Voluntary Product Recall – specific actions required Please review and execute all instructions below CC-80-18 April 13, 2018 To Our Retail and Subjobber Customers Selling VUSE VIBE Products SUBJECT: Voluntary Product Recall Issued on Specified VUSE VIBE Products • This notice is to alert retail and subjobber customers that R. J. Reynolds Vapor Company (RJRV) has voluntarily issued a nationwide safety recall on VUSE VIBE products containing the VIBE Power Unit (VIBE Kits and VIBE Power Units) after receiving consumer complaints about malfunctioning batteries causing the power unit to overheat. RJRV has notified the U. S. Food and Drug Administration and will be working with them on this voluntary recall. − A copy of the press release from RJRV regarding this matter is attached for your reference. Vuse Vibe Recall Press Release.pdf • The voluntary product recall applies to VUSE VIBE products containing the VIBE Power Unit (VIBE Kits and VIBE Power Unit Only). • No other RJRV products (e.g. VUSE VIBE Tanks, VUSE SOLO or VUSE Ciro Power Units or Cartridges) are included within this voluntary product recall. − VUSE SOLO and VUSE Ciro Power Units and Cartridges are NOT part of this voluntary product recall and should remain available for adult consumer purchase as normal. − VUSE VIBE Tanks are NOT affected by this voluntary product recall. VUSE VIBE Tank replenishment product will not be available from your supplier at this time. As part of this voluntary product recall, we are asking retail and subjobber customers to immediately take the following actions: 1. Immediately stop selling VUSE VIBE products (VIBE Kits, VIBE Power Units Only and VIBE Pre- Filled Tanks) to customers/consumers. 2. Pull all on-hand inventory of new, unsold VUSE VIBE Kits and/or VIBE Power Units which are still sealed in their original packaging, segregate these products from saleable inventory and hold them until further instructions are provided. o If necessary, store personnel should place a note on the segregated VUSE VIBE Kits and/or VIBE Power Units stating “Product Recall – do not sell” in order to ensure that the product is not placed back into saleable inventory. 3. VUSE VIBE Tank products should be removed from the merchandiser at the present time and held until further notice. We will communicate as soon as possible: (i) if and when VUSE VIBE Tank products may be placed back on the merchandiser to sell and/or (ii) what substitute products we will be placing in that merchandising space. • As referenced in the Press Release, we will have a separate process in place to accept returns of VIBE Power Units from consumers. However, there will be consumers attempting to return VIBE Power Units to retail outlets. • We are strongly recommending that retailers refer consumers to the designated hotline 1-800-369-8200 or visit www.vusevapor.com/viberecall for information on how to return their VUSE VIBE products directly to RJRV and receive a refund. The hotline will be staffed with professionals trained to handle consumer calls and ensure their satisfaction. Below are the product details for the VUSE VIBE products containing the VIBE Power Unit (VIBE Kits and VIBE Power Units) affected by this voluntary product recall. Again, this issue is isolated to VUSE VIBE Kits and VIBE Power Units only. VUSE SOLO and VUSE Ciro Power Units and Cartridges should remain available for sale to adult consumers as normal. Case Size Case SKU Description (Cartons/ Carton Printed UPC Pack Printed UPC Packs) VUSE VIBE ORIGINAL KIT (old packaging) 20 / 5 8 4920500778 6 8 4920500777 9 VUSE VIBE ORIGINAL KIT (current packaging) 20 / 5 8 4920501527 9 8 4920501526 2 VUSE VIBE KIT POWER UNIT - CA/MN Only 20 / 5 8 4920501488 3 8 4920501487 6 Illustrated below are images of the products affected by this voluntary product recall. VUSE VIBE Kit VUSE VIBE Kit VUSE Power Unit Only (old packaging) (current packaging) (available only in CA and MN) Below are the product details for the VUSE VIBE Pre-Filled Tanks, which are NOT affected by this voluntary product recall. However, as stated above, we are asking our retail customers and subjobbers to cease the sale of and hold all VUSE VIBE Pre-Filled Tank products until further notice. Pack Printed SKU SKU Description Carton Printed UPC UPC 3701549000 VUSE VIBE FUSION TANKS 8 4920501548 4 8 4920501547 7 3701540000 VUSE VIBE MELON TANKS 8 4920501539 2 8 4920501538 5 3701543000 VUSE VIBE MENTHOL TANKS 8 4920501542 2 8 4920501541 5 3701534000 VUSE VIBE MINT TANKS 8 4920501533 0 8 4920501532 3 3701537000 VUSE VIBE NECTAR