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                                                                   EXHIBIT 99.1
                           MATERIAL LEGAL PROCEEDINGS


ATTORNEY GENERAL ACTIONS

COMMONWEALTH OF PUERTO RICO, ET AL. V. BROWN & WILLIAMSON, ET AL., Case No.
97-1910 (JAF), USDC, District Court of Puerto Rico (case filed on June 27,
1997). This case brought on behalf of the Commonwealth of Puerto Rico seeks
compensatory and injunctive relief for damages incurred by the Commonwealth in
paying for the medicaid expenses of indigent smokers.

STATE OF SOUTH CAROLINA V. BROWN & WILLIAMSON, ET AL., Case No. 97-CP-40-1686,
Court of Common Pleas, Richland County (case filed on May 12, 1997). This case
brought on behalf of the State of South Carolina seeks compensatory and
injunctive relief for damages incurred by the state in paying for the medicaid
expenses of indigent smokers. This case is presently stayed pending the outcome
of l debate concerning national tobacco policy.

STATE OF SOUTH DAKOTA, ET AL. V. PHILIP MORRIS, ET AL., Case No. 98-65, Circuit
Court of 6th Circuit, Hughes County (case filed on February 23, 1998). This case
brought on behalf of the State of South Dakota seeks compensatory and injunctive
relief for damages incurred by the state in paying for the medicaid expenses of
indigent smokers. This case is presently stayed pending the outcome of debate
concerning national tobacco policy.

STATE OF VERMONT V. PHILIP MORRIS, ET AL., Case No. 744-97CnC, Chittenden County
Superior Court (case filed on May 29, 1997). This case brought on behalf of the
State of Vermont seeks compensatory and injunctive relief for damages incurred
by the state in paying for the medicaid expenses of indigent smokers. This case
has a trial date of November 13, 1999.

CLASS ACTIONS

FLETCHER, ET AL. V. BROOKE GROUP, LTD., ET AL., Case No. CV-97-913, Circuit
Court of Mobile County, Alabama (case filed on March 20, 1997). Nationwide class
certified and limited fund class action settlement preliminarily approved with
respect to Liggett and the Company on March 20, 1997. On July 2, 1998, the
parties filed an amended class action settlement agreement. The parties' motion
for reaffirmance of preliminary approval is pending.

HANSEN, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. LR-C-96-881,
USDC, Eastern District of Arkansas (case filed on April 4, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Arkansas. Plaintiffs
filed a motion for class certification on September 15, 1997, which motion
remains pending.

BROWN, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 711400, Superior
Court of San Diego, California (case filed on October 1, 1997). This personal
injury class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in California. No motion for class certification has
been brought by plaintiff.

FINELLI, ET AL. V. PHILIP MORRIS, ET AL., Case No. 96-04348, DC, Superior Court
of District of Columbia. Liggett is named as a defendant in this putative class
action, but has not been served.

REED, ET AL. V. PHILIP MORRIS, ET AL., Case No. 96-05070, DC, Superior Court of
District of Columbia (case filed on June 21, 1996). This "addiction-as-injury"
putative class action is brought on behalf of plaintiff and all similarly
situated addicted smokers resident in the District of Columbia. On August 18,
1997, the court issued an order declining to certify the class.



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BROIN, ET AL. V. PHILIP MORRIS, ET AL., Case No. 91-49738 CA 22, FL, Circuit
Court Dade County (case filed on October 31, 1991). This action brought on
behalf of all flight attendants that have been injured by exposure to
environmental tobacco smoke was certified as a class action on December 12,
1994. This case was settled with respect to all defendants on October 10, 1997,
which settlement was finally approved by the court on February 3, 1998. A notice
of appeal is currently pending.

ENGLE, ET AL. V. R.J. REYNOLDS, ET AL., Case No. 94-08273 CA 20, FL, Circuit
Court, Dade County (case filed on May 5, 1994). This personal injury class
action is brought on behalf of plaintiff and all similarly situated injured
smokers resident in Florida. The case was certified as a class action on October
31, 1994, and trial commenced on July 6, 1998.

PETERSON, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 97-0490-02,
First Circuit Court, Honolulu, Hawaii (case filed on February 6, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Hawaii.

CLAY, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 97-4167-JPG,
USDC, Southern District of Illinois (case filed on May 22, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in 34 states. No motion for
class certification has been brought by plaintiff.

CLEARY, ET AL. V. PHILIP MORRIS, INC., ET AL., Case No. 98 L06427 Circuit Court
of Cook County, IL (case filed on June 11, 1998). This personal injury class
action is brought on behalf of plaintiff and all similarly situated smokers
resident in Illinois. No motion for class certification has yet been brought by
plaintiff.

NORTON, ET AL. V. R.J. REYNOLDS, ET AL., Case No. 48-D01-9605-CP-0271, Superior
Court, Madison County, Indiana (case filed on May 3, 1996). This personal injury
class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in Indiana. No motion for class certification has been
brought by plaintiff.

BRAMMER, ET AL. V. R.J. REYNOLDS, ET AL., Case No. 4-97-CV-10461, USDC, Southern
District of Iowa, (case filed on June 30, 1997). This "addiction-as-injury"
putative class action is brought on behalf of plaintiff and all similarly
situated addicted smokers resident in Iowa. No motion for class certification
has been brought by plaintiff.

EMIG, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 97-1121-MLB,
USDC, District of Kansas (case filed on April 11, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Kansas. Plaintiff's
motion for class certification currently is pending.

CASTANO, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 95-30725,
USDC, Eastern District of Louisiana (case filed on March 29, 1994). This case
was certified as a class action by the district court on February 17, 1995. This
case was settled by Liggett and Brooke on March 12, 1996. The class was
decertified by the Fifth Circuit in May 1996. Plaintiffs' motion for approval of
the settlement was withdrawn on September 6, 1996.

GRANIER, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., USDC, Eastern District
of Louisiana (case filed on September 29, 1994). This case currently is stayed
pursuant to a decision in CASTANO.

YOUNG, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 2:97-CV-03851,
Civil District Court, Parish of Orleans, Louisiana (case filed on November 12,
1997). This personal injury class action is brought on behalf of plaintiff and
all similarly situated injured smokers resident in Louisiana. No motion for
class certification has been brought by plaintiff.




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RICHARDSON, ET AL. V. PHILIP MORRIS, ET AL., Case No. 96145050/CL212596, Circuit
Court, Baltimore City, Maryland (case filed on May 29, 1996). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Maryland. This class
action was certified by the court on January 28, 1998, which certification
decision presently is on appeal. Trial is set for September 15, 1999.

GEIGER, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Index No. 10657/97,
Supreme Court, Queens County, New York (case filed on January 12, 1997). This
personal injury class action is brought on behalf of plaintiff and all similarly
situated injured smokers resident in New York. The case was certified as a class
action on May 1, 1997. The trial court is currently reconsidering class
certification in light of the Appellate Division's July 16, 1998 Order.

NWANZE, ET AL. V. PHILIP MORRIS, ET AL., Case No. 97-CIV-7344, USDC, Southern
District of New York (case filed on October 17, 1997). This action is brought on
behalf of all prisoners nationwide that have been injured by exposure to
environmental tobacco smoke. No motion for class certification has been brought
by plaintiff.

CHAMBERLAIN, ET AL. V. THE AMERICAN TOBACCO COMPANY, Case No. 1:96CV2005, USDC,
Northern District of Ohio (case filed on August 20, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Ohio. To date, no motion
for class certification has been filed by plaintiff.

