Washington Post Story Featuring 22nd Century VLN Products Highlights Proposed FDA Reduced Nicotine Content Policy Could Initially Benefit An Estimated 13 Million Smokers

Industry Trends and Market Opportunity - The FDA estimates that 13 million smokers could benefit from reduced nicotine cigarette policies in the first five years, highlighting a significant public health opportunity [1] - The reduced nicotine cigarette market mirrors the growth of non-alcoholic beer and spirits, as consumers seek alternatives to traditional products [1] - The FDA's policy proposal to mandate reduced nicotine content in cigarettes has cleared review by the U.S. Office of Management and Budget, indicating regulatory progress [3] Company Overview and Product Innovation - 22nd Century Group is a pioneer in nicotine harm reduction, offering VLN cigarettes with 95% less nicotine than traditional cigarettes [2] - The company's proprietary technology regulates nicotine biosynthesis in tobacco plants, enabling full flavor and high yield with significantly reduced nicotine content [2][6] - VLN cigarettes are the only FDA-authorized combustible tobacco products under the Modified Risk Tobacco Product designation, available in over 5,000 stores nationwide [7] Manufacturing and Expansion Capabilities - The company operates a 60,000 square foot manufacturing facility in Mocksville, North Carolina, with an annual production capacity of over 45 million cartons of combusted tobacco products [2] - The facility has additional space for expansion, supporting future growth in production [2] Regulatory and Policy Developments - The reduced nicotine cigarette policy, initiated during the Trump administration, has gained momentum under the Biden administration, reflecting bipartisan support for smoking harm reduction [7] - 22nd Century Group's VLN products have demonstrated commercial viability and effectiveness in controlling nicotine intake, countering skepticism from major tobacco companies [1][7] Market Positioning and Competitive Advantage - The company's extensive patent portfolio ensures it is the sole provider of low nicotine combustible cigarettes in the U.S. and key international markets [6] - 22nd Century Group collaborates with retailers to stock VLN products and other reduced nicotine cigarette brands, creating a new market category [1]