FOR IMMEDIATE RELEASE
March 12, 2002

Ellen Qualls
www.governor.state.va.us
(804) 786-2211, x2379


Sara Troy Machir
Star Scientific, Inc.
(301) 654-8300
Jill Lawrence
VEDP
(804) 371-0049
Star Scientific Expands In Mecklenburg County
-Governor Warner announces the creation of 315 new jobs-


CLARKSVILLE - Governor Mark R. Warner today announced that Star Scientific, Inc. will expand its manufacturing and processing facility in Mecklenburg County. The expansion will create 315 new jobs through a $49.9 million investment. Virginia successfully competed with North Carolina, Georgia, and Kentucky for this investment.

“This announcement is great news for Mecklenburg County and all of Southside Virginia,” said Governor Warner. “I am pleased that the Commonwealth was able to help the company bring more quality jobs to Mecklenburg County.”

The parent company of Star Tobacco, Inc., Star Scientific, is a technology-oriented tobacco company that is engaged in the development of tobacco products that deliver fewer carcinogenic toxins. Headquartered in Chester, Virginia, the company is expanding its operations in Mecklenburg County to accommodate the manufacturing and processing of its new smokeless tobacco products, particularly Ariva ™ hard snuff and Stonewall™ dry snuff.

“Star Scientific is pleased to expand its partnership with Mecklenburg County and the Commonwealth of Virginia,” said Paul L. Perito, Chairman and President of Star Scientific. “We are particularly grateful for the support of the Chase City Industrial Development Authority and the Mecklenburg Economic Development Authority, as well as for the Governor’s continued efforts to assist Virginia companies like Star Scientific. We look forward to continuing our relationship with the Commonwealth to ensure that the economy of Mecklenburg County continues to expand.”

Governor Warner approved a $300,000 grant from the Governor’s Opportunity Fund to assist Mecklenburg County with the project. Star Scientific qualified to receive a $500,000 performance-based grant from the Virginia Investment Partnership, a program available to existing Virginia firms. The company is also eligible to receive further tax credits because it is locating in an Enterprise Zone. The Virginia Economic Development Partnership, Mecklenburg County, the Lake Country Marketing Council, and the Town of Chase City assisted Star Scientific with its decision. The Virginia Department of Business Assistance will provide workforce training services.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

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