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
			Three Months
			Ended		For the Years Ended December 31,
			March 31,
			2004		2003			2002		2001		2000
Earnings before fixed charges:
	Income (loss) from continuing operations before income taxes		$	201	$	(3,918	)	$	683	$	892	$	748
	Addback: Loss on equity investment			2		5			—		—		—
				203		(3,913	)		683		892		748
	Interest and debt expense			20		111			147		150		168
	Interest portion of rental expense			2		12			15		14		15
Earnings (loss) before fixed charges			$	225	$	(3,790	)	$	845	$	1,056	$	931
Fixed charges:
	Interest and debt expense		$	20	$	111		$	147	$	150	$	168
	Interest portion of rental expense			2		12			15		14		15
		Total fixed charges	$	22	$	123		$	162	$	164	$	183
Ratio of earnings to fixed charges				10.2	$	—			5.2		6.4		5.1
Deficiency in the coverage of fixed charges by earnings before fixed charges			$	—	$	(3,913	)	$	—	$	—	$	—