PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

All tobacco products, even when produced to the highest quality standards, are recognised by governments as posing inherent health risks to those who consume them. Risk awareness amongst consumers is constantly reinforced by health warnings on primary packaging mandated by the majority of governments. Our companies acknowledge that smoking poses real risks to health and are committed to enhancing their efforts to communicate to consumers and other stakeholders about the risks of smoking. We are also committed to trying to develop and bring to market tobacco products which appeal to smokers and which have the potential to reduce their exposure to harmful constituents.

In the context of possible product deterioration or contamination, our companies follow a common approach to assuring product integrity. This seeks to minimise the risk of product integrity issues arising, through risk assessment and controls across our product design and supply chain and to ensure the appropriate response capability should a product integrity issue arise through incidents within or beyond our control.

 PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

In 2006, no instances of non-compliance with regulations and voluntary codes concerning consumer health and safety were reported by our companies.

 PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Our companies are required to comply fully with all local laws and regulations of each country in which they operate. Where health warnings on packaging are not required by local laws or regulations, our Health Warning on Cigarette Packaging policy requires our companies to comply with any voluntary codes in force or, in the absence of these, to follow Group guidelines in placing an appropriate health warning on packs. See also PR6 for information on our International Marketing Standards.

 PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes.

No incidents were reported by our EU companies.

 PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Our companies have a common market and information system including:

• An annual General Consumer Survey, including satisfaction with product quality;
• Annual Trade Customer Satisfaction Measurement amongst key distribution and retail partners, providing feedback on service quality.

Our companies are also encouraged to adopt consumer feedback mechanisms such as call centres, websites and mail response suited to the local environment. A bi-annual Customer Satisfaction Measurement amongst key distribution and retail partners is carried out in our top markets, providing feedback on service quality and other aspects of our business relationship, and comparing British American Tobacco with its key competitors and top consumer goods companies servicing the same retailers. The results of the last survey were published in our 2005 Social Report and the survey will be repeated in 2007.

 PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Our companies are required to comply with all local laws and regulations of each country in which they operate, including government requirements on advertising. Each of our companies is also expected to apply our voluntary International Marketing Standards (IMS) for the appropriate promotion of tobacco products. These are globally applicable and globally consistent and in a number of countries exceed the requirements of existing laws or previous voluntary codes.

The IMS require that marketing activities should not particularly appeal to youth, feature celebrities or suggest that smoking enhances popularity or sporting, sexual or professional success. In effect, their application stops tobacco brand advertising by our companies on TV and radio where it was previously permitted by local law. The IMS require voluntary health warnings to be placed on every tobacco product advertisement, with only limited exceptions such as small point-of-sale materials, as well as on product packaging. They require all permitted sponsorship advertising to comply with the same standards as tobacco brand communications and restrict tobacco brand sponsorship of sporting events.

A review of adherence to the IMS forms part of the Group's regular internal audit process and is supported by annual self-certification by management and Audit Committee review.

 PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

In May 2006, the French Supreme Court upheld a complaint by the Comité National Contre le Tabagisme (CNCT) that illustrations included on cigarette packs were advertisements prohibited under French law. The Group companies owning the relevant brands were required to pay fines of approx £20000 each and damages of approx £27000 to CNCT.

A number of administrative cases have been brought against our company in Hungary for breaches of the local advertising legislation. There remains a lack of clarity with regard to the proper interpretation of the legislation, and this is currently under review by the constitutional court. In a number of the underlying cases, the courts have found in British American Tobacco Hungary's favour. Where they have not, British American Tobacco Hungary has brought its practices in line with the court's decisions.

No other material breaches were reported by our companies in EU.

 PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

No incidents were reported by our companies.

 PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Aside from those disclosed earlier, no fines were reported by our companies.

For more information on product responsibility see www.bat.com/consumers.

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