EXHIBIT 12.1

R.J. REYNOLDS TOBACCO HOLDINGS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES/ DEFICIENCY IN THE

COVERAGE OF FIXED CHARGES BY EARNINGS BEFORE FIXED CHARGES

(Dollars in Millions)

(Unaudited)

			For the
			Nine Months		For the Years Ended December 31,
			Ended
			September 30, 2002		2001		2000		1999		1998			1997
Earnings before fixed charges:
	Income (loss) from continuing operations before income taxes		$	848	$	892	$	748	$	510	$	(679	)	$	204
	Interest and debt expense			110		150		168		268		426			433
	Interest portion of rental expense			11		14		15		15		16			16
Earnings (loss) before fixed charges			$	969	$	1,056	$	931	$	793	$	(237	)	$	653
Fixed charges:
	Interest and debt expense		$	110	$	150	$	168	$	268	$	426		$	433
	Interest portion of rental expense			11		14		15		15		16			16
		Total fixed charges	$	121	$	164	$	183	$	283	$	442		$	449
Ratio of earnings to fixed charges				8.0		6.4		5.1		2.8		—			1.5
Deficiency in the coverage of fixed charges by earnings before fixed charges				—		—		—		—	$	(679	)		—