WINSTON-SALEM, N.C., May 29 /PRNewswire-FirstCall/ -- R.J. Reynolds Tobacco Holdings, Inc. (NYSE: RJR - News) announced today that certain members of its executive management team and that of its R.J. Reynolds Tobacco Company (RJRT) subsidiary have established stock-trading plans under Rule 10b5-1 of the Securities and Exchange Act of 1934.

In October 2000, the Securities and Exchange Commission adopted Rule 10b5-1, which permits individuals who are not in possession of material nonpublic information to establish prearranged plans to buy or sell company stock. The rule allows individuals adopting such plans to sell shares over a specified period of time or at a specific price in the future, regardless of any subsequent material non-public information they receive.

In June 2003, long-term restricted stock grants that were made to some officers of RJR and RJRT will vest. These grants were made in 1999 as part of RJR's ongoing long-term incentive plans. The following officers of RJR and RJRT have elected to enter into 10b5-1 plans in connection with the vesting of these grants:

• RJR Officers:
  
• Andrew J. Schindler, chairman and chief executive officer
  
• Charles A. Blixt, executive vice president and general counsel
  
• RJRT Officers:
  
• Lynn J. Beasley, president and chief operating officer
  
• James V. Maguire, executive vice president
  

In aggregate, a total of approximately 47,500 shares related to these grants are covered by these officers' 10b5-1 plans.

In accordance with company share-ownership guidelines, all officers will hold the equivalent of at least 25 percent of the number of shares granted to them in the form of RJR stock. This will generally equate to 50 percent of the net proceeds after paying taxes. Mr. Schindler has chosen to retain more, selling only those shares necessary to pay taxes due on the stock grants at the time of vesting. For the individuals entering into these plans, approximately half of the value of the vesting stock will be needed to pay taxes.

R.J. Reynolds Tobacco Holdings, Inc. is the parent company of R.J. Reynolds Tobacco Company and Santa Fe Natural Tobacco Company, Inc. 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. Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes and other tobacco products, and markets them both nationally and internationally. Copies of RJR's news releases, annual reports, SEC filings and other financial materials are available on the company's website, http://www.RJRHoldings.com.