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Altria Reports 2012 Third-Quarter and Nine-Month Results; Reaffirms 2012 EPS Guidance; Expands Share Repurchase Program by $500

  Altria Reports 2012 Third-Quarter and Nine-Month Results; Reaffirms 2012 EPS
  Guidance; Expands Share Repurchase Program by $500 Million

  *Altria's 2012 third-quarter reported diluted earnings per share (EPS)
    decreased 43.9% to $0.32 as comparisons were impacted by special items
  *Altria's 2012 third-quarter adjusted diluted EPS, which excludes the
    impact of special items, increased 3.6% to $0.58
  *Altria's 2012 nine-month reported diluted EPS increased 22.8% to $1.51 as
    comparisons were impacted by special items
  *Altria's 2012 nine-month adjusted diluted EPS, which excludes the impact
    of special items, grew 7.8% to $1.66
  *Altria expands its current share repurchase program by $500 million
  *Altria reaffirms 2012 full-year reported diluted EPS guidance in a range
    of $2.03 to $2.07
  *Altria reaffirms 2012 full-year adjusted diluted EPS guidance in a range
    of $2.19 to $2.23, representing a growth rate of 7% to 9% from an adjusted
    base of $2.05 in 2011

Business Wire

RICHMOND, Va. -- October 25, 2012

Altria Group, Inc. (Altria) (NYSE: MO) today announced its 2012 third-quarter
and nine-month business results, reaffirmed its 2012 full-year adjusted
diluted EPS guidance growth to be in a range of 7% to 9% and expanded its
share repurchase program by $500 million.

"Altria delivered solid financial results for the third quarter and first nine
months of 2012 while taking steps to strengthen its ability to create
shareholder value in the future," said Marty Barrington, Chairman and Chief
Executive Officer of Altria. "Our tobacco businesses grew their adjusted OCI,
adjusted OCI margins and retail share for the third quarter and first nine
months of 2012, while investing to develop their brands for the long term."

"The business performance of our operating companies enabled us to increase
our already strong cash returns to shareholders," said Mr. Barrington. "Altria
increased its dividend by 7.3% and repurchased over $260 million of our stock
in the third quarter. Today, we are announcing a $500 million expansion of our
$1.0 billion share repurchase program."

"The Company also took steps to enhance its capital structure," said Mr.
Barrington. "We purchased high coupon debt and took on new lower cost debt.
These actions reduced our 2018 and 2019 debt maturity towers, lowered our
future interest expense and reduced our weighted average coupon rate."

Conference Call

A conference call with the investment community and news media will be webcast
on October 25, 2012 at 9:00 a.m. Eastern Time. Access to the webcast is
available at altria.com.

Cost Management

Altria's current cost reduction program for its tobacco and service company
subsidiaries remains on track. The program, which was announced in the fourth
quarter of 2011, is expected to deliver $400 million in annualized savings
against previously planned spending by the end of 2013.

Altria estimates total net pre-tax restructuring charges in connection with
this program of approximately $300 million, substantially all of which will
result in cash expenditures, consisting primarily of employee separation costs
of approximately $220 million and other associated net costs of $80 million.
Other associated net costs include lease termination and asset impairment
charges, partially offset by a curtailment gain related to a post-retirement
benefit plan.

Altria recorded net pre-tax restructuring charges totaling $264 million over
the past four quarters, including restructuring charges of $11 million in the
third quarter of 2012. Altria expects to incur the remaining pre-tax
restructuring charges in the fourth quarter of 2012.

Cash Returns to Shareholders - Dividends

In August 2012, Altria announced that its Board of Directors (Board) voted to
increase the regular quarterly dividend by 7.3% to $0.44 per common share
versus the previous rate of $0.41 per common share. The current annualized
dividend rate is $1.76 per common share. As of October 23, 2012, Altria's
annualized dividend yield was 5.4%.

Altria expects to continue to return a large amount of cash to shareholders in
the form of dividends by maintaining a dividend payout ratio target of
approximately 80% of its adjusted diluted EPS. Future dividend payments remain
subject to the discretion of the Board.

Cash Returns to Shareholders - Share Repurchase Program

Altria repurchased 7.7 million shares of its common stock at an average price
of $34.25 for a total cost of approximately $262 million during the third
quarter of 2012.

On October 23, 2012, Altria's Board authorized the expansion of the current
share repurchase program from $1.0 billion to $1.5 billion. Altria has
approximately $550 million remaining in the expanded program, which it expects
to complete by the end of the second quarter of 2013. The timing of share
repurchases depends upon marketplace conditions and other factors and the
program remains subject to the discretion of the Board.

Previously Announced Capital Markets Activities in Q3 2012

UST LLC repaid $600 million of senior unsecured notes that matured in July
2012. The notes had a coupon of 6.625%.

In August 2012, Altria issued $1.9 billion aggregate principal amount of new
senior unsecured 2.85% notes due 2022 and $900 million aggregate principal
amount of new senior unsecured 4.25% notes due 2042.

In September 2012, Altria completed a tender offer for $2.0 billion aggregate
principal amount of certain of its senior unsecured notes, purchasing $1,151
million aggregate principal amount of its senior unsecured 9.70% notes due
2018 and $849 million aggregate principal amount of its senior unsecured 9.25%
notes due 2019. This debt repurchase resulted in a pre-tax charge of $874
million against 2012 third-quarter earnings, reflecting the loss on early
extinguishment of debt related to the tender offer.

2012 Full-Year Guidance

Altria reaffirms its 2012 full-year guidance for reported diluted EPS in a
range of $2.03 to $2.07. The forecast reflects estimated total net expenses of
$0.16 per share as shown in Table 1, consisting of the loss on early
extinguishment of debt related to the tender offer and asset impairment, exit
and implementation costs related to the current cost reduction program,
partially offset by SABMiller plc (SABMiller) special items, a Philip Morris
Capital Corporation (PMCC) leveraged lease benefit and tax items.

Altria reaffirms its 2012 full-year guidance for adjusted diluted EPS, which
excludes special items shown in Table 1, in a range of $2.19 to $2.23,
representing a growth rate of 7% to 9% from an adjusted diluted EPS base of
$2.05 per share in 2011.

The factors described in the Forward-Looking and Cautionary Statements section
of this release represent continuing risks to this forecast. Reconciliations
of full-year adjusted to reported diluted EPS are shown in Table 1.


Table 1 - Altria's Full-Year Earnings Per Share Guidance Excluding Special Items
                
                 Full Year
                 2012 Guidance                  2011         Change
Reported         $  2.03   to  $  2.07     $  1.64      24%   to   26%
diluted EPS
Loss on early
extinguishment                     0.28           —
of debt
Asset
impairment,
exit,
integration                        0.02           0.07
and
implementation
costs
SABMiller                          (0.08    )     0.03
special items
PMCC leveraged
lease                              (0.03    )     0.30
(benefit)
charge
Tax items*                         (0.03    )     (0.04    )
Tobacco and
health                         —           0.05     
judgments
Adjusted         $  2.19   to  $  2.23      $  2.05        7%      to     9%
diluted EPS


* Excludes the tax impact of the PMCC leveraged lease (benefit) charge.

                              ALTRIA GROUP, INC.

