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 28 April 2011 it purchased 185,000 of its Ordinary shares of 25 pence each ("shares") on 18 May 2011. The average price was 2,687.95p per share.

The highest price paid was 2,698p per share and the lowest price paid was 2,675p per share.

The Company intends to hold these shares in Treasury.

Following the purchase of these shares, the Company holds 36,517,554 of its shares in Treasury. The Company has 1,989,428,378 ordinary shares in issue (excluding Treasury shares).

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

G C W Cunnington

Deputy Secretary

British American Tobacco p.l.c.

18 May 2011