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Alliance One International Reports Further Improvement in Second Quarter 

Robert E. Harrison, Chief Executive Officer, said, "Volume, sales and margins this quarter were improved versus last year and met our expectations. Improvements were achieved in what continues to be a very fluid environment with costs increasing in many markets, a US dollar that has begun to weaken again and implementation of certain manufacturer security of supply strategies that provide challenges as well as opportunities. Continued strong customer support and the positive impact of cost containment initiatives are key elements to our strategic plan execution.

"To better position ourselves in this operating environment, we have continued to focus on enhancing our capabilities to deliver specialized services and value-added products. As such, I am pleased to announce that we have just received six US Patent Office "Notices of Allowance" for three lower alkaloid variety burley tobaccos, developed over an eight year period utilizing conventional plant breeding methods at our R&D facility in Brazil. We originally reported these new varieties in November 2007, which further reinforces our commitment to the industry's ongoing research to develop new products. We believe these new varieties retain the desirable leaf quality, grower yields and smoking characteristics typical of existing Brazilian burley tobaccos and we have now started commercial production. Also, on November 6th, we announced commencing work on a new 70 million kilo factory in the Brazilian State of Santa Catarina that will be operational for processing the 2011 crop. Our new factory will place processing closer to this key growing area, establish additional needed storage and meet our investment objectives.

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