Asia PR News

LONDON, July 28 /PRNewswire-AsiaNet/ –

Summary

SIX MONTHS RESULTS 2005 2004 Change
Profit from operations
- as reported GBP1,253m GBP1,246m +1%
- ‘like for like’ GBP1,211m GBP1,124m +8%
Adjusted diluted
earnings per share 41.65p 33.87p +23%
Interim dividend per share 14.0p 12.7p +10%

The reported Group profit from operations was slightly up at GBP1,253
million. However, profit from operations was 8 per cent higher if exceptional
items and the changes in the Group resulting from the merger of the Group’s US
businesses with R.J. Reynolds and the sale of Etinera, with the resulting
change in terms of trade, are excluded. This ‘like for like’ information
provides a better understanding of the subsidiaries’ trading results than the
small ‘headline’ increase in profit from operations.

On a reported basis, Group volumes from subsidiaries were affected by the
changes in the Group noted above, resulting in a 3 per cent decrease to 329
billion. Excluding the impact of these transactions, there was good organic
volume growth from subsidiaries of 2 per cent. The four global drive brands
showed overall growth of 6 per cent on a ‘like for like’ basis.

Adjusted diluted earnings per share rose by 23 per cent, benefiting from
the improved underlying operating performance, reduced net finance costs, a
lower effective tax rate and minority interests, as well as the impact of the
Reynolds American transaction and the share buy-back programme. The basic
earnings per share were impacted by the same factors, as well as by
exceptional items, partly offset by the conversion of the redeemable
preference shares, and increased to 44.48p (2004: 33.98p).

The Board has declared an interim dividend of 14.0p to be paid on 14
September 2005, which represents a 10 per cent increase on last year.

The Chairman, Jan du Plessis, commented "Overall, we have had an
exceptional half year, although I feel obliged to remind shareholders that the
comparisons with 2004 will inevitably become more demanding, in the light of
the one-off tax benefits that occurred in the second half of last year. There
are also considerable uncertainties associated with forecasting finance costs
under IFRS.

"However, in a challenging environment for global consumer goods
companies, we are demonstrating our ability to achieve organic volume growth.
The encouraging profit growth in four of our five regions, the continuing
benefit arising from the Reynolds American transaction and the real momentum
behind our global drive brands all point to a highly satisfactory year."

SOURCE British American Tobacco

/CONTACT: Investor Relations: Ralph Edmondson or Rachael Cummins,
+44-20-7845-1180, +44-20-7845-1519; Press Office: David Betteridge, or Teresa
La Thangue, or Emily Brand +44-20-7845-2888/