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Tobacco One, Inc. Signs Major Distribution Agreement for Newly Acquired Mexican Cigarette Brand Rojo's

SCOTTSDALE, Ariz.-(Business Wire)-August 4, 2008 - Tobacco One, Inc. (Pink Sheets: TBCO) today announced the signing of a major tobacco distribution contract with Comercializadora de la Rosa of Mexico City.

Comercializadora de la Rosa is one of the region's leading consumer products distributors with direct access to over 80,000 retail accounts and 120-plus sales professionals throughout the country. In addition, Comercializadora de la Rosa owns and operates the convenience store chain "Zippy's".

Over the past month the Zippy's chain has participated in a test market for Tobacco One's newly acquired cigarette brand Rojo's. During the test market, the Rojo's brand averaged over 400 units sold per month per location. The impressive test results prompted Comercializadora de la Rosa to allocate permanent shelf space to the Rojo's brand throughout the Zippy's chain, as well as spearheaded the decision to offer and promote the Rojo's brand nationwide through their vast distribution network.

"If we penetrated only 5% of their potential customer base and they were able to duplicate the successes experienced with Zippy's chain test, we would realize sales volume of approximately 1.6 million units monthly," stated Shane Ludington, Vice President of Business Development, Tobacco One. "This market test further convinces us that our recent acquisition of the Rojo's cigarette brand could be a key factor in garnering future corporate earnings and increasing shareholder value."

Arturo Escalante, Director of Operations for Tobacco One's Latin American projects, and Director General for Tobacco One's appointed marketing firm, Integra MDC, stated, "The de la Rosa project could generate nearly 20 million units annually. This contract could translate into nearly $24 million in annual revenue for Tobacco One, Inc."

Comercializadora de la Rosa initially purchased 30,000 units. Tobacco One anticipates weekly orders to commence after the first purchase order is delivered.

"This is the first of several distribution agreements that are currently being negotiated by Tobacco One in Mexico," stated Shawn Ulizio, Tobacco One's president. "Tobacco One is moving forward by seeking synergetic alliances with Mexico's premier distributors and retailers who share our excitement for the Rojo's cigarette brand."

About Tobacco One, Inc.

Tobacco One, Inc. designs, creates, and brings to market, innovative smoking products. Through vertical integration and an aggressive acquisition plan, Tobacco One is positioned to become a premier supplier in the industry. Development of a national distribution network will serve to properly brand the company's own cutting edge product line currently under development. Tobacco One is focused on specialty cigars, cigarettes and other tobacco products (OTP) with an emphasis on the international marketplace.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors available from the Company.

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