Philip Morris (PM) USA today announced that it will be introducing Marlboro Moist Smokeless Tobacco (MST)...

August 21, 2007— Marlboro MST - Philip Morris (PM) USA today announced that it will be introducing Marlboro Moist Smokeless Tobacco (MST) into test market in Atlanta, Georgia, during October 2007 to evaluate consumer acceptance of the product. The arrival of Marlboro MST on the market will mark the third stage of a busy 15 months for PM USA, which test launched Taboka in Indianapolis during July last year and Marlboro Snus in Dallas/Fort Worth, earlier this month. Taboka and Marlboro Snus are both pasteurized, no-spit products that are offered to adult smokers as alternatives to cigarettes, whereas Marlboro MST is a fermented, spit product aimed at existing adult moist smokeless tobacco users. Marlboro MST, which is PM USA’s first moist smokeless tobacco product, will be offered in Original and Wintergreen flavors and will be available in Long Cut and Fine Cut varieties. It is expected to sell at about $3.00 per can, which is midway between the highest- and lowest-priced products already offered in Atlanta. Marlboro MST Fact Sheet (The Marlboro snuff will be priced at about $3 a can; cheaper than premium-priced brands like Skoal and Copenhagen sold by US Smokeless Tobacco, Greenwich, Conn.; and could be a trade-up product because it will cost slightly more than value brands like Grizzly manufactured by Conwood, a unit of Reynolds American. Marlboro Leverages Brand Name in Smokeless Rollout, Mike Beirne,Brandweek, 8/22/2007) Citigroup's Tobacco Analyst Bonnie Herzog tells investors that PM USA will fully cement its place in the smokeless segment using the power of the Marlboro brand (8/21/2007). PMI (International) claims Marlboro is the only true global cigarette brand: with 41% of its volume in the EU, 25% in Eastern Europe, Middle East & Africa (EEMA), 21% in Asia and 13% in Latin America. Overall PMI held a 15.4% share of the international cigarette market in 2006. ( Remarks by Andre Calantzopoulos Chief Executive Officer Philip Morris International Inc. at JP Morgan Global Tobacco Conference, June 29, 2007.)