EXHIBIT 99.1

R.J. REYNOLDS P.O. Box 2866
TOBACCO HOLDINGS, INC. Winston-Salem, NC 27102-2866

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CONTACT: Investors: Media:
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Dianne Neal Seth Moskowitz
(336) 741-2978 (336) 741-7698

RJRTH 2003-06

R.J. Reynolds Reports First Quarter 2003 Results; Lowers Full Year Forecast
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WINSTON-SALEM, N.C. - April 25, 2003 - R.J. Reynolds Tobacco Holdings, Inc.
(NYSE: RJR) today reported the following results for the first quarter of
2003. Ongoing operating results were consistent with the first-quarter
earnings guidance provided by the company on Jan. 28, 2003. A schedule
reconciling the differences between Generally Accepted Accounting
Principles (GAAP) results and ongoing results is attached.

First Quarter Highlights
------------------------
(dollars in millions, except per-share amounts)

GAAP Ongoing
----------- ----------
1st Quarter 1st Quarter
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% %
2003 2002 Change 2003 2002 Change
---- ---- ------ ---- ---- ------
Net Sales ............................... $ 1,218 $ 1,515 -20% $ 1,218 $ 1,515 -20%
Operating Income ........................ $ 135 $ 297 -55% $ 135 $ 297 -55%
Net Income/(Loss)* ...................... $ 71 $ (335) - $ 71 $ 167 -57%
Net Income/(Loss) per diluted share*..... $ 0.84 $ (3.58) - $ 0.84 $ 1.79 -53%

Balance Sheet Highlights (as of March 31, 2003)
-----------------------------------------------

o Cash and short-term investments: $ 1.9 billion
o Debt: $ 2.5 billion
o Equity: $ 6.6 billion
o Dividend: $0.95 per share quarterly; $3.80 per share annualized
o Share repurchase programs: 1.4 million ($60 million) in first quarter 2003;
30.8 million ($1.3 billion) since Nov. 1999

*Note: On January 1, 2002, RJR adopted SFAS No. 142. Under the new testing
and measurement requirements of SFAS No. 142, the fair value of certain of
RJR Tobacco's trademarks was less than the carrying value, which resulted
in a non-cash, trademark impairment charge of $502 million after tax in the
first quarter of 2002. Ongoing results for 2002 exclude the impact of this
accounting change. See attached financial statements for details.

Discussion of First Quarter 2003 Results
----------------------------------------

"RJR's financial results for the first quarter of 2003 reflect lower volume
and the continuing challenges of an intensely competitive environment,"
said Andrew J. Schindler, chairman and chief executive officer of RJR.
"RJR's profitability continues to be adversely affected by the growth of
deep-discount brands, high levels of competitive promotional spending, and
the effects of state cigarette excise tax increases."

Schindler added that several negative factors converged during the first
quarter of 2003. "Shipment volume for the industry was down 12.9 percent,
RJRT was down 14.2 percent, and the four major manufacturers' combined
volume was down 14.7 percent. We estimate that RJRT's consumption decline
was 8 to 10 percent.

"We also believe, based on preliminary data, that the deep-discount
category is much larger than had been previously reported," Schindler said.
"Rapidly rising retail cigarette prices due to sharply higher state excise
taxes have contributed to volume declines and the growth of the
deep-discount category. These developments add significant pressure to an
already difficult and uncertain environment."

"Our objective for 2003 is to manage our businesses as effectively as
possible during a very difficult year. In view of the
volume decline, we are lowering our full-year earnings outlook. In order to
maximize our financial flexibility, we are suspending our share repurchase
program," said Schindler. "However, given the strength of our balance
sheet, we are committed to maintaining our dividend of $3.80 per share on
an annualized basis."

He continued, "To strengthen our business and improve earnings in future
years, we are fundamentally rethinking how we approach the marketplace and
will be realigning our cost structure to match the realities of today's
environment. We are focusing on this effort and plan to provide an update
on our progress later this year."

GAAP Financial Results
----------------------

First-quarter net sales were $1.22 billion, down 20 percent, due to lower
volume, a less-favorable full-price/savings brand mix and lower margins due
to higher competitive promotional spending. Operating income for the
quarter was $135 million, down 55 percent from $297 million, due to lower
net sales and increased marketplace spending, partially offset by lower
settlement expense.

First-quarter net income was $71 million, compared with a loss of $335
million for the first quarter of 2002. The net loss in the year-ago quarter
was due primarily to an accounting change that required a non-cash
trademark impairment charge of $502 million after tax. On a per-share
basis, for the first quarter of 2003, the company reported net income of
$0.84 per diluted share, compared with a net loss per diluted share of
$3.58 in the prior year.

Ongoing Financial Results
-------------------------

Ongoing and GAAP financial results for the first quarter of 2003 are the
same. Ongoing net income during the first quarter of 2002 excludes the
impact of the accounting change discussed above. A reconciliation of
ongoing results to GAAP results, and information about accounting changes
effective in January 2002, is included in RJR's Ongoing Condensed
Consolidated Statements of Income, which appears below.