Altria reports its financial results, including diluted EPS, in accordance
with U.S. generally accepted accounting principles (GAAP). Altria's management
reviews operating companies income (OCI), which is defined as operating income
before corporate expenses and amortization of intangibles, to evaluate segment
performance and allocate resources. Altria's management also reviews OCI,
operating margins and EPS on an adjusted basis, which excludes certain income
and expense items that management believes are not part of underlying
operations. These items include loss on early extinguishment of debt,
restructuring charges, SABMiller special items, certain PMCC leveraged lease
items, certain tax items, and tobacco and health judgments. Altria's
management does not view any of these special items to be part of Altria's
sustainable results as they may be highly variable and difficult to predict
and can distort underlying business trends and results. Altria's management
also reviews income tax rates on an adjusted basis. Altria's effective tax
rate on operations may exclude certain tax items from its reported effective
tax rate. Altria's management believes that adjusted measures for OCI,
operating margins and EPS, as well as the effective tax rate on operations,
provide useful insight into underlying business trends and results and provide
a more meaningful comparison of year-over-year results. Altria's management
uses adjusted measures internally for planning, forecasting and evaluating the
performance of Altria's businesses, including allocating resources and
evaluating results relative to employee compensation targets. These adjusted
financial measures are not consistent with GAAP, and should thus be considered
as supplemental in nature and not considered in isolation or as a substitute
for the related financial information prepared in accordance with GAAP.
Reconciliations of adjusted measures to corresponding GAAP measures are
provided in the release. Comparisons are to the same prior-year period unless
otherwise stated.

Effective with the first quarter of 2012, Altria's reportable segments are
Smokeable Products, manufactured and sold by Philip Morris USA Inc. (PM USA)
and John Middleton Co. (Middleton); Smokeless Products, manufactured and sold
by or on behalf of U.S. Smokeless Tobacco Company LLC (USSTC) and PM USA;
Wine, produced and/or distributed by Ste. Michelle Wine Estates Ltd. (Ste.
Michelle); and Financial Services, provided by PMCC. Prior-period segment data
have been recast to conform with the current-period segment presentation.

Altria's net revenues increased 2.2% to $6.2 billion for the third quarter of
2012 primarily due to higher net revenues from smokeable products. For the
first nine months of 2012, Altria's net revenues increased 4.0% to $18.4
billion primarily due to higher net revenues from financial services and
smokeable products. Altria's revenues net of excise taxes increased 3.2% to
$4.5 billion for the third quarter of 2012, and grew 6.2% to $13.0 billion for
the first nine months of 2012. Comparisons of Altria's nine-month net revenues
and revenues net of excise taxes were impacted by a 2011 charge related to
certain PMCC leveraged lease transactions, which reduced 2011 nine-month net
revenues by $490 million.

Altria's 2012 third-quarter reported diluted EPS decreased 43.9% primarily due
to the loss on early extinguishment of debt discussed below, partially offset
by higher OCI in smokeable products, higher earnings from Altria's equity
investment in SABMiller and fewer shares outstanding.

For the first nine months of 2012, Altria's reported diluted EPS increased
22.8% primarily due to special items related to certain PMCC leveraged lease
transactions in 2011, higher earnings from Altria's equity investment in
SABMiller, including net gains from SABMiller special items discussed below,
higher OCI in smokeable products and fewer shares outstanding. These favorable
factors were partially offset by the loss on early extinguishment of debt
discussed below.

Altria's adjusted diluted EPS, which excludes special items that are discussed
below, increased 3.6% to $0.58 for the third quarter of 2012, and increased
7.8% to $1.66 for the first nine months of 2012 as shown in Table 2.


Table 2 - Altria's Adjusted Results Excluding Special Items
                                                      
                     Third Quarter                           Nine Months Ended
                                                             September 30,
                     2012        2011        Change        2012        2011        Change
Reported             $  0.32    $  0.57    (43.9)%       $  1.51    $  1.23    22.8%
diluted EPS
Loss on early
extinguishment       0.28         —                          0.28         —
of debt
Asset
impairment,
exit,
integration          —            —                          0.01         —
and
implementation
costs
SABMiller            0.01         —                          (0.08    )   0.01
special items
PMCC leveraged
lease                —            —                          (0.03    )   0.30
(benefit)
charge
Tobacco and
health               —            —                          —            0.01
judgments
Tax Items*           (0.03    )  (0.01    )                 (0.03    )  (0.01    )
Adjusted             $  0.58   $  0.56    3.6%          $  1.66   $  1.54    7.8%
diluted EPS


* Excludes the tax impact of the PMCC leveraged lease (benefit) charge.

Loss on Early Extinguishment of Debt

Comparisons of Altria's third-quarter and nine-month reported diluted EPS were
impacted by a loss on early extinguishment of debt resulting from the
previously announced third-quarter 2012 debt tender offer. Altria recorded a
charge of $0.28 per share against 2012 third-quarter earnings, representing
the loss on early extinguishment of debt. This charge is reflected in
Schedules 1 and 3, and the EPS impacts are shown in Table 2 and Schedules 6
and 7.

Restructuring Charges

Comparisons of Altria's nine-month reported diluted EPS were impacted by
restructuring charges. Altria's operating companies recorded 2012 nine-month
net pre-tax charges totaling $40 million related to the current cost reduction
program. For the first nine months of 2011, Altria's operating companies
incurred pre-tax restructuring charges of $11 million. These charges are
reflected in Schedule 4, and the EPS impacts are shown in Table 2 and Schedule
7.

In addition, Altria's operating companies recorded 2012 third-quarter pre-tax
restructuring charges of $10 million related to the current cost reduction
program, and incurred 2011 third-quarter pre-tax restructuring charges of $2
million. These charges are reflected in Schedule 2, and the EPS impacts are
shown in Table 2 and Schedule 6.

SABMiller Special Items

Special items related to Altria's equity investment in SABMiller further
impacted comparisons of Altria's third-quarter and nine-month reported diluted
EPS. For the third quarter of 2012, SABMiller special items included costs for
its “business capability programme” and costs related to its acquisition of
Foster's Group Limited (Foster's). For the third quarter of 2011, SABMiller's
special items included costs for its “business capability programme.” These
after-tax special items are reflected in Schedule 6, “2012 SABMiller special
items” and “2011 SABMiller special items.” The EPS impact of these special
items is shown in Table 2 and Schedule 6.

For the first nine months of 2012, SABMiller's special items included gains
resulting from its strategic alliance transactions with Anadolu Efes and
Castel and a gain related to SABMiller's Australian joint venture, partially
offset by costs for its “business capability programme,” costs related to its
acquisition of Foster's and costs related to SABMiller's economic and social
development program in South Africa. For the first nine months of 2011,
SABMiller's special items included costs for its “business capability
programme” and asset impairment charges, partially offset by gains resulting
from its hotel and gaming transaction. These after-tax special items are
reflected in Schedule 7, “2012 SABMiller special items” and “2011 SABMiller
special items.” The EPS impact of these special items is shown in Table 2 and
Schedule 7.

PMCC Leveraged Lease (Benefit) Charge

Comparisons of Altria's nine-month reported diluted EPS were also impacted by
benefits and charges related to the tax treatment of certain leveraged lease
transactions entered into by PMCC (referred to by the Internal Revenue Service
(IRS) as lease-in/lease-out (LILO) and sale-in/lease-out (SILO) transactions).

