"The contest continues to grow and get more exciting," said Dan Miller, marketing promotions manager for Santa Fe Natural Tobacco Company. "Each year we are really impressed by the imaginative displays and creative promotions that our retailers construct."

To enter, retailers must create a Natural American Spirit display or promotion, showcase it during the contest period, and submit an entry form along with a written description and color photographs of their entry. All entries must be postmarked by August 1, 2002 and received no later than August 14, 2002. Winners will be notified on or before September 15, 2002. Entries will be judged on the basis of:

1. 1) originality and creativity,
2. 2) overall size and visual appearance, and
3. 3) the potential to increase Natural American Spirit sales.

Other participants noted that, by participating in the contest, they have realized success beyond just the cash and prizes awarded. "Our sales not only increased, they doubled," said first prize winner Jason Riddle of Stash Box Pipes and Tobacco, Dallas, TX.

"The appointment of Ashton will strengthen our field presence and provide a high level of customer service," said Ad Wintermans, president, Agio Cigar Co. "We are confident that the Ashton team will carry the Agio and Panter brands to a higher level of distribution."

Ashton will handle sales through its national sales force. The agreement became effective on February 18, 2002.

Rob Levin, president, Ashton Distributors, said Agio has a strong product line-up in the U.S., and said its "extensive product offerings of small cigars should harmonize extremely well with Ashton." Headquartered in Duizel, Holland, Agio Cigar Co. was founded in 1904 and is a major family-owned cigar manufacturer, producing 700 million cigars per year and employing 3,000 people. The company maintains cigar manufacturing and processing plants in the Netherlands, Belgium, Sri Lanka, and the Dominican Republic. Agio markets its products in more than 100 countries.

"In the short time that we have distributed Perdomo cigars, we have see the traditional Cuban cigar smoker naturally gravitate to Perdomo," said Yeruhan Barzilay, director of marketing, Zfania Barzily, Ltd. "Israel and its people are ready for a top quality, consistent line of cigars like Perdomo."

Tabacalera Perdomo officially celebrated its entry into the Israeli market with a series of events, held from February 15 - March 15, 2002. Perdomo hosted cigar rolling demonstrations, cigar dinners, and a number of black tie events culminating in what it called "the most prestigious cigar launch in Israel."

"As we have done in other European countries, I once again welcome and enjoy the challenge of going head-to-head with Cuban cigars," said George Sosa, director of sales for Tabacalera Perdomo.

"The finest cigars in the world are made by Cubans," said Nick Perdomo, president of Tabacalera Perdomo. "Unfortunately, none of us live in Cuba anymore. I feel that the significant decrease in quality of Cuban cigars, as well as the outstanding taste, quality, and increased popularity of Nicaraguan cigars, has left the door open for our company to gain new Perdomo cigar enthusiasts in Europe and throughout the world. We are very pleased to extend our cigar lines into Israel."

The jury awarded $8.5 million in punitive damages to Miami Cigar & Co. and $34 million in compensatory damages.

Miami Cigar filed suit in 1999 against U.S. Tobacco, its subsidiaries U.S. Tobacco International, U.S. Cigar Sales, Stimson Lane, Ltd., and James McNeill, formerly the president of U.S. Tobacco International, alleging that the U.S. Tobacco defendants committed fraud, conspiracy, theft of trade secrets, and breach of contract in connection with Miami Cigar's contract to distribute U.S. Tobacco cigars in 49 U.S. states.

"We are of course disappointed by the jury's verdict. We believe that the plaintiff failed to prove its case and we plan to pursue post-trial remedies and, if necessary, to appeal," said Richard H. Verheij, UST executive vice president and general counsel.

The suit accuses the ALF of engaging in a campaign of vilification against tobacco companies and its employees -- a clear violation of the Master Settlement Agreement reached in 1998. The MSA created the ALF to educate the public about "the addictiveness, health effects, and social costs related to the use of tobacco products." The MSA specifically prohibits "vilifying" or personally attacking tobacco companies and their employees.

The lawsuit, filed in Manhattan federal court, said the $206 billion settlement between 46 U.S. states and cigarette makers including Philip Morris Cos., gives states an incentive to clamp down on small tobacco companies, such as the plaintiff, Phillips & King

The states, which receive billions of dollars a year from the settlement, have enacted laws to preserve those payments, which are tied to the number of cigarettes sold by the major cigarette makers, the suit said.

"The defendants have a vested interest in assuring that the [major cigarette makers] sell enough cigarettes to meet these base volume quotas," the suit says.

Phillips & King alleges that New York and the other 45 states in the settlement have joined in a "cartel" with the major tobacco companies, including Philip Morris, Loews Corp., R.J. Reynolds Tobacco Holdings Inc., and Vector Group Ltd. The suit seeks class-action status on behalf of all U.S. firms that import cigarettes from manufacturers who didn't take part in the settlement.