##### 



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 | )   
|                                                                                 |                                                                  |                                  |     |      |     |      |       |      |     |      |     |     |     |   |     |     |     |   |      |