Evidence is now available to indicate that the 14-to-18- year-old group is an increasing segment of the smoking population. RJR-T must soon establish a successful new brand in this market if our position in the industry is to be maintained over the long term.

First, let's look at the importance of the young adult in the cigarette market. In 1960, this young adult market , the 14 to 24 age group, represented 21% of the population. As seen by this chart, they will represent 27% of the population in 1975, they represent tomorrow's cigarette business, as this 14 -24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years .

It should be said that we are presently, and I believe unfairly, constrained from directly promoting cigarettes to the youth market...Realistically, if our Company is to survive and prosper, over the long term, we must get our share of the youth market. In my opinion, this will require new brands tailored to the youth market.

Evidence is now available to indicate that the 14-to-18- year-old group is an increasing segment of the smoking population. RJR-T must soon establish a successful new brand in this market if our position in the industry is to be maintained over the long term.

Younger adult smokers are the only source of replacement smokers If younger adults turn away from smoking, the industry must decline.

If our company is to survive and prosper, over the long term we must get our share of the youth market.

They represent tomorrow's cigarette business. . . As this 14-24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years.