Altria Reports 2012 Fourth-Quarter and Full-Year Results; Delivers 2012 Full-Year Adjusted EPS Growth of 7.8%

  Altria Reports 2012 Fourth-Quarter and Full-Year Results; Delivers 2012
  Full-Year Adjusted EPS Growth of 7.8%

  *Altria's 2012 fourth-quarter reported diluted earnings per share (EPS)
    increased 34.1% to $0.55, as comparisons were impacted by special items
  *Altria's 2012 fourth-quarter adjusted diluted EPS, which excludes the
    impact of special items, increased 10.0% to $0.55
  *Altria's 2012 full-year reported diluted EPS increased 25.6% to $2.06, as
    comparisons were impacted by special items
  *Altria's 2012 full-year adjusted diluted EPS, which excludes the impact of
    special items, grew 7.8% to $2.21
  *Altria forecasts that 2013 full-year reported diluted EPS will be in the
    range of $2.34 to $2.40, and 2013 full-year adjusted diluted EPS will be
    in the range of $2.35 to $2.41, representing a growth rate of 6% to 9%
    from an adjusted base of $2.21 in 2012

Business Wire

RICHMOND, Va. -- January 31, 2013

Altria Group, Inc. (Altria) (NYSE: MO) today announced its 2012 fourth-quarter
and full-year business results, and provided its 2013 full-year guidance for
reported and adjusted diluted EPS.

"Altria delivered strong results and returns for its shareholders in 2012,"
said Marty Barrington, Chairman and Chief Executive Officer of Altria. "Altria
grew its full-year adjusted diluted earnings per share by 7.8% behind the
business performance of our operating companies, complemented by higher
earnings from our equity investment in SABMiller."

"Despite a continuing, challenging external environment, our tobacco operating
companies' premium brands had an excellent year as our companies continued
investing in their long-term success," said Mr. Barrington. "These companies
grew their adjusted operating companies income and gained retail share in
cigarettes, cigars and smokeless tobacco for the full year of 2012."

Conference Call

A conference call with the investment community and news media will be webcast
on January 31, 2013 at 9:00 a.m. Eastern Time. Access to the webcast is
available at altria.com.

Cost Management

Altria's companies made significant progress in 2012 on the current cost
reduction program for its tobacco and service company subsidiaries by reducing
headcount, consolidating certain facilities, improving business processes and
pursuing other savings. These actions, with initiatives planned for 2013 as
part of the program, give Altria confidence in its ability to achieve its goal
of $400 million in annualized savings versus previously planned spending by
the end of 2013.

Altria recorded net pre-tax restructuring charges totaling $271 million
related to the current cost reduction program over the past five quarters,
including net restructuring charges of $7 million in the fourth quarter of
2012. Altria has recorded substantially all the net pre-tax restructuring
charges related to this program.

Cash Returns to Shareholders - Dividends

In December 2012, Altria's Board of Directors (the Board) declared a regular
quarterly dividend of $0.44 per common share. The current annualized dividend
rate is $1.76 per common share. As of January 25, 2013, Altria's annualized
dividend yield was 5.3%.

In August 2012, Altria's Board voted to increase the regular quarterly
dividend by 7.3%, which was Altria's 46th dividend increase in the last 43
years. 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

During the fourth quarter of 2012, Altria repurchased 15.3 million shares of
its common stock at an average price of $32.31 for a total cost of
approximately $493 million. During the full year, Altria repurchased 34.9
million shares of its common stock at an average price of $32.00 for a total
cost of approximately $1.1 billion.

Altria has approximately $57 million remaining in the current $1.5 billion
program authorized by the Board, 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.

Pension Plans Contribution

At the end of 2012, Altria's pension plans were 78% funded on a Projected
Benefit Obligation (PBO) basis. In January 2013, Altria made a voluntary $350
million pre-tax contribution to its pension plans, increasing the plans' PBO
funding level to approximately 82%.

PM USA Agreement to Resolve Certain MSA Payment Adjustment Disputes

As previously announced, Philip Morris USA Inc. (PM USA) and other cigarette
manufacturers have reached an agreement with 17 states, the District of
Columbia and Puerto Rico to resolve long-standing disputes related to the
Non-Participating Manufacturer (NPM) adjustment provisions of the Master
Settlement Agreement (MSA). The agreement includes a release to the signatory
states of their portion of more than $4 billion from the MSA disputed payment
account. In return, the manufacturers will receive reductions in future MSA
payments. Based on the current signatory states and an estimate of the 2012
NPM adjustment, PM USA estimates its reductions to be approximately $450
million, all of which PM USA expects to receive as a credit against its April
2013 MSA payment. This estimate is subject to change depending on various
factors related to the calculation of the credit.

