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RJ Reynolds

Rj Reynolds Tobacco Holdings, Inc. Corporate Website.

Date: 21 Jul 2000
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Q R.d. ReyeoFls ToGmo ~A@di3 CfiflUGtS I Raeam 0 aut xac&a Weases !`0 to.porate €azc Book 10 Search Press Ralrases Back to R7RT Releases RJRT 99-19 APPEALS COURT UPHOLDS DISMISSAL OF OREGON UNION LAWSUIT AGAINST THE TOBACCO INDUSTRY WINSTON-SALEM, N.C. - Jufy 14, 1999 - The U.S. Ninth Circuit Court of Appeals today upheld the dismissal of a health-care reimbursement lawsuit against the tobacco industry by more than 50 labor unions in Oregon. This decision marks a consistent trend of courts -- including two other federal appeals courts -- that are rejecting lawsuits by union funds alleging claims against tobacco companies. Today's ruling affirmed the decision by a federal court in Portland in August 1998 to reject the Oregon labor union lawsuit (Oregon Laborers_= Employers Health & Welfare Fund, etal.), ruling that there was no legal basis for the union funds to sue the tobacco industry because union funds had not suffered any direct harm. The opinion issued today endorsed and reiterated the 1998 opinion by the U.S. District Court which said, "To allow plaintiffs to maintain actions that are entirely dependent upon the harm suffered by others threatens chaos for the judicial system..." "Courts across the nation have been finding that the plaintiffs' basic legal theories are without merit, regardless of how their claims are stated," said Charles A. Blixt, executive vice president and general counsel for R.J. Reynolds Tobacco Company. "These rulings show that these lawsuits are a waste of judicial time and taxpayer money. These decisions by federal appellate courts demonstrate that courts will not let plaintiffs stretch case law to unrecognizable proportions in pursuit of claims that have no basis in law or fact. The opinion supports our belief that third-party cases of this type are based on contrived legal theories that don't deserve'to be tried in 07/22f2flQ0 , c u 10•p6•S4 AIvt o rt " _ ,. _.: : , &... . ,. _ -. .._ .. . _ _ ., s. ...... ~ ^ . . . .,. , •+ ~ +€W+ ,uewM
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RJRTGeneralReleases 1a.,wlz, unauUu1y c11c~uvc uc1cn~wc 1cLau Pn1..u1y a11u N1vnwUw1i, u"cpage4of7 47/21/2U00 expanded use of marketing in adult venues; continued strength in its box- style products; and creative equity- based advertising campaigns. Second-Quarter Reported Results Including the one-time items mentioned in the previous paragraphs for the second quarter, the company reported net income of $2.38 billion or $21.88 per share for the second quarter of 1999 compared to a net loss of $114 million or a loss of $1.05 per share reported in the comparable 1998 quarter. Operating company contribution was $311 million versus $256 million in the year-ago period. Six-Month Ongoing Results Ongoing results for the first six months exclude the after-tax gain on discontinued operations and other items previously mentioned in the second quarter ongoing results paragraph. (See also the attached Financial Statements and Notes.) On this basis, net income for the first six months of 1999 was $174 million, or $1.60 per diluted share, a 34 percent decrease compared to $264 million or $2.43 per diluted share recorded in the first six months of last year. Net sales in the first six months of 1999 were $3.59 billion versus $2.64 billion in the comparable period last year, up 36 percent. Operating company contribution on an ongoing basis for the first six months of the year was $603 million, down 20 percent from $750 million for the same period last year. Cash net income in the first six months was $338 million versus $428 million, down 21 percent. RJR's volume of 47.4 billion units, excluding Puerto Rico volume of 0.6 billion units, in the first six months of 1999 reflects a decline of 13.3 percent from year-ago volume of 54.7 billion units. Industry volume during the first half of the year was 203.8 billion units, down from 226.4 billion units in the 1998 period, a decrease of 10 percent. RJR's retail share of market for the five-month period ended May 1999 was 24.32, down 1.12 share points from the comparable 1998 period. Six-Month Reported Results Including the one-time items mentioned in the previous paragraphs, first half 1999 net income was $2.47 billion or $22.76 per diluted share, compared to a $122 million net loss or a loss of $1.13 per diluted share recorded in the first six months of last year. Operating company contribution for the first six months of 1999 was $581 million, up from $275 million in the same period last year. Statements included in this news release which are not historical intra,~ur~ AM are farward-lookina statements ma;de_aursuantto the safe harbor „+ .