BARNES, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 96-5903, USDC,
Eastern District of Pennsylvania (case filed on August 8, 1996). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Pennsylvania. The
district court decertified the class in this case on October 17, 1997.
Plaintiffs' appeal of decertification is pending.

AKSAMIT, ET AL. V. BROWN & WILLIAMSON, ET AL., Case No. 6:97-3636-21, SC, USDC,
Dist. of South Carolina, Greenville Division (case filed on November 24, 1997).
This "addiction-as-injury" putative class action is brought on behalf of
plaintiff and all similarly situated addicted smokers resident in South
Carolina. To date, no motion for class certification has been filed by
plaintiff.

NEWBORN, ET AL. V. BROWN & WILLIAMSON, ET AL., Case No. 97-2938 GV, USDC,
Western District of Tennessee (case filed on October 1, 1997). This personal
injury class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in Tennessee. No motion for class certification has
been brought by plaintiff.

MASON, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 7-97CV-293-X,
USDC, Northern District of Texas (case filed on December 23, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Texas. No motion for
class certification has been brought by plaintiff.

HERRERA, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 2:98-CV-00126,
USDC, District of Utah (case filed on January 28, 1998). This personal injury
class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in Utah. No motion for class certification has been
brought by plaintiff.

JACKSON ET AL. V. PHILIP MORRIS INC., Case No. 980901634PI, 3rd Judicial Court,
Salt Lake City County, Utah (case filed on March 10, 1998). This personal injury
class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in Utah. No motion for class certification has been
brought by plaintiff.





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INGLE, ET AL. V. PHILIP MORRIS, ET AL., Case No. 97-C-21-S, Circuit Court of
McDowell County, West Virginia (case filed on February 4, 1997). This personal
injury class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in West Virginia. No motion for class certification has
been brought by plaintiff.

MCCUNE, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 97-C-204,
Circuit Court of Kanawha County, West Virginia (case filed on January 30, 1997).
This "addiction-as-injury" putative class action is brought on behalf of
plaintiff and all similarly situated addicted smokers resident in West Virginia.
No motion for class certification has been brought by plaintiff.

WALKER, ET AL. V. LIGGETT GROUP INC., ET AL., Case No. 2:97-0102, USDC, Southern
District of West Virginia (case filed on February 12, 1997). Nationwide class
certified and limited fund class action settlement preliminarily approved with
respect to Liggett and Brooke Group on May 15, 1997. Class decertified and
preliminary approval of settlement withdrawn by order of district court on
August 5, 1997, which order currently is on appeal to the Fourth Circuit.

INSOLIA, ET AL. V. PHILIP MORRIS, ET AL., Case No. 97-CV-230-J, Rock County
Circuit Court, Wisconsin (case filed on April 4, 1997). This personal injury
class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in Wisconsin. Plaintiffs' motion for class
certification is currently pending.

PARSONS, ET AL. V. LIGGETT GROUP INC., ET AL., Case No. 98-C-388, Circuit Court,
Kanawha County, West Virginia (case filed on February 27, 1998). This personal
injury class action is brought on behalf of plaintiff and all similarly situated
injured smokers resident in West Virginia. No motion for class certification has
been brought by plaintiff.

BAKER, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. 97-703444-NP,
Wayne County Circuit Court, Michigan (case filed on February 4, 1997). This
"addiction-as-injury" putative class action is brought on behalf of plaintiff
and all similarly situated addicted smokers resident in Michigan. No motion for
class certification has been brought by plaintiff.

TAYLOR, TERRY, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No.
97-715975, Wayne County Circuit Court, Michigan (case filed on July 28, 1997).
This personal injury class action is brought on behalf of plaintiff and all
similarly situated injured smokers resident in Michigan. No motion for class
certification has been brought by plaintiff.

WHITE, HENRY LEE, ET AL. V. PHILIP MORRIS, ET AL., Case No. 5:97-CV-91BRS,
Chancery Court of Jefferson County, Mississippi (case filed on April 24, 1997).
This personal injury class action is brought on behalf of plaintiff and all
similarly situated injured smokers resident in Mississippi. No motion for class
certification has been brought by plaintiff.

BADILLO, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No.
CV-N-97-573-HMD (RAM), USDC, District of Nevada (case filed on November 4,
1997). This action is brought on behalf of all Nevada casino workers that have
been injured by exposure to environmental tobacco smoke. No motion for class
certification has been brought by plaintiff.

DIENNO, VITO AND MARTIN N. HALLMAN, ET AL. V. LIGGETT GROUP INC., ET AL., Case
No. unknown, District Court, Clark County, Nevada (case filed on December 22,
1997). This action is brought on behalf of all Nevada casino workers that have
been injured by exposure to environmental tobacco smoke. No motion for class
certification has been brought by plaintiff.





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SELCER, ET AL. V. R.J. REYNOLDS, ET AL., Case No. CV-S-97-00334-PMP (RLH), USDC,
District of Nevada (case filed on September 3, 1997). This personal injury class
action is brought on behalf of plaintiff and all similarly situated injured
smokers resident in Nevada. No motion for class certification has been brought
by plaintiff.

PISCITELLO, HELEN, ET AL. V. PHILIP MORRIS INC., ET AL., Case No. 98-CIV-4613,
Superior Court, Middlesex County, New Jersey (case filed on March 6, 1998). This
personal injury class action is brought on behalf of plaintiff and all similarly
situated injured smokers resident in New Jersey. No motion for class
certification has been brought by plaintiff.

AVALLONE, ET AL V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. MID-L-4883-98,
Superior Court of NJ, Middlesex County (case filed on May 5, 1998). This
personal injury class action is brought on behalf of plaintiff and all similarly
situated smokers resident in New Jersey. No motion for class certification has
yet been brought by plaintiff.

WOODS, DELISA, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No.
97-CVS-7869, General Court of Justice, Superior Ct. Div., North Carolina (case
filed on July 10, 1997). This personal injury class action is brought on behalf
of plaintiff and all similarly situated injured smokers resident in North
Carolina.

DANIELS, CA, San Diego Superior Court (case filed 8/13/98).

SMOKERS FOR FAIRNESS, LLC, CA, San Diego Superior Court (case filed 9/25/98).

LANDRV, LA, Parish of East Baton Rouge (case filed 5/19/98).

TOBACCO CONSUMERS GROUP NO. 1, MA, Superior Court (case filed 8/4/98.

TOBACCO CONSUMERS GROUP NO. 2, MA, Superior Court (case filed 8/3/98.

TOBACCO CONSUMERS GROUP NO. 3, MA, Superior Court (case filed 8/5/98.

TOBACCO CONSUMERS GROUP NO. 4, MA, Superior Court (case filed  8/12/98.

TOBACCO CONSUMERS GROUP NO. 5, MA, Superior Court (case filed 9/17/98).

THOMAS, EZELL, MS, Jefferson County (case filed 10/9/98).

THIRD-PARTY PAYOR ACTIONS

CITY OF BIRMINGHAM, ET AL. V. THE AMERICAN TOBACCO CO., ET AL., Case No.
CV97-081, Greene County, Alabama, Circuit Court (case filed on 5/28/97). City of
Birmingham seeks to recover money damages resulting from payment by the City to
hospitals and other medical providers on behalf of their employees for
tobacco-related disease and death. The City's amended complaint was dismissed by
the court on March 4, 1998, holding that, under the common law of Alabama, the
City lacked standing to recover damages from alleged third-party tortfeasors for
amounts paid on behalf of the plaintiffs' injured employees. The court has,
however, permitted the City to amend its complaint to bring a claim under an
Alabama statute which, the court held, provided a limited authority to recover
such damages under certain circumstances.

