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Philip Morris International Presents at Consumer Analyst Group of New York (CAGNY) Conference

Posted on: Tuesday, 21 February 2006, 15:01 CST

Altria Group, Inc. Reaffirms Previously Announced Forecast for Full-Year 2006 Diluted Earnings Per Share from Continuing Operations in a Range of $4.85 to $4.95

Philip Morris International (PMI), the international tobacco operating company of Altria Group, Inc. (NYSE: MO), presented today at the Consumer Analyst Group of New York (CAGNY) Conference in Scottsdale, Arizona, with remarks by Hermann Waldemer, Executive Vice President and Chief Financial Officer for PMI.

An audio webcast of the presentation will be available beginning at approximately 1:15 p.m. mountain time (3:15 p.m. eastern time) on February 21, 2006, and an archived copy of the webcast and the text of the presentation will be available until 5:00 p.m. eastern time on Friday, March 24, 2006. Access is available at www.altria.com.

In connection with the presentation, Altria Group, Inc. reaffirmed its previously announced forecast for full-year 2006 diluted earnings per share from continuing operations in a range of $4.85 to $4.95.

This forecast includes approximately $0.36 per share in charges associated with the Kraft restructuring program, unfavorable currency of $0.14 per share at current exchange rates, about $0.10 per share for lower tobacco income in Spain, $0.05 per share due to higher shares outstanding, and $0.04 per share as a result of a higher base income tax rate of 33.9% versus a corresponding rate of 33.4% in 2005. It does not include any future acquisitions or divestitures, or the benefit of potential tax accrual reversals following the completion of audits in certain jurisdictions. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this projection.

In his review of the company's international tobacco business, Mr. Waldemer said, "We remain confident that PMI should be able to grow its volume by 4% to 5% in 2006, with an underlying organic volume growth of around 1% to 2%. And we project mid single digit operating companies income growth in 2006 on a constant currency basis."

Commenting on recent industry events in Spain, Mr. Waldemer said, "Following the introduction by the Government of a Minimum Excise Tax (MET) in February, we announced a return to previous price levels for our major brands. The introduction of an MET in Spain is a major step forward. Therefore, we are optimistic about the mid-term in Spain, though it remains to be seen if the MET level is sufficient to achieve the Government's health and fiscal objectives."

"I believe that PMI has great potential to continue to expand volume, share and profitability going forward as we have the strongest brands, a global infrastructure, the highest average unit margins, a tremendous cash flow, the best people and exciting prospects to build on some of the development milestones that we achieved in 2005," Mr. Waldemer said.

Altria Group, Inc. Profile

Altria Group, Inc. owns approximately 87.2% of the outstanding common shares of Kraft Foods Inc. and 100% of the outstanding common shares of Philip Morris International Inc., Philip Morris USA Inc. and Philip Morris Capital Corporation. In addition, Altria Group, Inc. owns 28.7% of SABMiller plc. The brand portfolio of Altria Group, Inc.'s consumer packaged goods companies includes such well-known names as Kraft, Jacobs, L&M, Marlboro, Maxwell House, Nabisco, Oreo, Oscar Mayer, Parliament, Philadelphia, Post and Virginia Slims. Altria Group, Inc. recorded 2005 net revenues of $97.9 billion.

Trademarks and service marks mentioned in this release are the registered property of, or licensed by, the subsidiaries of Altria Group, Inc.

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. The following important factors could cause actual results and outcomes to differ materially from those contained in such forward-looking statements.

Altria Group, Inc.'s consumer products subsidiaries are subject to changing prices for raw materials; intense price competition; changes in consumer preferences and demand for their products; fluctuations in levels of customer inventories; the effects of foreign economies and local economic and market conditions; and unfavorable currency movements or changes to income tax laws. Their results are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to new consumer trends; to develop new products and markets and to broaden brand portfolios in order to compete effectively with lower-priced products; to improve productivity; and to respond effectively to changing prices for their raw materials.

Altria Group, Inc.'s tobacco subsidiaries (Philip Morris USA and Philip Morris International) continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the company's understanding of applicable law, bonding requirements and the absence of adequate appellate remedies to get timely relief from any of the foregoing; price disparities and changes in price disparities between premium and lowest-price brands; legislation, including actual and potential excise tax increases; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco litigation settlements on consumption rates and consumer preferences within price segments; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; governmental regulation; privately imposed smoking restrictions; and governmental and grand jury investigations.

Altria Group, Inc. and its subsidiaries are subject to other risks detailed from time to time in its publicly filed documents, including its Annual Report on Form 10-K for the period ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended September 30, 2005. Altria Group, Inc. 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.

Source: Business Wire

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