UST Chairman Kessler to Make Case for Long-Term Moist Smokeless Tobacco Category Growth at JPMorgan

Source from:  STAMFORD, Conn., June 26 /PRNewswire-FirstCall/ 06/27/2008

UST Inc. (NYSE: UST - News) Chairman and Chief Executive Officer Murray S. Kessler will highlight the company's continuing success at driving moist smokeless tobacco category growth and why the company believes this growth will continue over the long-term at the JPMorgan Global Tobacco Conference in London on June 27. Kessler will point out that moist smokeless tobacco has become one of the fastest growing consumer packaged goods categories at retail, growing six percent compounded annually since 2004. He will describe the company's ongoing success in attracting adult cigarette smokers to moist smokeless tobacco, enabling the company to generate profitable volume growth. Additionally, the UST chairman will point to strong performance in the company's wine business, which is also benefiting from strong category growth and currently ranks as the fastest growing top ten wine company in the U.S. "Both of our businesses feature growing brands in growing categories," Kessler will say. "So even in a challenging U.S. economy, we remain on track to deliver our previously announced diluted earnings per share target for the year of $3.65, with a range of $3.60 to $3.70." Guidance for 2008 excludes any additional restructuring charges associated with Project Momentum, as management is not able to make a determination of the estimated amounts or range of amounts, to be incurred. The 2008 guidance is consistent with the company's long-term goal of providing an average annual shareholder return of 10 percent on a consistent and sustainable basis, including diluted earnings per share growth and a strong dividend. The presentation will be webcast at 7 a.m. Eastern time on June 27 and will be available through the UST website at www.ustinc.com. The webcast will be archived for 60 days. UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates. U.S. Smokeless Tobacco Company is the leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. Ste. Michelle Wine Estates produces and markets premium wines sold nationally under 20 different labels including Chateau Ste. Michelle, Columbia Crest, Stag's Leap Wine Cellars and Erath, as well as exclusively distributes and markets Antinori products in the United States. All statements included in this press release that are not historical in nature are forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements regarding the company's future performance and financial results are subject to a variety of risks and uncertainties that could cause actual results and outcomes to differ materially from those described in any forward-looking statement made by the company. These risks and uncertainties include uncertainties associated with ongoing and future litigation relating to product liability, antitrust and other matters and legal and other regulatory initiatives; the company's ability to execute strategic actions, including acquisitions and the integration of acquired businesses; federal and state legislation, including actual and potential excise tax increases, and marketing restrictions relating to matters such as adult sampling, minimum age of purchase, self service displays and flavors; competition from other companies, including any new entrants in the marketplace; wholesaler ordering patterns; consumer preferences, including those relating to premium and price value brands and receptiveness to new product introductions and marketing and other promotional programs; the cost of tobacco leaf and other raw materials; conditions in capital markets, including the market price per share of the company's common stock and its impact on the number of shares repurchased; and other factors described in this press release and in the company's Annual Report on Form 10-K for the year ended December 31, 2007. Forward-looking statements made by the company are based on its knowledge of its businesses and the environment in which it operates as of the date on which the statements were made. Due to these risks and uncertainties, as well as matters beyond the control of the company which can affect forward-looking statements, you are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date of this press release. The company undertakes no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Enditem