Rothmans Inc. announces redemption of RBH bonds

    Trading: TSX: ROC

    TORONTO, Aug. 21 /CNW/ - Rothmans Inc. announced today that its 60%-owned
subsidiary, Rothmans, Benson & Hedges Inc. ("RBH") is repaying its currently
outstanding 5.552% Senior Unsecured Bonds due December 21, 2011 in the
principal amount of C$150 million (the "Bonds").
    RBH has received a waiver of certain events of default from CIBC Mellon
Trust Company, as Trustee, in accordance with an extraordinary resolution of
the holders of the Bonds which authorized the Trustee to waive the events of
default noted in the extraordinary resolution and to amend the trust
indentures to require a mandatory redemption of the Bonds. It is expected that
holders of Bonds will receive on August 26, 2008 in aggregate the principal of
C$150 million and accrued interest of C$1,505,884.93 on the outstanding Bonds,
together with a make-whole premium of C$10,206,000.00 (calculated on August
21, 2008). RBH is funding the redemption of the Bonds from the proceeds of its
one-year revolving loan facility with JP Morgan Chase Bank, N.A. and from
working capital.

    Forward Looking Statements

    Certain statements contained in this release constitute "forward-looking
statements" and express views as to future events, circumstances and trends
relating to the business of RBH and Rothmans Inc. Words such as "plans,"
"intends," "outlook," "expects," "anticipates," "estimates," "believes,"
"should" and similar expressions may identify forward-looking statements.
Forward-looking statements are based on management's current expectations and
assumptions and entail various risks and uncertainties. There is no assurance
that any forward-looking statement will materialize. Actual results may differ
materially from these expectations and forward-looking statements, if known
and unknown risks or uncertainties affect RBH's business or Rothmans Inc., or
if management's expectations or assumptions prove to be inaccurate. Factors
that could cause actual results to differ materially from the forward-looking
statements contained herein include, but are not limited to, the wire
transfers of funds to repay the Bonds from JPMorgan and RBH to CDS (who will
then forward such funds to the holders of the Bonds) not being processed on
August 26, 2008 in a timely manner. Rothmans Inc. disclaims any obligation or
intention to update or revise any forward-looking statement, whether the
result of new information, future events or otherwise, except as otherwise
required by applicable law. Additional information concerning risks and
uncertainties affecting Rothmans Inc. and RBH is contained in the Company's
filings with the Canadian securities regulatory authorities, including the
Company's Annual Information Form (in particular under "Legal Proceedings" and
"Risk Factors") available on SEDAR at or on the Company's
website at

For further information:

For further information: Michael Frater, (416) 442-3659

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