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Tobacco One, Inc. announced today that they have purchased a regionally popular cigarette brand from a Mexico City businessman for cash plus common stock. The previous owner will stay on as a consultant to Tobacco One, Inc. for a minimum two-year term.

The brand was first introduced in Mexico City in 2006. It remained a regional brand until recently when Tobacco One’s international marketing team finished a three-month feasibility study focusing on national expansion and consumer acceptance. During this study, Tobacco One in partnership with the Mexico City marketing firm Integra Marketing, S.A. de C.V. obtained numerous commitments that will result in expanded distribution nationwide.

Currently, the brand is sold throughout Mexico City in premier retailers. Recently, these global chains have authorized the brand to immediately expand to all of their locations nationwide. This new authorization will add approximately 90 club locations, 120 big-box style stores and 80 super-centers to the brand’s current base of participating retailers. This new rollout will feature the brand at over 4,000 cash register locations within these new stores. This program will be implemented during the months of July and August, 2008. Tobacco One, Inc. will provide the necessary resources and manpower needed to expand this brand into each targeted trade class in all major population centers throughout the country.

"Along with the new expansion, and the additional contracts currently under review, Tobacco One, Inc. expects unit volume over the next 12 months to exceed 200 million sticks (cigarettes) for the cigarette brand, resulting in revenues of over $12 million, and net earnings (EBITDA) of nearly $3 million or 25%," stated Shawn Ulizio, Tobacco One’s President and CEO. He continued, "The new brand is clearly positioned to be a market leader in Mexico’s newly emerging discount cigarette price tier, and Tobacco One is nicely positioned to dominate in this specialized tobacco category."

Lt. Gov. Brian Krolicki says he hopes legislators consider approving his plan that could raise $600 million to $775 million in revenue without increasing taxes to address the budget shortfall.

"These are extraordinary times, and Nevada needs to take extraordinary measures," Krolicki said Thursday by phone from Beijing, where he is heading a state trade mission.

Under his plan, the state would sell bonds and use the revenue to cover current debts. The bonds would be repaid from the annual payments the state receives from tobacco companies.

Nevada receives about $50 million a year from the tobacco industry to compensate for the medical costs to the state of tobacco-related illnesses.

"The situation is so dire now it makes sense to use tobacco securitization to balance the state budget," Krolicki said. "You can’t nickel and dime your way out of a $1 billion budget shortfall."

Legislators next week are scheduled to go into a special session to cut $100 million to $200 million more in state spending because of falling tax revenues. Lawmakers and Gov. Jim Gibbons already have approved $914 million in cuts to the two-year budget that ends June 30, 2009.

Krolicki’s plan isn’t without its critics.

In a letter Wednesday to Gibbons, state Treasurer Kate Marshall said her office has been unable to secure the "working papers" on the assumptions Krolicki used to arrive at the estimated proceeds from his plan. If the Legislature considers the proposal, Marshall said, she wants to work with the attorney general "to determine the extent to which such action would put the state at risk of engaging in fiduciary failure."

Marshall also pointed out that Krolicki in 2003 told the Senate Committee on Government Affairs that a tobacco securitization plan would be a "tremendous fiduciary failure" and should not be used to "balance today’s budget."

At the time, Krolicki was state treasurer.

Krolicki said that in earlier sessions he advocated legislators issue bonds against the tobacco money. But at the 2003 session, he said, he opposed the plan because "it is too expensive and the market is not right."

The situation has changed dramatically since 2003, Krolicki said, and the plan is needed because there is no guarantee Nevada will continue to receive money from the tobacco industry at current levels.

The tobacco money now is used to cover some of the expenses of the Millennium Scholarship and SeniorRx programs.

"It is one of the few options that can raise a considerable amount of money without raising taxes or substantially harming a considerable amount of people," Krolicki said.

Legislators and the governor are looking at ways to cut spending without laying off workers.

Krolicki said his plan is available on his Web site and in handouts he has distributed to the media. He said he proposed creation of a working group, which would include the treasurer, to review the plan before any bonds were sold.

"I would be pleased to work with her (Marshall) and show how the model works," he said. "She is making noise now in a nonconstructive way."

Since Marshall assumed his job in January 2007, the two have been at loggerheads.

Krolicki has been investigated by the Nevada Division of Investigation because of concerns Marshall raised over his handling of a college tuition program and office e-mail messages. No charges have been filed against him.

