Reynolds American : RAI announces establishment of executive stock trading plans

Media: Jane Seccombe

(336) 741-5068

Rule 10b5-1 plans permit individuals who are not in possession of material non-public information to establish prearranged plans to buy or sell shares over a specified period of time or at a specific price in the future, regardless of any subsequent material non-public information they receive.
Executives who have filed plans to sell shares of RAI's common stock received under RAI's long-term incentive program are:
• Thomas R. Adams, RAI's executive vice president and chief financial officer;
• Lisa J. Caldwell, RAI's executive vice president and chief human resources officer;
• Robert H. Dunham, RAI's executive vice president - public affairs - and chief communications officer;
• Martin L. Holton III, RAI's executive vice president and general counsel;
• McDara P. Folan, III, RAI's senior vice president, deputy general counsel and secretary;
• Frederick W. Smothers, RAI's senior vice president and chief accounting officer;
• Andrew D. Gilchrist, R.J. Reynolds Tobacco Company's president and chief commercial officer;
and
• Jeffery S. Gentry, R.J. Reynolds Tobacco Company's executive vice president - operations - and chief scientific officer.
The shares will be paid to the executives in March 2015, in settlement of the performance shares granted to them in March 2012, and will be sold thereafter to the extent provided in their respective plans. The final number of shares to be paid to the executives will be determined based on the performance of RAI and its operating companies on certain pre-established performance measures during the period from
2012 through 2014. The aggregate number of shares to be sold by the executives is not expected to
exceed 150,000 shares.
Executives of RAI and its operating companies are subject to share ownership guidelines. Until these guidelines are met, executives are required to retain 50 percent of the after-tax shares earned under RAI's long-term incentive program, assuming taxes of 50 percent. The sale of shares under these Rule
10b5-1 plans will be conducted in compliance with RAI's share ownership guidelines.

RAI's website, www.reynoldsamerican.com, is the primary source of publicly disclosed news about RAI and its operating companies. We use the website as our primary means of distributing quarterly earnings and other company news. We encourage investors and others to register at www.reynoldsamerican.comto receive alerts when news about the company has been posted.

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; American Snuff Company, LLC; Santa Fe Natural Tobacco Company, Inc.; Niconovum USA, Inc.; Niconovum AB; and R.J. Reynolds Vapor Company.

 R.J. Reynolds Tobacco Company is the second-largest U.S. tobacco company. R.J.

Reynolds' brands include two of the best-selling cigarettes in the U.S.: Camel and Pall

Mall. These brands, and its other brands, including Winston, Kool, Doral, Salem, Misty and Capri, are manufactured in a variety of styles and marketed in the U.S.

 American Snuff Company, LLC is the nation's second-largest manufacturer of smokeless tobacco products. Its leading brands are Grizzly and Kodiak.

 Santa Fe Natural Tobacco Company, Inc. manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco.

 Niconovum USA, Inc. and Niconovum AB market innovative nicotine replacement therapy products in the U.S. and Sweden, respectively, under the Zonnic brand name.

 R.J. Reynolds Vapor Company makes and markets VUSE e-cigarettes, a highly differentiated vapor product.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials, including risk factors containing forward-looking information, are available at www.reynoldsamerican.com. To learn how RAI and its operating companies are transforming the tobacco industry, go to the RAI website, Transforming Tobacco.

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