Lorillard Acquisition

Lorillard has agreed to be acquired by Reynolds American Inc. in a cash-and-stock transaction that had an implied enterprise value of $27.4 billion on the day of the announcement.

For more information on the acquisition, including a video with both the Lorillard and Reynolds American CEO’s, please visit the transaction website: www.reynoldsamericaninfo.com

Investor Relations Highlights

Third quarter 2014 net sales totaled $1.831 billion compared to $1.827 billion in last year’s third quarter. Net sales in the first nine months of 2014 increased 0.3% to $5.222 billion compared to $5,208 in the first nine months of last year.

Third quarter 2014 adjusted earnings per diluted share (EPS) increased 8.4% versus last year to $0.90. First nine months 2014 adjusted EPS increased 6.1% versus last year to $2.44.

In the first nine months of 2014, total Lorillard retail market share of cigarettes increased to 15.1%, up 0.3 share points from last year. Newport retail market share also increased 0.3 share points in the first half to 12.9%.

Brand Feature

Newport Menthol

#1 Menthol Brand in the U.S.!

Legislation & Regulation

The U.S. Food and Drug Administration has stated it is seeking information to help determine whether or how to regulate menthol in cigarettes beyond existing regulations for all cigarettes.

Click here to see Lorillard’s position on potential menthol regulation and why we believe menthol cigarettes should be regulated no differently from regular cigarettes.

Company Overview

Lorillard, Inc., through its Lorillard Tobacco Company subsidiary, is the third largest manufacturer of cigarettes in the United States.  Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S.  Newport, Lorillard’s flagship premium cigarette brand, is the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has four additional cigarette brand families marketed under the Kent, True, Maverick and Old Gold brand names.  These five brands include 41 different product offerings which vary in price, taste, flavor, length and packaging.  In April 2012, Lorillard acquired blu ecigs, the leading electronic cigarette company in the U.S.  Lorillard maintains its headquarters and manufactures all of its cigarette products in Greensboro, North Carolina.

Lorillard Reports Third Quarter 2014 Results

““Overall, we are very pleased that the company’s continued industry-leading fundamental performance has resulted in adjusted EPS growth of over 8% during the quarter,” stated Lorillard’s Chairman & CEO.

Lorillard 2013 Annual Report

The remarkable winning tradition of Lorillard’s market-leading brands and its seasoned and talented employees resulted in another year of record-setting results in 2013.

Investor Information

News

Lorillard to be Acquired in Transaction Valued at $27.4 Billion

Lorillard announced entry into a definitive agreement with Reynolds American in a cash-and-stock transaction valued at $68.88 per share.

Lorillard Reports Third Quarter 2014 Results

Lorillard adjusted EPS increased 8.4% in the third quarter of 2014 and increased 6.1% in the first nine months of 2014 versus last year as the Company continued to incrementally invest in its global blu eCigs electronic cigarette business. During the first nine months of 2014, Lorillard retail market share of cigarettes increased 0.3 share points from last year to 15.1%.

Lorillard Announces Acquisition of British-Based SKYCIG

Acquisition marks the first major step in building Lorillard's global e-cigarette business.