Exhibit 99.1
Lorillard, Inc. Announces Approval of Share Repurchase Program
and Intent to Pursue Debt Offering
GREENSBORO, N.C., May 21, 2009 — Lorillard, Inc. (NYSE: LO) announced today that its Board of Directors has approved a share repurchase program, authorizing the Company to repurchase in the aggregate up to $250 million of its outstanding common stock. Purchases by the Company under this program may be made from time to time at prevailing market prices in open market purchases, privately negotiated transactions, block purchase techniques or otherwise, as determined by the Company’s management. The purchases will be funded from existing cash balances.
This program does not obligate the Company to acquire any particular amount of common stock. The timing, frequency and amount of repurchase activity will depend on a variety of factors such as levels of cash generation from operations, cash requirements for investment in the Company’s business, current stock price, market conditions and other factors. The share repurchase program may be suspended, modified or discontinued at any time and has no set expiration date.
The new share repurchase program follows on the prior authorization by the Board on July 9, 2008 to repurchase in the aggregate up to $400 million of its outstanding common stock, which was completed on October 10, 2008.
In addition, the Board of Directors has also authorized management to proceed with its previously announced intent to enhance its capital structure through a debt financing in order to reduce the Company’s cost of capital and improve shareholder returns. Proceeds of any such financing may be used to fund additional stock repurchases, acquisitions, dividends or for other general corporate purposes. The timing, structure and amount of such indebtedness will depend on a number of factors, including, but not limited to, the credit and interest rate environment and other considerations. We presently have no commitments or agreements with or from any third party regarding such a transaction, and there can be no assurance that Lorillard will be able to obtain debt financing at the anticipated levels or on attractive terms.
About Lorillard, Inc.
Lorillard, Inc. (NYSE: LO) is the third largest manufacturer of cigarettes in the United States. Lorillard was founded in 1760, and is the oldest continuously operating tobacco company in the U.S. Newport®, Lorillard’s flagship brand, is a menthol-flavored premium cigarette brand and the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has five additional brand families marketed under the Kent®, True®, Maverick®, Old Gold® and Max® brand names. These six brands include 44 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard’s manufactures all of its products at its Greensboro, North Carolina facility and maintains its headquarters there. For more information, visit the Company’s web site at www.lorillard.com.
CONTACT: Gordon McCoun or Hannah Sloane, +1-212-850-5600, for Lorillard, Inc.
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Forward-Looking Statement:
Certain statements made in this press release are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect”, “intend”, “plan”, “anticipate”, “estimate”, “believe”, “may”, “will be”, “will continue”, “will likely result”, and similar expressions. In addition, any statement that may be provided by management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions by Lorillard, Inc. are also forward-looking statements as defined by the Reform Act.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond the control of Lorillard, Inc., that could cause actual results to differ materially from those anticipated or projected. Information describing factors that could cause actual results to differ materially from those in forward-looking statements is available in Lorillard, Inc.’s filings with the Securities and Exchange Commission, including its Annual Report onForm 10-K and Quarterly Reports onForm 10-Q. These filings are available from the SEC over the Internet or in hard copy, and are, in some cases, available from Lorillard, Inc. as well. Forward-looking statements speak only as of the time they are made, and Lorillard, Inc. expressly disclaims any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.
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