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YET ANOTHER VICTORY AGAINST THE ANTITOBACCO MOBS

STATEMENT FROM RJ REYNOLDS

PR 05/05 1539

WINSTON-SALEM, N.C., May 5 /PRNewswire/ -- R.J. Reynolds today issued the following:

On the heels of two similar cases that were dismissed in their entirety in April, a federal judge recently dismissed all but one of the claims brought against the tobacco industry by two union health trust funds in California.

The funds are seeking reimbursement for costs attributable to the alleged smoking-related illnesses of their members.

"We are pleased that the court found that the plaintiffs' basic legal theories were without merit," said Daniel W. Donahue, senior vice president and deputy general counsel for R.J. Reynolds Tobacco Co. "The funds' claims are fundamentally flawed and they have suffered no direct damage," he said.

United States District Court Judge D. Lowell Jensen dismissed claims alleging racketeering, state and federal antitrust violations, fraud and misrepresentation, intentional breach of special duty, unfair business practices and unjust enrichment. Judge Lowell upheld plaintiffs' negligent breach of special duty claim after noting that the "Court must assume that plaintiffs' allegations are true and must draw all reasonable inferences in plaintiffs' favor."

"This decision, along with decisions dismissing other union trust fund suits last month in Florida and Pennsylvania, represent a trend across the nation," Donahue said. "We are confident that most courts will continue to apply the law and precedent and resist creating bad public policy simply to punish an industry that is currently unpopular."

SOURCE R.J. Reynolds Tobacco Company
-0- 05/05/98

/CONTACT: Nat Walker, R.J. Reynolds Tobacco Company, 336-741-7685/

CO: R.J. Reynolds Tobacco Company ST: North Carolina, California IN: TOB SU:

Copyright 1998 PR Newswire. All rights reserved.


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