National Tobacco Company Will Cease Louisville Tobacco Manufacturing and Distribution by Year-end 2009

Production of all NTC loose leaf tobacco brands, which is the primary function of theLouisville facility, will be transitioned toOwensboro, Kentucky under a long-term agreement with Swedish Match North America Inc. NTC will retain all marketing, distribution and trademark rights over its brands. Specific plans for NTC Roll-Your-Own tobacco manufacturing andLouisville product distribution will be announced in the future. The Company will continue to maintain its administrative headquarters at theLouisville facility.

Ron Tully, Vice President of Public Affairs, stated, "NTC has come to this decision because theLouisville facility, built in the early 1900's, operates well below capacity, is energy inefficient and consists of a series of unconnected, multi-story buildings with limited weight-bearing floors that cannot satisfactorily support modern manufacturing techniques. Declines in overall tobacco industry volumes, and increasing regulatory burdens on the industry also contributed to the decision to cease production and distribution at this facility."

Tully further added, "The Company deeply regrets the impact of this decision on our employees, their families and theLouisville economy. This decision is not the fault of any of our employees, many of whom have over 30 years of service, or are second or third generation employees. Unfortunately, the Company cannot foresee any future developments, alternatives or improvements that could change this decision."

     Contact:
     Ron Tully
     Vice President
     National Tobacco Company, LP
     Tel: 917 596 8567
     Fax: 502-774-0017
     email: rtully@nationaltobacco.com

North Atlantic Holding Company, Inc. and North Atlantic Trading Company, Inc. are holding companies which own National Tobacco Company, L.P.

The Companies caution the reader that certain statements contained in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and other important factors. The Companies' actual future results, performance or achievement of results may differ materially from any such results, performance or achievement implied by these statements. Among the factors that could affect the Companies' actual results and could cause results to differ from those anticipated in the forward-looking statements contained herein is the Companies' ability to comply with certain financial covenants, its ability to implement its business strategy successfully, which may be dependent on business, financial and other factors beyond the Companies' control, including, among others, federal, state and/or local regulations and taxes, competitive pressures, prevailing changes in consumer preferences, consumer acceptance of new product introductions and other marketing initiatives, market acceptance of the Companies' current distribution programs, access to sufficient quantities of raw material or inventory to meet any sudden increase in demand, disruption to historical wholesale ordering patterns, product liability litigation and any disruption in access to capital necessary to achieve the Companies' business strategy. The Companies caution the reader not to put undue reliance on any forward-looking statements. In addition, the Companies do not have any intention or obligation to update the forward- looking statements herein. The Companies claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934. Reference is made to Item 1A, "Risk Factors," in the Companies' Annual Reports on Form 10-K for the year ended December 31, 2006.

SOURCE National Tobacco Company, LP

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