Transaction in Own Shares

TRANSACTION IN OWN SHARES

British American Tobacco p.l.c. (the "Company") announces that in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 26 April 2012 it purchased 218,517 of its ordinary shares of 25 pence each ("shares") on 31 August 2012. The average price was 3,328.2512p per share.

The highest price paid was 3,346.5p per share and the lowest price paid was 3,306.5p per share.

The Company intends to hold these shares in Treasury.

Following the purchase of these shares, the Company holds 82,753,325 of its shares in Treasury. The Company has 1,943,503,550 ordinary shares in issue (excluding Treasury shares).

Name of duly authorised officer of issuer responsible for making notification:

B M Creegan

Assistant Secretary

British American Tobacco p.l.c.

31 August 2012