COUNTY OF LOS ANGELES V. R.J.REYNOLDS, ET AL., Case No. 707651, Superior Court
of San Diego (case filed on 8/5/97). County seeks to obtain declaratory and
equitable relief and restitution as well as to recover money damages resulting
from payment by the County for tobacco-related medical treatment for its
citizens and health insurance for its employees. Trial is scheduled for February
5, 1999.




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ELLIS, ON BEHALF OF THE GENERAL PUBLIC V. R.J. REYNOLDS, ET AL., Case No.
00706458, Superior Court of San Diego (case filed on 12/13/96). Plaintiffs, two
individuals, seek equitable and injunctive relief for damages incurred by the
State of California in paying for the expenses of indigent smokers.

COUNTY OF COOK V. PHILIP MORRIS, ET AL., Case No. 97L04550, Circuit Court, Cook
County (case filed on 7/21/97). County of Cook seeks to obtain declaratory and
equitable relief and restitution as well as to recover money damages resulting
from payment by the County for tobacco-related medical treatment for its
citizens and health insurance for its employees.

CITY OF NEW YORK, ET AL. V. THE TOBACCO INSTITUTE, ET AL., Case No. 97-CIV-0904,
Supreme Court of New York, New York County (case filed on 10/17/96). City of New
York seeks to obtain declaratory and equitable relief and restitution as well as
to recover money damages resulting from payment by the City for tobacco-related
medical treatment for its citizens and health insurance for its employees.

STATE OF TENNESSEE V. THE AMERICAN TOBACCO CO., ET AL., Case No. 12,263, Monroe
County Chancery Court (case filed on 5/7/97). Individual seeks equitable and
injunctive relief for damages incurred by the State of Tennessee in paying for
the expenses of indigent smokers.

THE CROW CREEK SIOUX TRIBE V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No. CV
97-09-082, Tribal Court of The Crow Creek Sioux Tribe (case filed on 9/26/97).
Indian tribe seeks equitable and injunctive relief for damages incurred by the
tribe in paying for the expenses of indigent smokers.

THE REPUBLIC OF MARSHALL ISLANDS V. THE AMERICAN TOBACCO CO., ET AL., Case No.
1997-261, Republic of the Marshall Islands, The High Court (case filed on
10/30/97). Republic seeks equitable and injunctive relief for damages incurred
by the Republic in paying for the expenses of indigent smokers.

STATIONARY ENGINEERS LOCAL 39 HEALTH & WELFARE TRUST FUND V. PHILIP MORRIS, ET
AL., Case No. C-97-1519-DLJ, USDC, Northern District of California (case filed
on 4/25/97). Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses.

STEAMFITTERS LOCAL UNION NO. 614 HEALTH AND WELFARE FUND V. PHILIP MORRIS, ET
AL., Case No. 92260-2, Circuit Court for 30th Judicial District at Memphis (case
filed on 1/7/98). Union Health and Welfare Fund seeks injunctive relief and
economic reimbursement to recover moneys expended by Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

NORTHWEST LABORERS-EMPLOYERS HEALTH & SECURITY TRUST FUND, ET AL. V. PHILIP
MORRIS, ET AL., Case No. C97-849-WD, WA, USDC, Western District (case filed on
6/26/97). Health and Welfare Trust Fund seeks economic reimbursement to recover
moneys expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

IRON WORKERS LOCAL UNION NO.17 INSURANCE FUND, ET AL. V. PHILIP MORRIS, ET AL.,
Case No. 1:97CV 1422, USDC, Northern District of Ohio, Eastern Div. (case filed
on 5/20/97). Union Insurance Trust Fund seeks economic reimbursement to recover
moneys expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses. A trial is scheduled for
2/22/99.

RHODE ISLAND LABORERS' HEALTH & WELFARE FUND V. THE AMERICAN TOBACCO COMPANY, ET
AL., Case No. 97-500L, USDC, District of Rhode Island (case filed on 10/24/97).
Union Health and Welfare Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.




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TEAMSTERS UNION NO. 142, ET AL. V. PHILIP MORRIS, ET AL., Case No.
71C019709CP01281, USDC, Northern District of Indiana (case filed on 9/15/97).
Union seeks injunctive relief and economic reimbursement to recover moneys
expended by Union Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

KENTUCKY LABORERS DISTRICT COUNCIL HEALTH & WELFARE TRUST FUND V. PHILIP MORRIS,
ET AL., Case No.3-97-394, USDC, Western District of Kentucky (case filed on
6/20/97). Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Trust Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

ARK-LA-MISS LABORERS WELFARE FUND, ET AL. V. PHILIP MORRIS, ET AL., Case No.
97-1944, USDC, Eastern District of Louisiana (case filed on 6/20/97). Welfare
Fund seeks injunctive relief and economic reimbursement to recover moneys
expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

NEW JERSEY CARPENTERS HEALTH FUND, ET AL. V. PHILIP MORRIS, ET AL., Case No.
97-3421, USDC, District of New Jersey (case filed on 10/7/97). Health Fund seeks
injunctive relief and economic reimbursement to recover moneys expended by Fund
to provide medical treatment to its participants and benefactors suffering from
smoking-related illnesses.

LABORERS' LOCAL 17 HEALTH BENEFIT FUND, ET AL. V. PHILIP MORRIS, ET AL., Case
No. 97-CIV-4550, USDC, Southern District of New York (case filed on 7/17/97).
Health Fund seeks injunctive relief and economic reimbursement to recover moneys
expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

CONNECTICUT PIPE TRADES HEALTH FUND, ET AL. V. PHILIP MORRIS, ET AL., Case No.
397CV01305CT, USDC, District of Connecticut (case filed on 7/17/97). Health Fund
seeks injunctive relief and economic reimbursement to recover moneys expended by
Fund to provide medical treatment to its participants and benefactors suffering
from smoking-related illnesses.

CENTRAL ILLINOIS LABORERS HEALTH & WELFARE TRUST FUND, ET AL. V. PHILIP MORRIS,
ET AL., Case No. 97-L516, USDC, Southern District of Illinois (case filed on
5/22/97). Laborers' Union Health Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses. A
trial is scheduled for November, 1998.

LABORERS' AND OPERATING ENGINEERS UTILITY AGREEMENT V. PHILIP MORRIS, ET AL.,
Case No. CIV97-1406 PHX, USDC, District of Arizona (case filed on 7/29/97).
Union Health and Welfare Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

ARKANSAS CARPENTERS HEALTH & WELFARE FUND V. PHILIP MORRIS, ET AL., Case No.
LR-C-97-0754, USDC, Eastern District of Arkansas (case filed on 9/4/97). Union's
Health and Welfare Fund seeks injunctive relief and economic reimbursement to
recover moneys expended by Fund to provide medical treatment to its participants
and benefactors suffering from smoking-related illnesses.

WEST VIRGINIA LABORERS' PENSION TRUST FUND V. PHILIP MORRIS, ET AL., Case No.
397-0708, USDC, Southern District of West Virginia (case filed on 8/27/97).
Laborers' Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses. A
trial is scheduled for June 6, 2000.



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WEST VIRGINIA - OHIO VALLEY AREA I.B.E.W., ET AL. V. LIGGETT GROUP INC., ET AL.,
Case No. 97-C-2135, USDC, Southern District of West Virginia (case filed on
9/19/97). Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses. A
trial is scheduled for March 7, 2000.