For the first nine months of 2012, Altria recorded a net earnings benefit of
$68 million primarily due to lower than estimated interest expense on tax
underpayments as a result of the previously announced closing agreement with
the IRS related to PMCC's LILO and SILO transactions. This 2012 nine-month EPS
benefit is shown in Table 2 and Schedule 7. The net benefit was recorded as a
decrease of $75 million to the provision for income taxes and is reflected in
Schedule 3, “Provision for income taxes.” This benefit was partially offset by
a reduction to cumulative lease earnings of $7 million against the financial
services segment's net revenues as shown in Schedule 4.

For the first nine months of 2011, Altria's reported diluted EPS was impacted
by a charge of $627 million related to PMCC's LILO and SILO transactions. The
EPS impact of the charge is shown in Table 2 and Schedule 7. The charge was
recorded as a reduction to cumulative lease earnings of $490 million against
the financial services segment's net revenues, which is reflected in Schedule
4, and a net increase of $137 million to the provision for income taxes as
reflected in Schedule 3, “Provision for income taxes.”

Tobacco and Health Judgments

Comparisons of Altria's nine-month reported diluted EPS were also impacted by
charges related to tobacco and health judgments. For the first nine months of
2012, PM USA incurred pre-tax charges of $4 million for tobacco and health
judgments. For the first nine months of 2011, PM USA incurred pre-tax charges
of $36 million for tobacco and health judgments as well as related interest
costs of $5 million. For the third quarter of 2012, PM USA incurred pre-tax
charges of $3 million for tobacco and health judgments. These charges,
excluding interest costs, are reflected in Schedules 2 and 4, and the EPS
impact of these charges, including interest costs, is reflected in Table 2,
and in Schedules 6 and 7. The interest costs related to the tobacco and health
judgments are reflected in Schedule 3, “Interest and other debt expense, net.”

Tax Items

Altria's reported diluted EPS comparisons for the third quarter and first nine
months of 2012 and 2011 were impacted by tax items. For the third quarter of
2012 and 2011, Altria recorded tax benefits of $62 million and $24 million,
respectively. Excluding the tax impacts related to PMCC's LILO and SILO
transactions discussed above, for the first nine months of 2012 and 2011,
Altria recorded net tax benefits of $51 million and $24 million, respectively.
These tax benefits resulted primarily from the reversal of tax reserves and
associated interest related to the closure of tax audits, expiration of
statutes of limitations and the reversal of tax accruals no longer required.
These tax benefits are reflected in Schedules 1 and 3, "Provisions for income
taxes," and the EPS impacts are shown in Table 2 and Schedules 6 and 7.

In the third quarter of 2012, the IRS closed its audit of the 2004 - 2006 tax
years of Altria and its consolidated subsidiaries (including its former
subsidiaries - Kraft Foods Inc., now known as Mondelēz International, Inc.
(Mondelēz), and Philip Morris International Inc. (PMI)). Tax comparisons of
the third quarter and first nine months include the impact of tax matters
related to Mondelēz and PMI, which are reflected in Schedules 1 and 3,
“Provision for income taxes.” Altria recorded a 2012 third-quarter tax
provision of $48 million related to Mondelēz and PMI tax matters, and a 2011
third-quarter tax provision of $19 million related to Mondelēz tax matters.
These amounts were fully offset by changes to the corresponding receivables
from Mondelēz and PMI, which are also reflected in Schedules 1 and 3, “Changes
to Mondelēz and PMI tax-related receivables.” Although there was no impact on
Altria's net earnings associated with the Mondelēz and PMI tax matters, these
items impacted Altria's reported effective tax rates for the third quarter and
first nine months of 2012 and 2011.

Altria's 2012 third-quarter and nine-month reported effective tax rate and
effective tax rate on operations both increased from the first half of 2012
primarily due to a reduction in certain consolidated tax benefits resulting
from the debt tender offer. Excluding the impact of special tax items shown in
Table 3, Altria's 2012 third-quarter and nine-month effective tax rates on
operations were both 36.7%. Altria anticipates that its 2012 full-year
effective tax rate on operations will be approximately 36.7%.


Table 3 - Altria's 2012 Tax Rates
                                     
                                        Third Quarter    Nine Months Ended
                                                             September 30,
Reported effective tax rate*            37.0%            34.8%
Closure of IRS audit of 2004 -           5.1                 1.1
2006 tax years
Mondelēz and PMI tax matters             (4.6)               (1.0)
Interest benefit on tax
underpayments associated with PMCC       —                   1.6
leveraged lease transactions
Other tax items                         (0.8)            0.2
Effective tax rate on operations        36.7%            36.7%


* Reported effective tax rate is calculated as "Provision for income taxes"
divided by "Earnings before income taxes" from Schedules 1 and 3.

                              SMOKEABLE PRODUCTS

The smokeable products segment delivered solid adjusted OCI and adjusted OCI
margin growth for the third quarter and first nine months of 2012 through
higher list prices and effective cost management. PM USA continued to support
Marlboro's new brand architecture with brand-building initiatives, which
contributed to Marlboro's third-quarter and nine-month retail share
performance.

The smokeable products segment's 2012 third-quarter net revenues increased
2.1% primarily due to higher list prices and higher reported shipment volume,
partially offset by higher promotional investments to support Marlboro's new
brand architecture and unfavorable mix due to L&M's volume growth in Discount.
For the first nine months of 2012, the smokeable products segment's net
revenues increased 0.7% primarily due to higher list prices, partially offset
by higher promotional investments behind Marlboro's new brand architecture, 
lower reported shipment volume and unfavorable mix. 2012 third-quarter and
nine-month revenues net of excise taxes increased 3.2% and 1.6%, respectively.

The smokeable products segment's 2012 third-quarter reported OCI increased
3.9% primarily due to higher list prices, effective cost management and higher
reported shipment volume, partially offset by higher promotional investments
behind Marlboro's new brand architecture, increased resolution expense and
unfavorable mix due to L&M's volume growth. The smokeable products segment's
2012 nine-month reported OCI increased 4.2% primarily due to higher list
prices, effective cost management and lower charges related to tobacco and
health judgments, partially offset by higher promotional investments behind
Marlboro's new brand architecture, increased resolution expense, unfavorable
mix due to L&M's volume growth and lower reported shipment volume. Adjusted
OCI, which is calculated excluding the special items identified in Table 4,
grew 4.3% for the third quarter of 2012 and increased 3.7% for the first nine
months of 2012.

Adjusted OCI margins for the smokeable products segment grew 0.4 percentage
points to 42.4% for the third quarter of 2012 and increased 0.8 percentage
points to 41.6% for the first nine months of 2012, driven by Marlboro.
Revenues and OCI for the smokeable products segment are summarized in Table 4.


