Ronald S. Milstein
Senior Vice President,
Legal and External Affairs,
General Counsel and Secretary
Lorillard Tobacco Company
PO Box 10529
Greensboro, NC 27404-0529

March 16, 2006

Dear Mr. Shannon:

This will respond to your letter of February 27, 2006, to Andrew Tisch. Mr. Tisch is Co-Chairman of the Board of Directors of Loews Corporation. Loews Corporation is the parent corporation of Lorillard Tobacco Company.

Lorillard supports effective programs to reduce fires caused by careless smoking. But cigarettes must burn in order to be smoked and there is no such thing as a "fire safe" cigarette. Careless smoking fires and fire deaths have declined dramatically over the last two decades as a result of such initiatives as the implementation of furniture fire resistance standards, smoke detectors and public safety education. These types of programs have proven their effectiveness. Any standard that leads smokers to believe that a lit cigarette is "fire safe" may result in a reversal of the substantial progress that has been made over the last two decades.

To advance the goal of fire safety, a cigarette fire safety standard must demonstrate real-world effectiveness. Any such standard must also allow for the manufacture and sale of cigarettes that adult smokers will accept. We believe that when a cigarette related fire safety measure has been demonstrated to be effective in reducing fires and has been determined to be acceptable to consumers, adoption of such a standard at the national level with preemptive effect upon conflicting state standards should be considered a priority. We encourage Congress, through the cooperation of the Consumer Product Safety Commission, to adopt a national standard that expressly preempts state action.

Cigarettes are the classic example of a product that is manufactured and regulated at the national level. A patchwork of different state standards would be impractical for the manufacture and distribution of the product and, most likely, detrimental to the overall goal of reducing fires.

We will continue to follow research and monitor developments, including the two reports you referenced in your letter, regarding lower ignition propensity cigarettes. While we encourage further study, we hope that you will work with us to persuade Congress to enact federal legislation that is commercially feasible, meets consumer acceptance, and provides for one national standard applicable to all states.

Thank you for your interest in this matter.

Very truly yours

Ronald S. Milstein

Mr. Shannon's reply to the Lorillard Tabacco Company (3/24/06).

March 24, 2006

Dear Mr. Milstein:

Thank you for your response to my letter urging Lorillard to take a leadership position to enhance public safety by announcing that the company will produce and sell only fire-safe cigarettes in the United States. I am disappointed you have declined to do so.

While I appreciate your reply, I wanted to address some key points in your letter.  I agree that to advance the goal of fire safety, a cigarette fire safety standard must demonstrate real-world effectiveness and such cigarettes must be acceptable to consumers. A standard that meets these criteria exists. Nearly two decades of independent research by the National Institute of Standards and Technology, the Harvard School of Public Health, NFPA, and many others addressed all the effectiveness and side-effect questions relevant to the test standard – ASTM E2187, Standard Test Method for Measuring the Ignition Strength of Cigarettes – and the New York State requirement is based on that test standard. As other states propose and enact legislation, they are following the New York lead, which means their requirements also are substantiated by the large body of research and will promote the type of consistency that we all feel is essential, avoiding a patchwork of state standards. In fact, one of the goals of our newly formed Coalition for Fire-Safe Cigarettes is to work to ensure there is just one standard.

Research that has been done to date on the New York experience shows no change in consumer purchasing habits, indicating their acceptance of fire-safe cigarettes. Equally if not more important, initial data indicate a substantial reduction in cigarette-ignited fires. The notion that smokers will be less careful with cigarettes because they presume them to be fire-safe is insulting to your customers.

We are also eager to track ensuing studies but are satisfied this new technology is making a difference and firmly believe the time to act is now.  With 700 to 900 people dying, many of whom are not the smokers, and many more severely injured in cigarette-ignited fires each year, states are not waiting for a federal standard, nor should they. Given the amount of time a federal standard would take and the tobacco industry’s unwillingness to make this change without a mandate, our best opportunity to make the next big leap forward in fire protection and continue the progress to save lives is state by state action.

Quite simply, a standard has been developed and it is working. There is no need to withhold this lifesaving technology from every American.

I urge you to reconsider this issue. Your company can save lives by deciding to produce and sell only this type of cigarette and joining with the Coalition to say, “The time is now.”

Sincerely,
James M. Shannon
President and CEO
NFPA