Star Scientific Announces Sale of Stock to Two Existing Shareholders by Paul L. Perito, Esquire

Star Scientific, Inc. (NASDAQ:STSI) announced today thatits Chairman, President and COO sold 600,000 shares of the company'scommon stock to two existing shareholders, Iroquois Master Fund, Ltd.and Marc Oken, in a private transaction, and gave Iroquois Master Fundan option to purchase an additional 500,000 shares during the nextnine months. As previously announced, in July the company's Chairman,Paul L. Perito, Esquire had retired a promissory note owing to thecompany by making a payment of $300,000 on the $2 million note, whichwas 85% non-recourse. As part of that transaction, Mr. Perito incurredimputed income of $1.7 million. The proceeds from the stock sale willbe used principally to pay for loan costs associated with theretirement of this debt, which include taxes associated with theimputed income and the sale of the shares. Following the sale, Mr.Perito continues to beneficially hold 2,761,500 shares of thecompany's common stock.

This press release contains certain forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of1995. The Company has tried, whenever possible, to identify theseforward-looking statements using words such as "anticipates","believes", "estimates", "expects", "plans", "intends" and similarexpressions. These statements reflect the Company's current beliefsand are based upon information currently available to it. Accordingly,such forward-looking statements involve known and unknown risks,uncertainties and other factors which could cause the Company's actualresults, performance or achievements to differ materially from thoseexpressed in, or implied by, such statements. These risks,uncertainties and contingencies include, without limitation, thechallenges inherent in new product development initiatives,particularly in the smokeless tobacco area, the uncertainties inherentin the progress of scientific research, the Company's ability to raisethe capital necessary to maintain its business, potential disputesconcerning the Company's intellectual property, risks associated withlitigation regarding such intellectual property, potential delays inobtaining any necessary government approvals of the Company's low-TSNAtobacco products, market acceptance of the Company's new smokelesstobacco products, competition from companies with greater resourcesthan the Company, the Company's decision not to join the MasterSettlement Agreement ("MSA"), the effect of state statutes adoptedunder the MSA and any subsequent modification of the MSA, and theCompany's dependence on key employees and on its strategicrelationships with Brown & Williamson Tobacco Corporation in light ofits combination with RJ Reynolds Tobacco Company, Inc. The impact ofpotential litigation, if initiated against or by individual statesthat have adopted the MSA, could be materially adverse to the Company.

See additional discussion under "Factors That May Affect FutureResults" in the Company's Registration Statement on Form S-3, as filedwith the Securities and Exchange Commission on April 28, 2005, andother factors detailed from time to time in the Company's otherfilings with the Securities and Exchange Commission, available atwww.sec.gov. The Company undertakes no obligation to update or adviseupon any such forward-looking statements to reflect events orcircumstances after the date of this press release or to reflect theoccurrence of unanticipated events.

About Star Scientific

Star Scientific is a technology-oriented tobacco company with atoxin reduction mission. It is engaged in the development of tobaccoproducts that deliver fewer carcinogenic toxins (principally tobaccospecific nitrosamines, or TSNAs), through the utilization of theinnovative StarCured(TM) tobacco curing technology, and insublicensing that technology to others. Star Scientific has aCorporate and Sales Office in Chester, VA, an Executive, Scientific &Regulatory Affairs office in Bethesda, MD, and manufacturing andtobacco processing facilities in Chase City and in Petersburg, VA.