Reynolds American Inc.
Supplemental Condensed Consolidating Financial Statements (Unaudited)

     On May 31, 2006, Reynolds American Inc., referred to as RAI, completed a private offering of $1.650 billion guaranteed, secured notes in connection with the funding of its acquisition on the same date of a group of companies collectively referred to as the Conwood companies. On June 20, 2006, RAI issued in a private offering $1.289 billion of its guaranteed, secured notes in exchange for notes previously issued by R.J. Reynolds Tobacco Holdings, Inc., referred to as RJR. Separate financial statements and other disclosures have not been presented concerning the guarantors of RAIs $2.939 billion secured notes, because such information is materially included in the condensed consolidated financial statements (unaudited) contained in RAIs Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, filed with the SEC on August 4, 2006, and is not believed to be material to holders of such notes. RAIs direct, wholly owned subsidiaries and certain of its indirectly owned subsidiaries have fully and unconditionally guaranteed these notes. Because the guarantees are full and unconditional and joint and several, the following condensed consolidating financial statements include: the accounts and activities of RAI, the parent issuer; RJR, R. J. Reynolds Tobacco Company, referred to as RJR Tobacco, Conwood Holdings, Inc. and the Conwood companies, Santa Fe Natural Tobacco Company, Inc., Lane, Limited, R. J. Reynolds Global Products, Inc., RJR Acquisition Corp. and certain of RJR Tobaccos other subsidiaries, the guarantors; other indirect subsidiaries of RAI which are not guarantors; and elimination adjustments.