July 22, 2001

Philip Morris International statement on EC contraband litigation

On July 20, Philip Morris International (PMI) submitted to the Court of First Instance of the European Community a copy of July 17 decision by the United States District Court in New York which dismissed the lawsuit the EC had previously filed in the American court concerning alleged contraband cigarette sales. The American court ruled that the EC had no claim for economic damages. In December 2000, PMI filed an action in the Court of First Instance challenging the original filing of the EC lawsuit in the American court.

Even though the EC lawsuit was dismissed, PMI said that it remains willing to work with the EC and its Member States in support of their efforts to reduce contraband cigarette trade. According to Remi Calvet, Director Communications: "As we have previously stated - and as we continue to believe - the issues the EC sought to raise in its American lawsuit are better addressed through discussions and constructive agreements in a European framework. We stand ready to work with the Member States and EC officials to address those issues. We hope the Member States and EC will take this opportunity to pursue their concerns through such constructive discussions."

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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