Altria Reports 2013 First-Quarter Results; Revises 2013 Full-Year Reported EPS Guidance and Reaffirms 2013 Full-Year Adjusted

  Altria Reports 2013 First-Quarter Results; Revises 2013 Full-Year Reported
  EPS Guidance and Reaffirms 2013 Full-Year Adjusted EPS Guidance

  *Altria's 2013 first-quarter reported diluted earnings per share (EPS)
    increased 16.9% to $0.69, as comparisons were impacted by special items,
    including PM USA's settlement of NPM adjustment disputes with certain
    states
  *Altria's 2013 first-quarter adjusted diluted EPS, which excludes the
    impact of special items, increased 10.2% to $0.54
  *Altria revises guidance for 2013 full-year reported diluted EPS from a
    range of $2.34 to $2.40 to a range of $2.49 to $2.55
  *Altria reaffirms guidance for 2013 full-year adjusted diluted EPS 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
  *Altria's subsidiary, Nu Mark, plans to introduce an e-cigarette into a
    lead market in the second half of 2013
  *Altria announces a new $300 million share repurchase program

Business Wire

RICHMOND, Va. -- April 25, 2013

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

"Altria's diverse business model delivered strong financial results for the
first quarter, as the company increased its adjusted diluted earnings per
share by 10.2%," said Marty Barrington, Chairman and Chief Executive Officer
of Altria. "Higher pricing contributed to adjusted operating companies income
and margin growth in all three of our reportable segments. Higher earnings
from our equity investment in SABMiller and lower interest expense also drove
adjusted EPS growth."

"Today, we are pleased to announce another step in our efforts to address the
changing preferences of adult tobacco consumers. In the second half of this
year, Altria's subsidiary, Nu Mark, plans to introduce an electronic cigarette
into a lead market," said Mr. Barrington.

Conference Call

A conference call with the investment community and news media will be webcast
on April 25, 2013 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 and is expected to deliver $400 million in
annualized savings versus previously planned spending by the end of 2013.

Cash Returns to Shareholders - Dividends

In February 2013, 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 April 19, 2013, Altria's annualized
dividend yield was 5.0%.

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 first quarter of 2013, Altria repurchased 1.7 million shares of its
common stock at an average price of $34.05 for a total cost of approximately
$57 million, completing the $1.5 billion share repurchase program authorized
by the Board. On April 24, Altria's Board authorized a new $300 million share
repurchase program that the company expects to complete by the end 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

As previously announced, Altria made a voluntary $350 million contribution to
its pension plans in January 2013.

PM USA Settlement of NPM Adjustment Disputes; MSA Payment Credit

On April 15, 2013, Philip Morris USA Inc. (PM USA) made its annual Master
Settlement Agreement (MSA) payment of approximately $3.1 billion. The payment
reflected a $483 million credit that PM USA received pursuant to a settlement
of the non-participating manufacturer (NPM) adjustment disputes for 2003-2012
that it and other participating manufacturers reached with 18 states, the
District of Columbia, and Puerto Rico. The panel presiding over the pending
NPM adjustment arbitration entered a stipulated award in March 2013, directing
that the settlement be implemented. As of April 22, 2013, eight states that
have not joined the settlement have filed motions in their state courts to
vacate or modify the panel's stipulated award. Two of these states also sought
preliminary injunctive relief with respect to the stipulated award. These two
requests for injunctive relief were denied. Additional non-signatory states
may also pursue legal action with respect to the stipulated award. While PM
USA intends to oppose these actions vigorously, no assurance can be given that
these actions will be resolved in a manner favorable to PM USA or as to what
remedy might be ordered if such actions ultimately were successful.

As a result of the settlement, PM USA recorded a $483 million reduction to
cost of sales that increased the smokeable products segment's reported
operating companies income for the first quarter of 2013.

2013 Full-Year Guidance

Altria has revised its guidance for 2013 full-year reported diluted EPS from a
range of $2.34 to $2.40 to a range of $2.49 to $2.55 to reflect the impact of
the NPM adjustment settlement described above. The forecast also reflects
estimated SABMiller plc (SABMiller) special items.

