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Plasticizer Levels: The startup of Tobaccoville marked the first commercial application of garniture injected flavors (previously, all filter flavors were .added-at ~he;wick using blended plasticizer). R&D was charged with creating filter .~__ .._. specifications for these garniture Injected filter rods which exactly matched filters produced using the conventit5nal method. At the time, it was very Important that filters produced at Tobaccoville be interchangeable with filters produced at the other manufacturing locations. The amount of plasticizer In the filter rod is controlled by the E60 plasticizer gearing. A second set of E60 plasticizer gear combinations had to be created which reduced the amount of triacetin applied at the wicks. This compensated for the amount of triacelin being injected at the garniture as a carrier for the flavorant. Had we not taken these measures, filters produced using garniture Injection would have contained about 0.5% more plasticizer than the corresponding non-garniture injected filter rod. We know this would have ho impact on filter performance with respect to taste or efficiency and that the Impact on firmness for current filter designs wouid be insignificant (< 1/2 RJR Units). COST/BENEFITS: Larry Sowers has determined that"thb='installation and parts cost is approximately $450 per machine. $450 x 118 Machines • = $53,100 Total Cost For Tongue Injection = $53,100 Benefits: 1. Minimum weight savings of .6% tow weight = $586,200: ($150,000 for 2.7/35000) 2. Using 1993 sales forecast (April 1993), we use about 2.1 MM pounds of triacetin on filters containing no additive: -Following the proposal, we would reduce our consumption by about 200,000 lbs per year. At $0.78/lb for triacetin, this would be > $ 100,000 annual savings. In Manufacturing, 54 filter specifications used on 80 cigarette specifications would no longer require plasticizer wick gearing changeovers. CAUTION: The number of filter specs will NOT be reduced, just the number of gear changes. 3. Plasticizer reduction on no additive filters = $100,000. 4. Using the April 1993 sales forecast, we calculate that a correction to about 7.5% plasticizer for Savings brands would reduce our consumption by 250,000 lbs per year. ; At .78/Ib, for triacetin savings = $195,000 Total savings filter simplification = $881,200 RISK ASSESSMENT: Data indicates that tongue injection will gain one firmness unit. Plasticizer reductions will lose a maximum of one unit. The net effect on firmness for these three changes proposed is zero. R&D Pilot Plant tests are underway to provide data on firmness effects to be available at the PAC meeting.

PROCEDURE NOTE Procedure Note No. 93-32 Date: 10/12/93 Temporary Effective Date 10/27/93 Termination Date Permanent X - Type: Product Process Packaging Flavor Tobacco Material X Other SUBJECT: FILTER SPECIFICATION SIMPLIFICATION BACKGROUND: Tow Weight: Tongue injection has been discussed with the plants over the past year with a consensus reached that about .6% tow weight can be saved by using the new tongue injection. - "' Plasticizer Levels: By examining all flavor vs. non-flavored filters, there is the opportunity to correct non-flavored fiiter• plasticizer levels by .5%. A review of all plasticizer levels suggests that on the current consolidated tow items we have the opportunity to correct plasticizer levels, especially on Savings brands to about 7.5%. There are many PL.and Savings brands whose plasticizer levels were Initially set over 8% using discount tow items no longer in use. RECOMMENDATION: 1. Implement tongue injection starting with a .6% weight reduction on all 2.7/35000 tow items November 1. 2. It has been proposed that we eliminate the gearing difference between garniture injected filters and filters with no additive by going to garniture injected gearing for all filter specs. For filters which currently have no additive, it would result In a reduction of the plasticizer level of 0.5%. NOTE: Plasticizer difference on Table #1 at 8.53 -wouid be reduced to plasticizer level on Table #2 at 8.14 and would be no other change (see attachment). In order for these approaches to successfully simplify Operations, it is necessary that both Domestic and TI brands be changed. TI has reviewed and supports this approach. 3. Review all plasticizer levels and focus on correction of high plasticizer levels initially used on Savings brands to average 7.5% plasticizer (Table 3). DISCUSSION: Tow Weight: R&D testing has demonstrated that there is at least a .6% reduction in tow weight possible using tongue injection.

firmness for these three changes proposed is zero. R&D Pilot Plant tests are underway to provide data on firmness effects to be available at the PAC meeting. 4.. ~ NEXT STEPS:r :r . As part of overall specification simplification, all plasticizer levels are being reviewed. After tfM,-review, any further plasticizer adjustments will be presented. 1-.,. .__Q%jantify weight reduction possibie with tongue injection by re-qualification of consolidated tow items. 3.4/34000 offers next significant savings and should start in mid-November. 2. Complete remaining tow qualifications and take tow and plasticizer savings as appropriate 1 Q94. i Recommended for Authorization: /C I/J . nes Authorized: H. E. Guess Authorized: L. E. Curtis Authorized: F. M. Lockamy Authorized: D. R. Nanney Authorized: S. L. Smith Authorized: C. E. Tinsley, III Authorized: J. H. Wilson Authorized: L. S. Wood Reviewed: W. D. Allen Attachment Distribution Includes Signers and Product 'Standards File (Naomi Foote) a:1PN93-32.s4