It may sound like an oxymoron…a fire safe cigarette. But they are real and they are law in two states in our area. That means every pack sold is labeled FSC or fire safe cigarettes. The Marlboro cigarettes are made to go out on their own and the new law has plenty of people fired up.
At cigarette stores across Kentucky, three letters are igniting quite the controversy. "I don’t really care for them. They don’t taste the same anymore," says Danny Scott. His cigarettes taste different because they are FSC. It’s not a brand, but rather a brand new rule in Kentucky that all cigarettes sold be fire safe.
So they go out on their own. If you see the initials FSC on a pack of cigarettes it means each one has special paper to slow the burning process. Simply put, if you’re not puffing, it’s going out. "If you are just sitting here talking like you and me are and you’ve got one lit, don’t take fifteen seconds and it’s out," says Scott.
Actually, we tested that theory and it took an unattended cigarette five minutes and 41 seconds to go out. But it’s not the inconvenience most people complain about."It doesn’t give me a headache just gives me a copper taste in my mouth. It’s nasty," says smoker Jewell Robertson. It may be nasty, but Deputy Fire Marshall Greg Cherry says the new law basically boils down to safety. "We realize they are going to be an inconvenience to some people but the overall big picture is that they end up saving property and possibly lives," Cherry says.
For Danny Scott, there is another option, "We’ll buy them in Missouri or Arkansas, that way they’re not fire safe," he adds. But he may not have that option for long because Missouri is close to adding the three letters to their Marlboro cigarettes too.
Kentucky and Illinois have laws on the books that require cigarettes sold to be fire safe. Legislation is pending in both Missouri and Tennessee.

An increase in the state cigarette tax is long overdue and the Legislature should approve one this session. But lawmakers shouldn’t rush into the Medicaid expansion recommended by the Senate Finance Committee. Something less ambitious is needed.
Last month, the Finance Committee approved, for the second year in a row, a major expansion of the state Medicaid program. Critics reasonably question whether the receipts from a 50-cent tax will be enough to cover the cost.
Sen. Larry Grooms, R-Berkeley, argues that the program expansion will be followed by an increase in participation that can’t be sustained by the tax hike.
Sen. Grooms, led an effort to use anticipated tax revenues, some $159 million, to provide tax credits to small companies for medical insurance for the working poor. That plan has the benefit of engaging the marketplace in a health care solution.
Senate President Pro Tempore Glenn McConnell says the Finance Committee plan for expanding Medicaid doesn’t have sufficient support in the full Senate for passage.
The Senate leader supports the tax credit idea, but says revenue from the tax hike also could be used to bolster the previous Medicaid expansion for children, as well as educational programs aimed at reducing tobacco use among young people. His compromise is worth exploring.
At 7 cents a pack, the state tax on discount cigarettes is the lowest in the nation, and hasn’t been increased in 20 years. An increase would raise money for health care programs but, as important, would likely reduce cigarette consumption, based on the experience elsewhere.
That in itself would be a step forward in the state’s general health and well-being.
The Legislature should recognize the general health care benefits that can be gained from taxing cheap cigarettes and move toward a solution that can be enacted this year.

As a result of an agreement between state and federal health ministers, the sale of flavoured cigaretteswill be banned in Australia.
Nicola Roxon the Federal Health Minister met her state counterparts in Melbourne at the Australian Health Minister Conference last week in order to thrash out a range of health issues.
Ms Roxon says the cigarette ban will target tobacco products flavoured either with chocolate or fruit flavours with the intention of enticing children and young people to smoke.
A ban on their importation is being considered and although the sale of the flavoured cigarettes is already banned in some states including NSW and South Australia, lemon, orange, strawberry and apple flavoured cigarettes are currently available alongside regular flavoured cigarettes in several states and territories.
The ministers have also agreed to draw up national regulations and guidelines for the use of solariums in order to help ensure young people do not risk getting skin cancer.
They plan to utilise steps already taken in Victoria to regulate the solarium industry and Ms Roxon says have adopted some national principles that will be put in place.
A $15 million funding boost will also give health workers greater access to specialised mental health training and go towards training 24,000 health workers to enhance their skills when they are dealing in particular with patients with complex mental health problems.

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LONDON: The warning ‘Smokers Die Younger’ doesn’t seem to ring a bell with superstar Daniel Radcliffe who has been nicknamed ‘Harry Puffer’ by his co-stars for puffing about 20 cigarettes a day.
The young wizard rushes to light a stick whenever the director yells "Cut" and has now been advised by one and all on the set of the new Hogwarts movie to kick the butt.
The teenage star finishes around a pack per day and has pals, including fellow Potter star Rupert Grint, pretty worried.
"Daniel has recently been smoking up to 20 cigarettes a day. Every time they call ‘Cut’, he lights up. It’s disgusting. Friends and co-stars including Rupert Grint have been warning him about the dangers of smoking. But he doesn’t take any notice," The Sun quoted a source, as saying.
Also worried are the producers of the final flick in the series, who believe that his puffing habits may destroy his schoolboy image. They have now warned him not to be seen smoking in public.
"He’s been having late nights out with stars like Kevin Spacey and Stephen Fry and seems to have picked up bad habits from the luvvie set," revealed the source.
In fact, Radcliffe was so nervous doing a stunt himself and turned to his cigarettes while his double was absent.
"He was sparking up constantly," said the source.