BRITISH AMERICAN TOBACCO PRELIMINARY ANNOUNCEMENT.

(Full text of a statement. Contact details below.)

British American Tobacco Preliminary Announcement - Year Ended 31 December 2005

LONDON, Feb. 28 /PRNewswire-AsiaNet/ --

SUMMARY

 
                            2005            2004        Change 
 
Profit from operations 
- as reported             2,420m pounds   3,760m pounds  -36% 
- 'like for like'         2,607m pounds   2,398m pounds   +9% 
 
Adjusted diluted 
earnings per share          89.34p          76.62p       +17% 
 
Dividends per share 
declared                    47.00p          41.90p       +12% 
 

- The reported Group profit from operations was 36 per cent lower at 2,420 million pounds Sterling, mainly due to the impact in 2004 of a significant 1,389 million pounds gain on the Reynolds American transaction. However, profit from operations would have been 9 per cent higher, or 5 per cent at comparable rates of exchange, 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 'headline' change 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 1 per cent decrease to 678 ...