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RJRT General Releases Page 2 of 2 More than a dozen cases of this type have been dismissed by courts across the country, including these recent decisions: . On April 9, 1999, the U.S. Second Circuit Court of Appeals ruled that a lawsuit filed against the industry by a group of union health and welfare funds in New York (Laborers Local 17 Health and Benefit Fund, et al.) should not proceed to trial. . On March 29, 1999, the U.S. Third Circuit Court of Appeals issued an opinion in a similar union trust fund case in Pennsylvania (Steamfitters Local Union No. 420 Welfare Fund, et al. ), upholding a lower court's dismissal of the case based on the fact that third-party payers are too remote from any alleged damage to sue for recovery. . In March 1999 -- in the only case of this type to go to trial (Iron Workers Local Union No. 17 Insurance Fund, et al.) -- a jury in U.S. District Court for the Northern District of Ohio unanimously ruled that the major U.S. tobacco manufacturers were not responsible for any alleged smoking-related medical costs paid by Ohio's labor union health-care funds for their workers. Similar cases have also been dismissed in Florida (Southeast Florida Laborers District Health and Welfare Trust Fund, dismissed 4/13/98), California (Stationary Engineers Local 39 Health & Welfare Trust et al., dismissed 4/30/98) and Maryland (Seafarers Welfare Plan et al., dismissed 7/ 13/98) . R.J. Reynolds Tobacco Company 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 ten best-selling cigarette brands: Winston, Camel, Salem and Doral. >.o:osaa AM
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a3 I I R $ 52087 8048 I
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* * * .$. * . 4) R.d. Repnotds Tobacco Relcases Medi3 LOtit2Ct3 G} RJR Nabisco Reteases Corpwsis Fact Book ~ Search Press Reieases aom seareb, cwk. SiteXap iis Back to RJRT Releases Print Versioa The following press release was issued jointly by R.J. Reynolds Tobacco Company and Brown & Williamson Tobacco Corporation LOUISIANA JURY FINDS IN FAVOR OF TOBACCO COMPANIES BATON ROUGE, La. - July 9, 1999 - After 12 years of precedent-setting litigation, including decisions by the Louisiana Supreme Court, a jury in Baton Rouge today rejected claims brought by the family of a smoker against two of the nation's largest tobacco companies. The family of Robert C. Gilboy claimed that the cigarettes manufactured by R.J. Reynolds Tobacco Co. and American Tobacco Co., which is now part of Brown & Williamson Tobacco Corporation, were unreasonably dangerous. Earlier during the trial, which began June 21, the court granted directed verdicts for the defense on loss of consortium and negligence claims. On the negligence claim, the court ruled that there was insufficient evidence to conclude that the manufacture and distribution of the defendants' cigarettes was a legal cause of Gilboy's injuries. "Today's jury verdict in favor of R.J. Reynolds and Brown & Williamson represents a significant victory and confirms that juries are still able to apply common sense and reasonable judgment regarding tobacco lawsuits," said Ted Grossman, the lead defense attorney, who represented R.J. Reynolds. "I think this verdict also confirms our belief that the tobacco industry's ability to defend itself in individual smoking and health suits remains strong and intact." "Despite repeated allegations, the jury obviously recognized that this was a case about an individual who chose to smoke for many years and who was well aware of the risks associated with that behavior," said Gordon Smith, an attorney for Brown & Williamson. The two attorneys noted that this case represented the seventh co win for the tqbacco industrv in individual smokinq and health suits ~s '~`~^a
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Q R.d. Reteases Tobacco Q R]R Naisco Retoases °!.i Fawate FaeE Book !D Search Peen Rete*ses Badc to RJRT Releases Print Vesion RJRT 99-20 CLASS-ACTION CERTIFICATION IS DENIED IN ANOTHER SMOKER LAWSUIT WINSTON-SALEM, N.C. - July 16, 1999 - A federal court judge in Little Rock, Ark., has refused to certify an Arkansas smoking and health lawsuit as a statewide class action. Every federal court that has considered smoker class actions has denied or decertified them since the landmark opinion decertifying the Castano class action in 1996. The decision in this case, Hansen, et. al.,v. The American Tobacco Company et. al., marks the 10th Federal Court that has rejected certification of smoker class actions. The decision in the Arkansas case follows a similar decision on June 30 by a Federal Court in Benton, III. which refused class action certification in the case of Jean Clay, et. al., v. The American Tobacco Companv Inc. et. al. In announcing that he will deny class certification in the Arkansas lawsuit, Judge Stephen M. Reasoner of the U.S. District Court for the Eastern District of Arkansas observed that certifying the case as a class action would not be a legally correct decision, and that nothing distinguished this case from all other smoker class action cases that have been refused certification by federal courts. Daniel W. Donahue, senior vice president and deputy general counsel for R.J. Reynolds Tobacco Company, said in response to the decision, "Federal courts have unanimously ruled that lawsuits by smokers are not suitable,for class-action treatment. This steady stream of denials of class certification by federal courts -- and most state courts -- demonstrates the fundamental lack of merit in trying to handle smoking and health lawsuits as cla actions. reaardless of how Dlaintiffs attemot to shaoe their claiens."~ ~`a5 AM
