PHILIP MORRIS INTERNATIONAL COVERS OVER 25% OF ARMENIA’S CIGARETTE MARKET

ARKA News Agency, Armenia
July 30 2007

YEREVAN, July 30. /ARKA/. The Philip Morris International Company
covers over 25% of Armenia’s cigarette market, Olaf Colditz, Production
Director, Philip Morris Ukraine CJSC, told reporters during Armenian
journalists’ visit to the company’s factory in Kharkov, Ukraine.

According to the results of monitoring conducted in March-April 2007
the share of Philip Morris International on Armenia’s market was
26.4%. The volume of Armenia’s markets is about 5bln cigarettes.

Colditz pointed out that PMI products are a success in Armenia. He
added that the company is seriously concerned with developing its
activities in Armenia.

Colditz reported that the PMI supplies nine cigarette brands to
Armenia – Marlboro, Parliament, Virginia Slims, Chesterfield, L&M,
Assos, Bond Street, Red &White, Next, which are produced at the Philip
Morris Ukraine in Kharkov. He pointed out that the factory was opened
in 2006 and its annual capacity is 40bln cigarettes.

The PMI Company invested $100mln in the construction and operation
of the factory in Kharkov. A total of 1,300 people are employed at
the factory, with 600 of them being immediately involved cigarette
production, Colditz said. He also pointed out that 63 disabled people
are working at the factory.

The Philip Morris Ukraine Company is a daughter company of the Philip
Morris International, which, along with Philip Morris USA, Philip
Morris Capital Corporation, forms part of the US Altria Group, Inc.

The net annual profit of Altria Group, Inc exceeds $97.9bln.

The annual output of Philip Morris International is about 805bln
cigarettes, and its net annual profit is $45bln. The company currently
has over 50 cigarette factories employing over 80,000 people.