EXHIBIT 12.1

REYNOLDS AMERICAN 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,
	2006			2005			2004			2003			2002
Earnings before fixed charges:
Income (loss) from continuing operations before income taxes	$	1,809		$	1,416		$	829		$	(3,918	)	$	683
Addback (deduct): Loss (income) on equity investment		(17	)		(10	)		(9	)		5			—
		1,792			1,406			820			(3,913	)		683
Interest and debt expense		270			113			85			111			147
Interest portion of rental expense		8			12			12			12			15
Earnings (loss) before fixed charges	$	2,070		$	1,531		$	917		$	(3,790	)	$	845
Fixed charges:
Interest and debt expense	$	270		$	113		$	85		$	111		$	147
Interest portion of rental expense		8			12			12			12			15
Total fixed charges	$	278		$	125		$	97		$	123		$	162
Ratio of earnings to fixed charges		7.4			12.2			9.5			—			5.2
Deficiency in the coverage of fixed charges by earnings before fixed charges	$	—		$	—		$	—		$	(3,913	)	$	—