The agreement is subject to the approval of the arbitration panel in the NPM
adjustment arbitration that is currently underway. In addition, states that
have not joined in the agreement (non-signatory states) have raised objections
with the arbitration panel and a number of non-signatory states have indicated
that they may attempt to take action in state court to prevent the agreement
from proceeding or to seek other relief with respect to the agreement. No
assurance can be given that the arbitration panel will issue the order
necessary for the agreement to proceed or that the objections or any other
such actions by non-signatory states will be resolved in a manner favorable to
PM USA. If the agreement proceeds, PM USA expects to record a corresponding
increase in its reported pre-tax earnings. A more detailed description of the
agreement is included in Altria's Current Report on Form 8-K filed December
18, 2012.

2013 Full-Year Guidance

While there are signs of modest improvement in certain economic indicators, we
remain cautious about the 2013 business environment. Adult consumers remain
under economic pressure as they face the end of the payroll tax holiday, as
well as continuing, high unemployment. With a number of states facing budget
shortfalls, tobacco products will remain a target for excise tax increases.

Altria forecasts that 2013 full-year reported diluted EPS will be in the range
of $2.34 to $2.40. The forecast reflects estimated SABMiller plc (SABMiller)
special items. The forecast does not reflect the potential impact of PM USA's
agreement to resolve the NPM adjustment disputes discussed above.

Altria forecasts that 2013 full-year adjusted diluted EPS, which excludes
special items shown in Table 1, will be in the range of $2.35 to $2.41,
representing a growth rate of 6% to 9% from an adjusted diluted EPS base of
$2.21 in 2012.

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
                           2013 Guidance                      2012            Change
Reported                   $  2.34   to  $  2.40         $  2.06        14 %  to  17 %
diluted EPS
Loss on early
extinguishment                               —                      0.28
of debt
Asset
impairment,
exit and                                     —                      0.01
implementation
costs
SABMiller                                    0.01                   (0.08    )
special items
PMCC leveraged                               —                      (0.03    )
lease benefit
Tax items*                               —               (0.03    )
Adjusted                   $  2.35   to  $  2.41        $  2.21            6  %   to   9  %
diluted EPS
                                                                 

* Excludes the tax impact of the PMCC leveraged lease benefit.

Altria anticipates that 2013 capital expenditures will be in the range of $125
million to $150 million, and depreciation and amortization will be
approximately $215 million.

2013 Reporting Segments

Effective January 1, 2013, Altria's reportable segments will be Smokeable
Products, Smokeless Products and Wine. In connection with this revision,
results of the financial services business and the alternative products
business will be combined in an All Other category. Altria is making these
changes due to the continued reduction of the lease portfolio of Philip Morris
Capital Corporation (PMCC) and the relative financial contribution of Altria's
alternative products business to its consolidated results. Altria will begin
reporting the All Other category and presenting comparable results for prior
periods with its 2013 first-quarter results.

New Retail Tracking Service

Altria's tobacco companies are transitioning to new retail tracking services
to measure cigarette, cigar and smokeless products performance beginning in
the first quarter of 2013.

                              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.

Altria's 2012 reportable segments are Smokeable Products, manufactured and
sold by 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 1.8% to $6.2 billion for the fourth quarter of
2012 primarily due to higher net revenues from smokeable products, partially
offset by lower revenues from financial services. For the full year of 2012,
Altria's net revenues increased 3.4% to $24.6 billion primarily due to higher
net revenues from financial services and smokeable products. Altria's revenues
net of excise taxes increased 2.6% to $4.5 billion for the fourth quarter of
2012, and grew 5.3% to $17.5 billion for the full year of 2012. Comparisons of
Altria's full-year net revenues and revenues net of excise taxes were impacted
by a 2011 charge related to certain PMCC leveraged lease transactions.

Altria's 2012 fourth-quarter reported diluted EPS increased 34.1% primarily
due to lower asset impairment, exit, integration and implementation costs and
lower tobacco and health judgments. Reported diluted EPS also benefited from
higher OCI in both the smokeable products and smokeless products segments,
higher earnings from Altria's equity investment in SABMiller and fewer shares
outstanding. Altria's fourth-quarter adjusted diluted EPS, which excludes the
impact of special items, grew 10.0% to $0.55 as shown in Table 2.

For the full year of 2012, Altria's reported diluted EPS increased 25.6%
primarily due to special items related to PMCC leveraged lease transactions,
higher earnings from Altria's equity investment in SABMiller, including net
gains from SABMiller special items, higher OCI in the smokeable products
segment, including lower charges related to restructuring and lower tobacco
and health judgments, and fewer shares outstanding. These favorable factors
were partially offset by the loss on early extinguishment of debt as discussed
below. Altria's full-year 2012 adjusted diluted EPS, which excludes special
items, increased 7.8% to $2.21 as shown in Table 2.



Table 2 - Altria's Adjusted Results Excluding Special Items
                                                                               
                           Fourth Quarter                                                   Full Year
                           2012             2011             Change             2012             2011             Change
Reported                   $  0.55         $  0.41         34.1 %             $  2.06         $  1.64         25.6 %
diluted EPS
Loss on early
extinguishment             —                      —                                         0.28                   —
of debt
Asset
impairment,
exit,
integration                —                      0.07                                      0.01                   0.07
and
implementation
costs
SABMiller                  —                      0.01                                      (0.08    )             0.03
special items
PMCC leveraged
lease                      —                      —                                         (0.03    )             0.30
(benefit)
charge
Tobacco and
health                     —                      0.04                                      —                      0.05
judgments
Tax Items*                 —               (0.03    )                                (0.03    )       (0.04    )
Adjusted                   $  0.55        $  0.50              10.0 %             $  2.21        $  2.05              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 full-year reported diluted EPS were impacted by a
charge resulting from the 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 Schedule 3, and the EPS impacts are shown in Table 2 and Schedule
7.

