Ust has no immediate opportunity for international expansion. Historically lackluster performance of non- core operations creates some concern that man-agement might use funds to over-invest in under-performing businesses. Additionally,public and political sentiment remains negative regarding the tobacco industry. Despite the less than glowing outlook, theboard of directors decided toborrow up to $1 billion to acclerate the company's stock repurchase program. Looking forward to 1999, VIncent Gierer and the UST management team face the task of implementing the major change in debt policy.