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 Three
															Months Ended
	For the Years Ended December 31,														March 31
	2002		2003			2004			2005			2006			2006			2007
Earnings before fixed charges:
Income (loss) from continuing operations before income taxes	$	683	$	(3,918	)	$	829		$	1,416		$	1,809		$	447		$	524
Addback (deduct): Loss (income) on equity investment		—		5			(9	)		(10	)		(17	)		(2	)		(2	)
		683		(3,913	)		820			1,406			1,792			445			522
Interest and debt expense (1)		147		111			85			113			270			35			89
Interest portion of rental expense		15		12			12			12			8			3			2
Earnings (loss) before fixed charges	$	845	$	(3,790	)	$	917		$	1,531		$	2,070		$	483		$	613
Fixed Charges:
Interest and debt expense (1)	$	147	$	111		$	85		$	113		$	270		$	35		$	89
Interest portion of rental expense		15		12			12			12			8			3			2
Total fixed charges	$	162	$	123		$	97		$	125		$	278		$	38		$	91
Ratio of earnings to fixed charges		5.2		—			9.5			12.2			7.4			12.7			6.7
Deficiency in the coverage of fixed charges by earnings before fixed charges	$	—	$	(3,913	)	$	—		$	—		$	—		$	—		$	—

(1) RAI classifies interest expense recognized on uncertain tax positions as income tax expense under the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Accordingly, this amount is excluded from the interest expense portion of fixed charges in the ratio of earnings to fixed charges.