WINSTON-SALEM, N.C., June 25, 2004 – LAWFUEL – U.S. District Court
Judge Gladys Kessler today granted R.J. Reynolds Tobacco Company and other
manufacturers the right to seek an immediate appeal of her May 24 decision
denying the companies’ motion to dismiss the disgorgement claim in the
Department of Justice lawsuit. At issue is the companies’ argument that the
law significantly limits the scope of any potential disgorgement of profits.

The companies will ask the U.S. Court of Appeals for the District of
Columbia to review Judge Kessler’s May ruling.

“Reynolds Tobacco is pleased that the district court has granted the
motion and that we will have the opportunity to present this issue to the
court of appeals,” said Martin L. Holton III, vice president and assistant
general counsel for Reynolds Tobacco. “Judge Kessler’s opinion supports our
belief that the issue warrants immediate review by the court of appeals.”

R.J. Reynolds Tobacco Company (RJRT) is a wholly owned subsidiary of R.J.
Reynolds Tobacco Holdings, Inc. (NYSE: RJR). R.J. Reynolds Tobacco Company is
the second-largest tobacco company in the United States, manufacturing about
one of every four cigarettes sold in the United States. Reynolds Tobacco’s
product line includes four of the nation’s 10 best-selling cigarette brands:
Camel, Winston, Salem and Doral. For more information about RJRT, visit the
company’s Web site at http://www.RJRT.com .