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 Years Ended December 31,
			2002		2001		2000		1999		1998
Earnings before fixed charges:
	Income (loss) from continuing operations before income taxes		$	683	$	892	$	748	$	510	$	(679	)
	Interest and debt expense			147		150		168		268		426
	Interest portion of rental expense			15		14		15		15		16
Earnings (loss) before fixed charges			$	845	$	1,056	$	931	$	793	$	(237	)
Fixed charges:
	Interest and debt expense		$	147	$	150	$	168	$	268	$	426
	Interest portion of rental expense			15		14		15		15		16
		Total fixed charges	$	162	$	164	$	183	$	283	$	442
Ratio of earnings to fixed charges				5.2		6.4		5.1		2.8		—
Deficiency in the coverage of fixed charges by earnings before fixed charges				—		—		—		—	$	(679	)