RALEIGH, N.C., June 16 /PRNewswire-FirstCall/ -- More than 400 employees of Reynolds American Inc. and its operating companies rallied in Raleigh today to express opposition to N.C. Governor Perdue's proposed $1 per-pack increase in the state's excise tax on cigarettes. The rally was preceded by a march around the General Assembly building. Employees, many of whom wore T-shirts reading, "North Carolina needs more jobs, not more taxes," carried hand-made signs protesting proposed tobacco-tax hikes. "What a great turn-out from our employees," said Daan Delen, chairman, president and chief executive officer of R.J. Reynolds Tobacco Company. "We are sending a clear message to the governor and those who support an increase in these taxes. The production and manufacture of tobacco remains vitally important to our state's economy. The governor's proposed $1 per-pack tax increase will cause job loss and economic hardship for thousands of North Carolinians. "North Carolina's smokers pay more than $500 million to the state in tobacco taxes each year already," Delen said. "The 50,000 N.C. workers whose jobs are tied to tobacco paid millions more in income and property taxes. The tobacco companies in the state pay billions of dollars of wages, benefits, and corporate taxes to the state. Of all 50 states, North Carolina uniquely benefits from the growing, production and sales of tobacco - it makes no sense to try to run these high-paying jobs out of our state, particularly during a recession," he said. Tommy Hickman, senior vice president of operations for R.J. Reynolds, highlighted how difficult it would be to replace tobacco jobs in the state. "Tobacco industry jobs pay about twice the state's average private-industry wages," said Hickman. "If you tax these jobs out of existence, where are these families going to find comparable jobs? We know what's happened to textile and furniture jobs in our state. Do we want the same to happen to tobacco jobs?" Hickman asked. Also joining the protest were the mayors of Winston-Salem, Tobaccoville and King as well representatives from the North Carolina legislature. ABOUT US Reynolds American Inc. (NYSE:RAI) is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; and Santa Fe Natural Tobacco Company, Inc. -- R.J. Reynolds Tobacco Company is the second-largest U.S. tobacco company. The company's brands include five of the 10 best-selling cigarettes in the United States: Camel, Pall Mall, Kool, Winston 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, and manages and markets other super-premium brands. 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: Frank Lester, +1-336-829-9642, or Maura Payne, +1-336-741-6996, both of Reynolds American Inc. Web Site: http://www.rjrt.com/

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