Restructuring Charges

Comparisons of Altria's fourth-quarter and full-year reported diluted EPS were
positively impacted by lower restructuring charges in 2012. Altria's operating
companies recorded 2012 fourth-quarter net pre-tax restructuring charges of
$16 million as compared to pre-tax restructuring charges of $213 million
incurred in the same period of 2011 primarily related to the current cost
reduction program. These charges are reflected in Schedule 2, and the EPS
impacts are shown in Table 2 and Schedule 6. Altria's operating companies
recorded 2012 full-year net pre-tax charges totaling $56 million as compared
to pre-tax restructuring charges of $224 million incurred in full-year 2011
primarily related to the current cost reduction program. These charges are
reflected in Schedule 4, and the EPS impacts are shown in Table 2 and Schedule
7.

SABMiller Special Items

Special items related to Altria's equity investment in SABMiller also impacted
comparisons of Altria's fourth-quarter and full-year reported diluted EPS. For
the fourth quarter of 2011, SABMiller special items included
acquisition-related costs for SABMiller's acquisition of Foster's Group
Limited (Foster's) and costs for its "business capability programme,"
partially offset by gains resulting from its disposal of a business in Kenya.
These after-tax special items are reflected in Schedule 6, "2011 SABMiller
special items." The EPS impact of these special items is shown in Table 2 and
Schedule 6.

For the full year of 2012, SABMiller's special items included gains resulting
from its strategic alliance transactions with Anadolu Efes and Castel,
partially offset by costs for its "business capability programme" and costs
related to its acquisition of Foster's. For the full year of 2011, SABMiller's
special items included costs for its "business capability programme,"
acquisition-related costs for SABMiller's acquisition of Foster's and
SABMiller asset impairment charges, partially offset by gains resulting from
SABMiller's hotel and gaming transaction and the disposal of a business in
Kenya. 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 full-year 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 full year 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 full-year 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 full year 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 fourth-quarter and full-year reported diluted EPS were
also impacted by charges related to tobacco and health judgments. For the
fourth quarter of 2011, PM USA incurred pre-tax charges of $62 million related
to tobacco and health judgments as well as related interest costs of $59
million. These charges, excluding the related interest costs, are reflected in
Schedule 2, and the EPS impact of these charges, including interest costs, is
reflected in Table 2 and in Schedule 6. The interest costs are reflected in
Schedule 1, "Interest and other debt expense, net."

Additionally, for the full year of 2011, PM USA incurred pre-tax charges of
$98 million for tobacco and health judgments as well as related interest costs
of $64 million. For the full year of 2012, PM USA incurred pre-tax charges of
$4 million for tobacco and health judgments, as well as related interest costs
of $1 million. These charges, excluding interest costs, are reflected in
Schedule 4, and the EPS impact of these charges, including interest costs, is
reflected in Table 2, and in Schedule 7. The interest costs are reflected in
Schedule 3, "Interest and other debt expense, net."

Tax Items

Altria's reported diluted EPS comparisons for the fourth quarter and full year
were impacted by tax items. In the fourth quarter of 2012 and 2011, Altria
recorded net tax benefits of $15 million and $53 million, respectively.
Excluding the tax impacts related to PMCC's LILO and SILO transactions
discussed above, for the full year of 2012 and 2011, Altria recorded net tax
benefits of $66 million and $77 million, respectively. These net 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 reversal of tax accruals no longer required. These net tax benefits are
reflected in Schedules 1 and 3, "Provision for income taxes," and the EPS
impacts are shown in Table 2 and Schedules 6 and 7.

Tax comparisons of 2012 and 2011 also include the impact of tax matters
related to Altria's former subsidiaries, Kraft Foods Inc., now known as
Mondelēz International, Inc. (Mondelēz), and Philip Morris International Inc.
(PMI), which are reflected in Schedules 1 and 3, "Provision for income taxes."
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. Altria recorded a 2012 full-year tax provision of $52 million,
$48 million in the third quarter and $4 million in the fourth quarter, related
to Mondelēz and PMI tax matters. Additionally, Altria recorded a 2011
full-year net tax provision of $14 million, a $19 million tax provision in the
third quarter and a $5 million tax benefit in the fourth quarter, related to
various 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 2012 and 2011
full-year and fourth-quarter reported effective tax rates.

