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,
			2003			2002		2001		2000		1999
Earnings before fixed charges:
	Income (loss) from continuing operations before income taxes		$	(3,918	)	$	683	$	892	$	748	$	510
	Addback: Loss on equity investment			5			—		—		—		—
				(3,913	)		683		892		748		510
	Interest and debt expense			111			147		150		168		268
	Interest portion of rental expense			12			15		14		15		15
Earnings (loss) before fixed charges			$	(3,790	)	$	845	$	1,056	$	931	$	793
Fixed charges:
	Interest and debt expense		$	111		$	147	$	150	$	168	$	268
	Interest portion of rental expense			12			15		14		15		15
		Total fixed charges	$	123		$	162	$	164	$	183	$	283
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			$	(3,913	)		—		—		—		—