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ongoing results related to estimated interest income earned on assurW 3 of7 higher levels of cash resulting from the previously described transactions as if they had occurred at the beginning of the period. On this basis, the company reported ongoing net income per diluted share of $.90 in the 1999 second quarter versus $1.38 in the comparable period last year, down 35 percent. Net income in the second quarter was $98 million versus $150 million in the comparable period, down 35 percent. Ongoing operating company contribution (operating income before amortization of trademarks and goodwill, initial up- front tobacco settlement charges and headquarters closedown costs) for the quarter was $324 million versus $410 million in the prior-year period, down 21 percent. Cash net income for the quarter was $179 million, as compared to $232 million in the year-ago period, a decrease of 23 percent. For the quarter, ongoing net sales increased 34 percent to $1.91 billion versus $1.43 billion in 1998, reflecting higher selling prices although volume was lower. While net sales increased in the quarter, operating company contribution and net income declined due to the combined impact of increased settlement costs, volume declines, and competitive discounting. RJR's operating company contribution continues to reflect the impact of tobacco litigation settlements; the unprecedented 1998 price increases totaling $.64 per pack and the resulting decline in consumption and shipment volume; and the heightened level of competitive discounting activity versus 1998. RJR's volume, excluding Puerto Rico volume of 0.3 billion units, was 25.0 billion units, down from 28.6 billion units in 1998, or 12.4 percent. Full- price shipments declined 12.7 percent and savings shipments declined 11.8 percent versus the prior-year period. However, RJR's mix of full- price versus savings brand volume declined only slightly, with full-price brands representing 62.2 percent of RJR's total volume versus 62.5 percent in the prior-year period. Industry shipments declined during the second quarter 10.3 percent to 106 billion units versus 118.2 billion units in the comparable period of 1998. Industry mix continues to remain stable versus the year-ago period, with full price shipments at 73 percent in the second quarter. RJR's retail share of market for the three months ended May 1999 (the most recent month for which data are available) was down 1.28 share points to 24.17 versus 25.45 in the comparable period of 1998. However, the company noted recent share stability. RJR's retail share in the month of March was 24.14 percent, followed by 24.21 percent in April and 24.17 percent in May. The company attributed this stability to a combination of factors, including effective defensive retail pricing and promotion; #Ipfto6;28.AM
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Camel, Salem and DoraL Page 2 of 2 zo:I2:48 A1VI
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Media tr~neacts Print Version RJRTH 99-01 R.]. REYNOLDS TOBACCO HOLDINGS, INC ELECTS ANDREW SCHINDLER CHAIRMAN OF THE BOARD WINSTON-SALEM, N.C. -- July 2, 1999 -- The board of directors of R.J. Reynolds Tobacco Holdings, Inc. (NYSE: RJR) today elected Andrew J. Schindler chairman, president and chief executive officer of the company. Schindler has been president and CEO of Reynolds Tobacco since 1995. He joined the RJR organization in 1974. Prior to his corporate career, Schindler achieved the rank of captain in the U.S. Army, serving in command and staff positions in the United States and Vietnam. Schindler, a native of Harrisburg, Pa., holds a bachelor's degree from Franklin and Marshall College, and a master of business administration from The Wharton School of the University of Pennsylvania. R.J. Reynolds Tobacco Holdings, Inc. is the parent company of R.J. Reynolds Tobacco Company. 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 ten best-selling cigarette brands: Winston, Camel, Salem and Doral. 10:12_35 AM
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0 R.A. REymatds 7abacco Mfdid Coltt3tt5 Reteases ~ 0 RdR Nabuco Releases 0 [aporxte Fact Book . 0 Search Press Reteasa Back to RJRT Releases Print Version SPIN-OFF OF 11.3. REYNOLDS TOBACCO COMPANY COMPLETED WINSTON-SALEM, N.C. - June 15, 1999 - R.J. Reynolds Tobacco Holdings, Inc. begins operating today as an independent, publicly held company, following the completion yesterday of the previously announced spin-off from its former parent company, RJR Nabisco Holdings Corp. Shares in R.J. Reynolds Tobacco Holdings, Inc. will begin trading on the New York Stock Exchange (NYSE) today under the symbol "RJR." They have been trading on the NYSE since June 1 on a "when issued" basis. On May 12, 1999, the RJR Nabisco board of directors declared a 1-for- 3 stock dividend of shares in the domestic tobacco company to RJR Nabisco shareholders of record as of May 27, 1999. That distribution of shares took place yesterday afternoon, following the market's closing for the day. "We are very pleased to be operating once again as a freestanding, publicly traded company," said Andrew J. Schindler, RJR's president and chief executive officer. "We are committed to a very clear set of goals: stabilizing and then growing our earnings and cash flow; providing an attractive return to our shareholders in the form of competitive and sustainable dividends; and profitably growing our key brands." With 1998 annual pro-forma net sales of approximately $5.7 billion, RJR is the nation's second- largest tobacco company, with about a 25 percent share of market. The company sells four of the top 10 U.S. cigarette brands: Winston, Salem, Camel and Doral. It will continue to operate out of its Winston-Salem, N.C., headquarters with a U.S. workforce of approximately 8,000.

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