Excluding the impact of the special tax items discussed above, Altria's
effective tax rate on operations was 37.8% for the fourth quarter and 37.0%
for the full year, as shown below in Table 3. Altria anticipates that its 2013
full-year reported effective tax rate and effective tax rate on operations
will be approximately 35.5%. The decrease in the projected 2013 full-year
effective tax rate on operations is principally due to the reduction in
certain consolidated tax benefits resulting from the 2012 debt tender offer
that impacted the 2012 full-year effective tax rate on operations.

                                                        
                                                       
Table 3 - Altria's 2012 Tax
Rates
                                                              
                                          Fourth Quarter       Full Year
Reported effective tax rate*              37.1     %                 35.4   %
Closure of IRS audit of 2004              —                          0.8
- 2006 tax years
Mondelēz and PMI tax matters              (0.2     )                 (0.8   )
Interest benefit on tax
underpayments associated with             —                          1.1
certain PMCC leveraged lease
transactions
Other tax items                           0.9                 0.5    
Effective tax rate on                     37.8     %           37.0   %
operations
                                                            

* 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 adjusted OCI and adjusted OCI margin
growth for the full year of 2012 primarily through higher pricing and
effective cost management. PM USA continued to support Marlboro's new brand
architecture with brand-building initiatives, which contributed to Marlboro's
fourth-quarter and full-year retail share gains.

For the fourth quarter of 2012, the smokeable products segment's net revenues
increased 2.4% primarily due to higher list prices, partially offset by higher
promotional investments to support Marlboro's new brand architecture. For the
full year of 2012, the smokeable products segment's net revenues increased
1.1% primarily due to higher list prices, partially offset by higher
promotional investments behind Marlboro's new brand architecture,  unfavorable
mix due to L&M's volume growth in Discount and lower reported shipment volume.
2012 fourth-quarter and full-year revenues net of excise taxes increased 3.6%
and 2.1%, respectively.

The smokeable products segment's 2012 fourth-quarter reported OCI increased
25.9% primarily due to higher list prices, lower restructuring charges and
lower charges related to tobacco and health judgments, partially offset by
higher promotional investments behind Marlboro's new brand architecture and
increased resolution expense. The smokeable products segment's 2012 full-year
reported OCI increased 8.8% primarily due to higher list prices, lower
restructuring charges, lower charges related to tobacco and health judgments
and effective cost management, partially offset by higher promotional
investments behind Marlboro's new brand architecture, increased resolution
expense, unfavorable mix and lower reported shipment volume. Adjusted OCI,
which is calculated excluding the special items identified in Table 4, grew
5.9% for the fourth quarter of 2012 and increased 4.2% for the full year of
2012.

Adjusted OCI margins for the smokeable products segment grew 0.9 percentage
points to 39.9% for the fourth quarter of 2012 and increased 0.9 percentage
points to 41.2% for the full year 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)
                                                                                                       
                           Fourth Quarter                                                     Full Year
                           2012              2011              Change             2012               2011               Change
Net revenues               $  5,600         $  5,470         2.4  %             $  22,216         $  21,970         1.1  %
Excise taxes               (1,745    )       (1,749    )                                (6,984     )       (7,053     )
Revenues net
of excise                  $  3,855        $  3,721              3.6  %             $  15,232        $  14,917              2.1  %
taxes
                                                                                                                                                
Reported OCI               $   1,523               $   1,210               25.9 %             $   6,239                $   5,737                8.8  %
Asset
impairment,
exit and                   15                      180                                        28                       183
implementation
costs, net
Tobacco and
health                     —                62                                        4                 98         
judgments
Adjusted OCI               $  1,538        $  1,452              5.9  %             $  6,271         $  6,018               4.2  %
Adjusted OCI               39.9      %       39.0      %             0.9 pp             41.2       %       40.3       %             0.9 pp
margins*
                                                                                                  

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

PM USA's 2012 fourth-quarter reported domestic cigarettes shipment volume
increased 0.4% primarily due to retail share gains and one extra shipping day,
partially offset by the industry's rate of decline. After adjusting for an
extra shipping day and changes in trade inventories, PM USA's 2012
fourth-quarter domestic cigarettes shipment volume was estimated to be down
approximately 1%.

PM USA's 2012 full-year reported domestic cigarettes shipment volume declined
0.2% primarily due to the industry's rate of decline, partially offset by
volume growth as a result of retail share gains and one extra shipping day.
After adjusting for an extra shipping day and changes in trade inventories, PM
USA's 2012 full-year domestic cigarettes shipment volume was estimated to be
essentially unchanged.

After adjusting for an extra shipping day and changes in trade inventories, PM
USA estimates total cigarette category volume for both the fourth quarter and
full year of 2012 to be down approximately 3%. PM USA's cigarette volume
performance is summarized in Table 5.

