Reynolds American Operating Companies Creating 200 N.C. Jobs, Investing in Manufacturing Equipment for VUSE Digital Vapor Cigarette

Reynolds American Inc. P.O. Box 2990 Winston-Salem, NC 27102-2990

Contact: Media: David Howard RAI 2014-10 (336) 741-3489

Reynolds American operating companies creating 200 N.C. jobs, investing in manufacturing equipment for VUSE digital vapor cigarette

WINSTON-SALEM, N.C. – May 23, 2014 – More than 200 full-time manufacturing jobs will be created in Tobaccoville, N.C., over the next four years by R.J. Reynolds Tobacco Company as it begins production of VUSE digital vapor cigarettes for R.J. Reynolds Vapor Company under a services agreement between the two companies.

A multi-million dollar investment will also be made for high-speed, next-generation e-cigarette manufacturing equipment at R.J. Reynolds’ Tobaccoville manufacturing complex.

“VUSE is a game-changing product and a tangible demonstration of our companies’ mission to transform the tobacco industry,” said Susan M. Cameron, president and chief executive officer of Reynolds American Inc. (NYSE: RAI), the parent company of both R.J. Reynolds Tobacco Company and R.J. Reynolds Vapor Company. “We need additional production capacity for VUSE to support the national roll-out of the brand, and the highly trained workforce here in our home state of North Carolina made it the perfect choice for our expansion location,” Cameron said.

Cameron said that VUSE is the top-selling vapor cigarette in Colorado and Utah, the two states in which it has broad distribution and full marketing support. A national roll-out of VUSE will begin this summer.

“If our past successes in converting smokers to VUSE are any indication of our future response from adult tobacco consumers nationwide, we’ll need new-generation, high-speed equipment and a larger workforce to support market demand,” Cameron said.

Hiring for the new full-time manufacturing positions, which will pay, on average, more than $40,000 a year, will begin this summer and extend over the next four years. Installation of the new-generation equipment will begin this summer.

Currently, production of VUSE cartridges and other components is done for R.J. Reynolds Vapor Co. at a contractor’s facility in Kansas. Cameron said that both the existing facility and the new equipment will be needed for the foreseeable future to meet anticipated market demand for VUSE.

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“Transforming our community for the better is part of our overall commitment to transforming the tobacco industry,” Cameron said. “We’ve done that in a number of ways – through philanthropy, through the donation of properties and buildings to fuel economic development, and through employee volunteerism. But I can tell you, it sure feels good to be announcing new jobs and a major investment in equipment right here in North Carolina.”

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RAI’s website, www.reynoldsamerican.com, is the primary source of publicly disclosed news about RAI and its operating companies. We use the website as our primary means of distributing quarterly earnings and other company news. We encourage investors and others to register at www.reynoldsamerican.com to receive alerts when news about the company has been posted.

ABOUT US

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; American Snuff Company, LLC; Santa Fe Natural Tobacco Company, Inc.; Niconovum USA, Inc.; Niconovum AB; and R.J. Reynolds Vapor Company.  R.J. Reynolds Tobacco Company is the second-largest U.S. tobacco company. R.J. Reynolds’ brands include two of the best-selling cigarettes in the U.S.: Camel and Pall Mall. These brands, and its other brands, including Winston, Kool, Doral, Salem, Misty and Capri, are manufactured in a variety of styles and marketed in the U.S.  American Snuff Company, LLC is the nation’s second-largest manufacturer of smokeless tobacco products. Its leading brands are Grizzly and Kodiak.  Santa Fe Natural Tobacco Company, Inc. manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco.  Niconovum USA, Inc. and Niconovum AB market innovative nicotine replacement therapy products in the U.S. and Sweden, respectively, under the Zonnic brand name.  R.J. Reynolds Vapor Company makes and markets VUSE e-cigarettes, a highly differentiated vapor product.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials, including risk factors containing forward-looking information, are available at www.reynoldsamerican.com. To learn how RAI and its operating companies are transforming the tobacco industry, go to the RAI website, Transforming Tobacco.

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