RAI Reynolds American (delisted)

Federal District Court Judge Grants Summary Judgment Motion For R.J. Reynolds Tobacco Company WINSTON-SALEM, N.C., Aug. 24 /PRNewswire-FirstCall/ -- R.J. Reynolds Tobacco Company applauds today's decision striking down a Washington State law that prohibits tobacco companies from sampling products to adult smokers in bars, nightclubs and other age-restricted venues. In its court filing, R.J. Reynolds claimed the law, approved by Gov. Christine Gregoire on March 9, violated the First Amendment and is preempted by the Federal Cigarette Labeling and Advertising Act (FCLAA), the federal law that generally bars states from regulating cigarette advertising and promotion. "The law said its purpose was to protect minors, but Washington law already prohibits cigarette sampling where minors may be present," says Darryl R. Marsch, senior counsel for R.J. Reynolds. "The new law was simply an unconstitutional attempt to prevent us from using an accepted form of product promotion to adult smokers." In his ruling, U.S. District Court Judge Franklin D. Burgess stated: "The State ban on the distribution of cigarettes to members of the general public at no cost or at nominal cost for product promotion purposes is a state regulation of the promotion of cigarettes and thus, preempted by the FCLAA." The law, which took effect June 7, is unenforceable as a result of today's ruling. R.J. Reynolds Tobacco Company, an indirect subsidiary of Reynolds American Inc. (NYSE:RAI), is the second-largest tobacco company in the United States, manufacturing about one of every three cigarettes sold in the country. The company's brands include five of the 10 best-selling U.S. cigarette brands: Camel, Kool, Winston, Salem and Doral. For more information, visit http://www.rjrt.com/ . DATASOURCE: R.J. Reynolds Tobacco Company CONTACT: David Howard of R.J. Reynolds Tobacco Company, +1-336-741-3489 Web site: http://www.rjrt.com/

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