Altria reaffirms its guidance for 2013 full-year adjusted diluted EPS, which
excludes special items shown in Table 1, to 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                  $  2.49   to   $  2.55        $     2.06       21%   to   24%
diluted EPS
Loss on early
extinguishment                                 —                    0.28
of debt
NPM Adjustment                                 (0.15    )           —
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 its 2013 full-year reported effective tax rate and
effective tax rate on operations will be approximately 35.5%.

2013 Reporting Segments

As previously announced, effective January 1, 2013, Altria's reportable
segments are smokeable products, smokeless products and wine. In connection
with this revision, results of the financial services and the alternative
products businesses are combined in an all other category. Altria has made
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.
Prior-period segment data have been restated to conform with the
current-period segment presentation.

New Tracking Services

Effective in the first quarter of 2013, retail share results for cigarettes
are based on a new tracking service, IRI/MSAi, and retail share results for
cigars and smokeless products are based on a new tracking service, IRI
InfoScan. These cost-effective new services measure retail share in stores
representing trade classes selling a significant majority of the volume of the
product being measured. For other trade classes selling cigarettes, retail
share is based on shipments from wholesalers to retailers (STARS). Retail
market share results reported using the new services cannot be meaningfully
compared to retail market shares previously reported by Altria's tobacco
companies under the previous services. 2012 quarterly retail share results
have been restated to reflect these new services and are summarized below in
Table 6 and Table 10.

                              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 may include, for example, loss on early extinguishment
of debt, restructuring charges, SABMiller special items, certain PMCC
leveraged lease items, certain tax items, tobacco and health judgments and
settlements of certain NPM adjustment disputes. 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 January 1, 2013, Altria's 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; and wine, produced and/or distributed
by Ste. Michelle Wine Estates Ltd. (Ste. Michelle). Prior-period segment data
have been recast to conform with the current-period segment presentation.

Altria's net revenues decreased 2.1% to $5.5 billion for the first quarter of
2013 primarily due to lower net revenues from smokeable products. Altria's
revenues net of excise taxes decreased 0.5% to $4.0 billion for the first
quarter of 2013.

Altria's 2013 first-quarter reported diluted EPS increased 16.9% primarily due
to higher reported OCI in the smokeable products segment resulting from PM
USA's settlement of the NPM adjustment disputes with certain states as
discussed above, lower interest and other debt expense, higher reported OCI in
the smokeless products segment and fewer shares outstanding, partially offset
by lower earnings from Altria's equity investment in SABMiller as a result of
gains from SABMiller's strategic alliance transactions in the first quarter of
2012. Altria's first-quarter adjusted diluted EPS, which excludes the impact
of special items shown in Table 2, grew 10.2% to $0.54 primarily due to higher
earnings from Altria's equity investment in SABMiller (principally resulting
from gains from issuances of common stock by SABMiller), lower interest and
other debt expense, higher adjusted OCI in the smokeable and smokeless
products segments and fewer shares outstanding.


Table 2 -
Altria's
Adjusted                                              
Results
Excluding
Special Items
               
               First Quarter
               2013        2012        Change
Reported        $    0.69                 $    0.59                 16.9%
diluted EPS
NPM             (0.15      )               —
Adjustment
SABMiller
special        —                  (0.10      )
items
Adjusted       $    0.54         $    0.49                10.2%
diluted EPS
                                             

Settlement of NPM Adjustment Disputes

Comparisons of Altria's first-quarter reported diluted EPS were impacted by PM
USA's settlement of the NPM adjustment disputes with certain states as
discussed above. The EPS impact of this special item is shown in Table 2 and
Schedule 4.

SABMiller Special Items

Special items related to Altria's equity investment in SABMiller impacted
comparisons of Altria's first-quarter reported diluted EPS. For the first
quarter of 2012, SABMiller special items included gains resulting from its
strategic alliance transactions with Anadolu Efes and Castel, partially offset
by costs relating to its acquisition of Foster's Group Limited and its
"business capability programme." For the first quarter of 2013, SABMiller
special items primarily included costs for its "business capability
programme." The EPS impact of these special items is shown in Table 2 and
Schedule 4.

Tobacco and Health Judgments

Comparisons of Altria's first-quarter reported diluted EPS were also impacted
by charges related to tobacco and health judgments. For the first quarter of
2013, PM USA incurred pre-tax charges of $5 million related to tobacco and
health judgments as well as related interest costs of $1 million. These
charges, excluding the related interest cost, are reflected in Schedule 2. The
interest costs are reflected in Schedule 1, "Interest and other debt expense,
net."