Middleton's 2012 fourth-quarter reported cigars shipment volume declined 1.0%
primarily due to changes in trade inventories and retail share losses. For the
full year of 2012, Middleton's reported cigars shipment volume declined 0.7%
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)
                                                                                              
                          Fourth Quarter                                                   Full Year
                          2012     2011                         Change               2012     2011                          Change
Cigarettes:                                                                                                                
Marlboro                  29,129          29,033               0.3   %              116,377         117,201               (0.7  )%
Other                     2,126                  2,266                (6.2  )%             8,629                  9,381                 (8.0  )%
premium
Discount                  2,578           2,405               7.2   %              9,868           8,556                15.3  %
Total                     33,833   33,704                            0.4   %              134,874         135,138              (0.2  )%
cigarettes
                                                                                                                                        
Cigars:
Black &                   279      281                                (0.7  )%             1,219                  1,226                 (0.6  )%
Mild
Other                     4       5                                 (20.0 )%             18              20                   (10.0 )%
Total                     283     286                               (1.0  )%             1,237           1,246                (0.7  )%
cigars
                                                                                                         
Total
smokeable                 34,116  33,990                            0.4   %              136,111         136,384              (0.2  )%
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 fourth-quarter and full-year
retail share performance continued to benefit  from the brand-building
initiatives supporting Marlboro's new architecture. Marlboro's 2012
fourth-quarter and full-year retail share increased 1.0 and 0.6 share points,
respectively. Earlier this month, PM USA expanded distribution of Marlboro
Southern Cut nationally. Marlboro Southern Cut, part of the Marlboro Gold
family, has a uniquely rich and smooth flavor.

PM USA's 2012 fourth-quarter and full-year retail share increased 1.0 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 cigarette retail share performance is summarized in
Table 6.

In the machine-made large cigars category, Black & Mild's retail share
decreased 1.4 share points for the fourth quarter of 2012 and increased 0.5
share points for the full year. For the full year of 2012, the brand benefited
from new untipped cigarillo varieties that were introduced in 2011, Black &
Mild seasonal offerings and the 2012 third-quarter introduction of Black &
Mild Jazz untipped cigarillos into select geographies. In December, Middleton
announced plans to launch nationally Black & Mild Jazz cigars in both plastic
tip and wood tip in the first quarter of 2013. Middleton's retail share
performance is summarized in Table 6.



Table 6 - Smokeable Products: Retail Share (percent)
                                                                                   
                          Fourth Quarter                                               Full Year
                                                                Percentage                                                   Percentage
                          2012         2011         point                  2012         2011         point
                                                                change                                                       change
Cigarettes:                                                                                         
Marlboro                  42.6 %             41.6 %             1.0                    42.6 %             42.0 %             0.6
Other                     3.3                3.6                (0.3   )               3.4                3.7                (0.3   )
premium
Discount                  3.9         3.6         0.3                   3.8         3.3         0.5    
Total                     49.8 %       48.8 %       1.0                   49.8 %       49.0 %       0.8    
cigarettes
                                                                                                                             
Cigars:
Black &                   29.3 %             30.7 %             (1.4   )               30.0 %             29.5 %             0.5
Mild
Other                     0.3         0.3         —                     0.2         0.2         —      
Total                     29.6 %       31.0 %       (1.4   )               30.2 %       29.7 %       0.5    
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 delivered excellent adjusted OCI growth for the
fourth quarter of 2012 behind Copenhagen and Skoal's combined volume and
retail share performance and higher pricing. For the full year, the smokeless
products segment delivered strong adjusted OCI growth driven by higher
pricing, Copenhagen and Skoal's combined volume and retail share performance
and effective cost management.

The smokeless products segment's 2012 fourth-quarter and full-year net
revenues increased 7.2% and 3.9%, 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
fourth-quarter and full-year revenues net of excise taxes increased 6.9% and
3.9%, respectively.

The smokeless products segment's 2012 fourth-quarter reported OCI increased
27.1% primarily due to lower restructuring charges related to the cost
reduction program, higher volume and higher pricing, partially offset by
unfavorable mix due to growth in products introduced in recent years at a
lower, popular price. 2012 full-year reported OCI increased 8.4% 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. Adjusted OCI, which is calculated excluding special items identified in
Table 7, grew 9.5% for the fourth quarter of 2012, and increased 7.0% for the
full year of 2012.



Table 7 - Smokeless Products: Revenues and OCI ($ in millions)
                                                                                                                                      
                                Fourth Quarter                                                   Full Year
                                2012            2011            Change               2012              2011              Change
Net revenues                    $  448         $  418         7.2   %             $  1,691         $  1,627         3.9  %
Excise taxes                    (30     )       (27     )                                  (113      )       (108      )
Revenues net of                 $  418        $  391              6.9    %             $  1,578        $  1,519              3.9   %
excise taxes
                                                                                                                                                 
Reported OCI                    $   253               $   199               27.1   %             $   931                 $   859                 8.4   %
Asset impairment,
exit, integration               1                     32                                         28                      35
and implementation
costs
UST
acquisition-related             —              1                                         —                2         
costs
Adjusted OCI                    $  254        $  232              9.5    %             $  959          $  896                7.0   %
Adjusted OCI                    60.8    %       59.3    %             1.5 pp               60.8      %       59.0      %             1.8 pp
margins*
                                                                                                   

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

For the fourth quarter of 2012, USSTC and PM USA's combined reported domestic
smokeless products shipment volume increased 9.6% primarily due to volume
growth for Copenhagen and Skoal. For the full year of 2012, reported domestic
smokeless products shipment volume grew 3.9% as volume growth on Copenhagen
and Skoal was partially offset by volume declines on Other portfolio brands.

