BATS British American Tobacco Plc

British American Tobacco quarterly report to 30 September 2003 London, October 28 /PRNewswire/ -- Summary Nine Months Results 2003 2002 Change Operating profit pre-goodwill Amortisation and exceptionals �2,115m �2,045m +3% Pre-tax profit �1,293m �1,620m -20% Adjusted earnings per share 51.47p 49.15p +5% - Group operating profit, excluding goodwill amortisation and exceptional items, was 3 per cent higher at �2,115 million, with higher contributions from all regions except America-Pacific. At comparable rates of exchange operating profit was also up 3 per cent. - Group volumes grew by 1 per cent to 584 billion. The four global drive brands Kent, Dunhill, Lucky Strike and Pall Mall achieved an overall growth of 13 per cent. - Pre-tax profit was 20 per cent lower at �1,293 million and basic earnings per share fell to 24.48p (2002: 38.32p), reflecting the exceptional costs of restructuring the businesses in the UK and Canada, as well as a loss on disposal of a subsidiary. - Adjusted diluted earnings per share at 51.47p were up 5 per cent, benefiting from higher operating profit and the impact of the share buy-back programme. - The Group has announced the agreement to combine Brown & Williamson's (B&W) US domestic business with R.J. Reynolds (RJR) under Reynolds American, a new holding company 58 per cent owned by RJR shareholders and 42 per cent by the Group, through B&W. The Group will also sell Lane to Reynolds American for US$400 million in cash. - The Chairman, Martin Broughton, commented "The Group as a whole remains very much on track and the exciting agreement with Reynolds is the best way to achieve our long-term strategic ambitions in the US, while improving both our earnings per share and our cash flow." DATASOURCE: British American Tobacco (Investor Relations) Ralph Edmondson/Rachael Cummins, tel +44 (0)20 7845 1180 or +44 (0)20 7845 1519 or (press office) David Betteridge/Ann Tradigo/ Teresa La Thangue, tel +44 (0)20 7845 2888

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