December 17, 2003

Philip Morris Holland acquires additional 7.77% of total equity capital of DIN "Fabrika Duvana" AD Niš in Serbia

Philip Morris Holland B.V., an affiliate of Philip Morris International, announced today that it has successfully acquired an additional 7.77% of the total equity capital of DIN on the Belgrade Stock Exchange.

Together with the 66.45% stake acquired in the course of the privatization, Philip Morris Holland B.V. now holds a total of 74.22% of DIN's equity capital. Today's acquisition fulfils Philip Morris Holland B.V.'s obligation under the agreement on DIN's privatization to give to employee and pensioner shareholders the first opportunity to sell their ordinary shares in DIN at a price equivalent to the price per share paid to the Government of Serbia earlier this year in the privatization.

The transaction included over 500,000 shares of DIN and was valued at €84.92 per share or approximately €45.2 million in total.

Philip Morris Holland B.V. is committed to continue the share repurchase programme for ordinary shares at €84.92 per share for three years from the closing date of the privatization agreement. An announcement on further opportunities for employee and pensioner shareholders to participate in the programme will be made in due course.

About philip morris international inc.

PMI is the world’s leading international tobacco company, with six ot the world’s top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the developement and commercialization of Reduced-Risk Products (RRPs). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabalities in product development, state-of-the-art facilities, and indusrty-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements.

For more information

See pmi.com and pmiscience.com

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