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    Reynolds American Elects Ivey as Chairman

    Susan Ivey replaces Andrew Schindler as chairman of Reynolds American Inc.

    WINSTON-SALEM, N.C. -- Reynolds American Inc. elected Susan M. Ivey, currently CEO and president of Reynolds American, as the company's new chairman beginning Jan. 1, 2006. She replaces Andrew J. Schindler who will leave his position at the end of 2005. Her new title will be chairman, president and CEO.

    "I look forward to this new role with the RAI board, seeing through to completion the vision they have helped set for the company," said Ivey. "We have a very strong board, representing a wealth of experience and diversity of talent which will prove invaluable as we grow this company."

    Schindler became non-executive chairman of RAI on Jan. 31, 2005, when he retired as a full-time employee. Prior to his retirement, he was chairman of the board of RAI, having served in that capacity since the company's formation in July 2004. He served as chairman of R.J. Reynolds Tobacco Holdings Inc. from June 1999 to July 2004.

    "My primary role for the last year has been to assist the new RAI board and participate in the successful formation of the new company," said Schindler. "It's been an exciting time for the company. Susan and her team have made tremendous strides in integrating two former competitors and have established a sound business model and strategic direction for Reynolds American."

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