Reynolds American Chairman Establishes Stock Trading Plan WINSTON-SALEM, N.C., Aug. 4 /PRNewswire-FirstCall/ -- Andrew J. Schindler, the executive chairman of Reynolds American Inc. (NYSE:RAI) has established a stock-trading plan under Rule 10b5-1 of the Securities and Exchange Act of 1934. After the sales of shares and options he has authorized under this plan, Schindler will continue to own approximately 75,000 shares of RAI stock. Schindler, who plans to retire in six months and become non-executive chairman of RAI, has never cashed any of his stock options or restricted shares other than to pay tax withholdings. Before instituting the 10b5-1 plan, Schindler discussed his intentions with, and received concurrence from, the board of directors of R.J. Reynolds Tobacco Holdings, Inc. (RJR), which became a wholly owned subsidiary of RAI on July 30, 2004. The sale of shares will occur over a five month period and will allow Schindler to appropriately balance his personal finances for his upcoming retirement. He currently holds approximately 465,000 RAI options and approximately 118,000 shares of RAI stock. Lynn J. Beasley, president and chief operating officer of R.J. Reynolds Tobacco Company, a subsidiary of RAI, and Charles A. Blixt, executive vice president and general counsel of RAI, also established 10b5-1 stock-trading plans. Beasley's plan covers 10,000 shares, after the execution of which she will own approximately 24,300 shares. Blixt's plan covers approximately 16,450 shares, after the execution of which he will own approximately 14,300 shares. Both executives entered into the plans in order to balance their personal investment portfolios. Rule 10b5-1 plans permit individuals who are not in possession of material nonpublic information to establish prearranged plans to buy or sell company stock. The rule allows individuals adopting such plans to sell shares over a specified period of time or at a specific price in the future, regardless of any subsequent material nonpublic information they receive. Reynolds American Inc. 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 United States, including five of the nation's 10 best-selling brands: Camel, Winston, KOOL, Salem and Doral. Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes and other tobacco products, and markets them both nationally and internationally. 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 on the company's Web site, http://www.reynoldsamerican.com/ . DATASOURCE: Reynolds American Inc. CONTACT: Media, Maura Payne, +1-336-741-6996, or Investors, Carole Biermann When, +1-336-741-5182, both of Reynolds American Web site: http://www.rjrt.com/

Copyright