Table 4 - Smokeable Products: Revenues and OCI ($ in millions)
                                                            
                   Third Quarter                                 Nine Months Ended
                                                                 September 30,
                    2012         2011          Change        2012          2011           Change  
Net revenues        $  5,613    $  5,499      2.1 %        $  16,616    $  16,500      0.7 %
Excise taxes        (1,742    )  (1,747    )                   (5,239     )  (5,304     ) 
Revenues net
of excise           $  3,871   $  3,752       3.2 %        $  11,377   $  11,196       1.6 %
taxes
                                                                                                           
Reported OCI         $   1,637     $   1,575         3.9 %         $   4,716      $   4,527          4.2 %
Asset
impairment,
exit and             2             —                               13             3
implementation
costs, net
Tobacco and
health              3           —                            4            36          
judgments
Adjusted OCI        $  1,642   $  1,575       4.3 %        $  4,733    $  4,566        3.7 %
Adjusted OCI        42.4      %  42.0      %    0.4 pp         41.6       %  40.8       %    0.8 pp
margins*


*Adjusted OCI margins are calculated as adjusted OCI divided by revenues net
of excise taxes.

PM USA's 2012 third-quarter reported domestic cigarettes shipment volume
increased 1.2% primarily due to retail share gains and changes in trade
inventories, partially offset by the industry's rate of decline and one less
shipping day. PM USA believes that the trade depleted less inventory during
the third quarter of 2012 versus the prior-year period, which benefited
comparisons of its reported third-quarter shipments. After adjusting for
changes in trade inventories and other factors, PM USA's 2012 third-quarter
domestic cigarettes shipment volume was estimated to be down approximately 1%.

PM USA's 2012 nine-month reported domestic cigarettes shipment volume declined
0.4% primarily due to the industry's rate of decline, partially offset by
volume growth as a result of retail share gains. After adjusting for changes
in trade inventories and other factors, PM USA's 2012 nine-month domestic
cigarettes shipment volume was estimated to be down approximately 0.5%.

Total cigarette category volume for the third quarter and first nine months of
2012 was estimated to be down approximately 3.5% and 3%, respectively. PM
USA's cigarettes volume performance is summarized in Table 5.

Middleton's 2012 third-quarter reported cigars shipment volume declined 14.0%
primarily due to the timing of promotional shipments and other changes in
trade inventories, and one less shipping day, partially offset by volume
growth as a result of retail share gains. Middleton believes the trade built
inventories in the third quarter of 2011 prior to Middleton's December 2011
price increase announcement. For the first nine months of 2012, Middleton's
reported cigars shipment volume declined 0.6% primarily due to changes in
trade inventories, partially offset by volume growth as a result of retail
share gains. Middleton's volume performance for machine-made large cigars is
summarized in Table 5.


Table 5 - Smokeable Products: Shipment Volume (sticks in millions)
                                                     
              Third Quarter                              Nine Months Ended
                                                         September30,
               2012       2011       Change         2012        2011        Change  
Cigarettes:                                                                 
Marlboro        28,954       28,673       1.0   %          87,248        88,168        (1.0 )%
Other           2,177        2,364        (7.9  )%         6,503         7,115         (8.6 )%
premium
Discount       2,571     2,251       14.2  %         7,290      6,151        18.5 %
Total          33,702    33,288      1.2   %         101,041    101,434      (0.4 )%
cigarettes
                                                                                               
Cigars:
Black &         298          346          (13.9 )%         940           945           (0.5 )%
Mild
Other          4         5           (20.0 )%        14         15           (6.7 )%
Total          302       351         (14.0 )%        954        960          (0.6 )%
cigars
                                                        
Total
smokeable      34,004    33,639      1.1   %         101,995    102,394      (0.4 )%
products


Note: Cigarettes volume includes units sold as well as promotional units, but
excludes Puerto Rico, U.S. Territories, Overseas Military, and Philip Morris
Duty Free Inc.

In the cigarette category, Marlboro's  2012 third-quarter and nine-month
retail share performance continued to benefit  from the brand-building
initiatives supporting Marlboro's new architecture. Marlboro's 2012
third-quarter and nine-month retail share increased 1.0 and 0.5 share points,
respectively. PM USA continued to support Marlboro's  new  brand architecture
within the Marlboro Black family by expanding Marlboro NXT into 27 states at
the end of September 2012. Marlboro NXT contains capsule technology that
allows adult smokers to switch from non-menthol to menthol taste.

PM USA's 2012 third-quarter and nine-month retail share increased 1.2 and 0.8
share points, respectively, reflecting retail share gains by Marlboro,  and by
L&M in Discount. These gains were partially offset by share losses on other
portfolio brands. PM USA's cigarettes retail share performance is summarized
in Table 6.

In the machine-made large cigars category, Black & Mild's 2012 third-quarter
and nine-month retail share increased 0.8 and 1.0 share points, respectively.
The brand continued to benefit from new untipped cigarillo varieties that were
introduced in 2011, including Black & Mild Classic, Sweets and Wine as well as
the 2012 third-quarter introduction of Black & Mild Jazz into select
geographies and its seasonal offering, Summer Blend. Middleton's retail share
performance is summarized in Table 6.


Table 6 - Smokeable Products: Retail Share (percent)
                                                    
                    Third Quarter                          Nine Months Ended
                                                           September 30,
                                            Percentage                             Percentage
                     2012     2011     point           2012     2011     point
                                            change                                 change
Cigarettes:                                                             
Marlboro              42.7 %     41.7 %     1.0              42.6 %     42.1 %     0.5
Other                 3.3        3.7        (0.4)            3.4        3.7        (0.3)
premium
Discount             3.9     3.3     0.6             3.8     3.2     0.6
Total                49.9 %   48.7 %   1.2             49.8 %   49.0 %   0.8
cigarettes
                                                                                   
Cigars:
Black &               29.9 %     29.1 %     0.8              30.1 %     29.1 %     1.0
Mild
Other                0.2     0.3     (0.1)           0.3     0.2     0.1
Total                30.1 %   29.4 %   0.7             30.4 %   29.3 %   1.1
cigars


Note: Cigarettes retail share results are based on data from SymphonyIRI
Group/Capstone, which is a retail tracking service that uses a sample of
stores to project market share performance in retail stores selling
cigarettes. The panel was not designed to capture sales through other
channels, including the Internet, direct mail and some illicitly
tax-advantaged outlets. Retail share results for cigars are based on data from
the SymphonyIRI Group (SymphonyIRI) InfoScan Cigar Database for Food, Drug,
Mass Merchandisers (excluding Walmart) and Convenience trade classes, which
tracks machine-made large cigars market share performance. Middleton defines
machine-made large cigars as cigars made by machine that weigh greater than
three pounds per thousand, except cigars sold at retail in packages of 20
cigars. This service was developed to provide a representation of retail
business performance in key trade channels. It is SymphonyIRI's standard
practice to periodically refresh its InfoScan syndicated services, which could
restate retail share results that were previously released.

                              SMOKELESS PRODUCTS

The smokeless products segment grew its 2012 third-quarter and nine-month
adjusted OCI and adjusted OCI margins behind the strong performance of
Copenhagen. In late September 2012, USSTC announced the fourth quarter
expansion of Skoal ReadyCut into over 20 states.

The smokeless products segment's 2012 third-quarter and nine-month net
revenues increased 2.6% and 2.8%, respectively, primarily due to higher
pricing and higher volume, partially offset by unfavorable mix due to growth
in products introduced in recent years at a lower, popular price. 2012
third-quarter and nine-month revenues net of excise taxes increased 2.5% and
2.8%, respectively.