TANKS 8 4920501536 1 8 4920501535 4 3701531000 VUSE VIBE ORIGINAL TANKS 8 4920501530 9 8 4920501529 3 3701546000 VUSE VIBE TROPICAL TANKS 8 4920501545 3 8 4920501544 6 We will provide additional information in a separate communication in the coming days. We apologize for the inconvenience this activity will cause, and we appreciate your continued support in the marketing of RJRV products. RAI TRADE MARKETING SERVICES COMPANY (a subsidiary of Reynolds American, Inc. that provides marketing agreements, programs, and services on behalf of R.J. Reynolds Tobacco Company, American Snuff Company, LLC, Santa Fe Natural Tobacco Company, Inc., and R.J. Reynolds Vapor Company) SUBJECT: Voluntary Product Recall Issued on Specified VUSE VIBE Products RAI has recently announced a voluntary product recall on VUSE VIBE Kits. Please follow the instructions below and contact your RAI representative if you have further questions. Below is a quick topline of the information associated with this voluntary product recall: • This voluntary product recall applies only to the VUSE VIBE Original Kit. • No other VUSE products are included in the product recall. VUSE SOLO & VUSE Ciro Styles should remain available for sale. • As part of this voluntary product recall, we are asking store personnel to immediately take the following actions: 1. Immediately stop selling ALL VUSE VIBE Products to customers (Including Tanks). 2. Pull all on hand inventory of VUSE VIBE Kits, segregate from saleable inventory and hold them until further notice. 3. Remove VUSE VIBE Tanks from the merchandiser and hold inventory in a storage location until further notice. Although VUSE VIBE Tanks are not being recalled, we have made the decision to cease selling these items, and product replenishment from your supplier will not be available until further notice. 4. Work VUSE SOLO & VUSE Cartridges into the empty space on the fixture where VUSE VIBE has been removed. • As referenced in the Press Release, we will have a separate process in place to accept returns of VIBE Power Units from consumers. However, there will be consumers attempting to return VIBE Power Units to retail outlets. • We are strongly recommending that retailers refer consumers to the designated hotline 1-800-369-8200 or visit www.vusevapor.com/viberecall for information on how to return their VUSE VIBE products directly to RJRV and receive a refund. The hotline will be staffed with professionals trained to handle consumer calls and ensure their satisfaction. Illustrated below are images of the products affected by this voluntary product recall. VUSE VIBE Kit VUSE VIBE Kit (old packaging) (current packaging) We will provide additional information in a separate communication in the coming days. We apologize for the inconvenience this activity will cause, and we appreciate your continued support in the marketing of RJRV products. Contact: Media: Jacob McConnico RJRV 2018-01 (336) 741-0319 Urgent: Voluntary Product Recall of Vuse Vibe Power Units WINSTON-SALEM, N.C. – April 13, 2018 – R.J. Reynolds Vapor Company has voluntarily initiated a nationwide safety recall of all Vuse Vibe power units. The Company initiated the recall after receiving consumer complaints about malfunctioning batteries, which may cause the power unit to overheat and create a fire risk. The Company notified the U.S. Food and Drug Administration regarding the issue and will be working directly with the Agency on this voluntary recall. The Company has received 10 complaints related to the power unit. No injuries have been reported. The Company is voluntarily recalling the 2.6 million power units it has sold. The Company is investigating the cause of the incidents with the intent to return to the market after the issue has been resolved. All consumers who have Vuse Vibe vapor products should stop using the product and not charge the power unit. Please call 1-800-369-8200 or visit www.vusevapor.com/viberecall for information on how to return Vuse Vibe power units and receive a refund. The Company is committed to providing products of the highest quality, and we regret the inconvenience this will cause our consumers. Vuse Solo and Vuse Ciro, which use different battery components, are not included in this recall. R.J. Reynolds Vapor Company is a subsidiary of RAI Innovations Company, a subsidiary of Reynolds American Inc. Reynolds American Inc. is an indirect, wholly owned subsidiary of British American Tobacco p.l.c. R.J. Reynolds Vapor Company markets Vuse e-cigarettes. For more information, visit www.RJRVapor.com. ### .