altria group Quarter Results 2007 4th

35
Altria Group, Inc. 120 Park Avenue New York, NY 10017 NEWS RELEASE Note: Contrary to Altria’s original news release of January 30, 2008, Altria has subsequently received advice that the PMI spin-off will be subject to tax in Norway. This version reflects that change. ALTRIA GROUP, INC. (ALTRIA) REPORTS 2007 RESULTS AND ANNOUNCES SPIN-OFF OF PHILIP MORRIS INTERNATIONAL INC. (PMI) 2007 full-year diluted earnings per share from continuing operations of $4.33 versus $4.43 in 2006, including the items detailed on Schedule 8 Adjusted 2007 full-year diluted earnings per share from continuing operations up 8.1% to $4.38 versus $4.05 in 2006, including items detailed in Table 2 2007 fourth-quarter diluted earnings per share from continuing operations of $1.03 versus $1.14 for the same period in 2006, including the items detailed on Schedule 7 Adjusted 2007 fourth-quarter diluted earnings per share from continuing operations up 5.3% to $1.00 versus $0.95 for the same period in 2006, including items detailed in Table 2 PHILIP MORRIS INTERNATIONAL SPIN-OFF EFFECTIVE MARCH 28, 2008 Identifies new Board of Directors post-spin for both Altria and PMI Sets spin-off share distribution ratio of one-for-one Announces dividend policies, initial dividend rates and share repurchase programs Altria dividend policy anticipates payout ratio of 75% post-spin Altria initial post-spin annualized dividend rate of $1.16 per common share Altria post-spin share repurchase program of $7.5 billion over 2 years PMI dividend policy anticipates payout ratio of 65% post-spin PMI initial post-spin annualized dividend rate of $1.84 per common share PMI post-spin share repurchase program of $13.0 billion over 2 years To commence tender offer shortly for all outstanding Altria notes Forecasts 2008 earnings per share growth rates Altria 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 9% to 11% from a 2007 adjusted base of $1.50, excluding PMI, which will be accounted for as a discontinued operation for the full-year 2008 PMI 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 12% to 14% at current exchange rates, from a 2007 pro-forma adjusted base of $2.78

Transcript of altria group Quarter Results 2007 4th

Altria Group Inc 120 Park Avenue New York NY 10017 NEWS RELEASE

Note Contrary to Altriarsquos original news release of January 30 2008 Altria has subsequently received advice that the PMI spin-off will be subject to tax in Norway This version reflects that change

ALTRIA GROUP INC (ALTRIA) REPORTS 2007 RESULTS AND

ANNOUNCES SPIN-OFF OF PHILIP MORRIS INTERNATIONAL INC (PMI) 2007 full-year diluted earnings per share from continuing operations of $433 versus

$443 in 2006 including the items detailed on Schedule 8

Adjusted 2007 full-year diluted earnings per share from continuing operations up 81 to $438 versus $405 in 2006 including items detailed in Table 2

2007 fourth-quarter diluted earnings per share from continuing operations of $103

versus $114 for the same period in 2006 including the items detailed on Schedule 7

Adjusted 2007 fourth-quarter diluted earnings per share from continuing operations up 53 to $100 versus $095 for the same period in 2006 including items detailed in Table 2

PHILIP MORRIS INTERNATIONAL SPIN-OFF EFFECTIVE MARCH 28 2008

Identifies new Board of Directors post-spin for both Altria and PMI

Sets spin-off share distribution ratio of one-for-one

Announces dividend policies initial dividend rates and share repurchase programs

Altria dividend policy anticipates payout ratio of 75 post-spin Altria initial post-spin annualized dividend rate of $116 per common share Altria post-spin share repurchase program of $75 billion over 2 years

PMI dividend policy anticipates payout ratio of 65 post-spin PMI initial post-spin annualized dividend rate of $184 per common share PMI post-spin share repurchase program of $130 billion over 2 years

To commence tender offer shortly for all outstanding Altria notes

Forecasts 2008 earnings per share growth rates

Altria 2008 full-year diluted earnings per share from continuing operations

projected to grow approximately 9 to 11 from a 2007 adjusted base of $150 excluding PMI which will be accounted for as a discontinued operation for the full-year 2008

