Exhibit 7Summary of Five-year Eurobond Terms Available to R.J. Reynolds

Face value 100 25,000 25,000Price 100.125% 100.250% 101.500%Fees 1.875% 1.875% 1.875%Coupon (paid annually) 10.125% 6.375% 7.750%Final Redemption 100 25,000 115.956 $

Exhibit 8Long-dated Yen/Dollar Forward Exchange Rates (Forward Arranged by Nikko Securities)

Outright RatesYear Bid Offer % spread

0 236.80 236.90 0.04%1 231.30 231.70 0.17%2 223.90 225.90 0.89%3 215.60 218.70 1.42%4 207.10 211.20 1.94%5 197.60 202.70 2.52%

Exhibit 9Currency and Interest Rate Swap Indications (All rates are against six-month dollar LIBOR)

Semiannual Quotation BenchmarkPay Receive US Treasury Pay Receive Pay

5-year Dollar Rates T + 60 T + 76 9.88% 10.48% 10.64% 10.75%5-year Yen Rates 6.98% 7.22% 7.10%

All in cost Calculation

Alternatif 1 : Eurodollar bonds

Year Cash Flows0 98.251 -10.1252 -10.1253 -10.1254 -10.1255 -110.125

All in cost 10.59%

Alternatif 2a : Euroyen hedged into Dollar by Forward Contract

Dollar Eurobonds

yen Eurobonds

Yen/Dollar Dual

Currency Eurobonds

Semiannual Fixed Rates Against 6-month Dollar

LIBOR

Annual Fixed Rates Against 6-Month Dollar

LIBOR

Year Yen CF $ CF RJR0 24,593.75 103.81 buy $1 -1,593.75 -6.89 Sell $2 -1,593.75 -7.12 Sell $3 -1,593.75 -7.39 Sell $4 -1,593.75 -7.70 Sell $5 -26,593.75 -134.58 Sell $

All in cost 6.77% 10.64%

Alternatif 2b : Euroyen hedged into Dollar by Currency SwapRJR receipts

From Swaps flows with MGLYear euroyen bon Yen Dollar Yen excess $ eq.

0 24,593.75 -24,258.82 102.40 334.93 1.41 1 -1,593.75 1,593.75 -11.18 2 -1,593.75 1,593.75 -11.18 3 -1,593.75 1,593.75 -11.18

4 -1,593.75 1,593.75 -11.185 -26,593.75 26,593.75 -113.58

All in cost 6.77% 7.10% 10.92%

Alternative 3a : Dual Currency bond hedged into $ by Forward Contract

Dual CurrencyYear Yen CF Dollar CF Effective $ CF

0 24906.25 105.134 1 -1937.5 -8.377 2 -1937.5 -8.653 3 -1937.5 -8.987 4 -1937.5 -9.355 5 -1937.5 -115.956 -125.761

All in cost 10.21%

Alternative 3b : Dual Currency bond hedged into $ by Interest Rate SwapRJR receipts

Dual Currency swap flows with MGLYear Yen CF Dollar CF Yen Dollar Yen excess

0 24906.25 -7,922.91 33.44 16983.341 -1937.5 1937.5 -9.031 2 -1937.5 1937.5 -9.0313 -1937.5 1937.5 -9.0314 -1937.5 1937.5 -9.0315 -1937.5 -115.956 1937.5 -9.031

All in cost 7.10% 10.92%

Summary of ResultDollar all in cost Spread over

Annual Semiannual benchmarkAlt 1 10.59% 10.33% 45Alt 2a 10.64% 10.37% 49Alt 2b 10.55% 10.29% 41Alt 3a 10.21% 9.96% 8Alt 3b 10.27% 10.02% 14

Receive10.92%7.35%

Annual Fixed Rates Against 6-Month Dollar

LIBOR

Effective Basis point conversion Calculation of effective swap ratesDollar flow Yen Dollar Yen

103.81 (1.3541) (1.3541) Quoted swap rates 7.10%-11.18 -0.3311 -0.3656-11.18 -0.3311 -0.3656 Add-11.18 -0.3311 -0.3656 Yen basis points -0.33-11.18 -0.3311 -0.3656 Dollar basis points

-113.58 -0.3311 -0.3656 Effective swap rates 6.77%

10.55% 7.10% 10.92%

Effective$ equiv. $ CF

71.69 105.13 -9.031 -9.031-9.031-9.031

-124.987

10.27%

Dollar10.92%

-0.37

10.55%