                              SMOKEABLE PRODUCTS

The smokeable products segment grew adjusted OCI and adjusted OCI margin for
the first quarter of 2013 primarily through higher pricing. PM USA grew its
total retail share of cigarettes and Marlboro's retail share versus the prior
year period.

For the first quarter of 2013, the smokeable products segment's net revenues
decreased 2.6%, primarily due to lower reported shipment volume, partially
offset by higher list prices. Revenues net of excise taxes decreased 1.0%.

The smokeable products segment's reported OCI for the first quarter of 2013
increased 33.4% primarily due to PM USA's settlement of the NPM adjustment
disputes with certain states as discussed above and higher pricing, partially
offset by lower reported shipment volume. Adjusted OCI, which is calculated
excluding the special items identified in Table 3, grew 1.3% for the first
quarter of 2013.

Adjusted OCI margins for the smokeable products segment grew 0.9 percentage
points to 41.9% for the first quarter of 2013. Revenues and OCI for the
smokeable products segment are summarized in Table 3.


Table 3 - Smokeable
Products: Revenues and                                     
OCI ($ in millions)
                        
                        First Quarter
                        2013      2012      Change
Net revenues            $   4,968             $   5,100             (2.6 )%
Excise taxes            (1,524     )      (1,622     )
Revenues net of excise  $   3,444       $   3,478            (1.0 )%
taxes
                                                                           
Reported OCI            $    1,920             $    1,439             33.4 %
NPM Adjustment          (483       )           —
Asset impairment, exit
and implementation      1                      (14        )
costs (gain), net
Tobacco and health      5                —          
judgments
Adjusted OCI            $   1,443       $   1,425            1.3  %
Adjusted OCI margins*   41.9       %      41.0       %           0.9  pp
                                                           

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

PM USA's 2013 first-quarter reported domestic cigarettes shipment volume
decreased 5.2% primarily due to the industry's rate of decline and one less
shipping day, partially offset by retail share gains and changes in trade
inventories. PM USA believes that the trade depleted less inventory during the
first quarter of 2013 compared to the first quarter of 2012. After adjusting
for one less shipping day and changes in trade inventories, PM USA's 2013
first-quarter domestic cigarettes shipment volume was estimated to be down
approximately 4%. After adjusting for one less shipping day and changes in
trade inventories, PM USA estimates total cigarette category volume for the
first quarter of 2013 to be down approximately 4.5%. PM USA's cigarette volume
performance is summarized in Table 4.

Middleton's 2013 first-quarter reported cigars shipment volume declined 16.8%
primarily due to retail share losses and changes in wholesale inventories.
Middleton's volume performance for machine-made large cigars is summarized in
Table 4.


Table 4 - Smokeable Products: Shipment Volume (sticks in millions)
                                                  
                                                                                        First Quarter
                                                                                        2013      2012      Change
Cigarettes:                                                                                                                
Marlboro                                                                                25,435                 26,913                 (5.5  )%
Other                                                                                   1,782                  2,036                  (12.5 )%
premium
Discount                                                                                2,284            2,159                 5.8   %
Total                                                                                   29,501           31,108                (5.2  )%
cigarettes
                                                                                                                                            
Cigars:
Black &                                                                                 269                    323                    (16.7 )%
Mild
Other                                                                                   4                5                     (20.0 )%
Total                                                                                   273              328                   (16.8 )%
cigars
                                                                                                         
Total
smokeable                                                                               29,774           31,436                (5.3  )%
products
                                                                                      

Note: Cigarettes volume includes units sold as well as promotional units, but
excludes units sold in Puerto Rico and U.S. Territories, to Overseas Military
and by Philip Morris Duty Free Inc., none of which, individually or in
aggregate, is material to the smokeable products segment.

As previously discussed, effective in the first quarter of 2013, retail share
results for cigarettes are based on a new tracking service, IRI/MSAi, and
retail share results for cigars are based on a new tracking service, IRI
InfoScan. Restated retail share results starting with the first quarter of
2012 are provided in Table 6.

