British American Tobacco : Appointment of directors in connection with acquisition of Reynolds American Inc.

British American Tobacco p.l.c. ('BAT' or the 'Company') is pleased to announce today that Lionel L. Nowell, III, Holly Keller Koeppel and Luc Jobin will join the Board of the Company as independent Non-Executive Directors, subject to and with effect from closing of the proposed acquisition of the remaining 57.8% of Reynolds American Inc. ('Reynolds') not already held by BAT (the 'Proposed Acquisition'). Under the merger agreement with Reynolds, it was agreed that three of the non-BAT nominated Reynolds directors would be invited to join the BAT Board at closing of the Proposed Acquisition.

Lionel L. Nowell, III has been the Lead Independent Director of the Board of Reynolds since January 2017, having served as a director since 2007. He is a member of the Compensation and Leadership Development Committee and the Corporate Governance and Nominating Committee. He retired as Senior Vice President and Treasurer of PepsiCo in 2009, where he had held senior financial executive roles since 1999. Prior to PepsiCo, Mr Nowell was Senior Vice President, Strategy and Business Development at RJR Nabisco, Inc. from 1998 to 1999 and held a variety of senior financial roles at the Pillsbury division of Diageo PLC from 1991 to 1998. Mr. Nowell is currently a Non-Executive Director at HD Supply Holdings, American Electric Power Company, Inc and Bank of America Corporation.

Holly Keller Koeppel has been an independent director on the Board of Reynolds since 2008. She is Chair of the Regulatory, Sustainability and Public Policy Committee and a member of the Audit and Finance Committee. Ms Keller Koeppel is a Senior Advisor to Corsair Capital LLC, where she served as Managing Partner and Co-Head of Infrastructure from 2015 until her retirement in 2017. From 2010 to 2015, she served as Co-Head of Citi Infrastructure Investors and prior to 2010 she held financial and executive management roles with American Electric Power Company, Inc and Consolidated Natural Gas Company. Ms Keller Koeppel currently holds Non-Executive Director roles at Vesuvius and AES Corporation.

Luc Jobin has been an independent director on the Board of Reynolds since 2008. He is a member of the Audit and Finance Committee. He is President and Chief Executive Officer of Canadian National Railway Company, a position he has held since 2016, having served as Executive Vice President and Chief Financial Officer since 2009. He was Executive Vice President of Power Corporation of Canada from 2005 to 2009. Mr Jobin was Chief Executive Officer of Imperial Tobacco Canada, a subsidiary of the Company, from 2003 to 2005 and Chief Financial Officer from 2000 to 2003.

BAT Chairman Richard Burrows commented:

'I am very pleased to welcome Lionel Nowell, Holly Keller Koeppel and Luc Jobin to the Board of BAT. Following closing, the Reynolds business will immediately become a key part of the BAT Group. Each of these new directors brings to the Board complementary skills and valuable experience of the US business environment and, in particular, the US tobacco sector.

'We have been shareholders in Reynolds since 2004 and I would like to acknowledge the key role played by all Directors of Reynolds in making Reynolds the success it is today.'