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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 | )      |     |      |    |      |     |      |      |     |     |   |    |     |     |   |    |    
|                                                                                 |                                                                  |                                  |        |        |     |      |     |      |     |      |       |     |     |   |     |     |     |   |     |