In the cigarette category, Marlboro's  2013 first-quarter retail share
performance continued to benefit  from the brand-building initiatives
supporting Marlboro's new architecture. Marlboro's retail share for the first
quarter of 2013 increased 0.2 share points versus the prior year period.
During the quarter, PM USA expanded distribution of Marlboro Southern Cut
nationally.

PM USA's 2013 first-quarter retail share increased 0.5 share points, due to
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 5.

In the machine-made large cigars category, Black & Mild's retail share
decreased 3.1 share points for the first quarter of 2013 driven primarily by
heightened competitive activity, including high levels of low-priced, imported
machine-made large cigars. Middleton's retail share performance is summarized
in Table 5.


Table 5 -
Smokeable
Products:                                             
Retail Share
(percent)
                
                First Quarter
                                                                      Percentage
                2013        2012       
                                                                      point
                                                                      change
Cigarettes:
Marlboro        43.6    %                  43.4    %                  0.2
Other           3.1                        3.3                        (0.2   )
premium
Discount        3.8                3.3                0.5    
Total           50.5    %           50.0    %           0.5    
cigarettes
                                                                      
Cigars:
Black &         28.4    %                  31.5    %                  (3.1   )
Mild
Other           0.2                0.3                (0.1   )
Total           28.6    %           31.8    %           (3.2   )
cigars
                                                       

Note: Retail share results for cigarettes are based on data from IRI/MSAi, a
tracking service that uses a sample of stores and certain wholesale shipments
to project market share and depict share trends. Retail share results for
cigars are based on data from IRI InfoScan, a tracking service that uses a
sample of stores to project market share and depict share trends. Both
services track sales in the Food, Drug and Mass Merchandisers (including
Wal-Mart), Convenience, Military, Dollar Store and Club trade classes. For
other trade classes selling cigarettes, retail share is based on shipments
from wholesalers to retailers (STARS). These services are 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 for machine-made large cigars. 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. Because
the cigars service represents retail share performance only in key trade
channels, it should not be considered a precise measurement of actual retail
share. It is IRI's standard practice to periodically refresh its services,
which could restate retail share results that were previously released in
these services.


Table 6                             Restated Retail Share
                                                          For the Three Months Ended
                                                          12/31/2012      9/30/2012      6/30/2012      3/31/2012
Cigarettes:
Marlboro                                                  43.5     %               43.7     %               43.7     %               43.4     %
Other                                                     3.2                      3.2                      3.3                      3.3
premium
Discount                                                  3.7                     3.6                     3.4                     3.3      
Total cigarettes                                          50.4     %               50.5     %               50.4     %               50.0     %
Cigars:
Black &                                                   29.7     %               30.6     %               30.3     %               31.5     %
Mild
Other                                                     0.3                     0.2                     0.2                     0.3      
Total cigars                                              30.0     %               30.8     %               30.5     %               31.8     %
                                                                                                

                              SMOKELESS PRODUCTS

The smokeless products segment grew its adjusted OCI and adjusted OCI margin
primarily through higher pricing and higher volume. USSTC grew Copenhagen and
Skoal's  combined volume and retail share.

The smokeless products segment's 2013 first-quarter net revenues increased
2.6% versus the prior year period, primarily due to higher pricing and higher
volume, partially offset by higher promotional investments and unfavorable mix
due to growth in products introduced in recent years at a lower, popular
price. 2013 first-quarter revenues net of excise taxes increased 3.1%.

Reported OCI for the first-quarter of 2013 increased 15.6% primarily due to
restructuring charges in the first quarter of 2012 related to the cost
reduction program, higher pricing and volume, partially offset by higher
promotional investments and unfavorable mix due to 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 5.2% for the
first quarter of 2013. Adjusted OCI margins for the smokeless products segment
grew 1.2 percentage points to 61.0% for the first quarter of 2013.


