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RAI CEO: 'Returning Value in a Challenging Time'
Date:4/30/2008

esulting from the termination of the Gallaher Joint Venture, in April, the company received 40 percent of the total payment of euro265 million. That payment was euro106 million - or about $166 million. The balance will be paid in annual installments over the next six years.

Adams said that RAI's confidence in the future is evidenced by the $350 million share repurchase that the board has approved. He said the company plans to use cash generated from operations to opportunistically repurchase shares during the next 12 months. "This approach allows us to maintain financial flexibility while returning value to shareholders," he said.

"In the current economic environment," Adams said, "our strong balance sheet and financial flexibility position us well to take advantage of opportunities to further increase shareholder value."

CONFERENCE CALL WEBCAST TODAY

Reynolds American will webcast a conference call to discuss first-quarter 2008 results at 9:30 a.m. Eastern Time on Wednesday, April 30, 2008. The call will be available live online on a listen-only basis. To register for the call, please visit the "Investors" section of http://www.ReynoldsAmerican.com. A replay of the call will be available on the site until May 30 at 5 p.m. Investors, analysts and members of the news media can also listen to the live call by phone, by dialing 888-715-1397. Remarks made during the conference call will be current at the time of the call and will not be updated to reflect subsequent material developments. Although news media representatives will not be permitted to ask questions during the call, they are welcome to monitor the remarks on a listen-only basis. Following the call, media representatives may direct inquiries to Seth Moskowitz at (336) 741-7698.

RISK FACTORS

Statements included in this news release that are not historical in nature are forward-looking statements made pursuant
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SOURCE Reynolds American Inc.
Copyright©2008 PR Newswire.
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