RJR NABISCO COMMENTS ON EARNINGS OUTLOOK (fwd)

[Robert Weissman <rob@essential.org>]

>September 29, 1998
>
>RJR NABISCO COMMENTS ON EARNINGS OUTLOOK
>
>NEW YORK, NEW YORK -- September 29, 1998 -- RJR Nabisco Holdings Corp.
>(NYSE:RN) today said that depressed market conditions in Russia and other
>Commonwealth of Independent States markets will result in a substantial
>reduction in earnings for its Reynolds International unit in the third
>quarter. The company said that, as a result of these conditions and a
>corresponding increase in RJR Nabisco's corporate tax rate for the
>remainder of the year, it anticipated fully diluted earnings per share will
>fall to a range of $.46 to $.48 per common share for the quarter, which is
>below current Wall Street estimates.
>
>The company said Reynolds International would post an operating profit
>overall and that volume and profit trends continue to show improvement or
>stability in each of its other businesses in Western Europe, Eastern
>Europe, Asia, and the Americas.
>
>The devaluation of the ruble, limited availability of trade credit and
>generally poor economic conditions in Russia led Reynolds International
>briefly to suspend domestic manufacturing and the import of higher-priced
>western brands into the country. Although domestic manufacturing has
>resumed, the company said that business conditions remain volatile and that
>Reynolds International has in place a number of cash management programs to
>protect its operations. RJR Nabisco said it remains confident that the
>region offers substantial opportunity to build a significant earnings base
>over time.
>
>RJR Nabisco said both the domestic tobacco business and the Nabisco food
>business were performing in line with expectations for the quarter and the
>year. RJR Nabisco Holdings Corp. is the parent company of RJR Nabisco,
>Inc., an international consumer products company. RJR Nabisco's major
>operating companies are R.J. Reynolds Tobacco Co. and R.J. Reynolds
>International. RJR Nabisco also owns an 80.6 percent interest in Nabisco
>Holdings Corp.
>