The smokeless products segment's 2012 third-quarter and nine-month reported
OCI increased 0.4% and 2.7%, respectively, primarily due to higher pricing,
higher volume and effective cost management, partially offset by growth in
products introduced in recent years at a lower, popular price, higher
restructuring charges related to the current cost reduction program and higher
promotional investments. Adjusted OCI, which is calculated excluding special
items identified in Table 7, grew 3.3% for the third quarter of 2012, and
increased 6.2% for the first nine months of 2012.

                                                                                          
Table 7 - Smokeless Products: Revenues and OCI ($ in millions)
                                                                                     
                                                                          Nine Months Ended
                        Third Quarter
                                                                          September 30,
                         2012          2011           Change       2012            2011            Change  
Net revenues             $   437     $   426       2.6 %        $  1,243     $  1,209        2.8 %
Excise taxes              (29     )    (28     )                      (83     )    (81     ) 
Revenues net of          $   408    $   398         2.5 %        $  1,160    $  1,128         2.8 %
excise taxes
                                                                                                                      
Reported OCI             $ 246           $ 245               0.4 %         $ 678           $ 660               2.7 %
Asset impairment,
exit, integration          8              1                                27             3
and implementation
costs
UST
acquisition-related       —           —                             —           1        
costs
Adjusted OCI             $   254    $   246         3.3 %        $  705      $  664           6.2 %
Adjusted OCI              62.3    %    61.8    %      0.5 pp          60.8    %    58.9    %      1.9 pp
margins*
                                                                                          

*Adjusted OCI margins are calculated as adjusted OCI divided by revenues net
of excise taxes.

For the third quarter of 2012, USSTC and PM USA's combined reported domestic
smokeless products shipment volume increased 5.9% as volume growth for
Copenhagen and Skoal was partially offset by volume declines in Other
portfolio brands. For the first nine months of 2012, reported domestic
smokeless products shipment volume grew 1.9% as volume growth on Copenhagen
was partially offset by volume declines on the balance of the portfolio.

Copenhagen's 2012 third-quarter and nine-month volume grew 12.1% and 10.2%,
respectively, as the brand continued to benefit from new products introduced
in recent years, including the May 2012 expansion of Copenhagen Southern Blend
into select geographies. Skoal's volume increased 2.8% for the third quarter
of 2012 and declined 2.3% for the first nine months of 2012. Skoal's
third-quarter and nine-month volume comparisons were impacted by competitive
activity and Copenhagen's strong performance. Skoal's nine-month volume
comparison was also impacted by last year's de-listing of seven stock-keeping
units (SKU) and the introduction of Skoal X-TRA.

After adjusting for changes in trade inventories and other factors, USSTC and
PM USA estimate that their combined 2012 third-quarter domestic smokeless
products shipment volume grew approximately 5%. USSTC and PM USA also believe
that the smokeless category's volume grew at an estimated rate of
approximately 5% over the twelve months ended September 2012. USSTC and PM
USA's combined volume performance for smokeless products is summarized in
Table 8.


Table 8 - Smokeless Products: Shipment Volume (cans and packs in millions)
                                                  
               Third Quarter                           Nine Months Ended
                                                       September 30,
                2012      2011      Change        2012      2011      Change   
                                                                      
Copenhagen       100.9       90.0        12.1 %          284.9       258.5       10.2  %
Skoal           72.9     70.9      2.8  %         210.0    214.9     (2.3  )%
Copenhagen       173.8       160.9       8.0  %          494.9       473.4       4.5   %
and Skoal
Other           20.5     22.6      (9.3 )%        61.0     71.9      (15.2 )%
Total
smokeless       194.3    183.5     5.9  %         555.9    545.3     1.9   %
products


Note: Other includes certain USSTC and PM USA smokeless products. Volume
includes cans and packs sold, as well as promotional units, but excludes
international volume. New types of smokeless products, as well as new
packaging configurations of existing smokeless products, may or may not be
equivalent to existing moist smokeless tobacco (MST) products on a can for can
basis. To calculate volumes of cans and packs shipped, USSTC and PM USA have
assumed that one pack of snus, irrespective of the number of pouches in the
pack, is equivalent to one can of MST.

Copenhagen and Skoal's combined retail share for the third quarter and first
nine months of 2012 increased 1.6 and 1.8 share points, respectively.
Copenhagen's 2012 third-quarter and nine-month retail share grew 2.3 and 2.4
share points, respectively, as the brand continued to benefit from new
products introduced over the past several years.

Skoal's 2012 third-quarter retail share declined 0.7 share points primarily
due to competitive activity and Copenhagen's strong performance, partially
offset by share gains on its Skoal X-TRA products. Skoal's 2012 nine-month
retail share decreased 0.6 share points primarily due to the de-listing of
seven SKUs in the second quarter of 2011, competitive activity and
Copenhagen's strong performance, partially offset by share gains on its Skoal
X-TRA products.

USSTC and PM USA's combined retail share for the third quarter and first nine
months of 2012 increased 0.4 and 0.5 share points, respectively, as
Copenhagen's share gains were partially offset by share losses on the balance
of the portfolio. USSTC and PM USA's combined smokeless products retail share
performance is summarized in Table 9.


Table 9 - Smokeless Products: Retail Share (percent)
                                                    
                 Third Quarter                            Nine Months Ended
                                                          September30,
                                         Percentage                               Percentage
                  2012     2011     point            2012     2011     point      
                                         change                                   change
                                                                       
Copenhagen         28.8 %     26.5 %     2.3                28.2 %     25.8 %     2.4
Skoal             22.1 %   22.8 %   (0.7)            22.3 %   22.9 %   (0.6)      
Copenhagen         50.9 %     49.3 %     1.6                50.5 %     48.7 %     1.8
and Skoal
Other             4.6  %   5.8  %   (1.2)            4.9  %   6.2  %   (1.3)      
Total
smokeless         55.5 %   55.1 %   0.4              55.4 %   54.9 %   0.5        
products


Note: Retail share performance is based on data from the SymphonyIRI InfoScan
Smokeless Tobacco Database for Food, Drug, Mass Merchandisers (excluding
Walmart) and Convenience trade classes, which tracks smokeless products market
share performance based on the number of cans and packs sold. Smokeless
Products is defined by SymphonyIRI as moist smokeless and spit-less tobacco
products. Other includes certain USSTC and PM USA smokeless products. New
types of smokeless products, as well as new packaging configuration of
existing smokeless products, may or may not be equivalent to existing MST
products on a can for can basis. USSTC and PM USA have assumed that one pack
of snus, irrespective of the number of pouches in the pack, is equivalent to
one can of MST. All other products are considered to be equivalent on a can
for can basis. It is SymphonyIRI's standard practice to periodically refresh
its InfoScan syndicated services, which could restate retail share results
that were previously released.

                                     WINE

Ste. Michelle delivered strong 2012 third-quarter and nine-month adjusted OCI
results through higher pricing, higher shipment volume and improved premium
mix.

The wine segment's 2012 third-quarter and nine-month net revenues increased
6.1% and 9.2%, respectively, primarily due to higher shipment volume, higher
pricing and improved premium mix. Revenues net of excise taxes for the third
quarter and first nine months of 2012 grew 6.3% and 9.2%, respectively.

