Reynolds American Declares Quarterly Dividend

WINSTON-SALEM, N.C., Feb. 5 /PRNewswire-FirstCall/ -- The board of directors of Reynolds American Inc. (NYSE: RAI) today declared a quarterly cash dividend on the company's common stock of $0.85 per share, or $3.40 per share on an annualized basis. The dividend will be payable on April 1, 2008, to shareholders of record on March 10, 2008.

This is the 15th consecutive quarterly cash dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004.

RAI's policy is to return about 75 percent of the company's current-year net income to shareholders in the form of dividends. Since RAI began trading as a public company four years ago, the company's total shareholder return has exceeded 100 percent, far outpacing the return of the overall S&P 500.

ABOUT US

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; Santa Fe Natural Tobacco Company, Inc; and R.J. Reynolds Global Products, Inc.

    -- R.J. Reynolds Tobacco Company, the second-largest U.S. tobacco company,
       manufactures about one of every three cigarettes sold in the country.
       The company's brands include five of the 10 best-selling U.S. brands:
       Camel, Kool, Pall Mall, Winston and Doral.
    -- Conwood Company, LLC is the nation's second-largest manufacturer of
       smokeless tobacco products.  Its leading brands are Kodiak, Grizzly and
       Levi Garrett.  Conwood also sells and distributes a variety of tobacco
       products manufactured by Lane, Limited, including Winchester and
       Captain Black little cigars, and Bugler roll-your-own tobacco.
    -- Santa Fe Natural Tobacco Company, Inc. manufactures Natural American
       Spirit cigarettes and other additive-free tobacco products.
    -- R.J. Reynolds Global Products, Inc. manufactures, sells and/or
       distributes American-blend cigarettes, including Natural American
       Spirit, and other tobacco products to a variety of customers worldwide.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials are available at www.ReynoldsAmerican.com .