Copenhagen's 2012 fourth-quarter and full-year volume grew 12.4% and 10.8%,
respectively, as the brand continued to benefit from products introduced in
recent years, including the May 2012 expansion of Copenhagen Southern Blend
into select geographies. USSTC has announced that it will expand Copenhagen
Southern Blend into additional states in the first quarter of 2013. Skoal's
volume increased 9.0% for the fourth quarter of 2012 and 0.6% for the full
year. Skoal's full-year volume comparison was negatively impacted by the
de-listing of seven stock-keeping units (SKU), partially offset by the growth
of Skoal X-TRA.

After adjusting for changes in trade inventories and other factors, USSTC and
PM USA estimate that their combined 2012 fourth-quarter and full-year domestic
smokeless products shipment volume grew approximately 5%. USSTC and PM USA
believe that the smokeless category's volume grew at an estimated rate of
approximately 5% over the 12 months ended December 31, 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)
                                                                                      
                                                                                              
                       Fourth Quarter                                              Full Year
                       2012          2011          Change              2012          2011          Change
                                                                                                                           
Copenhagen             107.6               95.7                12.4 %              392.5               354.2               10.8  %
Skoal                  78.4         71.9               9.0  %              288.4        286.8              0.6   %
Copenhagen             186.0               167.6               11.0 %              680.9               641.0               6.2   %
and Skoal
Other                  21.4         21.7               (1.4 )%             82.4         93.6               (12.0 )%
Total
smokeless              207.4        189.3              9.6  %              763.3        734.6              3.9   %
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 fourth quarter and full
year of 2012 increased 1.0 and 1.6 share points, respectively. Copenhagen's
2012 fourth-quarter and full-year retail share grew 1.6 and 2.2 share points,
respectively, as the brand continued to benefit from products introduced over
the past several years.

Skoal's 2012 fourth-quarter retail share declined 0.6 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 full-year
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 fourth quarter of 2012
decreased 0.1 share point as retail share losses for Skoal and Other portfolio
brands were mostly offset by gains by Copenhagen. For the full year of 2012,
USSTC and PM USA's retail share increased 0.3 share points as gains by
Copenhagen were partially offset by retail share losses for Skoal and Other
portfolio brands. USSTC and PM USA's combined smokeless products retail share
performance is summarized in Table 9.



Table 9 - Smokeless Products: Retail Share (percent)
                                                                                     
                                                                                             
                       Fourth Quarter                                               Full Year
                                                             Percentage                                                   Percentage
                       2012         2011         point                  2012         2011         point
                                                             change                                                       change
                                                                                                                          
Copenhagen             29.0 %             27.4 %             1.6                    28.4 %             26.2 %             2.2
Skoal                  21.9        22.5        (0.6   )               22.2        22.8        (0.6   )
Copenhagen             50.9               49.9               1.0                    50.6               49.0               1.6
and Skoal
Other                  4.5         5.6         (1.1   )               4.8         6.1         (1.3   )
Total
smokeless              55.4 %       55.5 %       (0.1   )               55.4 %       55.1 %       0.3    
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 fourth-quarter and full-year adjusted OCI
growth through higher pricing, improved premium mix and higher shipment
volume.

The wine segment's 2012 fourth-quarter and full-year net revenues increased
7.8% and 8.7%, respectively, primarily due to higher shipment volume, higher
pricing and improved premium mix. Revenues net of excise taxes for the fourth
quarter and full year of 2012 grew 8.1% and 8.9%, respectively.

The wine segment's 2012 fourth-quarter and full-year reported OCI increased
10.8% and 14.3%, respectively, primarily due to higher pricing, improved
premium mix and higher shipment volume, partially offset by costs related to
Ste. Michelle's sales force expansion. Comparisons of full-year reported OCI
results were also impacted by higher costs for select vintages incurred in
2012, partially offset by UST acquisition-related costs incurred in 2011.
Adjusted OCI, which is calculated excluding UST acquisition-related costs,
increased 10.8% for the fourth quarter of 2012 and 9.5% for the full year.

Adjusted OCI margins increased 0.6 percentage points to 23.7% for the fourth
quarter of 2012 and increased 0.1 percentage point to 19.3% for the full year
of 2012. Revenues and OCI for the wine segment are summarized in Table 10.