MASSACHUSETTS LABORERS' HEALTH & WELFARE FUND, ET AL. V. PHILIP MORRIS, ET AL.,
Case No. C.A. 97-2892G, Superior Court, Suffolk County (case filed on 6/2/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

B.A.C. LOCAL NO.32 INSURANCE TRUST FUND, ET AL. V. PHILIP MORRIS, ET AL., Case
No. 97-75675MI, USDC, Eastern District of Michigan (case filed on 11/18/97).
Health Trust Fund seeks injunctive relief and economic reimbursement to recover
moneys expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

OPERATING ENGINEERS LOCAL 324 HEALTH CARE FUND, ET AL. V. PHILIP MORRIS, INC.,
ET AL., Case No. 598--CV-60020, Circuit Court, Wayne County (case filed on
3/9/98). Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses.

NEW MEXICO AND WEST TEXAS MULTI-CRAFT HEALTH AND WELFARE TRUST FUND, ET AL. V.
PHILIP MORRIS, ET AL., Case No. CV97 0009118NM, Second Judicial District Court,
Bernalillo County (case filed on 1/29/98). Health Fund seeks injunctive relief
and economic reimbursement to recover moneys expended by Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

CENTRAL STATES JOINT BOARD HEALTH & WELFARE FUND V. PHILIP MORRIS, ET AL., Case
No. 97L12855, USDC, Northern District of Illinois (case filed on 10/30/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL 734 HEALTH & WELFARE TRUST FUND V.
PHILIP MORRIS, ET AL., Case No. 97L12852, USDC, Northern District of Illinois
(case filed on 10/30/97). Health and Welfare Trust Fund seeks injunctive relief
and economic reimbursement to recover moneys expended by Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

CARPENTERS & JOINERS WELFARE FUND, ET AL. V. PHILIP MORRIS, ET AL., Case No.
60,633-001, USDC, District of Minnesota (case filed on 12/31/97). Health and
Welfare Trust Plan seeks injunctive relief and economic reimbursement to recover
moneys expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

UNITED FEDERATION OF TEACHERS WELFARE FUND, ET AL. V. PHILIP MORRIS, ET AL.,
Case No. 97-CIV-4676, USDC, Southern District of New York (case filed on
7/17/97). Health and Welfare Trust Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants and benefactors suffering from smoking-related illnesses.

UNITED FOOD AND COMMERCIAL WORKERS UNIONS, ET AL. V. PHILIP MORRIS, ET AL., Case
No. CV-97-1340, Circuit Court of Tuscaloosa, Alabama (case filed on 11/13/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.




                                      A-8
<PAGE>   9

DAY CARE COUNCIL-LOCAL 205 D.C. 1707 WELFARE FUND V. PHILIP MORRIS, ET AL., Case
No. 97-CIV-606240, USDC, Southern District of New York (case filed on 12/4/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

EASTERN STATES HEALTH AND WELFARE FUND, ET AL. V. PHILIP MORRIS, ET AL., Case
No. 97-CIV-7346, USDC, Southern District of New York (case filed on 7/28/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

IBEW LOCAL 25 HEALTH AND BENEFIT FUND V. PHILIP MORRIS, ET AL., Case No.
97-CIV-9400, USDC, Southern District of New York (case filed on 11/25/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

IBEW LOCAL 363 WELFARE FUND V. PHILIP MORRIS, ET AL., Case No. 97-CIV-9396,
USDC, Southern District of New York (case filed on 11/25/97). Health and Welfare
Trust Fund seeks injunctive relief and economic reimbursement to recover moneys
expended by Fund to provide medical treatment to its participants and
benefactors suffering from smoking-related illnesses.

LOCAL 1199 HOME CARE INDUSTRY BENEFIT FUND V. PHILIP MORRIS, ET AL., Case No.
97-606249, USDC, Southern District of New York (case filed on 12/4/97). Health
and Welfare Trust Fund seeks injunctive relief and economic reimbursement to
recover moneys expended by Fund to provide medical treatment to its participants
and benefactors suffering from smoking-related illnesses.

LOCAL 1199 NATIONAL BENEFIT FUND FOR HEALTH & HUMAN SERVICES EMPLOYEES V. PHILIP
MORRIS, ET AL., Case No. 97-606-241, USDC, Southern District of New York (case
filed on 12/4/97). Health and Welfare Trust Fund seeks injunctive relief and
economic reimbursement to recover moneys expended by Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

LOCAL 138, 138A & 138B INTERNATIONAL UNION OF OPERATING ENGINEERS WELFARE FUND
V. PHILIP MORRIS, ET AL., Case No. 97-CIV-9402, USDC, Southern District of New
York (case filed on 11/25/97). Health and Welfare Trust Fund seeks injunctive
relief and economic reimbursement to recover moneys expended by Fund to provide
medical treatment to its participants and benefactors suffering from
smoking-related illnesses.

LOCAL 840 INTERNATIONAL BROTHERHOOD OF TEAMSTERS HEALTH & INSURANCE FUND V.
PHILIP MORRIS, ET AL., Case No. 97-CIV-9398, USDC, Southern District of New York
(case filed on 11/25/97). Health and Welfare Trust Fund seeks injunctive relief
and economic reimbursement to recover moneys expended by Fund to provide medical
treatment to its participants and benefactors suffering from smoking-related
illnesses.

LONG ISLAND REGIONAL COUNCIL OF CARPENTERS WELFAREOCAL 840 INTERNATIONAL
BROTHERHOOD OF TEAMSTERS HEALTH & INSURANCE FUND V. PHILIP MORRIS, ET AL., Case
No. 97-CIV-9397, USDC, Southern District of New York (case filed on 11/25/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.

PUERTO RICAN ILGWU HEALTH & WELFARE FUND V. PHILIP MORRIS, ET AL., Case No.
97-CIV-8462, USDC, Southern District of New York (case filed on 11/25/97).
Health and Welfare Trust Fund seeks injunctive relief and economic reimbursement
to recover moneys expended by Fund to provide medical treatment to its
participants and benefactors suffering from smoking-related illnesses.




                                      A-9
<PAGE>   10

FIBREBOARD CORPORATION, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., Case No.
791919-8, CA, Superior Court of Alameda (case filed on 11/10/97). Asbestos
company seeks reimbursement for damages paid to asbestos victims for medical and
other relief, which damages allegedly are attributable to the tobacco companies.

KEENE CREDITORS TRUST V. BROWN & WILLIAMSON TOBACCO CORP., ET AL., Case no.
606479/97, Supreme Court of New York, New York County (case filed on 12/19/97).
Asbestos company seeks reimbursement for damages paid to asbestos victims for
medical and other relief, which damages allegedly are attributable to the
tobacco companies.

CONWED CORP., ET AL. V. R.J. REYNOLDS TOBACCO CO., ET AL., Case No. Cl-98-3620,
District Court, Ramsey County, Minnesota (case filed on April 9, 1998). Employer
seeks injunctive relief and economic reimbursement to recover moneys expended by
employer to provide medical treatment to its employees suffering from
smoking-related illnesses.

NAT'L ASBESTOS WORKERS MEDICAL FUND, ET AL. V. PHILIP MORRIS INC., ET AL.,
CV-98-1492, USDC, Eastern District of New York (case filed on March 23, 1998).
Health and Welfare Fund seeks injunctive relief and economic reimbursement to
recover moneys expended by Fund to provide medical treatment to its participants
suffering from smoking-related illnesses.

MILWAUKEE CARPENTERS' DISTRICT COUNCIL HEALTH FUND, ET AL, V. PHILIP MORRIS
INC., ET AL., 98CV002394, Circuit Court, Milwaukee County, Wisconsin (case filed
on March 30, 1998). Health and Welfare Fund seeks injunctive relief and economic
reimbursement to recover moneys expended by Fund to provide medical treatment to
its participants suffering from smoking-related illnesses.

