Cigar Weekly

WINSTON-SALEM, N.C., May 6 /PRNewswire-FirstCall/ -- At their annual meeting today, shareholders of Reynolds American Inc. (NYSE:RAI)re-elected four directors; ratified the appointment of KPMG LLP as independent auditors for RAI's 2008 fiscal year; and defeated three shareholder proposals. At a meeting later in the day, the company's board declared a quarterly dividend of $0.85 per share and appointed a new lead director.

Re-elected today as Class I directors (with terms that expire in 2011) were: Betsy S. Atkins, Nana Mensah and John J. Zillmer. Re-elected as a Class III director (with a term expiring in 2010) was Lionel L. Nowell, III. The RAI board of directors has 11 members who are divided into three classes, serving staggered terms.

At a board meeting following the annual shareholders' meeting, the RAI board declared a quarterly cash dividend on the company's common stock of $0.85 per share ($3.40 per share annualized). The dividend will be payable on July 1, 2008, to shareholders of record on June 10, 2008. This is the 16th consecutive quarterly cash dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004. RAI's policy is to return about 75 percent of the company's current-year net income to shareholders in the form of dividends.

Also during the board meeting, the RAI board appointed Thomas C. Wajnert as lead director, replacing General John T. Chain Jr., who has retired from the board.

Reynolds American Inc.(NYSE:RAI )is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; Santa Fe Natural Tobacco Company, Inc; and R.J. Reynolds Global Products, Inc.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials are available at http://www.reynoldsamerican.com/ .

CONTACT: Investor Relations: Morris Moore, +1-336-741-3116, or Media:
Seth Moskowitz, +1-336-741-7698, both of Reynolds American Inc.

Web site: http://www.reynoldsamerican.com/

SOURCE Reynolds American Inc