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RJR NABISCO HOLDINGS ANNOUNCES IMPACTS TO FINANCIAL RESULTS

 NEW YORK, Jan. 4 /PRNewswire/ -- RJR Nabisco Holdings Corp. (NYSE: RN) today announced that the completed sale of its ready-to-eat cold cereal business for $450 million to Kraft General Foods would result in after-tax cash proceeds of $350 million to the company.
 The completed sale also will result in a pre-tax gain of $98 million to be reflected in the company's fourth-quarter 1992 financial results.
 RJR Nabisco announced that it also will record a pre-tax charge of approximately $105 million related to restructuring programs at its domestic food and tobacco units.
 The company said that the combined after-tax result of the cereal business sale and the restructuring charge will reduce its fourth quarter 1992 "income before extraordinary item" and "net income" by approximately $36 million, or $.03 per common share (also $.03 fully diluted). The gain on the cereal business sale has a disproportionately large tax effect that is the result of a step-up in the accounting basis of the cereal assets at the time of the company's leveraged buy-out in 1989.
 The company also will record a $126 million extraordinary charge related to the repurchase and retirement of $830 million aggregate principal amount of high-cost debt that was offered to the company during the fourth quarter. The charge will reduce fourth quarter 1992 net income by an additional $.09 per common share (also $.09 fully diluted).
 RJR Nabisco also announced that it has adopted, retroactive to Jan. 1, 1992, Statement of Financial Accounting Standards No. 106 ("Employers' Accounting for Post-retirement Benefits Other Than Pensions"), which requires the accrual of costs for retirees' health and other non-pension post-retirement benefits and the recognition of an unfunded and unrecognized accumulated benefit obligation for these benefits. The company said that adoption of the standard does not have a material effect on its financial statements because it previously had recorded an estiamted present valued liability for these benefits.
 The company said that in the first quarter of 1993 it will also adopt Statement of Financial Accounting Standards No. 109 ("Accounting for Income Taxes"), which modifies a prior standard regarding the method of accounting for income taxes. The adoption of the new standard will not have a material effect on its financial statements.
 RJR Nabisco Holdings Corp. is the parent company of RJR Nabisco, Inc., an international consumer products company. RJR Nabisco's major operating units are R.J. Reynolds Tobacco Co., R.J. Reynolds Tobacco International, Inc., the Nabisco Foods Group, and Nabisco International, Inc.
 -0- 1/4/93
 /CONTACT: Jason Wright of RJR Nabisco, 212-258-5770/
 (RN)


CO: RJR Nabisco Holdings Corp. ST: New York IN: TOB SU:

BN-BR -- AT016 -- 1454 01/04/93 17:15 EST
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Date:Jan 4, 1993
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