GMG629BN ti0/11193 TABLE #3 R.J. REYNOLDS TOBACCO COMPANY CONFIDENTIAL MANUFACTURING STANDARDS SYSTEM PAGEt 3 FILTER SPECIFICATION SUFMARY FOR CURRENT DOMESTIC CIGARETTE PRODUCTS ... '4.~.... CGT SPEC BRAND ITEM-ID REV SUB PHASE FILTER ITEM-ID ROD LGTH CtRC MM FLR WT GM DRAFT MM DRAFT LOW DRAFT HIGH PLAST • PLST TYPE % TOW 1!T GM T04( TYPE & ITEM-ID PW GRADE & ITEM-ID ------ ------ ------ ----- ----- ----- ------ ---=- ------ ---------- -------- DORAL 100 REti- r 03.4/34000 646 2000952 AC 3022AN III 2800957 124.00 24.43 0.7560 300 279 321 E-18 8.12 0.6081 1000184 0057823 DORAL 85 KEN 02.7/35000 646 .2000261 BK 3375AL III 2800446 126.00 24.43 0.8000 384 357 411 E-18 8.86 0.6419 1002735 0047823 ~. _ DORAL 85 REG 02.7/35000 646, 2000045 BL 3021AM III 2800408 126.00 24.43 0.8178 408 379 437 E-18 8.64 0.6597 1002735 0057823 ( . HORIZON LIGHT 100 MEN 03.4/34000 646 2000513 AN 3698AG III 2800989 124.00 24.43 0.8352 372 346 398 E-18 8.29 0.6797 0010184 0047823 ' HORIZON LIGHT 100 REG 03.4/34000 646 2000512 AS 3697AH III 2800989 124.00 24.43 0.8352 372 346 398 ' _ E=18 8.29 0.6797 0010184 0047823 MAGNA LITES 83 REG CPB 03.4/34000 626 2000525 AT 3516AJ III 2800979 108.00 24.08 0.6985 336 312 360 E-18 8.50 0.5759 1000184 0016361 MAGNA LITES 85 REG 02.7/35000 646 2000087 BG 3067AP III 2800401 108.00 24.43 0.6849 328 305 351 E-18 8.87 0.5494 1002735 0047823 MAGNA 83 REG CPB 03.4/34000 646 2000536 AT 3066AN III 2800994 126.00 24.08 0.8302 402 374 430 E-18 7.44 0.6799 1000184 0047823 MAGNA 85 REG 02.7/35000 646 2000167 BF 3065AR III 2800446 126.00 24.43 0.8000 384 357 411 E-18 8.86 0.6419 1002735 0047823 MONARCH LIGHT 100 REG 03.4/34000 646 2000719 AT 3949AD III 2800976 124.00 24.43 0.7616 300 279 321 E-18 8.05 0.6137 1000184 1007823 MONARCH LIGHT 83 REG CPB 03.4/34000 w646 2000968 AA 4316AA III 2800981 108.00 24.08 0.7130 336 312 360 E-18 8.48 0.5775 1000184 1007823 MONARCH LIGHT 85 REG 02.7/35000 646 2000717 AP 3948AD III 2800401 108.00 24.43 0.6849 328 305 351 E-18 8.87 0.5494 1002735 0047823 MONARCH LIGHTS 83 MEN CPB 03.4/34000 646 2000983 AA 4325AA III 2800998 108.00 24.08 0.7154 336 312 360 E-18 8.10 0.5775 1000184 1007823 MONARCH 83 MEN CPB 03.4/34000 646 2000985 AA 4326AA III 2800999 126.00 24.08 0.8459 402 374 430 E-18 6.58 0.6821 0010184 0047823 Ln MONTE CRISTO LIGHTS 83 REG CPB 02.7/35000 70M6 rA N 2000929 AC 4245AA 111 2800395 108 00 24 08 0 6845 388 361 415 E-18 26 8 0 5638 1002735 1005873 00 MONTE CRISTO 83 REG CPB . . . . . 03.0/35000 626 m N l0 2000930 AD 4244AB III 2800961 126.00 24.08 0.8294 444 413 475 E-18 8.34 0.6864. 1007980 0016361 Ln MORE LIGHT 100 MEN CPB 03.6/31000 646 N 2000431 AH 2178A0 III 2800267 124.00 22.23 0.6954 380 353 407 E-18 8.04 0.5540 1006894 1007819 CONFIDENTIAL CONFIDENTIAL

Fut e r Sp e c ifi c at i'o n s GYi'CltmferenCe 24.43 Rod I.ength 110.00. np Length 27s0 Welght Tow Item- 2.7/35000 0.6847 Plugwrap 646 0.0787 -% on wick $.63, o:os45 % wthtc o.s^ .Tet y/1r , TYPE ii JET AdditSive wt. 0.0000 Adrt: percent 0.00 np Draft 92 Rod Draft Adhesive Wt. 0.0048 Totarl Rod. T;'eight 0.7227 AT LEVEL F Z Yltel!'• sS`ped& 4aftonS arCllmferenCe 24.43 Rod Length 110.00 Typ:Lertgth 27.50.-. • Wetglit Tow Item 2.7r3.sooo o.5s47 Plugwrap s4s 0:0787- % on wick 8.14• o.nS22* % wt. inc o.W% .retyin TYPE u JET Adartive xt. 0.0045 Add percent 0.70 Tip Draft fi 92 Rod Draft sss Adhesive Wt. o.oM, -Totad Rod Weight 0.7249 TABLE #1 e TABLE #2