WILLIAMS & DRAKE CO., ET AL. V. AMERICAN TOBACCO CO., ET AL., Case No. 98-553,
USDC, Western District of Pennsylvania (case filed on March 23, 1998). Employer
seeks injunctive relief and economic reimbursement to recover moneys expended by
employer to provide medical treatment to its employees suffering from
smoking-related illnesses.

BLUE CROSS AND BLUE SHIELD OF NEW JERSEY, ET AL. V. PHILIP MORRIS INC., ET AL.,
CV 98-3287, USDC, Eastern District of New York (case filed April 29, 1998).
Health insurer seeks injunctive relief and economic reimbursement to recover
moneys expended by insurer to provide medical treatment to its members suffering
from smoking-related illnesses.

ARKANSAS BLUE CROSS AND BLUE SHIELD, ET AL. V. PHILIP MORRIS INC., ET AL., Case
No. 98 C 2612, USDC, Northern District of Illinois (case filed April 29, 1998).
Health insurer seeks injunctive relief and economic reimbursement to recover
moneys expended by insurer to provide medical treatment to its members suffering
from smoking-related illnesses.

REGENCE BLUESHIELD, ET AL. V. PHILIP MORRIS INC., ET AL., Case No. C98-0559R,
USDC, Western District of Washington (case filed April 29, 1998). Health insurer
seeks injunctive relief and economic reimbursement to recover moneys expended by
insurer to provide medical treatment to its members suffering from
smoking-related illnesses.

NEWSPAPER PERIODICAL DRIVERS LOCAL 921, CA, Superior Court, San Mateo County
(case filed 4/15/98).

NORTHERN CALIFORNIA GENERAL TEAMSTERS SECURITY FUND, CA, Superior Court, Alameda
County (case filed 5/98).

NORTHERN CALIFORNIA PLASTERERS HEALTH & WELFARE FUND, CA, Superior Court, San
Francisco (case filed 5/98).

CONSTRUCTION LABORERS OF GREATER ST. LOUIS WELFARE FUND, MO, USDC,. Eastern
District (case filed 10/20/98).




                                      A-10
<PAGE>   11

CONTRACTORS LABORERS. TEAMSTERS & ENGINEERS HEALTH & WELFARE PLAN, NE, USDC,
District of NE (case filed 8/11/98).

PEOPLE OF THE STATE OF CALIFORNIA, CA, Superior Court, San Francisco (case filed
8/5/98).

PEOPLE OF THE STATE OF CALIFORNIA, CA, Superior Court, Los Angeles County (case
filed 7/14/98).

PIPE TRADES DISTRICT COUNCIL NO. 36 HWTF, CA, Superior Court, Alameda County
(case filed 4/16/98).

SAN FRANCISCO NEWSPAPER PUBLISHERS AND NORTHERN CALIFORNIA NEWSPAPER GUILD HWTF,
CA, Superior Court, San Francisco (case filed 4/17/98).

SIGN, PICTORIAL AND DISPLAY INDUSTRY WELFARE FUND, CA, Superior Court, San
Francisco County (case filed 4/16/98).

TEAMSTERS BENEFIT TRUST, CA, Superior Court, Alameda County (case filed
4/15/98).

UA LOCAL NO 159 HWTF, CA, Superior Court, Alameda County (case filed 4/15/98).

UA LOCAL NO. 343 HWTF, CA, Superior Court (case filed 4/98).

UA LOCAL NO. 393 HWTF, CA, Superior Court, Alameda County (case filed 5/98).

UA LOCAL NO.  467 HWTF, CA, Superior Court (case filed 4/98).

HOLLAND, D.C., USDC (case filed 7/9/98).

SERVICE EMPLOYEES INTERNATIONAL UNION HWTF, D.C., USDC (case filed 3/19/98).

GROUP HEALTH PLAN, MN, USDC (case filed 3/13/98).

UTAH LABORERS' HWTF, UT, USDC (case filed 6/11/98).


INDIVIDUAL ACTIONS
(The following is a list of actions by the named individual plaintiffs pending
against Liggett and, except as other wise noted, other tobacco companies. The
actions have been brought in state court, except as otherwise noted.)

CROZIER, AL, USDC (case filed on August 2, 1996). Case is pending.

CORDOVA, CA, San Diego County. Trial begins February 5, 1999.

STERN, CA, Monterey County (case filed on April 28, 1997). Case is pending.

ADAMS, FL, Broward County (case filed on April 10,1997). Case is pending.

ALLMAN, FL, Volusia County (case filed on June 2, 1997). Case is pending.

ALTIERI, FL, Orange County, (case filed on August 12, 1997). Case is pending.





                                      A-11
<PAGE>   12

ARMAND, FL, Volusia County (case filed on July 9, 1997). Case is pending.

ATCHESON, FL, Volusia County (case filed on July 29, 1997). Case is pending.

ATKINS, FL, Orange County (case filed on September 16, 1997). Case is pending.

BAILEY, FL, Dade County (case filed on August 18, 1997). Case is pending.

BARTLEY, FL, Broward County (case filed on June 21, 1997). Case is pending.

BLAIR, FL, Volusia County (case filed on July 29, 1997). Case is pending.

BLANK, FL, Broward County (case filed on April 10, 1997). Case is pending.

BOUCHARD, FL, Bouchard County (case filed on June 2, 1997). Case is pending.

BRONSTEIN, FL, Broward County (case filed on June 10, 1997). Case is pending.

BROWN, FL, Orange County (case filed on September 16, 1997). Case is pending.

BURNS, FL, Broward County (case filed on April 3, 1998). Case is pending.

CHAMBERLAIN, FL, Duval County Circuit Court (case filed on March 4, 1998). Case
is pending.

CLARK, FL, Dade County (case filed on July 18, 1995). Case is pending. Liggett
is the only named defendant.

DAVIS, FL, Broward County (case filed on July 21, 1997). Case is pending.

DAVISON, FL, Broward County (case filed on June 10, 1997). Case is pending.

DE LA TORRE, FL, Broward County (case filed on July 21, 1997). Case is pending.

DELL, FL, Seminole County (case filed on July 29, 1997). Case is pending.

DICK, FL, Orange County (case filed on August 21, 1997). Case is pending.

DILL, FL, Broward County (case filed on April 10, 1997). Case is pending.

DOYLE, Joseph, FL, Flagler County (case filed on September 16, 1997). Case is
pending.

DRISCOLL, FL, Seminole County (case filed on July 29, 1997). Case is pending.

FERGUSON, FL, Volusia County, (case filed on October 10, 1997). Case is pending.

FISCHETTI, FL, Orange County (case filed on November 17, 1997). Case is pending.

FLAKS, FL, Broward County (case filed on June 10, 1997). Case is pending.

GARRETSON, FL, Volusia County (case filed on October 22, 1996). Case is pending.

GATTO, FL, Citrus County (case filed on October 14, 1997). Case is pending.



                                      A-12
<PAGE>   13

GOLDBERG, FL, Broward County (case filed on June 10, 1997). Case is pending.

GONZALEZ, FL, Hillsborough County (case filed on January 2, 1996). Case is
pending.

GRAY, FL, Dade County (case filed on October 15, 1997). Case is pending.

HABIB, FL, Volusia County (case filed on July 10, 1997). Case is pending.

HALEN, FL, Palm Beach County (case filed on June 19, 1996). Case is pending.

