smoothriessorthc SE 555 b1crid.
(iv) In support a r the project on rrituli rying siticstrearn aroma. flower cxtrart- live
been applied to tobacco rods. The resultant room odour was Improved from
nonsmokers' points or view. Oplimisation work with these extracts is
continuine. In addition. various SchilTs bases have been svnthcs1%.-(-A wh1c,--
have a vanctv or odours. These will be asscsscd as part of the sidcurcam
madification programme.
(V) Microcricapsulation ormcnthol is being investigated as a nicans or controlling
its retention on cigarettes during storage. and its release during smoking.
Review of Technical Stinoort to Oner2fing, Cornnan*es
(i) In order to crisum appropriate transter or prxxluct technology and advice
between BTC and Operating Companies. nominated persons within BTC
a
maintain links on a 1: I has1% with 35 companies. A large number or topics
hnvc been undertaken during the vcar. cm a continuing basis.
(ii) A variety or product knowIcd;c seminars and courses have bccn -,iVcn or are
plarincti'during the year in Corby. Waking. Southampton. ;,vitzcriand.
Nigeria. Malaysia. Ilang Kong. Kenya. Venezuela and India. Technical
inputs have also been made to MDP an@ MTC programmes at Chclwood.
(iii) Process technology Support has been given to BAT Benelux UTM drycr). ITL
Canada os,-,c%%jn,-, pcrronnancc orcascd icar drycr) and UTC. South Africa
(PMD audit).
Review of Library and Inrormation Services fLIS)
0) During this review period a raw Corripctitor Inforrnaticm News Bullct;r,
containing infomation from comrmrcial databaws aimt BArs competitom
has been produced monLhly and distributed to Millbank, and STC departrnents.
(ii) Responsibility ror administering the company archivci has been taken over b!
LIS. Thcsr'amhivcs arc a potentially valuable source of inrormation to
Millbank =ctions such as GIPS and -Marketing but they were Previously
XI&
co
OD
r%j
kvl
BATCO CONFI[DENTIAL - CATEGORY 1: MINNESOTA T013ACCO LMGATTOX-
BATCo document for Province of BritiSh Columbia 15 April 1999

sumcd aid
unimkxcd and virtually LIS has systcmaficallv
indc=,, the matcrial. and
stowd thcm at an off-shc location which officrs a
nw-d2y ictricval scrvicc. A dat2b= Of the matcrial is bcing compilcd and
information from the amhivcs is now bcing providcd as a scrvicc to Millbank
departmcnts.
(iii) Within Lhc Ccntral Rccurds ar=or LIS. all or LhC pfcparation for the
intmductiono r t hemcartis managemcnt, sy-stcm has bcen complctcd.
C:)
a)
co
co
BATCO CONFIDENTIAL CATEGORY 1: MINVNESOTA TOBACCO LMGATION.
BATCo document for Province of BritiSh Columbia 15 April 1999

Review of Pgrent Activities
During this review pcriotf. the flollowing patent filing have been prepared ror 8TC
's
and P.P&D: vanillin glvcosidcL degradable Filter. DEER modifiCaLi n. CLIFF
to
developments and optical isomer rcsolution. A large number or on-going prosecutions
of BATCo. ATC and B&W patcnt applications have also been madc. In addition.
advice on patent situations has bccn given. including DIET in various countries. and
carbon filtcrs.
Because of rc-organisation within GIPS in Staincs. thc patents renewals procedures
being transrermd to an outsitic agency. The BAT patents administration dat,%L--:.:--
on the AS400 computer in Staincs will in Future be accemd from Southampt;,.i. I..
addition. the'fomialitics' work is also bcing ir2nsfcrmd rmm Staincs to Southampton.
this being the formal procedures associatcd with riling patents in the diflerent
countries.
World wide patents continue to hc added to the database held on the VAX computer
in Souftmpton.
Review of Activities concernine Tobacco Scientoric Associations and
International St2ndards
0) Following -several vcars of' cffort and elections in October 1992. BAT
personnel am now represented at high levels within CORESTA: one Board
member (out or a total of 12). thmi: Scicnti fic: Commission Mcffdxrs (total 20)
and two Group presidents. BAT also has 14 individual companies as
members of CORESTA (total 189. and similar levels to RJR and PM
representation). In addition. BAT has active mcmbcrs on the Agrochcmicals
Advisarv Commiticc and several Task Forms.
(ii) The new CORrSTA Board is currently considering Possible ncw initiatives in
order Lo provide more stratcoic leadership on CORESTA activities. The
Scientific Commission is also modifying its own internal rules to enable it to
exercise greater control over the work or CORESTA. in particular the
activities within the Task Forces. In addition. at two meetings or the
Scientific Commission in the first hairor 1993. it was agreed that CORESTA
would bccumc activcIv involved in cnvirnnff=nLal issue$ SpCCirl=lly relevant
to the tobacco industry. Several new Task Forces arc being set up on
methodology ror cigarette butt ckgrMil-lbilitV. Methodology and reduction
systems ror tobacco factory emissions and tobacco wasLc disposal.
(iii) BTC staff attend meetings of CECCM. TAC and tobacco committees or ISO
and BSI in order to ensure that BATCo's requirements. views and experience
am taken into account in the development of new standards A variety of
topics am being addressed. and small modifications and mfincriwnts am being
sought for the ncw h*rmoniscd ISO smokc standards.
GAR1Vdprojrc%,
X@lb
co
co
r1j
(.n
BATCO CONFIDE.NTIAL - CATEGORY 1:,MI.NNESOTA TOBACCO LMGATION.
BATCo document for Province of British Columbia 15 April 1999