RAI Reynolds American (delisted)

WINSTON-SALEM, N.C., Feb. 16 /PRNewswire-FirstCall/ -- Reynolds American Inc. (NYSE:RAI) announced today the expiration of its offer to issue its new senior secured notes (the "RAI Notes") in exchange (the "RJR Exchange Offer") for up to $161,183,000 aggregate principal amount of outstanding notes issued by R.J. Reynolds Tobacco Holdings, Inc., its direct, wholly owned subsidiary (the "RJR Notes"). The RJR Exchange Offer expired at 5:00 p.m., New York City time, on Feb. 15, 2007 (the "Expiration Date"). As of the Expiration Date, $46,694,500 aggregate principal amount of the RJR Notes (approximately 29.0% of the total outstanding) had been validly tendered for exchange and not withdrawn, consisting of: - $17,610,000 aggregate principal amount (approximately 27.7%) of the 6.500% Notes due 2007; - $3,361,000 aggregate principal amount (approximately 23.6%) of the 7.875% Notes due 2009; - $685,000 aggregate principal amount (approximately 93.2%) of the 6.500% Secured Notes due 2010; - $24,973,500 aggregate principal amount (approximately 30.4%) of the 7.250% Notes due 2012; and - $65,000 aggregate principal amount (approximately 11.7%) of the 7.300% Secured Notes due 2015. Additional RJR Notes may be tendered in the RJR Exchange Offer prior to settlement pursuant to certain guaranteed delivery procedures. RAI has accepted all of the RJR Notes validly tendered and not withdrawn as of the Expiration Date. Settlement of the RJR Exchange Offer is expected to occur on or about Thursday, Feb. 22, 2007. Upon settlement of the RJR Exchange Offer, RAI will issue the RAI Notes in the aggregate principal amount of the RJR Notes accepted for exchange. The RAI Notes will have identical terms as the corresponding RJR Notes exchanged with respect to principal amounts, interest rates, redemption terms and interest payment and maturity dates. This press release is not an offer to sell any securities, nor a solicitation of any offer to buy any securities. The RJR Exchange Offer was made only pursuant to Reynolds American Inc.'s prospectus, dated Nov. 7, 2006, which was filed with the Securities and Exchange Commission as part of Reynolds American Inc.'s Registration Statement on Form S-4 (SEC File No. 333- 138215). ABOUT US Reynolds American Inc. (NYSE:RAI) is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; Santa Fe Natural Tobacco Company, Inc; 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. - Conwood Company, LLC is the nation's second-largest manufacturer of smokeless tobacco products. Its leading brands are Kodiak, Grizzly and Levi Garrett. Conwood also sells and distributes a variety of tobacco products manufactured by Lane, Limited, including Winchester and Captain Black little cigars, and Bugler roll-your-own tobacco. - Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes and other additive-free 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/. DATASOURCE: Reynolds American Inc. CONTACT: Investors, Morris Moore, +1-336-741-3116, or Media, Seth Moskowitz, +1-336-741-7698, both of Reynolds American Inc. Web site: http://www.rjrt.com/ http://www.reynoldsamerican.com/

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