22nd Century Group Inc (XXII)

[Atlanta1]

Modified Risk a Key Value Driver
Recent actions by 22nd Century highlight one of the key value drivers
for 22nd Century: the potential for the company to receive a modified
risk or reduced exposure designation from the FDA. Successfully
achieving this designation, we believe, would allow the company to
produce a highly differentiated product in a market where regulators
have increasingly removed that ability. For instance, last month the
FDA sent warning letters to Santa Fe Natural Tobacco Co, ITG
Brands and Sherman’s 1400 Broadway NYC stating Natural
American Spirit and Winston brands advertising of their cigarettes as
“additive free” or “natural” violates federal regulations.

$XXII