Philip Morris USA's Cigarette Promotional and Brand Advertising Spending Decreases 15% from 2003 to 2005

Business Wire, April 26, 2007

RICHMOND, Va. -- Philip Morris USA's spending on cigarette promotions and brand advertising decreased 15 percent from 2003 through 2005. The company's spending was submitted in response to the Federal Trade Commission's (FTC) annual request for advertising and promotions expenditures. The FTC requested data for 2004 and 2005 and today issued its report covering these two years.

Philip Morris USA's spending on cigarette brand advertising, such as print advertising, events and sponsorships, has decreased 43 percent from 1998 through 2005.

The majority of the 2004 and 2005 expenditures Philip Morris USA reported to the FTC represented promotional allowances for adult smokers. "We believe offering price and product promotions along with offering coupons is an effective way to deliver value and to communicate directly with adult smokers," said Brendan McCormick, senior director, Corporate Communications, Philip Morris USA.

Philip Morris USA is an operating company of Altria Group Inc (NYSE: MO). For more information about Philip Morris USA, our programs and positions on tobacco-related issues, please visit us at www.philipmorrisusa.com.