Table 7 - Smokeless
Products: Revenues and                                     
OCI ($ in millions)
                        
                        First Quarter
                        2013      2012      Change
Net revenues            $    390              $    380              2.6  %
Excise taxes            (26        )      (27        )
Revenues net of excise  $    364        $    353             3.1  %
taxes
                                                                           
Reported OCI            $     222              $     192              15.6 %
Asset impairment, exit
and implementation      —                19         
costs
Adjusted OCI            $    222        $    211             5.2  %
Adjusted OCI margins*   61.0       %      59.8       %           1.2  pp
                                                           

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

For the first quarter of 2013, USSTC and PM USA's combined reported domestic
smokeless products shipment volume increased 3.4% primarily due to volume
growth for Copenhagen, partially offset by volume declines for Other portfolio
brands. Copenhagen and Skoal's combined shipment volume increased 4.9% versus
the prior year period. Copenhagen's 2013 first-quarter volume grew 8.8%, as
the brand continued to benefit from products introduced in recent years.
Skoal's volume was essentially unchanged for the first quarter of 2013.

USSTC and PM USA believe that the smokeless products category's volume grew at
an estimated rate of approximately 5% over the 12 months ended March 31, 2013.
Adjusted smokeless products volume is difficult to estimate on a quarterly
basis. However, after adjusting for changes in trade inventories and
year-over-year calendar differences, USSTC and PM USA estimate that their
combined 2013 first-quarter adjusted smokeless products shipment volume grew
at a rate slightly below the 12 month category growth rate. 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)
                                                  
                                                                                        First Quarter
                                                                                        2013      2012      Change
                                                                                                                           
Copenhagen                                                                               93.5                   85.9                   8.8   %
Skoal                                                                                   64.4              64.6                   (0.3  )%
Copenhagen                                                                               157.9                  150.5                  4.9   %
and Skoal
Other                                                                                   17.8              19.4                   (8.2  )%
Total
smokeless                                                                               175.7             169.9                  3.4   %
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, which is not material to the smokeless products segment.
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.

As previously discussed, effective in the first quarter of 2013, retail share
results for smokeless products are based on a new tracking service, IRI
InfoScan. Restated retail share results starting with the first quarter of
2012 are provided in Table 10.

Copenhagen and Skoal's combined retail share for the first quarter of 2013
increased 0.5 share points. Copenhagen's 2013 first-quarter retail share grew
1.3 share points, as the brand continued to benefit from products introduced
over the past several years. USSTC also expanded Copenhagen Southern Blend
into additional states during the quarter. Skoal's 2013 first-quarter retail
share declined 0.8 share points primarily due to competitive activity and
Copenhagen's strong performance, partially offset by share gains on its Skoal
X-TRA products. In February, Skoal began to refresh its packaging to better
reflect the brand's contemporary, premium qualities and differentiate its
product offerings.

USSTC and PM USA's combined retail share for the first quarter of 2013
decreased 0.4 share points as retail share losses for Other portfolio brands
and Skoal were partially offset by gains by Copenhagen.

USSTC and PM USA's combined smokeless products retail share performance is
summarized in Table 9.


Table 9 - Smokeless Products: Retail Share (percent)
                   
                           First Quarter
                                                                           Percentage

                           2013       2012      point

                                                                           change
                                                               
Copenhagen                 28.7    %                27.4    %              1.3
Skoal                      21.9              22.7             (0.8   )
Copenhagen                 50.6                     50.1                   0.5
and Skoal
Other                      4.4               5.3              (0.9   )
Total
smokeless                  55.0    %          55.4    %         (0.4   )
products
                                                         

Note: Retail share results for smokeless products are based on data from IRI
InfoScan, a tracking service that uses a sample of stores to project market
share and depict share trends. The service tracks sales in the Food, Drug and
Mass Merchandisers (including Wal-Mart), Convenience, Military, Dollar Store
and Club trade classes on the number of cans and packs sold. Smokeless
products is defined by IRI as moist smokeless and spit-free 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. Because this service represents retail share performance only in key
trade channels, it should not be considered a precise measurement of actual
retail share. It is IRI's standard practice to periodically refresh its
InfoScan services, which could restate retail share results that were
previously released in this service.


Table 10                         Restated Retail Share
                                                     For the Three Months Ended
                                                     12/31/12      09/30/12      06/30/12      03/31/12
Copenhagen                                           28.5    %              28.3    %              27.4    %              27.4    %
Skoal                                                22.2                  22.4                  22.7                  22.7    
Copenhagen                                           50.7                   50.7                   50.1                   50.1
and Skoal
Other                                                4.6                   4.7                   4.9                   5.3     
Total smokeless products                             55.3    %              55.4    %              55.0    %              55.4    %
                                                                                      

                                     WINE

Ste. Michelle delivered strong 2013 first-quarter OCI and OCI margin growth
through higher shipment volume and higher pricing.