                                                                                                                               
                                                                                                                              
Table 10 -Wine: Revenues and OCI ($ in millions)
                                                                                                  
                                Fourth Quarter                                                Full Year
                                2012            2011            Change             2012            2011            Change
Net revenues                    $  180         $  167         7.8  %             $  561         $  516         8.7  %
Excise taxes                    (7      )       (7      )                                (21     )       (20     )
Revenues net of                 $  173        $  160              8.1  %             $  540        $  496              8.9  %
excise taxes
                                                                                                                                           
Reported OCI                    $   41                $   37                10.8 %             $   104               $   91                14.3 %
UST
acquisition-related             —              —                                       —              4       
costs
Adjusted OCI                    $  41         $  37               10.8 %             $  104        $  95               9.5  %
Adjusted OCI                    23.7    %       23.1    %             0.6 pp             19.3    %       19.2    %             0.1 pp
margins*
                                                                                             

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

Ste. Michelle's 2012 fourth-quarter and full-year reported wine shipment
volume increased 2.9% and 3.7%, 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)
                                                                                     
                                                                                             
                     Fourth Quarter                                              Full Year
                     2012          2011          Change               2012          2011          Change
                                                                                                                          
Chateau
Ste.                 920                 804                 14.5  %              2,780               2,522               10.3  %
Michelle
Columbia             523                 699                 (25.2 )%             1,716               2,055               (16.5 )%
Crest
Other                980          852                15.1  %              3,093        2,744              12.7  %
Total                2,423        2,355              2.9   %              7,589        7,321              3.7   %
Wine
                                                                                

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

                              FINANCIAL SERVICES

The financial services segment's reported and adjusted OCI for the fourth
quarter of 2012 was $10 million, unchanged from 2011, as comparisons were
impacted by an increase in allowance for losses in 2011 related to the
American Airlines, Inc. (American) bankruptcy and lower gains on asset sales
in 2012.

Comparisons of reported OCI for the full-year of 2012 were impacted primarily
by special items related to the treatment of PMCC's LILO and SILO transactions
discussed above. For the full year of 2011, the financial services segment
reported an operating companies' loss of $349 million primarily due to the
2011 second-quarter charge of $490 million related to the tax treatment of
PMCC's LILO and SILO transactions. Additionally, the financial services
segment's reported OCI for the full year of 2012 was positively impacted by a
decrease in the allowance for losses and recoveries related to the sale of
bankruptcy claims on, as well as the sale of aircraft under, PMCC's leases to
American, partially offset by lower lease revenues.



Table 12 - Financial Services: Operating Companies Income (Loss) ($ in millions)
                                                                                                                   
                      Fourth Quarter                                               Full Year
                      2012           2011           Change             2012            2011             Change
                                                                                                       
Reported
Operating
Companies             $  10               $  10               —%                 $  176               $  (349 )             100    %+
Income
(Loss)
PMCC
leveraged             —             —                                      7              490                   
lease
charges
Adjusted              $  10        $  10              —%                 $  183        $  141                29.8 %
OCI
                                                                              

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
September 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 product
technologies 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 (FDA). 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 December 31,

(in millions, except per share data)

(Unaudited)
                                                       
                              2012                2011                % Change
                                                                      
Net revenues                  $  6,242           $  6,129           1.8   %
Cost of sales (*)             2,077               1,972               5.3   %
Excise taxes on               1,782              1,783              (0.1  )%
products (*)
Gross profit                  2,383               2,374               0.4   %
Marketing,
administration                542                 707
and research
costs
Asset impairment              14                 211       
and exit costs
Operating                     1,827               1,456               25.5  %
companies income
Amortization of               5                   4
intangibles
General corporate             61                  83
expenses
Changes to
Mondelēz and PMI              (4        )         5
tax-related
receivables
Corporate asset
impairment and                —                  8         
exit costs
Operating income              1,765               1,356               30.2  %
Interest and
other debt                    258                 351
expense, net
Earnings from
equity investment             (251      )         (178      )
in SABMiller
Earnings before               1,758               1,183               48.6  %
income taxes
Provision for                 653                346                88.7  %
income taxes
Net earnings                  1,105               837                 32.0  %
Net earnings
attributable to               (2        )         (1        )
noncontrolling
interests
Net earnings
attributable to               $  1,103          $  836            31.9  %
Altria Group,
Inc.
                                                                      
Per share data:
Basic earnings
per share
attributable to               $   0.55            $   0.41            34.1  %
Altria Group,
Inc.
Diluted earnings
per share
attributable to               $   0.55            $   0.41            34.1  %
Altria Group,
Inc.
                                                                      
Weighted-average
diluted shares                2,013               2,043               (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 December 31,
(dollars in millions)
(Unaudited)
                                                                                      
                                Net Revenues
                                Smokeable       Smokeless     Wine          Financial     Total
                                Products            Products                            Services
2012                            $  5,600           $  448           $  180           $  14            $  6,242
2011                            5,470               418               167               74                6,129
% Change                        2.4       %         7.2     %         7.8     %         (81.1  )%         1.8       %
                                                                                                          
Reconciliation:
For the quarter
ended December 31,              $   5,470           $   418           $   167           $   74            $   6,129
2011
Operations                      130            30           13           (60    )      113       
For the quarter
ended December 31,              $  5,600      $  448      $  180      $  14       $  6,242 
2012
                                                                                                          
                                
                                Operating Companies Income
                                Smokeable       Smokeless     Wine          Financial     Total
                                Products            Products                            Services
2012                            $   1,523           $   253           $   41            $   10            $   1,827
2011                            1,210               199               37                10                1,456
% Change                        25.9      %         27.1    %         10.8    %         —      %          25.5      %
                                                                                                          
