NICARAGUA SUES TOBACCO GIANTS

Tobacco companies are facing a legal onslaught from foreign countries
seeking compensation for the costs of treating smoking related illnesses,
following their $206 billion (UKP31.24 billion) settlement with US states.

Nicaragua yesterday filed suit in Puerto Rico against 11 US cigarette makers
including Philip Morris, British American Tobacco/BAT Industries and Brown &
Williamson. In May, Guatemala lodged a similar claim and Brazil is also
expected to follow suit with a claim for around $33 billion.

Julio Centeno Gomez, attorney general of Nicaragua, where a quarter of the
four million population are smokers, said: "Nicotine consumption is like a
permanent Hurricane Mitch plague on our country. We want to prevent tobacco
companies from profiting at our expense." Nicaragua and Guatemala have
engaged Texas law firm, Fleming, Hovenkamp & Grayson. Their first hurdle is
to persuade the US courts that they have jurisdiction in foreign cases.

"There has yet to be such a case," said Mark Gottlieb, a lawyer specialising
in tobacco legislation. "But there is no reason under US law why a foreign
nation cannot come into a US court if the defendant is American."

"Since the States' case took off like wildfire, countries are looking at the
possibility of making claims as they are in a remarkably similar position."

Checked-by: Don Beck