October 3, 2006

Philip Morris International acquires Swedish snus manufacturer Rocker Production AB

Philip Morris International Inc. (PMI) announced today that it has, through one of its affiliates, acquired Rocker Production AB (Rocker), a privately owned manufacturer of the smokeless tobacco product, Swedish snus.

"I am extremely pleased with this acquisition, which provides an entry for PMI into the profitable and growing market for snus in Sweden," said Jos Arkes, Area Director Nordics, PMI. "The acquisition of Rocker will allow PMI to gain product development and manufacturing expertise in this important market segment, where we are not currently present."

Rocker, located in Arvika, Sweden, manufactures and sells the Rocker brand of snus and holds an estimated market share of 0.1% (Source: AC Nielsen, July YTD 2006) of the Swedish snus market.

Snus accounts for 52.5% (Source: Swedish tax authorities data) of the total amount of tobacco sold in Sweden and is expected to have a yearly growth rate of 0.4% (Source: PMI estimate based on Swedish tax authorities data) based on current market trends. The acquisition is not expected to have a near term impact on PMI earnings.

"The acquisition is in line with the company's strategy to continuously grow our business in all profitable tobacco product segments. We look forward to offering adult tobacco consumers quality smokeless tobacco products as part of the PMI product portfolio in Sweden," said Jos Arkes.

Rocker Production AB

Rocker Production AB was established in 2000 and is a privately owned snus manufacturer based in Arvika, Sweden. Rocker currently has one brand, Rocker, with a total market share estimated at 0.1% (Source: AC Nielsen, July YTD 2006).

Philip Morris International

Philip Morris International, based in Lausanne, Switzerland, held a 15.5% share of the international cigarette market in 2005. Its brands, led by Marlboro and L&M, are sold in over 160 countries around the world. Philip Morris International is an operating company of Altria Group, Inc.

Media enquiries

Philip Morris International press office,

Telephone: +41 (0)21 618 4500,

Email: pmi.pressoffice@pmintl.com

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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