Altria Announces Spin-off of Philip Morris International Inc.

January 30, 2008 - Altria Announces Spin-off of Philip Morris International Inc.. Altria Group, Inc. today issued its 2007 full-year and fourth-quarter results and announced the spin-off of Philip Morris International Inc. (PMI). Louis C. Camilleri, Chairman and Chief Executive Officer of Altria. “The PMI spin-off and related actions position our international and domestic tobacco businesses for future success as stand-alone companies with unique and formidable strengths, including leading brands, strong cash flow, experienced leadership and solid growth prospects.” The Board of Directors of Altria voted today to authorize the spin-off of 100% of the shares of Philip Morris International (PMI) to Altria’s shareholders - the distribution will be made on March 28, 2008. Altria’s Board of Directors and management determined that PMI’s separation from Altria will enhance growth and shareholder value by providing the following benefits: An improved focus on the different market dynamics, competitive frameworks, challenges and opportunities that Altria and PMI face; A more optimal and efficient capital allocation to enhance shareholder value, coupled with greater financial flexibility, including an increase in the combined debt capacity of Altria and PMI; Greater transparency leading to the elimination of the sum-of-the-parts discount under which Altria’s common stock has typically traded; A significant reduction in corporate overheads, including the closure of Altria’s corporate headquarters in New York; The creation of a potential acquisition currency in the form of more focused equity that neither of Altria’s tobacco subsidiaries has had available prior to the spin-off; and A tighter alignment of compensation and rewards with the performance of each entity. Louis C. Camilleri will serve as Chairman of the Board and Chief Executive Officer of PMI following his resignation from posts at Altria. Michael E. Szymanczyk, will serve as Chairman of the Board and Chief Executive Officer of Altria. Tomorrow Altria Board Expected to Announce Decision to Split Philip Morris International (PMI) From Philip Morris USA..