HARRIS, FL, Broward County (case filed on July 21, 1997). Case is pending.

HART, FL, Broward County (case filed on June 10, 1997). Case is pending.

HAYES, FL, Volusia County (case filed on June 30, 1997). Case is pending.

HENIN, FL, Dade County (case filed on December 26, 1997). Case is pending.

HENNING, FL, Broward County (case filed on July 21, 1997). Case is pending.

HIRTH, FL, Dade County (case filed in 1996). Case is pending.

HITCHENS, FL, Broward County (case filed on June 10, 1997). Case is pending.

HUMPAL, FL, Volusia County (case filed on June 30, 1997). Case is pending.

JOHNSON, FL, Duval County (case filed on November 30, 1995). Case is pending.

KALOUSTIAN, FL, Hillsborough County (case filed August 28, 1995). Case is
pending.

KRUEGER, FL, USDC, Middle Dist. (case filed August 30, 1996).  Case is pending.

LAPPIN, FL, Volusia (case filed June 2, 1997). Case is pending.

LASCHKE, FL, Pinellas County (case filed December 20, 1996). Case is pending.

LASS, FL, Duval County (case filed December 23, 1996). Case is pending.

LEHMAN, FL, Volusia County (case filed on June 2, 1997). Case is pending.

LEOMBRUNO, FL, Orange County (case filed on September 16, 1997). Case is
pending.

LEVINE, FL, Palm Beach County (case filed on July 24, 1996). Case is pending.

LOBLEY, FL, Seminole County (case filed on July 29, 1997). Case is pending.

LUSTIG, FL, Broward County (case filed on July 21, 1997). Case is pending.

MAGLIARISI, FL, Broward County (case filed on June 11, 1997). Case is pending.





                                      A-13
<PAGE>   14

MANLEY, FL, Broward County (case filed on April 3, 1998). Case is pending.

MCMAHON, FL, Polk County (case filed on April 29, 1997). Case is pending.

MEAGHER, FL, Orange County (case filed on May 22, 1997). Case is pending.

MECKLER, FL, Duval County (case filed July 10, 1997). Case is pending.

MULLIN, FL, Dade County (case filed November 7, 1995). Case is pending.

MULLINS, FL, Orange County (case filed September 16, 1997). Case is pending.

O'ROURKE, FL, Volusia County (case filed June 2, 1997). Case is pending.

PEREZ, FL, USDC, Middle Dist. (case filed August 20, 1996). Case is pending.

PHILLIPS, FL, Volusia County (case filed on May 27, 1997). Case is pending.

PIPOLO, FL, Broward County (case filed on April 10, 1997). Case is pending.

POYTHRESS, FL, Volusia County (case filed on May 5, 1997). Case is pending.

RAUCH, FL, Broward County (case filed July 21, 1997). Case is pending.

RAWLS, FL, Duval County (case filed March 6, 1997). Case is pending.

REILLY, FL, Lake County (case filed October 22, 1997). Case is pending.

RIX, FL, Duval County (case filed April 29, 1996). Case is pending.

SAS, FL, Pinellas County (case filed on June 2, 1997). Case is pending.

SHAW, FL, Broward County (case filed on June 10, 1997). Case is pending.

SHIRA, FL, Orange County (case filed on May 30, 1997). Case is pending.

SPOTTS, FL, Volusia County (case filed on September 16, 1997). Case is pending.

SPRAGUE, FL, Dade County (case filed July 28, 1995). Case is pending.

STAFFORD, FL, Pinellas County (case filed November 14, 1997). Case is pending.

STEWART, FL, Lake County (case filed September 16, 1997). Case is pending.

STRICKLAND, FL, Dade County (case filed January 8, 1998). Case is pending.

SWANK-REICH, FL, Broward County (case filed June 10, 1997). Case is pending.

THOMAS, FL, Broward County (case filed June 10, 1997). Case is pending.

THOMSON, Barry, FL, Flagler County (case filed September 2, 1997). Case is
pending.




                                      A-14
<PAGE>   15

THOMSON, Eileen, FL, Broward County (case filed July 21, 1997). Case is pending.

UFFNER, FL, Dade County (case filed April 29, 1996). Case is pending.

UFFNER, FL, Broward County case filed December 31, 1996). Case is pending.

VENTURA, FL, Dade County (case filed on April 3, 1998). Case is pending.

WASHINGTON, FL, Volusia County (case filed September 16, 1997). Case is pending.

WEIFFENBACH, FL, USDC, Tampa Dist. (case filed August 30, 1996) Case is pending.

WISCH, FL, Broward County (case filed June 10, 1997). Case is pending.

YOUNG, FL, Duval County (case filed November 30, 1995). Case is pending.

ALBERT, GA, USDC, Middle Dist. (case filed January 24, 1997). Liggett has not
yet been served.

BROWN-JONES, GA, Richmond County (case filed January 13, 1998). Case is pending.

DALEY, IL, USDC, Northern Dist. (case filed on August 13, 1997). Case is
pending.

BADON, LA, USDC, Western Dist. (case filed on December 29, 1997). Case is
pending.

BIRD, LA, Jefferson Parish (case filed April 10, 1997). Case is pending.

BRAKEL, LA, USDC, Eastern Dist. (case filed August 30, 1996).  Case is pending.

HEBERT, LA, Calcasieu Parish (case filed May 8, 1996). Case is pending.

HIGGINS, LA, Orleans Parish (case filed June 1, 1996). Case is pending.

OSER, LA, Orleans Parish (case filed May 27, 1997). Case is pending.

PICARD, LA, USDC, Eastern Dist. (case filed March 24, 1995).  Case is pending.

PITRE, LA, East Baton Rouge Parish (case filed August 7, 1992). Case is pending.

BLYTHE, MS, Jackson County (case filed August 23, 1996). Case is pending.

BUTLER, MS, Jones County (case filed on May 12, 1994). Case is pending.

EVANS, MS, Jasper County (case filed June 10, 1997). Case is pending.

MURPHY, NV, USDC (case filed January 6, 1998). Case is pending.

RIVENBURGH, NV, USDC (case filed January 6, 1998). Case is pending.

ULRICH, NV, USDC (case filed January 6, 1998). Case is pending.






                                      A-15
<PAGE>   16

HAINES, NJ, USDC (case filed February 2, 1994). Case is pending.

ALTMAN, NY, Supreme Court, New York County (December 16, 1997). Case is pending.

ANDERSON, NY, Supreme Court, Kings County (case filed November 13, 1997). Case
is pending.

BELLOWS, NY, Supreme Court, New York County (case filed November 26, 1997). Case
is pending.

CAIAZZO, NY, Supreme Court, Richmond County (case filed October 27, 1997). Case
is pending.

CAMERON, NY, Supreme Court, Nassau County (case filed July 18, 1997). Case is
pending.

CARLL, NY, Supreme Court, New York County (case filed August 12, 1997). Case is
pending.

CAVANAGH, NY, Supreme Court, Richmond County (case filed April 23, 1997). Case
is pending.

COLLINS, NY, Supreme Court, Westchester County (case filed July 2, 1997). Case
is pending.

CONDON, NY, Supreme Court, New York County (case filed February 4, 1997). Case
is pending.

CRANE, NY, USDC, Southern Dist. (case filed March 6, 1997).  Case is pending.

CREECH, NY, Supreme Court, Richmond County (case filed January 14, 1997). Case
is pending.

CRESSER, NY, Supreme Court, Kings County (case filed October 4, 1996). Case is
pending.

DA SILVA, NY, Supreme Court, New York County (case filed January 14, 1997). Case
is pending.