Discussion of Key Performance Factors During First Quarter 2003
---------------------------------------------------------------

The following table summarizes first-quarter 2003 domestic cigarette
shipment volume, in billions of units:

For the Three Months
Ended March 31
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%

2003 2002 Change
---- ---- ------
RJR Tobacco Volume ........................ 19.1 22.3 -14.2%
RJR Tobacco total full-price ......... 11.4 13.8 -17.2%
RJR Tobacco total savings ............ 7.7 8.5 -9.5%
SFNTC Volume* ............................. 0.3 0.2 +8.1%
RJR Total Domestic Volume** ............... 19.4 22.5 -14.0%
- ----------

*This comparison includes shipments during the first two weeks of 2002,
which was prior to the completion of RJR's acquisition of Santa Fe Natural
Tobacco Company on Jan. 16, 2002. It does not include SFNTC's international
cigarette volume of approximately 0.2 billion units for the 2003 first
quarter.

**The above results exclude Puerto Rico and certain other U.S. territories'
volume of approximately 0.3 billion units for each quarter.

In the first quarter of 2003, the industry experienced an accelerated rate
of decline in shipments due to trade inventory shifts and reduced
consumption. Industry shipments totaled 88.2 billion units, a decrease of
12.9 percent compared to the first quarter of 2002. Industry full-price
shipments were down 14.7 percent and savings-brand shipments fell 7.6
percent. Industry mix of full-price versus savings-brand volume declined to
72.9 percent from 74.5 percent in the prior-year period.

Reynolds Tobacco believes that volume associated with smaller,
deep-discount manufacturers is not fully reflected in total industry
shipments. For example, based on preliminary information from Management
Science Associates, Inc., a supplier of industry shipment data, as well as
on data supplied as part of the Master Settlement Agreement, RJRT now
estimates that 2002 total industry shipments were approximately 416 billion
units, or about 25 billion units higher than originally reported. These new
data indicate that instead of shipping 30 billion units as originally
estimated, the smaller manufacturers actually shipped approximately 55
billion units. Management Science Associates, Inc. is in the process of
developing new estimates for industry shipments. A revised estimate for
first quarter 2003 shipments by the smaller manufacturers is not yet
available.

Reynolds Tobacco's first-quarter shipment volume declined 14.2 percent, due
to an estimated consumption decline of 8 percent to 10 percent, as well as
trade inventory shifts. The company's first-quarter mix of full-price
versus savings-brand volume declined to 59.5 percent from 61.6 percent for
the year-ago quarter.

Retail Share of Market Performance
----------------------------------

RJR Tobacco's retail share of market for first quarter 2003 averaged 22.92
percent, an increase of 0.27 share points compared to the year-ago quarter.
On a combined basis, RJRT's four investment brands grew share compared with
the first quarter of 2002 and compared with the previous quarter. RJRT's
total share was down slightly versus the previous quarter.

Camel's first-quarter retail performance was particularly strong, with its
filtered styles up more than half a share point versus first quarter last
year. Camel continues to be one of the industry's few full-price brands to
increase market share.

Despite intense competitive pressures, base Winston's share through the
first quarter of 2003 has remained stable since March 2002,
following a market-share decline in the first quarter of last year.

Salem's first-quarter share was down compared to the year-ago quarter. To
strengthen its performance, the brand launched its new "Stir the Senses"
positioning in April.

Doral is the nation's No. 1 savings brand. Doral's share for the first
quarter was slightly higher than it was during the year-ago quarter,
despite some recent softness in the face of increased premium-price
promotions and continued pressure from deep-discount brands.

Santa Fe's Natural American Spirit brand delivered solid performance in
the first quarter of 2003, growing volume and share compared with
the first quarter of 2002.

Full Year 2003 Earnings Outlook
-------------------------------

"RJR is lowering its full-year 2003 net income outlook to approximately
$250 million, compared with a previous forecast of $400 million to $465
million. The revised earnings outlook for the year assumes a continuation
of the estimated first-quarter consumption decline of 8 percent to 10
percent for RJRT," said Richard H. Bogan, RJR's executive vice president
and chief financial officer. "Given the current volatility in the
marketplace, RJR will not be providing guidance for the second quarter."

For the year ending Dec. 31, 2003, RJR forecasts the following results:

o Operating income of approximately $500 million
o Net income of approximately $250 million
o Net income per diluted share of approximately $3.00
o Consolidated domestic tobacco shipment volumes down 8% to 10%
o Cash and short-term investments of approximately $1.6 billion. This
assumes a stable dividend and repayment of approximately $740 million
in scheduled debt repayments.

Note: The 2003 outlook does not include any potential costs associated with
realigning the company's cost structure.

Conference Call Webcast Today
-----------------------------

R.J. Reynolds Tobacco Holdings, Inc. will webcast a conference call to
discuss first-quarter financial results at 9:30 a.m. ET on Friday, April
25, 2003. The call will be available live online on a listen-only basis. To
register for the call, please visit the "Investors" section of
www.RJRHoldings.com. A replay of the call will be available on the site for
seven days. Remarks made during the conference call will be current at the
time of the call and will not be updated to reflect subsequent material
developments. Although news media representatives will not be permitted to
ask questions during the call, they are welcome to monitor the remarks on a
listen-only basis. Following the call, media representatives may direct
inquiries to Seth Moskowitz at (336) 741-7698.