Ste. Michelle grew 2013 first-quarter net revenues by 11.5%, primarily due to
higher shipment volume and higher pricing. Revenues net of excise taxes grew
11.0% during the period. Ste. Michelle increased 2013 first-quarter OCI by
33.3%, primarily due to higher shipment volume and higher pricing. Ste.
Michelle also expanded OCI margins by 2.7 percentage points to 16.5% for the
first quarter of 2013.

Revenues and OCI for the wine segment are summarized in Table 11.


Table 11 - Wine: Revenues and OCI ($ in millions)
                        
                                      First Quarter
                                      2013      2012      Change
Net                                   $    126         $    113         11.5 %
revenues
Excise                                (5         )      (4         )
taxes
Revenues
net of                                $    121        $    109             11.0 %
excise
taxes
                                                       
Reported
and                                   $    20         $    15              33.3 %
Adjusted
OCI
Reported
and
Adjusted                              16.5       %      13.8       %           2.7  pp
OCI
margins*
                                                           

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

Ste. Michelle's 2013 first-quarter reported wine shipment volume increased
9.5%, primarily due to increased distribution and the timing of the Easter
holiday. Ste. Michelle's reported shipment volume performance for wine is
summarized in Table 12.


Table 12 - Wine:
Shipment Volume                                          
(cases in
thousands)
                 
                     First Quarter
                     2013       2012       Change
                                                                       
Chateau
Ste.                 530                      528                      0.3   %
Michelle
Columbia             385                      341                      12.9  %
Crest
14 Hands             317                      216                      46.8  %
Other                453                453                      —     %
Total                1,685              1,538                    9.5   %
Wine
                                                       

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

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, 14 Hands 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, 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; federal, state and local legislative
activity, 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 March 31,
(dollars in millions, except per share data)
(Unaudited)
                                                         
                                                                     
                           2013         2012         % Change
                                                                     
Net revenues               $  5,528             $  5,647             (2.1  )%
Cost of sales (*)          1,299                1,792
Excise taxes on            1,555               1,653     
products (*)
Gross profit               2,674                2,202                21.4  %
Marketing,
administration and         462                  483
research costs
Asset impairment and       —                   21        
exit costs
Operating companies        2,212                1,698                30.3  %
income
Amortization of            5                    5
intangibles
General corporate          55                  51        
expenses
Operating income           2,152                1,642                31.1  %
Interest and other         261                  293
debt expense, net
Earnings from equity
investment in              (256      )          (520      )
SABMiller
Earnings before            2,147                1,869                14.9  %
income taxes
Provision for income       762                 674       
taxes
Net earnings
attributable to            $  1,385            $  1,195            15.9  %
Altria Group, Inc.
                                                                     
Per share data:
Basic and diluted
earnings per share
attributable to            $  0.69              $  0.59              16.9  %

Altria Group, Inc.
                                                                     
Weighted-average
diluted shares             2,003                2,034                (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 3.

Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Reporting Segment
For the Quarters Ended March 31,
(dollars in millions)
(Unaudited)
                    
                       Net Revenues
                        Smokeable        Smokeless                          All
                                                  Wine    Other       Total
                        Products         Products
2013                   $ 4,968       $  390       $   126         $  44       $  5,528
2012                    5,100            380             113                54             5,647
% Change                (2.6    )%       2.6     %       11.5      %        (18.5 )%       (2.1      )%
                                                                                           
Reconciliation:
For the quarter
ended March 31,         $ 5,100          $  380          $   113            $  54          $  5,647
2012
Operations              (132    )     10          13             (10   )     (119      )
For the quarter
ended March 31,        $ 4,968      $  390      $   126        $  44      $  5,528  
2013
                       
                       Operating Companies Income
                        Smokeable        Smokeless                          All
                                                  Wine    Other       Total
                        Products         Products
2013                    $ 1,920          $  222          $   20             $  50          $  2,212
2012                    1,439            192             15                 52             1,698
% Change                33.4    %        15.6    %       33.3      %        (3.8  )%       30.3      %
                                                                                           