The wine segment's 2012 third-quarter and nine-month reported OCI increased
13.0% and 16.7%, respectively, primarily due to higher pricing, higher
shipment volume and improved premium mix, partially offset by higher costs for
select vintages and costs related to its sales force expansion. Comparisons of
third-quarter and nine-month reported OCI results were impacted by UST
acquisition-related costs incurred in 2011. Adjusted OCI, which is calculated
excluding these costs, increased 8.3% for the third quarter of 2012 and 8.6%
for the first nine months of 2012.

Adjusted OCI margins increased 0.4 percentage points to 19.3% for the third
quarter of 2012 and declined 0.1 percentage point to 17.2% for the first nine
months of 2012. Revenues and OCI for the wine segment are summarized in Table
10.


Table 10 - Wine: Revenues and OCI ($ in millions)
                      Third Quarter                              Nine Months Ended
                                                                     September30,
                         2012        2011        Change         2012        2011        Change   
Net revenues             $  140     $  132      6.1  %        $  381     $  349      9.2  %
Excise taxes             (5      )   (5      )                    (14     )   (13     ) 
Revenues net of          $  135    $  127       6.3  %        $  367    $  336       9.2  %
excise taxes
                                                                                                            
Reported OCI              $   26        $   23          13.0 %         $   63        $   54          16.7 %
UST
acquisition-related      —          1                           —          4        
costs
Adjusted OCI             $  26     $  24        8.3  %        $  63     $  58        8.6  %
Adjusted OCI             19.3    %   18.9    %    0.4 pp          17.2    %   17.3    %    (0.1) pp
margins*


*Adjusted OCI margins are calculated as adjusted OCI divided by revenues net
of excise taxes.

Ste. Michelle's 2012 third-quarter and nine-month reported wine shipment
volume increased 3.7% and 4.0%, respectively, primarily due to the national
expansion of select wines into off-premise channels. Ste. Michelle's reported
shipment volume performance for wine is summarized in Table 11.


Table 11 - Wine: Shipment Volume (cases in thousands)
                                                 
               Third Quarter                           Nine Months Ended
                                                       September30,
                2012      2011      Change        2012      2011      Change   
                                                                      
Chateau
Ste.             704         605         16.4 %          1,860       1,718       8.3   %
Michelle
Columbia         440         479         (8.2 )%         1,193       1,356       (12.0 )%
Crest
Other           766      757        1.2  %         2,113    1,892      11.7  %
Total           1,910    1,841      3.7  %         5,166    4,966      4.0   %
Wine


Note: Percent volume change calculation is based on units to the nearest
hundred.

                              FINANCIAL SERVICES

Comparisons of the financial services segment's net revenues and reported OCI
for the first nine months were impacted primarily by special items related to
the tax treatment of PMCC's LILO and SILO transactions discussed above.
The2011 nine-month results included a $490 million charge related to the tax
treatment of PMCC's LILO and SILO transactions and 2012 nine-month results
included a $7 million charge related to the timing of the previously announced
closing agreement with the IRS that resolved the federal income tax treatment
of PMCC's LILO and SILO transactions.

The financial services segment's 2012 third-quarter reported and adjusted OCI
decreased $4 million to $79 million primarily due to a $35 million decrease in
the allowance for losses in the third quarter of 2011 that favorably impacted
OCI in that year, partially offset by $33 million in recoveries during the
third quarter of 2012 related to PMCC's lease investment with American
Airlines, Inc. (American), which filed for bankruptcy in November 2011.

For the first nine months of 2012, the financial services segment's reported
OCI increased $525 million to $166 million primarily due to lower charges
related to the tax treatment of PMCC's LILO and SILO transactions, higher
gains on asset sales, recoveries related to American and a $10 million
decrease in the allowance for losses that favorably impacted OCI earlier this
year. These favorable factors were partially offset by lower lease revenues in
2012 and a $35 million decrease in the allowance for losses in 2011 that
favorably impacted OCI in that year. Adjusted OCI, which is calculated
excluding the PMCC leveraged lease charges identified in Table 12, increased
$42 million to $173 million for the first nine months of 2012. OCI for the
financial services segment is summarized in Table 12.


Table 12 - Financial Services: Operating Companies Income (Loss) ($ in millions)
                                                       
                Third Quarter                                Nine Months Ended
                                                             September 30,
                 2012         2011         Change       2012        2011         Change 
                                                                                 
Reported
Operating
Companies         $   79       $   83       (4.8)%         $  166       $  (359 )     100%+
Income
(Loss)
PMCC
leveraged        —           —                          7          490       
lease
charges
Adjusted         $   79    $   83     (4.8)%        $  173    $  131      32.1%
OCI


PMCC's allowance for losses at the end of the third quarter of 2012 was $99
million versus $188 million at the end of the second quarter of 2012, due to
write-offs related to PMCC's lease investment with American.

PMCC remains focused on managing its portfolio of leased assets in order to
maximize financial contributions to Altria. PMCC is not making new investments
and expects that its OCI will vary over time as investments mature or are
sold.

Altria's Profile

Altria directly or indirectly owns 100% of each of PM USA, USSTC, Middleton,
Ste. Michelle and PMCC. Altria holds a continuing economic and voting interest
in SABMiller.

The brand portfolios of Altria's tobacco operating companies include such
well-known names as Marlboro, Copenhagen, Skoal and Black & Mild. Ste.
Michelle produces and markets premium wines sold under various labels,
including Chateau Ste. Michelle, Columbia Crest and Stag's Leap Wine Cellars,
and it exclusively distributes and markets Antinori, Champagne Nicolas
Feuillatte and Villa Maria Estate products in the United States. Trademarks
and service marks related to Altria referenced in this release are the
property of, or licensed by, Altria or its subsidiaries. More information
about Altria is available at altria.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other
forward-looking statements that involve a number of risks and uncertainties
and are made pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995.

Important factors that may cause actual results and outcomes to differ
materially from those contained in the projections and forward-looking
statements included in this press release are described in Altria's publicly
filed reports, including its Annual Report on Form 10-K for the year ended
December 31, 2011 and its Quarterly Report on Form 10-Q for the period ended
June 30, 2012.

These factors include the following: Altria's tobacco businesses (including PM
USA, USSTC and Middleton) being subject to significant competition; changes in
adult consumer preferences and demand for their products; fluctuations in raw
material availability, quality and cost; reliance on key facilities and
suppliers; reliance on critical information systems, many of which are managed
by third-party service providers; fluctuations in levels of customer
inventories; the effects of global, national and local economic and market
conditions; changes to income tax laws; legislation, including actual and
potential federal and state excise tax increases; increasing marketing and
regulatory restrictions; the effects of price increases related to excise tax
increases and concluded tobacco litigation settlements on trade inventories,
consumption rates and consumer preferences within price segments; health
concerns relating to the use of tobacco products and exposure to environmental
tobacco smoke; privately imposed smoking restrictions; and, from time to time,
governmental investigations.

Furthermore, the results of Altria's tobacco businesses are dependent upon
their continued ability to promote brand equity successfully; to anticipate
and respond to evolving adult consumer preferences; to develop new products
and markets within and potentially outside the United States; to broaden brand
portfolios in order to compete effectively; and to improve productivity.

Altria and its tobacco businesses are also subject to federal, state and local
government regulation, including broad-based regulation of PM USA and USSTC by
the U.S. Food and Drug Administration. Altria and its subsidiaries continue to
be subject to litigation, including risks associated with adverse jury and
judicial determinations, courts reaching conclusions at variance with the
companies' understanding of applicable law, bonding requirements in the
limited number of jurisdictions that do not limit the dollar amount of appeal
bonds and certain challenges to bond cap statutes.

