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Vector Group Ltd. Completes Exchange of Senior Convertible Notes 

Vector Group Ltd. (NYSE: VGR) announced today that it has issued $106.94 million aggregate principal amount of its 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 (the “New Notes”) in exchange for $99.94 million aggregate principal amount of its 5% Variable Interest Senior Convertible Notes due 2011(the “Old Notes”), valued at 107% of principal amount.

The New Notes that were issued will mature on November 15, 2014. The Company will redeem on June 15, 2014 and at the end of each interest accrual period thereafter an additional amount, if any, of the New Notes necessary to prevent the New Notes from being treated as an “Applicable High Yield Discount Obligation” under the Internal Revenue Code.

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