WINSTON-SALEM, N.C. – Reynolds American Inc. (NYSE: RAI) has completed the acquisition of Niconovum AB, a Swedish-based nicotine replacement therapy company, purchasing all outstanding shares of the company for 310 million Swedish kronor, or approximately $44 million.

Niconovum markets innovative nicotine replacement therapy (NRT) products under the Zonnic brand name in Sweden and Denmark. Its nicotine gum, mouth spray and pouches use proprietary technology for nicotine delivery.

Niconovum will be a separate operating company of Reynolds American.

Web Disclosure
Starting Jan. 1, 2010, RAI’s Web site, www.ReynoldsAmerican.com, will be the primary source of publicly disclosed news about RAI and its operating companies. We will use the Web site 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; 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, Winston, Kool 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, including risk factors concerning forward-looking statements, are available at www.ReynoldsAmerican.com.
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WINSTON-SALEM, N.C. – Reynolds American Inc. (NYSE: RAI) has reached an agreement to purchase all outstanding shares of the Swedish-based nicotine replacement therapy company Niconovum AB for 310 million Swedish kronor, or approximately $44 million.

Niconovum markets innovative nicotine replacement therapy (NRT) products under the Zonnic brand name in Sweden and Denmark. Its nicotine gum, mouth spray and pouches use proprietary technology for nicotine delivery.

“We believe the technology used in our Zonnic products better meets consumer preferences than other NRTs currently on the market,” said Nils Siegbahn, president and chief executive officer of Niconovum. “With today’s announcement, Niconovum will have access to the capital it needs to expand distribution of Zonnic to additional markets, and accelerate product refinements and new product development.”

“Niconovum’s products have great potential in meeting consumer demand and public health objectives,” said Susan M. Ivey, chairman, president and chief executive officer of Reynolds American. “This acquisition extends the harm-reduction strategies RAI and its operating companies have been developing over the past several years.

“Longer term, we believe the acquisition of Niconovum will enable an RAI operating company to provide adult tobacco consumers with innovative cessation products that have the potential to reduce the risks of diseases and death caused by tobacco use,” Ivey said.

Ivey said that RAI intends to provide Niconovum with the investment capital it needs to focus on product development and the testing required to enter additional markets.

Niconovum will be a separate operating company of Reynolds American, and the transaction is expected to be completed by year-end. Founded in 2001, Niconovum is based in Helsingborg, Sweden. Reynolds American’s intention is to retain Niconovum’s current management team, and its headquarters will remain in Helsingborg.

WEB DISCLOSURE
Effective Jan. 1, 2010, RAI’s Web site, www.ReynoldsAmerican.com, will be the primary source of publicly disclosed news about RAI and its operating companies. We will use the Web site 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, 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, Winston, Kool 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, including risk factors containing forward-looking information, are available at www.ReynoldsAmerican.com.