Philip Morris International Inc. and Altria Group, Inc. Establish Strategic Framework to Commercialize Reduced-Risk Products and

  Philip Morris International Inc. and Altria Group, Inc. Establish Strategic
  Framework to Commercialize Reduced-Risk Products and E-Cigarettes

Business Wire

NEW YORK -- December 20, 2013

Regulatory News:

Philip Morris International Inc. (“PMI”) (NYSE / Euronext Paris:PM) announces
today its establishment of a strategic framework with Altria Group, Inc.
(“Altria”) to commercialize reduced-risk products and e-cigarettes. Under the
terms of a set of licensing, supply and cooperation agreements, Altria will
make available its e-cigarette products exclusively to PMI for
commercialization outside the United States and PMI will make available two of
its candidate reduced-risk tobacco products exclusively to Altria for
commercialization in the United States. In the United States it is envisaged
that PMI’s products would be regulated as Modified Risk Tobacco Products and
any commercialization would be subject to U.S. Food and Drug Administration
(“FDA”) authorization.

The agreements also provide for cooperation on the scientific assessment and
regulatory engagement and authorization related to these products with the
FDA, and for a similar framework for e-cigarettes with the relevant regulatory
authorities in international markets. In addition, the agreements provide for
the sharing of improvements to the existing generation of products.

“PMI firmly believes that reduced-risk tobacco products, as well as
e-cigarettes, represent an important step toward achieving the public health
goal of harm reduction, a potential paradigm shift for the industry and a
significant growth opportunity for the company. Further to our plans for
international test market introduction of our candidate reduced-risk products
as of the second-half of 2014, this agreement establishes a roadmap for
commercialization in the U.S., subject to FDA authorization. At the same time,
it provides us with a platform to accelerate our entry into international
e-cigarette markets while we continue to develop future versions,” said André
Calantzopoulos, PMI’s Chief Executive Officer.

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,


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