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 30 April 2014 it purchased 223,200 of its ordinary shares of 25 pence each ("shares") on 1 July 2014. The average price was 3,496.9726p per share.

The highest price paid was 3,522p per share and the lowest price paid was 3,470p per share.

The Company intends to hold these shares in Treasury.

Following the purchase of these shares, the Company holds 158,271,817 of its shares in Treasury. The Company has 1,868,378,244 ordinary shares in issue (excluding Treasury shares).

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

Geoff Cunnington

Deputy Secretary

British American Tobacco p.l.c.

1 July 2014