JUDGE OKS $17.3 BILLION TEXAS TOBACCO ACCORD

AUSTIN, Texas - A federal judge has given final approval to a $17.3 billion
settlement of the state's lawsuit against the tobacco industry, the largest
in litigation history.

A broad settlement was reached in January on the eve of a trial in the
case, but there was a delay in finalizing it because of disagreements over
payments to counties and fees to private lawyers.

"The agreement represents a tremendous victory for the state and an
unprecedented opportunity to promote the public health in our state,
particularly the health of our kids," said Texas Attorney General Dan Morales.

Next month, nearly $400 million in initial payments will be deposited in
the state treasury, Morales said. Texas will get $1.28 billion this year
and annual payments thereafter.

The dispute over the amount of fees paid to private attorneys who assisted
the state will be considered later by an arbitration panel. The original
state contract called for the attorneys to get $2.3 billion, or 15 percent
of the total, but Gov. George W. Bush and seven lawmakers objected.

Checked-by: Mike Gogulski