Exhibit 7 Summary of Five Year Eurobond Terms Available to R.J.

Reynolds
Dollar
Yen
Yen/Dollar
Eurobond
Eurobond
Dual Currency Eurobond
Face value
$100,000,000 25,000,000,000
###
Price
100.125%
100.250%
101.500%
Fees
1.875%
1.875%
1.875%
Coupon (paid annual
10.125%
6.375%
7.750%
Final Redemption Par
Par
$115,956,000
Exhibit 8 Yen/Dollar Forward Exchange Rates
Year
0
1
2
3
4
5

Outright Rates
Bid
Offer
236.80
236.90
231.30
231.70
223.90
225.90
215.60
218.70
207.10
211.20
197.60
202.70

Eurodollar bonds
Year CashFlows
0 $98,250,000
1 ($10,125,000)
2 ($10,125,000)
3 ($10,125,000)
4 ($10,125,000)
5 ($110,125,000)
IRR

10.594%

Euroyen bonds with Forward contract

Year Cashflow in YenCashflow in Dollar
0
###
###
1
### ($6,890,402.08)
2
### ($7,118,133.10)
3
### ($7,392,161.41)
4
### ($7,695,557.70)
5
###
###
IRR

6.769%

10.640%

Euroyen bonds with Swap

YearCashflows in YenCashflow in DollarCashflow from Swap
0
###
$102,401,118
###

1
2
3
4
5

###
###
###
###
###

($11,182,202)
($11,182,202)
($11,182,202)
($11,182,202)
($113,583,320)

###
###
###
###
###

IRR
PV of Yen at 7.1% r

7.100%
###

10.920%

10.551%

Dual currency bonds with Forward

YearCashflows in YenCashflow in Dollar
0
###
###
1
### ($8,376,567.23)
2
### ($8,653,416.70)
3
### ($8,986,549.17)
4
### ($9,355,383.87)
5
###
###
IRR

7.844%

10.208%

Dual currency bonds with Interest swap

YearCashflows in YenCashflow in Dollar
0
###
### 33,444,099.45
1
###
2
###
3
###
4
###
5
###
IRR
PV of Yen interest

7.100%
Err:523
### $33,444,099.45

Dual currency bonds with principal hedge

YearCashflows in YenCashflow in Dollar
0
###
###
1
###
($11,340,871)
2
###
($11,340,871)
3
###
($11,340,871)
4
###
($11,340,871)
5
### ($115,195,006)
PV of Yen
Alternatives
Eurodollar bond

IRR

7.100%
###
All-in cost dollars
10.594%

10.92%
10.590%

###
###
###
###
###

Forward
Swap
Dual currency
bond with Forward
bond with Interest
payment hedging
bond with Principal
payment hedging

10.640%
10.551%
10.208%

10.590%

.J. Reynolds