Reconciliation:
For the quarter
ended March 31,         $ 1,439          $  192          $   15             $  52          $  1,698
2012
Asset
impairment and          7                14              —                  —              21
exit costs -
2012
Implementation
(gain) costs -         (21     )     5           —              —          (16       )
2012
                       (14     )     19          —              —          5         
                                                                                           
NPM Adjustment          483              —               —                  —              483
- 2013
Implementation          (1      )        —               —                  —              (1        )
costs - 2013
Tobacco and
health                 (5      )     —           —              —          (5        )
judgments -
2013
                       477          —           —              —          477       
Operations             18           11          5              (2    )     32        
For the quarter
ended March 31,        $ 1,920      $  222      $   20         $  50      $  2,212  
2013
                                                                                                     

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

Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data by Reporting Segment
(dollars in millions)
(Unaudited)
                                                           
                                               For the Quarters Ended

                                               March 31,
                                               2013       2012
The segment detail of excise taxes on
products sold is as follows:
                                                                            
Smokeable products                             $  1,524           $  1,622
Smokeless products                             26                 27
Wine                                           5                 4         
                                               $  1,555          $  1,653  
                                                                            
                                                                            
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 products*                            $  620             $  1,122
Smokeless products                             3                 3         
                                               $  623            $  1,125  
                                                                            
                                                                            
The segment detail of FDA user fees
included in cost of sales is as follows:
                                                                            
Smokeable products                             $  58              $  55
Smokeless products                             1                 1         
                                               $  59             $  56     
                                                                            

*2013 amount includes a pre-tax credit of $483 million related to the NPM
Adjustment.

Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group,
Inc.
For the Quarters Ended March 31,
(dollars in millions, except per share data)
(Unaudited)
                                                          
                                                                 
                                            Net Earnings       Diluted EPS
2013 Net Earnings                           $   1,385            $   0.69
2012 Net Earnings                           $   1,195            $   0.59
% Change                                    15.9        %        16.9       %
                                                                 
Reconciliation:
2012 Net Earnings                           $   1,195            $   0.59
                                                                 
2012 Asset impairment, exit and             3                    —
implementation costs
2012 SABMiller special items                (197        )        (0.10      )
Subtotal 2012 special items                 (194        )        (0.10      )
                                                                 
2013 NPM Adjustment                         311                  0.15
2013 Implementation costs                   (1          )        —
2013 SABMiller special items                (9          )        —
2013 Tobacco and health judgments           (4          )        —          
Subtotal 2013 special items                 297                 0.15       
                                                                 
Fewer shares outstanding                    —                    0.01
Operations                                  87                  0.04       
2013 Net Earnings                           $   1,385           $   0.69   
                                                                 
2013 Net Earnings Adjusted For              $   1,088            $   0.54
Special Items
2012 Net Earnings Adjusted For              $   1,001            $   0.49
Special Items
% Change                                    8.7         %        10.2       %
                                                                            

Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in millions)
(Unaudited)
                                                     
                                   March 31, 2013       December 31, 2012
Assets
Cash and cash equivalents          $    3,775               $    2,900
Inventories                        1,816                    1,746
Deferred income taxes              1,216                    1,216
Other current assets               309                      453
Property, plant and                2,068                    2,102
equipment, net
Goodwill and other                 17,247                   17,252
intangible assets, net
Investment in SABMiller            6,749                    6,637
Finance Assets, net                2,385                    2,581
Other long-term assets             441                     442            
Total assets                       $    36,006             $    35,329    
                                                                           
Liabilities and
Stockholders' Equity
Current portion of long-term       $    1,984               $    1,459
debt
Accrued settlement charges         4,143                    3,616
Other current liabilities          3,371                    3,184
Long-term debt                     11,894                   12,419
Deferred income taxes              6,657                    6,652
Accrued postretirement             2,501                    2,504
health care costs
Accrued pension costs              1,323                    1,735
Other long-term liabilities        528                     556            
Total liabilities                  32,401                   32,125
Redeemable noncontrolling          35                       34
interest
Total stockholders' equity         3,570                   3,170          
Total liabilities and              $    36,006             $    35,329    
stockholders' equity
                                                                           
Total debt                         $    13,878              $    13,878
                                                                           

Contact:

Altria Client Services
Investor Relations
804-484-8222
or
Altria Client Services
Media Relations
804-484-8897