Altria cautions that the foregoing list of important factors is not complete
and does not undertake to update any forward-looking statements that it may
make except as required by applicable law. All subsequent written and oral
forward-looking statements attributable to Altria or any person acting on its
behalf are expressly qualified in their entirety by the cautionary statements
referenced above.

                                                         
                                                                                  
Schedule 1
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of Earnings
For the Quarters Ended September 30,
(in millions, except per share data)
(Unaudited)
                                                                                  
                     2012                  2011                  % Change
                                                                                  
Net revenues           $   6,242           $   6,108              2.2   %
Cost of sales          1,982                 1,883                       5.3   %
(*)
Excise taxes on       1,776              1,780                     (0.2  )%
products (*)
Gross profit           2,484                 2,445                       1.6   %
Marketing,
administration         487                   519
and research
costs
Asset impairment      9                  —            
and exit costs
Operating              1,988                 1,926                       3.2   %
companies income
Amortization of        5                     5
intangibles
General
corporate              61                    62
expenses
Changes to
Mondelēz and PMI       (48         )         (19         )
tax-related
receivables
Corporate asset
impairment and        1                  —            
exit costs
Operating income       1,969                 1,878                       4.8   %
Interest and
other debt             282                   293
expense, net
Loss on early
extinguishment         874                   —
of debt
Earnings from
equity                (230        )       (208        ) 
investment in
SABMiller
Earnings before        1,043                 1,793                       (41.8 )%
income taxes
Provision for         386                619                       (37.6 )%
income taxes
Net earnings           657                   1,174                       (44.0 )%
Net earnings
attributable to       —                  (1          ) 
noncontrolling
interests
Net earnings
attributable to       $   657          $   1,173               (44.0 )%
Altria Group,
Inc.
                                                                                  
Per share data:
Basic earnings
per share
attributable to        $     0.32            $     0.57                  (43.9 )%
Altria Group,
Inc.
Diluted earnings
per share
attributable to        $     0.32            $     0.57                  (43.9 )%
Altria Group,
Inc.
                                                                                  
Weighted-average
diluted shares         2,024                 2,054                       (1.5  )%
outstanding

    Cost of sales includes charges for resolution expenses related to state
(*) settlement and other tobacco agreements, and FDA user fees. Supplemental
    information concerning those items and excise taxes on products sold is
    shown in Schedule 5.
    

                                                                            
Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Reporting Segment
For the Quarters Ended September 30,
(dollars in millions)
(Unaudited)
                          
                          Net Revenues
                          Smokeable     Smokeless   Wine          Financial     Total
                          Products        Products                      Services
2012                      $  5,613       $  437       $   140       $   52        $   6,242
2011                      5,499           426           132             51              6,108
% Change                  2.1       %     2.6     %     6.1       %     2.0      %      2.2         %
                                                                                        
Reconciliation:
For the quarter
ended September 30,       $   5,499       $   426       $     132       $     51        $     6,108
2011
Operations                114          11         8            1            134         
For the quarter
ended September 30,       $  5,613    $  437    $   140    $   52     $   6,242 
2012

                          
                          Operating Companies Income
                          Smokeable     Smokeless   Wine          Financial     Total
                          Products        Products                      Services
2012                      $   1,637       $   246       $     26        $     79        $     1,988
2011                      1,575           245           23              83              1,926
% Change                  3.9       %     0.4     %     13.0      %     (4.8     )%     3.2         %
                                                                                        
Reconciliation:
For the quarter
ended September 30,       $   1,575       $   245       $     23        $     83        $     1,926
2011
Integration costs -       —               1             —               —               1
2011
UST
acquisition-related       —            —          1            —            1           
costs - 2011
                          —            1          1            —            2           
                                                                                        
Asset impairment
and exit costs -          (1        )     (8      )     —               —               (9          )
2012
Implementation            (1        )     —             —               —               (1          )
costs - 2012
Tobacco and health        (3        )   —          —            —            (3          )
judgments - 2012
                          (5        )   (8      )   —            —            (13         )
Operations                67           8          2            (4       )    73          
For the quarter
ended September 30,       $  1,637    $  246    $   26     $   79     $   1,988 
2012
Note: Prior-period segment data have been recast to conform with the current-period segment
presentation.



Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of Earnings
For the Nine Months Ended September 30,
(in millions, except per share data)
(Unaudited)
                                                          
                                                                  
                                2012             2011             % Change
                                                                  
Net revenues                    $  18,376       $  17,671         4.0   %
Cost of sales (*)               5,860            5,708                2.7   %
Excise taxes on products        5,336           5,398               (1.1  )%
(*)
Gross profit                    7,180            6,565                9.4   %
Marketing, administration       1,511            1,680
and research costs
Asset impairment and exit       46              3          
costs
Operating companies             5,623            4,882                15.2  %
income
Amortization of                 15               16
intangibles
General corporate               167              173
expenses
Changes to Mondelēz and
PMI tax-related                 (48        )     (19        )
receivables
Corporate asset                 1               —          
impairment and exit costs
Operating income                5,488            4,712                16.5  %
Interest and other debt         868              865
expense, net
Loss on early                   874              —
extinguishment of debt
Earnings from equity            (973       )     (552       )
investment in SABMiller
Earnings before income          4,719            4,399                7.3   %
taxes
Provision for income            1,641           1,843               (11.0 )%
taxes
Net earnings                    3,078            2,556                20.4  %
Net earnings attributable
to noncontrolling               (1         )     (2         )
interests
Net earnings attributable       $  3,077       $  2,554           20.5  %
to Altria Group, Inc.
                                                                  
Per share data:
Basic earnings per share
attributable to Altria          $   1.51         $   1.23             22.8  %
Group, Inc.
Diluted earnings per
share attributable to           $   1.51         $   1.23             22.8  %
Altria Group, Inc.
                                                                  
Weighted-average diluted        2,028            2,071                (2.1  )%
shares outstanding

    Cost of sales includes charges for resolution expenses related to state
(*) settlement and other tobacco agreements, and FDA user fees. Supplemental
    information concerning those items and excise taxes on products sold is
    shown in Schedule 5.
    

