Reynolds American Board Boosts Dividend by More than 13 Percent

Reynolds American Inc. announced a 13.3 percent increase in the company’s quarterly cash dividend.

The new quarterly dividend is $0.85 per common share, or $3.40 on an annualized basis. It will be payable on Oct. 1, 2007, to shareholders of record on Sept. 10, 2007. This is the 13th consecutive quarterly cash dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004.

“The increase we’re announcing today keeps us in line with our policy of returning about 75 percent of our current-year net income to shareholders in the form of dividends,” said Susan M. Ivey, RAI’s chairman, president and chief executive officer. “Our total shareholder return since RAI began trading as a public company three years ago exceeds 100 percent, far outpacing the return of the overall S&P 500.”

ABOUT US

Reynolds American Inc. 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 six of the 10 best-selling U.S. brands:
Camel, Kool, Pall Mall, Winston, Salem 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 distributes
American-blend cigarettes 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 http://www.ReynoldsAmerican.com.

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