WINSTON-SALEM, N.C., Feb. 1 /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 $1.25 per common share, or $5.00 on an annualized basis. The dividend is payable April 3, 2006, to stockholders of record on March 10, 2006. This is the seventh dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004. Reynolds American Inc. (NYSE:RAI) is the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., Lane Limited 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, Winston, Salem and Doral. Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes and other tobacco products for U.S. and international markets. Lane Limited manufactures several roll-your-own, pipe tobacco and little cigar brands, and distributes Dunhill 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/. First Call Analyst: FCMN Contact: moskows@rjrt.com DATASOURCE: Reynolds American Inc. CONTACT: Investor, Ken Whitehurst, +1-336-741-0951, Media, Seth Moskowitz +1-336-741-7698, both of R.J. Reynolds Tobacco Company Web site: http://www.reynoldsamerican.com/

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