                                                                     
Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Reporting Segment
For the Nine Months Ended September 30,
(dollars in millions)
(Unaudited)
                          
                          Net Revenues
                          Smokeable      Smokeless       Wine            Financial      Total
                          Products         Products                            Services
2012                      $  16,616       $   1,243       $    381       $   136      $   18,376
2011                      16,500           1,209             349               (387       )     17,671
% Change                  0.7        %     2.8         %     9.2         %     100%+            4.0          %
                                                                                                
Reconciliation:
For the nine months
ended September 30,       $   16,500       $     1,209       $       349       $     (387 )     $     17,671
2011
PMCC leveraged            —                —                 —                 490              490
lease charge - 2011
PMCC leveraged            —                —                 —                 (7         )     (7           )
lease charge - 2012
Operations                116           34             32             40            222          
For the nine months
ended September 30,       $  16,616    $   1,243    $    381    $   136     $   18,376 
2012

                          
                          Operating Companies Income (Loss)
                          Smokeable      Smokeless       Wine            Financial      Total
                          Products         Products                            Services
2012                      $   4,716        $     678         $       63        $     166        $     5,623
2011                      4,527            660               54                (359       )     4,882
% Change                  4.2        %     2.7         %     16.7        %     100%+            15.2         %

Reconciliation:
For the nine months
ended September 30,       $   4,527        $     660         $       54        $     (359 )     $     4,882
2011
Asset impairment
and exit costs -          3                —                 —                 —                3
2011
Integration costs -       —                3                 —                 —                3
2011
UST
acquisition-related       —                1                 4                 —                5
costs - 2011
PMCC leveraged            —                —                 —                 490              490
lease charge - 2011
Tobacco and health        36            —              —              —             36           
judgments - 2011
                          39            4              4              490           537          
                                                                                                
Asset impairment
and exit costs -          (24        )     (22         )     —                 —                (46          )
2012
Implementation gain       11               (5          )     —                 —                6
(costs) - 2012
PMCC leveraged            —                —                 —                 (7         )     (7           )
lease charge - 2012
Tobacco and health        (4         )   —              —              —             (4           )
judgments - 2012
                          (17        )   (27         )   —              (7         )   (51          )
Operations                167           41             5              42            255          
For the nine months
ended September 30,       $  4,716     $   678      $    63     $   166     $   5,623  
2012

Note: Prior-period segment data have been recast to conform with the
current-period segment presentation.



Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data by Reporting Segment
(dollars in millions)
(Unaudited)
                   For the Quarters Ended          For the Nine Months Ended
                                             
                   September 30,                   September 30,
                   2012          2011            2012          2011
                                                                   
The segment
detail of
excise taxes
on products
sold is as
follows:
                                                                   
Smokeable          $  1,742       $  1,747       $  5,239       $  5,304 
products
Smokeless          29              28              83              81
products
Wine               5              5              14             13        
                   $  1,776      $  1,780      $  5,336      $  5,398 
                                                                   
The segment
detail of
charges for
resolution
expenses
related to
state
settlement
and other
tobacco
agreements
included in
cost of
sales is as
follows:
                                                                   
Smokeable          $   1,223       $   1,174       $   3,657       $   3,581
products
Smokeless          3              3              8              8         
products
                   $  1,226      $  1,177      $  3,665      $  3,589 
                                                                   
The segment
detail of
FDA user
fees
included in
cost of
sales is
as follows:
                                                                   
Smokeable          $   56          $   53          $   165         $   154
products
Smokeless          1              1              2              2         
products
                   $  57         $  54         $  167        $  156   

Note: Prior-period segment data have been recast to conform with the
current-period segment presentation.



Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group,
Inc.
For the Quarters Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
                                                          
                                              Net Earnings       Diluted EPS
                                                                 
2012 Net Earnings                             $   657          $   0.32
2011 Net Earnings                             $     1,173        $     0.57
% Change                                      (44.0       )%     (43.9      )%
                                                                 
Reconciliation:
2011 Net Earnings                             $     1,173        $     0.57
                                                                 
2011 Integration costs                        1                  —
2011 SABMiller special items                  8                  —
2011 UST acquisition-related costs            1                  —
2011 Tax items                                (24         )      (0.01      )
Subtotal 2011 special items                   (14         )      (0.01      )
                                                                 
2012 Asset impairment, exit and               (7          )      —
implementation costs
2012 SABMiller special items                  (12         )      (0.01      )
2012 Tobacco and health judgments             (2          )      —
2012 Loss on early extinguishment of          (559        )      (0.28      )
debt
2012 Tax items                                62                0.03       
Subtotal 2012 special items                   (518        )      (0.26      )
                                                                 
Fewer shares outstanding                      —                  0.01
Change in tax rate                            (60         )      (0.03      )
Operations                                    76                0.04       
2012 Net Earnings                             $   657         $   0.32 
                                                                 
2012 Net Earnings Adjusted For                $     1,175        $     0.58
Special Items
2011 Net Earnings Adjusted For                $     1,159        $     0.56
Special Items
% Change                                      1.4         %      3.6        %
                                                                            



Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group,
Inc.
For the Nine Months Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
                                                            
                                                Net Earnings      Diluted EPS
                                                                  
2012 Net Earnings                               $   3,077       $   1.51
2011 Net Earnings                               $     2,554       $     1.23
% Change                                        20.5        %     22.8       %
                                                                  
Reconciliation:
2011 Net Earnings                               $     2,554       $     1.23
                                                                  
2011 Asset impairment, exit and                 4                 —
integration costs
2011 SABMiller special items                    24                0.01
2011 PMCC leveraged lease charge                627               0.30
2011 Tobacco and health judgments               24                0.01
2011 UST acquisition-related costs              4                 —
2011 Tax items (*)                              (24         )     (0.01      )
Subtotal 2011 special items                     659              0.31       
                                                                  
2012 Asset impairment, exit and                 (25         )     (0.01      )
implementation costs
2012 SABMiller special items                    172               0.08
2012 PMCC leveraged lease benefit               68                0.03
2012 Tobacco and health judgments               (3          )     —
2012 Loss on early extinguishment of debt       (559        )     (0.28      )
2012 Tax items (*)                              51               0.03       
Subtotal 2012 special items                     (296        )     (0.15      )
                                                                  
Fewer shares outstanding                        —                 0.04
Change in tax rate                              (84         )     (0.04      )
Operations                                      244              0.12       
2012 Net Earnings                               $   3,077      $   1.51 
                                                                  
2012 Net Earnings Adjusted For Special          $     3,373       $     1.66
Items
2011 Net Earnings Adjusted For Special          $     3,213       $     1.54
Items
% Change                                        5.0         %     7.8        %
                                                                  
(*) Excludes the tax impact included in the PMCC leveraged lease
benefit/charge.



Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in millions)
(Unaudited)
                                                            
                                                September 30,     December 31,
                                                2012              2011
Assets
Cash and cash equivalents                       $   2,186        $  3,270  
Inventories                                     1,624             1,779
Deferred income taxes                           1,287             1,207
Other current assets                            837               875
Property, plant and equipment, net              2,111             2,216
Goodwill and other intangible assets, net       17,257            17,272
Investment in SABMiller                         6,468             5,509
Other long-term assets                          419              1,257      
Total consumer products assets                  32,189            33,385
Total financial services assets                 2,849            3,577      
Total assets                                    $   35,038      $  36,962 
                                                                  
Liabilities and Stockholders' Equity
Current portion of long-term debt               —                 600
Accrued settlement charges                      3,236             3,513
Other current liabilities                       3,112             3,530
Long-term debt                                  13,878            13,089
Deferred income taxes                           5,095             4,751
Accrued postretirement health care costs        2,364             2,359
Accrued pension costs                           1,111             1,662
Other long-term liabilities                     560              602        
Total consumer products liabilities             29,356            30,106
Total financial services liabilities            1,781            3,141      
Total liabilities                               31,137            33,247
Redeemable noncontrolling interest              33                32
Total stockholders' equity                      3,868            3,683      
Total liabilities and stockholders'             $   35,038      $  36,962 
equity
                                                                  
Total debt                                      $    13,878       $   13,689

Contact:

Altria Group, Inc.
Altria Client Services
Investor Relations, 804-484-8222
or
Altria Client Services
Media Relations, 804-484-8897
 
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