Full Description

Vector Group Ltd. is a holding company. The Company is principally engaged in the manufacture and sale of cigarettes in the United States through its subsidiary, Liggett Group LLC; the development of reduced risk cigarette products through its subsidiary Vector Tobacco Inc., and the real estate business through its subsidiary, New Valley LLC. New Valley owns 50% of Douglas Elliman Realty, LLC, which operates a residential brokerage company in the New York metropolitan area.

Liggett Group LLC

Liggett is the operating successor to Liggett & Myers Tobacco Company. Liggett manufactures and sells cigarettes in the United States. Liggett’s manufacturing facilities are located in Mebane, North Carolina. Liggett produces cigarettes in approximately 180 combinations of length, style and packaging. Liggett’s brand portfolio includes LIGGETT SELECT, which is a brand in the deep discount category; GRAND PRIX, a brand in the deep discount segment; EVE, which is a brand of 120 millimeter cigarettes in the branded discount category; PYRAMID, which is a deep discount product, and USA and various partner brands and private label brands.

Liggett’s customers are primarily tobacco and candy distributors, the military, warehouse club chains, and large grocery, drug and convenience store chains. Liggett purchases and maintains leaf tobacco inventory to support its cigarette manufacturing requirements. As of December 31, 2008, Liggett’s facility produced approximately 8.6 billion cigarettes per year.

The Company competes with Philip Morris USA Inc., Reynolds American Inc., Lorillard Tobacco Company and Commonwealth Brands, Inc.

Vector Tobacco Inc.

Vector Tobacco, a wholly owned subsidiary of VGR Holding, is engaged in the development and marketing of the low nicotine and nicotine-free cigarette products, and the development of reduced risk cigarette products. QUEST brand cigarettes are marketed to permit adult smokers, who wish to continue smoking, to gradually reduce their intake of nicotine. Liggett manufactures all of Vector Tobacco’s cigarette brands under contract at its Mebane, North Carolina manufacturing facility.

The Company competes with Philip Morris and RJR Tobacco.

New Valley LLC

New Valley LLC is engaged in the real estate business and is seeking to acquire additional real estate properties and operating companies. New Valley owns a 50% interest in Douglas Elliman Realty, LLC. New Valley also holds, through its New Valley Realty Division, a 50% interest in the Sheraton Keauhou Bay Resort & Spa in Kailua-Kona, Hawaii. Douglas Elliman Realty is engaged in the real estate brokerage business through its subsidiaries Douglas Elliman and Prudential Douglas Elliman Real Estate. The two brokerage companies have 59 offices in the metropolitan New York area. Douglas Elliman and Prudential Douglas Elliman Real Estate both act as a broker or agent in residential real estate transactions. The two companies also offer buyer brokerage services.

The two brokerage companies also offer relocation services to employers, which provide a variety of services primarily concerned with facilitating the resettlement of transferred employees. These services include sales and marketing of transferees’ existing homes for their corporate employer, assistance in finding new homes, moving services, educational and school placement counseling, customized videos, property marketing assistance, rental assistance, area tours, international relocation, group move services, marketing and management of foreclosed properties, career counseling, spouse/partner employment assistance, and financial services. Clients can select these programs and services on a fee basis according to their needs.

The Company competes with Century-21, ERA, RE/MAX, Coldwell Banker, GMAC Home Services and NRT Inc.