DOUGHERTY, NY, Supreme Court, Suffolk County (case filed April 18, 1997). Case
is pending.

DZAK, NY, Supreme Court, Queens County (case filed December 2, 1996). Case is
pending.

EVANS, NY, Supreme Court, Kings County (case filed August 23, 1996). Case is
pending.

FALISE, NY, USDC, Eastern District (case filed November 31, 1997). Case is
pending.

FINK, NY, Supreme Court, New York County (case filed April 25, 1997). Case is
pending.

GOLDEN, NY, Supreme Court, New York County (case filed August 11, 1997). Case is
pending.

GRECO, NY, Supreme Court, Queens County (case filed July 18, 1997).  Case is
pending.

GRUDER, NY, Supreme Court, New York County (case filed December 8, 1997). Case
is pending.

GUILLOTEAU, NY, Supreme Court, Kings County (case filed November 26, 1997). Case
is pending.

HANSEN, NY, Supreme Court, Suffolk County (case filed in April 12, 1997). Case
is pending.

HELLEN, NY, Supreme Court, Kings County (case filed August 23, 1996). Case is
pending.

INZERILLA, NY, Supreme Court, Queens County (case filed July 16, 1996). Case is
pending.




                                      A-16
<PAGE>   17

JAUST, NY, Supreme Court, New York County (case filed October 14, 1997). Case is
pending.

JULIANO, NY, Supreme Court, Richmond County (case filed August 12, 1996). Case
is pending.

KEENAN, NY, Supreme Court, New York County (case filed October 6, 1997) Case is
pending.

KESTENBAUM, NY, Supreme Court, New York County (case filed June 4, 1997). Case
is pending.

KNUTSEN, NY, Supreme Court, Kings County (case filed April 25, 1997). Case is
pending.

KOTLYAR, NY, Supreme Court, Queens County (case filed November 26, 1997). Case
is pending.

KRISTICH, NY, Supreme Court, Suffolk County (case filed October 12, 1997). Case
is pending.

LABROILA, NY, Supreme Court, Suffolk County (case filed July 20, 1997). Case is
pending.

LEHMAN, NY, Supreme Court, New York County (case filed August 11, 1997). Case is
pending.

LEIBSTEIN, NY, Supreme Court, Nassau County (case filed July 25, 1997). Case is
pending.

LEIDERMAN, NY, Supreme Court, Kings County (case filed July 23, 1997). Case is
pending.

LENNON, NY, Supreme Court, New York County (case filed November 19, 1997). Case
is pending.

LEVINSON, NY, Supreme Court, Kings County (case filed 1997).   Case is pending.

LIEN, NY, Supreme Court, Suffolk County (case filed 1997).  Case is pending.

LITKE, NY, Supreme Court, Kings County (case filed May 1, 1997). Case is
pending.

LOMBARDO, NY, Supreme Court, Nassau County (case filed 1997).  Case is pending.

LONG, NY, Supreme Court, Bronx County (case filed October 22, 1997). Case is
pending.

LOPARDO, NY, Supreme Court, Nassau County (case filed October 27, 1997). Case is
pending.

LUCCA, NY, Supreme Court, Kings County (case filed January 27, 1997). Case is
pending.

LYNCH, NY, Supreme Court, New York County (case filed October 22, 1997). Case is
pending.

MAISONET, NY, Supreme Court, Kings County (case filed 1997).  Case is pending.

MARGOLIN, NY, Supreme Court, New York County (case filed November 22, 1996).
Case is pending.

MARTIN, NY, Supreme Court, Queens County (case filed July 18, 1997). Case is
pending.

MCGUINNESS, NY, Supreme Court, New York County (case filed July 28, 1997). Case
is pending.

MCLANE, NY, Supreme Court, Richmond County (case filed 1997). Case is pending.




                                      A-17
<PAGE>   18

MEDNICK, NY, Supreme Court, Kings County (case filed September 19, 1997). Case
is pending.

MISHK, NY, Supreme Court, New York County (case filed May 1, 1997). Case is
pending.

NEWELL, NY, Supreme Court, New York County (case filed November 19, 1997). Case
is pending.

NOCIFORO, NY, Supreme Court, Suffolk County (case filed July 12, 1996). Case is
pending.

ORNSTEIN, NY, Supreme Court, New York County (case filed September 29, 1997).
Case is pending.

PAW, NY, US Court of Appeals (case filed 1997). Case is pending.

PEREZ, NY, Supreme Court, Kings County (case filed August 26, 1997). Case is
pending.

PERRI, NY, Supreme Court, Nassau County (case filed November 24, 1997). Case is
pending.

PICCIONE, NY, Supreme Court, Kings County (case filed October 27, 1997). Case is
pending.

PORTNOY, NY, Supreme Court, Suffolk County (case filed July 16, 1996). Case is
pending.

REITANO, NY, Supreme Court, Kings County (case filed August 22, 1996). Case is
pending.

RINALDI, NY, Supreme Court, Kings County (case filed December 11, 1996). Case is
pending.

ROSE, NY, Supreme Court, New York County (case filed December 18, 1996). Case is
pending.

ROSEFF, NY, Supreme Court, New York County (case filed December 10, 1997). Case
is pending.

RUBINOBITZ, NY, Supreme Court, Nassau County (case filed 1997). Case is pending.

SCHULHOFF, NY, Supreme Court, Queens County (case filed November 21, 1997). Case
is pending.

SCHWARTZ, IRWIN, NY, Supreme Court, Nassau County (case filed 1997). Case is
pending.

SCHWARTZ, PEARL, NY, Supreme Court, Kings County (case filed December 2, 1996).
Case is pending.

SENZER, NY, Supreme Court, Queens County (case filed 1997).  Case is pending.

SHAPIRO, NY, Supreme Court, New York County (case filed July 21, 1996). Case is
pending.

SIEGEL, NY, Supreme Court, Kings County (case filed October 8, 1996). Case is
pending.

SMITH, NY, Supreme Court, Queens County (case filed September 19, 1997). Case is
pending.

SOLA, NY, Supreme Court, Bronx County (case filed on July 16, 1996). Case is
pending.

SPRUNG, NY, Supreme Court, Kings County (case filed 1997).  Case is pending.

STANDISH, NY, Supreme Court, Bronx County (case filed July 28, 1997). Case is
pending.

STERN, NY, USDC, Southern Dist. (case filed January 29, 1997). Case is pending.




                                      A-18
<PAGE>   19

VALENTIN, NY, Supreme Court, Queens County (case filed September 16, 1997). Case
is pending.

WALGREEN, NY, Supreme Court, New York County (case filed 1997). Case is pending.

WERNER, NY, Supreme Court, Queens County (case filed December 12, 1997). Case is
pending.

ZARUDSKY, NY, Supreme Court, New York County (case filed 1997). Case is pending.

ZIMMERMAN, NY, Supreme Court of NY, Queens County (case filed 1997). Case is
pending.

ZUZALSKI, NY, Supreme Court of NY, Queens County (April 3, 1997). Case is
pending.

TOMPKIN, OH, USDC, Northern Dist. (case filed July 25, 1994). Trial is scheduled
for August 31, 1998.

HALL, PA, USDC, Middle District of Pennsylvania (case filed on February 9,
1998). Case is pending.

NICOLO, RI, USDC (case filed September 24, 1996). Case is pending.

PERRY, TN, Knox County (case filed July 20, 1995). Case is pending.

ADAMS, TX, Harris County (case filed April 30, 1996). Case is pending.

