Former Santa Fe Natural Tobacco Company Executive Joins 22nd Century

CLARENCE, N.Y.–(BUSINESS WIRE)– 22nd Century Group, Inc. (NYSE MKT: XXII),
a leader in tobacco harm reduction, announced today the hiring of
Michael Zercher as the Company’s Vice President of Business Development.
Mr. Zercher previously headed Santa Fe Natural Tobacco Company’s
international business operations based in Zurich, Switzerland.

From 2003-2009, while serving as Vice President and Managing Director of
Santa Fe Natural Tobacco Company International (a global subsidiary of
Reynolds American, Inc. (NYSE: RAI)
and maker of Natural American Spirit® premium cigarettes), Mr.
Zercher grew the international American Spirit business from USD
$8 Million to more than USD $100 Million in annual sales. Starting with
operations in only a handful of countries outside of the United States,
Mr. Zercher expanded aggressively and built a thriving international
business with significant sales in more than 12 countries including
Germany, Japan, France, Spain, and Switzerland. In 2015, parent company
Reynolds American, Inc. sold Santa Fe Natural’s international business
to Japan Tobacco Inc. (JAPAF)
for USD $5 Billion – a value of approximately 30 times American
Spirit’s annual international sales.

Despite generally declining global tobacco sales, Mr. Zercher oversaw
double-digit revenue and profit growth for American Spirit
cigarettes each year. At 22nd Century, Mr. Zercher will spearhead the
Company’s efforts to form strategic partnerships with companies capable
of widely commercializing 22nd Century’s proprietary brands. In
addition, Mr. Zercher will pursue sales of the Company’s proprietary
Very Low Nicotine tobacco leaf and high nicotine tobacco leaf.

In order to fully integrate with the 22nd Century executive team, Mr.
Zercher is relocating his family from Santa Fe, New Mexico to Buffalo,
New York. “I am excited to join the great team at 22nd Century and look
forward to renewing the important industry relationships I built in Asia
and in Europe,” explained Mr. Zercher. “International markets are
literally crying out for unique and effective ways to reduce the harm
from smoking and 22nd Century controls the most disruptive technology in
the tobacco industry. I believe 22nd Century is on the verge of
explosive growth.”

“Mike Zercher was instrumental in building a highly profitable,
rapidly-growing American Spirit sales machine across Europe and
in Japan,” explained Henry Sicignano, III, Chief Executive Officer and
President at 22nd Century Group. “To be sure, Mike’s efforts and
accomplishments at Reynolds were substantiated by the $5 Billion Japan
Tobacco acquisition of American Spirit’s international business.
We are confident Mike will likewise achieve great things at 22nd
Century.”

About 22nd Century Group, Inc.

22nd Century is a plant biotechnology company focused on technology
which allows it to increase or decrease the level of nicotine in tobacco
plants and the level of cannabinoids in cannabis plants through genetic
engineering and plant breeding. The Company’s primary mission is to
reduce the harm caused by smoking. 22nd Century currently owns or
exclusively controls more than 200 issued patents and more than 50
pending patent applications around the world. Visit www.xxiicentury.com
for more information.

Cautionary Note Regarding Forward-Looking Statements: This
press release contains forward-looking information, including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of 22nd Century Group, Inc., its
directors or its officers with respect to the contents of this press
release, including but not limited to our future revenue expectations.
The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,”
“believe,” “intend” and similar expressions and variations thereof are
intended to identify forward-looking statements. We cannot guarantee
future results, levels of activity or performance. You should not place
undue reliance on these forward-looking statements, which speak only as
of the date that they were made. These cautionary statements should be
considered with any written or oral forward-looking statements that we
may issue in the future. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any
of the forward-looking statements to conform these statements to reflect
actual results, later events or circumstances, or to reflect the
occurrence of unanticipated events. You should carefully review and
consider the various disclosures made by us in our annual report on Form
10-K for the fiscal year ended December 31, 2015, filed on February 18,
2016, including the section entitled “Risk Factors,” and our other
reports filed with the U.S. Securities and Exchange Commission which
attempt to advise interested parties of the risks and factors that may
affect our business, financial condition, results of operation and cash
flows. If one or more of these risks or uncertainties materialize, or if
the underlying assumptions prove incorrect, our actual results may vary
materially from those expected or projected.

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