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--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 11 - lo:ShareRepurchaseProgramTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;11. Share Repurchase Program&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On
May&amp;#160;21, 2009, Lorillard, Inc. announced that its Board of Directors
had approved a share repurchase program, authorizing the Company to repurchase
in the aggregate up to $250&amp;#160;million of its outstanding common stock.
Purchases by the Company under this program may be made from time to time
at prevailing market prices in open market purchases, privately negotiated
transactions, block purchases or otherwise, as determined by the Company&amp;#8217;s
management. The repurchases will be funded from existing cash balances. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;This
program does not obligate the Company to acquire any particular amount of
common stock. The timing, frequency and amount of repurchase activity will
depend on a variety of factors such as levels of cash generation from operations,
cash requirements for investment in the Company&amp;#8217;s business, current
stock price, market conditions and other factors. The share repurchase program
may be suspended, modified or discontinued at any time and has no set expiration
date. During the second quarter, the Company repurchased approximately 2.2&amp;#160;million
shares of its common stock at an average price of $67.67 per share, for a
total of $146&amp;#160;million. This share repurchase program follows on the
prior authorization by the Board on July&amp;#160;9, 2008 to repurchase in
the aggregate up to $400&amp;#160;million of its outstanding common stock,
which was completed on October&amp;#160;10, 2008. See Note 13 for additional
information regarding the Company&amp;#8217;s share repurchase programs. &lt;/div&gt;
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Tagged Note 11 - lo:ShareRepurchaseProgramTextBlock--&gt;  11. Share Repurchase Program
 &amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On
May&amp;#160;21, 2009,</NonNumericTextHeader>
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