BLANCHARD, TX, Galveston County (case filed July 31, 1992). Case is dormant.

BUSH, TX, USDC, Eastern Dist. (case filed September 22, 1997). Case is pending.

COLE, TX, USDC, Eastern Dist. (case filed May 12, 1997).  Case is pending.

COLUNGA, TX, Nueces County (case filed April 17, 1997). Case is pending.

DIESTE, TX, USDC, Eastern Dist. (case filed November 3, 1997) Case is pending.

GOSSETT, TX, Cameron County (case filed November 14, 1996). Liggett has not yet
been served.

HALE, TX, Hidalgo County (case filed January 30, 1997). Case is pending.

HAMILTON, TX, USDC, Southern Dist. (case filed February 26, 1997). Case is
pending.

HARRIS, TX, Nueces County (case filed December 27, 1996). Case is pending.

LUNA, TX, USDC, Southern Dist. (case filed February 18, 1997). Case is pending.

MCLEAN, TX, USDC, Eastern Dist. (case filed August 30, 1996).  Case is pending.

MIRELES, TX, Nueces County (case filed February 14, 1997). Case is pending.

MISELL, TX, Nueces County (case filed January 3, 1997). Case is pending.

RAMIREZ, TX, USDC, Southern Dist. (case filed December 23, 1996). Case is
pending.





                                      A-19
<PAGE>   20

ROGERS, TX, Jefferson County (case filed February 28, 1995). Case is pending.

ROLAND, TX, Nueces County, third party complaint filed against Liggett on
Jaunary 12, 1998. Case is pending.

SANCHEZ, TX, USDC, Southern Dist. (case filed July 22, 1997). Trial is scheduled
for January 4, 1999.

THOMPSON, TX, Nueces County (case filed on December 15, 1997). Case is pending.

WEINGARTEN, VT, USDC (case filed July 19, 1997). Trial is scheduled for December
31, 1998. Liggett is the only named defendant.

BALL, WV, USDC, Southern District of West Virginia (case filed on April 28,
1998). Case is pending.

HISSOM, WV, Kanawha County (case filed September 13, 1997). Trial is scheduled
for January 4, 1999.

HUFFMAN, WV, Kanawha County (case filed February 13, 1998). Case is pending.

MORRIS, WV, Kanawha County (case filed March 3, 1998). Liggett has not yet been
served.

RUSSELL, WV, USDC, Southern District of West Virginia (case filed on April 28,
1998). Case is pending.

SMITH, AL, Tuscaloosa County (case filed on July 9, 1998). Case is pending.

SPRINGER, AR, Eastern Dist. (case filed on July 19, 1998).  Case is pending

DUECKER, FL, Duval County (case filed on July 5, 1998). Case is pending.

RACCA, LA Parish of Cameron (case filed on July 16, 1998). Case is pending.

COLLIER, MS, Southern Dist. (case filed on June 5, 1998).  Case is pending.

ROBISON, OH, Northern Dist. (case filed on June 12, 1998).  Case is pending.

TABB, PA, Eastern (case filed on Juen 23, 1998). Case is pending.

WILLIAMS, PA, Eastern Dist. (case filed on May 29, 1996).  Case is pending.

LITTLE, SC, USDC, (case filed on June 26, 1998). Case is pending.

MITCHELL, TX, Western (case filed on June 17, 1998). Case is pending.

FERRELL, WV, Southern Dist. (case filed on May 21, 1998).  Case is pending.

ROBINSON, CA, Superior Court, San Francisco (case filed 7/23/98), pending.

ROVAI, CA, Superior Court. San Francisco (case filed 7/23/98), pending.

SELLERS, CA, Superior Court, San Francisco (case filed 7/23/39), pending

COWART, FL, Duval County (case filed 3/16/98), pending [Liggett is only named
defendant].





                                      A-20
<PAGE>   21

EASTMAN, FL Hillsborough County (case filed 3/11/98), pending.

STROHMETZ, FL, Duval County (case filed 7/16/98), pending.

GRONBERG, IA, Black Hawk County (case filed 3/30/98) pending.

KOBOLD, IA, Polk County (case filed 9/15/98), pending.

BAKOIAN, ESTATE OF MYDA, MA, Superior Court (case filed 6/22/98), pending
BRANDANO, MA, Superior Court, Commonwealth of Massachusetts (case filed 8/25/98,
pending. CAMERON, MA, Superior Court, Commonwealth of Massachusetts (case filed
8/3/98), pending.

CARMICHAEL-FOLEV, MA; Superior Court Commonwealth of Massachusetts (case filed
7/17/98), pending.

CURTIS, MA, Superior Court, Commonwealth of Massachusetts(case filed 8/27/98),
pending.

DUNN, MA, Superior Court, Commonwealth of Massachusetts (case filed 8/24/98),
pending.

FEENEY, MA, Superior Court, Commonwealth of Massachusetts (case filed 7/15/98),
pending.

FRANCIS, MA, Superior Court, Commonwealth of Massachusetts (case filed 7/5/98),
pending.

GORDON, MA, Superior Court, Commonwealth of Massachusetts (case filed 8/10/98),
pending.

HARB, MA. Superior Court, Commonwealth of Massachusetts (case filed 9/10/98),
pending.

HISCOCK, MA, Superior Court, Commonwealth of Massachusetts (case filed 7/15/98),
pending.

JONES, MA, Superior Court, Commonwealth of Massachusetts (case filed 8/1/98),
pending.

MAJENZA, MA, Superior Court, Commonwealth of Massachusetts (case filed 8/25/98),
pending.

MCKENNEY, MA, Superior Court, Commonwealth of Massachusetts (case filed
7/27/98), pending.

MULCHAY, MA, Superior Court, Commonwealth of Massachusetts (case filed 9/5/98),
pending.

REEDY. ESTATE OF MARIE, MA, Superior Court, Commonwealth of Massachusetts (case
filed 8/13/98), pending.

SERRAINO, MA, Superior Court, Commonwealth of Massachusetts (case filed
8/10/98), pending.

TENERILLO, MA, Superior Court, Commonwealth of Massachusetts (case filed
7/14/98), pending.

VARNEY, MA, Superior Court, Commonwealth of Massachusetts (case filed 9/9/98),
pending.

WAJDA, MA, Superior Court, Commonwealth of Massachusetts (case filed 7/17/98),
pending.

WHITING, MA, Superior Court, Commonwealth of Massachusetts (case filed 9/4/98),
pending.





                                      A-21
<PAGE>   22

WOODS, ESTATE OF HELEN, MA, Superior Court, Commonwealth of Massachusetts
(complaint 9/14/98), pending.

WOOD, JOSEPH, MA. Superior Court, Commonwealth of Massachusetts (complaint
9/14/98), pending.

CLARK. ESTATE OF WYATT, MS, Hinds (case filed 2/17/98), Liggett has not yet been
served.

ROSE, MS. USDC, Northern District (case filed 7/30/98), pending.

GALLUP, NV, USDC, Northern District (case filed 5/21/98), pending. 

ARNETT, NY, New York County (case filed 5/29/98), pending. 

CANAAN, NY, New York County (served 5/21/98), pending. 

LOHN, NY, New York County (case filed 3/26/98), pending. 

MAGNUS, NY, USDC, Eastern District (case filed 5/6/98), pending.

O'HARA, NY, New York County (case tiled 2/23/98), pending. 

ALLEN, WV, Kanawha County (case filed 10/1/98), pending. 

ANDERSON, WV, Kanawha County (case filed 7/31/98), pending. 

NEWKIRK, WV, Kanawha County (case filed 7/22/98), pending.





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