Statements included in this news release which are not historical in nature
are forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements regarding RJR's future performance and financial results include
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. These
risks include the substantial and increasing regulation and taxation of the
cigarette industry; various legal actions, proceedings and claims arising
out of the tobacco business and the claimed health effects of cigarettes
that are pending or may be instituted against RJR or its subsidiaries; the
substantial payment obligations and limitations on the advertising and
marketing of cigarettes under various litigation settlement agreements; the
continuing decline in volume in the domestic cigarette industry;
competition from other cigarette manufacturers, including increased
promotional activities and the growth of the deep-discount category; the
success of new product innovations and acquisitions; the effect of market
conditions on the performance of pension assets and the return on corporate
cash; and the ratings of RJR securities.

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,
www.RJRHoldings.com.

(financial tables follow)

R.J. REYNOLDS TOBACCO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)

Three Months Ended
March 31,
----------------------

2003 2002
-------- ----------

Net sales ................................................................. $ 1,218 $ 1,515
-------- ----------

Cost of products sold ..................................................... 749 882
Selling, general and administrative expenses .............................. 334 336
-------- ----------

Operating income .......................................................... 135 297

Interest and debt expense ................................................. 36 36
Interest income ........................................................... (10) (16)
Other expense, net ........................................................ (7) 3
-------- ----------

Income before income taxes ................................................ 116 274
Provision for income taxes ................................................ 45 107
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Income before cumulative effect of accounting change ...................... 71 167

Cumulative effect of accounting change, net of
income taxes (1) ........................................................ - (502)
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Net income (loss) ......................................................... $ 71 $ (335)
======== ==========

Basic income (loss) per share:
Income before cumulative effect of accounting change ................... $ 0.84 $ 1.83
Cumulative effect of accounting change (1) ............................. - (5.49)
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Net income (loss) ................................................ $ 0.84 $ (3.66)
======== ==========

Diluted income (loss) per share:
Income before cumulative effect of accounting change ................... $ 0.84 $ 1.79
Cumulative effect of accounting change (1) ............................. - (5.37)
-------- ----------

Net income (loss) ................................................ $ 0.84 $ (3.58)
======== ==========

Basic weighted average shares, in thousands ............................... 84,031 91,426
======== ==========

Diluted weighted average shares, in thousands ............................. 84,952 93,557
======== ==========

(1) On January 1, 2002, RJR adopted SFAS No. 142. Under the new testing and
measurement requirements of SFAS No. 142, the fair value of certain of
RJR Tobacco's trademarks was less than the carrying value, which
resulted in a non-cash, trademark impairment charge in the first
quarter of 2002.

R.J. REYNOLDS TOBACCO HOLDINGS, INC.
ONGOING CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Excluding Certain One-Time Items and Adjustments)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)

Three Months Ended
March 31,
---------------------

2003 2002
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Net sales ................................................................. $ 1,218 $ 1,515
------- ----------

Cost of products sold ..................................................... 749 882
Selling, general and administrative expenses .............................. 334 336
------- ----------

Operating income .......................................................... 135 297

Income before income taxes ................................................ 116 274
Provision for income taxes ................................................ 45 107
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Net income ................................................................ $ 71 $ 167
======= ==========

Diluted income per share .................................................. $ 0.84 $ 1.79
======= ==========

Diluted weighted average shares, in thousands ............................. 84,952 93,557
======= ==========

The following adjustments reconcile GAAP net income (loss) to ongoing
results:

GAAP net income (loss) .................................................... $ 71 $ (335)
Cumulative effect of accounting change, net of income taxes ............... - 502
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Ongoing net income ........................................................ $ 71 $ 167

The following adjustments reconcile GAAP net income (loss) per share to
ongoing results per share:

GAAP net income (loss) .................................................... $ 0.84 $ (3.58)
Cumulative effect of accounting change, net of income taxes ............... - 5.37
------- ----------
Ongoing net income ........................................................ $ 0.84 $ 1.79

R.J. REYNOLDS TOBACCO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)

March 31, December 31,
2003 2002
--------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents ................................................. $ 1,332 $ 1,584
Short-term investments .................................................... 597 595
Other current assets ...................................................... 1,746 1,813
Trademarks, net ........................................................... 2,085 2,085
Goodwill, net ............................................................. 7,090 7,090
Other assets and deferred charges ......................................... 1,462 1,484
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$14,312 $ 14,651
======= ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Tobacco settlement and related accruals ................................... $ 1,376 $ 1,543
Current maturities of long-term debt ...................................... 741 741
Accrued liabilities and other ............................................. 1,033 1,143
Long-term debt (less current maturities) .................................. 1,757 1,755
Deferred income taxes ..................................................... 1,210 1,236
Long-term retirement benefits ............................................. 1,214 1,176
Other noncurrent liabilities .............................................. 344 341
Stockholders' equity ...................................................... 6,637 6,716
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$14,312 $ 14,651
======= ==========