Vector Group Reports First Quarter 2007 Financial Results

First quarter 2007 revenues were $133.9 million, compared to revenues of $117.7 million for the first quarter of 2006. The Company recorded operating income of $25.7 million for the 2007 first quarter, compared to operating income of $20.2 million for the first quarter of 2006. Net income for the 2007 first quarter was $23.1 million, or $0.37 per diluted share, compared to $10.0 million, or $0.17 per diluted share, for the 2006 first quarter. The 2007 results included an approximate $19.6 million pre-tax gain related to the Company's previously announced NASA settlement.

For the three months ended March 31, 2007, the Company's conventional cigarette business, which includes Liggett Group cigarettes and USA brand cigarettes, had revenues of $132.8 million, compared to $115.7 million for the three months ended March 31, 2006. Operating income was $35.5 million for the first quarter of 2007, compared to $30.4 million for the first quarter of 2006.