Reconciliation:
For the quarter
ended December 31,              $   1,210           $   199           $   37            $   10            $   1,456
2011
Asset impairment
and exit costs -                179                 32                —                 —                 211
2011
Implementation                  1                   —                 —                 —                 1
costs - 2011
UST
acquisition-related             —                   1                 —                 —                 1
costs - 2011
Tobacco and health              62             —            —            —            62        
judgments - 2011
                                242            33           —            —            275       
                                                                                                          
Asset impairment
and exit costs -                (14       )         —                 —                 —                 (14       )
2012
Implementation                  (1        )     (1      )     —            —            (2        )
costs - 2012
                                (15       )     (1      )     —            —            (16       )
Operations                      86             22           4            —            112       
For the quarter
ended December 31,              $  1,523      $  253      $  41       $  10       $  1,827 
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 Years Ended December 31,
(in millions, except per share data)
(Unaudited)
                                                                       
                                                                       
                             2012                 2011                 % Change
                                                                       
Net revenues                 $  24,618           $  23,800           3.4   %
Cost of sales                7,937                7,680                3.3   %
(*)
Excise taxes on              7,118               7,181               (0.9  )%
products (*)
Gross profit                 9,563                8,939                7.0   %
Marketing,
administration               2,053                2,387
and research
costs
Asset impairment             60                  214        
and exit costs
Operating                    7,450                6,338                17.5  %
companies income
Amortization of              20                   20
intangibles
General
corporate                    228                  256
expenses
Changes to
Mondelēz and PMI             (52        )         (14        )
tax-related
receivables
Corporate asset
impairment and               1                   8          
exit costs
Operating income             7,253                6,068                19.5  %
Interest and
other debt                   1,126                1,216
expense, net
Loss on early
extinguishment               874                  —
of debt
Earnings from
equity                       (1,224     )         (730       )
investment in
SABMiller
Earnings before              6,477                5,582                16.0  %
income taxes
Provision for                2,294               2,189               4.8   %
income taxes
Net earnings                 4,183                3,393                23.3  %
Net earnings
attributable to              (3         )         (3         )
noncontrolling
interests
Net earnings
attributable to              $  4,180           $  3,390           23.3  %
Altria Group,
Inc.
                                                                       
Per share data:
Basic earnings
per share
attributable to              $   2.06             $   1.64             25.6  %
Altria Group,
Inc.
Diluted earnings
per share
attributable to              $   2.06             $   1.64             25.6  %
Altria Group,
Inc.
                                                                       
Weighted-average
diluted shares               2,024                2,064                (1.9  )%
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.

<td c*Story too large*
                                                                          
                                                                                                           
Schedule 4
                                                                                                           
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Reporting Segment
For the Years Ended December 31,
(dollars in millions)
(Unaudited)
                                                                                               
                                    Net Revenues
                                    Smokeable        Smokeless       Wine          Financial        Total
                                    Products             Products                              Services
2012                                $  22,216           $  1,691           $  561           $  150          $  24,618
2011                                21,970               1,627               516               (313     )            23,800
% Change                            1.1        %         3.9       %         8.7     %         100      %+          3.4        %
                                                                                                                     
Reconciliation:
For the year ended                  $   21,970           $   1,627           $   516           $   (313 )            $   23,800
December 31, 2011
PMCC leveraged                      —                    —                   —                 490                   490
lease charge - 2011
PMCC leveraged                      —                    —                   —                 (7       )            (7         )
lease charge - 2012
Operations                          246             64             45           (20      )       335        
For the year ended                  $  22,216      $  1,691      $  561      $  150         $  24,618 
December 31, 2012
                                                                                                                     
                                                                                                           
                                    Operating Companies Income (Loss)
                                    Smokeable        Smokeless       Wine          Financial        Total
                                    Products             Products                              Services
2012                                $   6,239            $   931             $   104           $   176               $   7,450
2011                                5,737                859                 91                (349     )            6,338
% Change                            8.8        %         8.4       %         14.3    %         100      %+          17.5       %
                                                                                                                     
Reconciliation:
For the year ended                  $   5,737            $   859             $   91            $   (349 )            $   6,338
December 31, 2011
Asset impairment
and exit costs -                    182                  32                  —                 —                     214
2011
Integration costs -                 —                    3                   —                 —                     3
2011
Implementation                      1                    —                   —                 —                     1
costs - 2011
UST
acquisition-related                 —                    2                   4                 —                     6
costs - 2011
PMCC leveraged                      —                    —                   —                 490                   490
lease charge - 2011
Tobacco and health                  98              —              —            —               98         
judgments - 2011
                                    281             37             4            490             812        
                                                                                                                     
Asset impairment
and exit costs -                    (38        )         (22       )         —                 —                     (60        )
2012
Implementation gain                 10                   (6        )         —                 —                     4
(costs) - 2012
PMCC leveraged                      —                    —                   —
lease charge - 2012

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