Philip Morris International Inc. (PMI) Announces Leadership Succession Plan

  Philip Morris International Inc. (PMI) Announces Leadership Succession Plan

            Andre Calantzopoulos Appointed Chief Executive Officer

               Louis Camilleri to Remain Chairman of the Board

Business Wire

NEW YORK -- March 13, 2013

Regulatory News:

The Board of Directors of Philip Morris International Inc. (NYSE / Euronext
Paris: PM) today announced that André Calantzopoulos was appointed Chief
Executive Officer to become effective immediately following the Annual Meeting
of Shareholders on May 8, 2013. Mr. Calantzopoulos was also nominated for
election to the Board of Directors at the Annual Meeting. He has served as
PMI’s Chief Operating Officer since the company’s spin-off on March 28, 2008.
Louis Camilleri, PMI’s current Chairman and Chief Executive Officer, will
remain as Chairman of the Board and as an employee of the company.

Since the spin-off, Messrs. Camilleri and Calantzopoulos have worked closely
together in their respective roles as Chief Executive Officer and Chief
Operating Officer. Under their combined leadership, PMI has solidified its
position as the largest and most profitable international tobacco company,
while expanding its global market share, excluding China and the USA, to a
record 28.8% in 2012. Among PMI’s substantial achievements under their
combined leadership since the spin-off through year-end 2012:

  *Total Shareholder Return of 103.5% versus the S&P 500 Index (20.6%);
  *Returned over $50 billion to shareholders through dividends and share
    repurchases;
  *Met, or exceeded, the high end of its adjusted diluted EPS annual growth
    target of 10-12%, excluding currency, each year;
  *Increased its dividend each year for a cumulative increase of 84.8%; and
  *Repurchased 489 million shares, or 23.2% of the shares outstanding after
    the spin-off, at an average price of $56.96 per share.

Lucio A. Noto, PMI’s independent Presiding Director, said: “Louis has
assembled and led a tremendous team, as demonstrated by PMI’s outstanding
performance as an independent public company. His close working relationship
with André as they shared responsibility for leading the company, together
with André’s many achievements on the operational side of the business, make
this decision the culmination of a rigorous and well executed plan of
succession. The Directors have greatly appreciated the transparency with which
Louis and André have interacted with the Board. On behalf of the entire Board,
I want to thank Louis for his steadfast devotion to the company and the
tremendous results achieved over a lengthy and stellar career. The company and
its shareholders, employees and directors owe Louis a tremendous debt of
gratitude for his unrivalled service.”

Louis Camilleri said: “After eleven years of leading PMI and its former
parent, and with the company squarely poised for future success, I decided
that the time has come for me to relinquish my executive role. I am delighted
to hand over the management responsibility of the company to André. He is well
equipped, and the company is well positioned, to continue to deliver superior
shareholder value. He has played an instrumental role in numerous key
initiatives, including critical innovative developments such as the new
architecture that has revitalized the Marlboro brand, new product development
and revamped consumer engagement activities that drove our broad-based market
share gains in both OECD and non-OECD markets. Under André’s leadership as
Chief Operating Officer, we have successfully increased our revenues even in
difficult operating and economic environments, recorded strong productivity
gains, driven relentlessly towards our goal of developing successful next
generation products, and enhanced the caliber and depth of our organization
and future leadership talent.”

“From the bottom of my heart,” continued Mr. Camilleri, “I wish to thank the
Board, the senior management team and each employee of PMI across the globe
for their continuous contributions and their dedication to making this the
world’s premier international tobacco company. It has been a true privilege to
serve this amazing company, its employees and its shareholders.”

As Chairman of the Board of PMI, Louis Camilleri will assist the CEO in
long-term strategy, serve as the CEO’s sounding board and continue to fulfill
the duties of Chairman of the Board of Directors. Lou Noto will continue his
key role as the independent Presiding Director of the company. André
Calantzopoulos will have the management responsibility for the company and
will report to the full Board of Directors.

André Calantzopoulos said: “I am deeply honored that Louis and the Board have
the confidence in me to continue to build on PMI’s tremendous success. I am
particularly grateful to Louis for his mentorship over a long period of time,
during which I have always been deeply impressed with his passion for the
company, his critical and insightful analysis and vision, his regard for each
PMI employee, and his devotion to the integrity and transparency of
communications to investors and to enhancing shareholder value. He has set the
standard by which all future leaders of PMI will be judged.”

Prior to the spin-off, André Calantzopoulos, 55, served as PMI’s President and
Chief Executive Officer since 2002. He joined the company in 1985 and worked
extensively across Central Europe, including as Managing Director of PM Poland
and President of the Eastern Europe Region. André earned a degree in
electrical engineering from the Swiss Federal Institute of Technology and an
MBA from INSEAD in France.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other
forward-looking statements. Achievement of projected results is subject to
risks, uncertainties and inaccurate assumptions. In the event that risks or
uncertainties materialize, or underlying assumptions prove inaccurate, actual
results could vary materially from those contained in such forward-looking
statements. Pursuant to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, PMI is identifying important factors that,
individually or in the aggregate, could cause actual results and outcomes to
differ materially from those contained in any forward-looking statements made
by PMI.

PMI’s business risks include: significant increases in cigarette-related
taxes; the imposition of discriminatory excise tax structures; fluctuations in
customer inventory levels due to increases in product taxes and prices;
increasing marketing and regulatory restrictions, often with the goal of
reducing or preventing the use of tobacco products; health concerns relating
to the use of tobacco products and exposure to environmental tobacco smoke;
litigation related to tobacco use; intense competition; the effects of global
and individual country economic, regulatory and political developments;
changes in adult smoker behavior; lost revenues as a result of counterfeiting,
contraband and cross-border purchases; governmental investigations;
unfavorable currency exchange rates and currency devaluations; adverse changes
in applicable corporate tax laws; adverse changes in the cost and quality of
tobacco and other agricultural products and raw materials; and the integrity
of its information systems. PMI’s future profitability may also be adversely
affected should it be unsuccessful in its attempts to produce products with
the potential to reduce the risk of smoking-related diseases; if it is unable
to successfully introduce new products, promote brand equity, enter new
markets or improve its margins through increased prices and productivity
gains; if it is unable to expand its brand portfolio internally or through
acquisitions and the development of strategic business relationships; or if it
is unable to attract and retain the best global talent.

PMI is further subject to other risks detailed from time to time in its
publicly filed documents, including the Form 10-K for the year ended December
31, 2012. PMI cautions that the foregoing list of important factors is not a
complete discussion of all potential risks and uncertainties. PMI does not
undertake to update any forward-looking statement that it may make from time
to time, except in the normal course of its public disclosure obligations.

Philip Morris International Inc.

Philip Morris International Inc. (PMI) is the leading international tobacco
company, with seven of the world’s top 15 international brands, including
Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in
more than 180 markets. In 2012, the company held an estimated 16.3% share of
the total international cigarette market outside of the U.S., or 28.8%
excluding the People’s Republic of China and the U.S. For more information,
see www.pmi.com.

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