PMI 2008 full-year diluted earnings per share from continuing operations

projected to grow approximately 12 to 14 at current exchange rates from a 2007 pro-forma adjusted base of $278

2

NEW YORK January 30 2008 ndash Altria Group Inc (NYSE MO) today issued its 2007

full-year and fourth-quarter results and announced the spin-off of Philip Morris International Inc

(PMI) In conjunction with the PMI spin-off the company identified the new Altria and PMI

Boards of Directors announced dividend policies initial dividend rates and share repurchase

programs for each company and provided separate forecasts for 2008 earnings per share from

continuing operations for Altria and PMI

ldquoTodayrsquos announcement underscores our long-term commitment to build shareholder

valuerdquo said Louis C Camilleri Chairman and Chief Executive Officer of Altria ldquoThe PMI

spin-off and related actions position our international and domestic tobacco businesses for future

success as stand-alone companies with unique and formidable strengths including leading

brands strong cash flow experienced leadership and solid growth prospectsrdquo

ldquo2007 was a watershed year with strong underlying earnings growth and a number of

strategic actions that further strengthen our tobacco businesses for long-term growthrdquo Mr

Camilleri said ldquoWhile we are by all means not immune to the current economic uncertainties

we enter 2008 with solid momentum and I am confident that both Altria and PMI are well

positioned to not only weather these uncertainties but to deliver strong results this year and

beyondrdquo

Conference Call

A conference call hosted by Mr Camilleri with members of the investment community

and news media will be webcast at 100 pm New York City Time on January 30 2008 Access

is available at wwwaltriacom

Spin-Off of Philip Morris International (PMI)

The Board of Directors of Altria voted today to authorize the spin-off of 100 of the

shares of Philip Morris International (PMI) to Altriarsquos shareholders

The distribution will be made on March 28 2008 to Altria shareholders of record as of

500 pm New York City Time on March 19 2008 (the ldquorecord daterdquo)

Altria will distribute one share of PMI for every share of Altria common stock

outstanding as of the record date based on the number of Altria shares outstanding at 500 pm

New York City Time on that date

3

After much consideration Altriarsquos Board of Directors and management determined that

PMIrsquos separation from Altria will enhance growth and shareholder value by providing the

following benefits

An improved focus on the different market dynamics competitive frameworks

challenges and opportunities that Altria and PMI face

A more optimal and efficient capital allocation to enhance shareholder value coupled

with greater financial flexibility including an increase in the combined debt capacity

of Altria and PMI

Greater transparency leading to the elimination of the sum-of-the-parts discount under

which Altriarsquos common stock has typically traded

A significant reduction in corporate overheads including the closure of Altriarsquos

corporate headquarters in New York

The creation of a potential acquisition currency in the form of more focused equity

that neither of Altriarsquos tobacco subsidiaries has had available prior to the spin-off and

A tighter alignment of compensation and rewards with the performance of each

entity

Altria has been advised that a ldquowhen issuedrdquo public market for Altria common stock will

begin some time before the record date on the New York Stock Exchange (NYSE) and continue

through the distribution date under the symbol ldquoMO wirdquo ldquoWhen issuedrdquo refers to buying Altria

shares without the right to receive PMI shares Altria common stock will remain outstanding and

will continue to trade on the NYSE under the symbol ldquoMOrdquo

Any holder of Altria common stock who sells shares of Altria in the ldquoregular wayrdquo

market on or before the distribution date will also be selling the right to receive shares of PMI

common stock in the spin-off Holders of Altria common stock are encouraged to consult with

their financial advisors regarding the specific implications of selling Altria common stock on or

before the distribution date

Currently there is no public market for PMIrsquos common stock It is anticipated that PMI

will be listed for trading on the NYSE under the symbol ldquoPMrdquo The company anticipates that

trading in PMI common stock will commence on a ldquowhen issuedrdquo basis shortly before the record

date under the symbol ldquoPM wirdquo

On the first trading day following the distribution date ldquowhen issuedrdquo trading will end

and ldquoregular wayrdquo trading will begin for PMI common stock PMI cannot predict the trading

price for its common stock following the distribution

4

Altria has received a private letter ruling from the US Internal Revenue Service (IRS)

and an opinion of counsel that the distribution of PMI common stock to Altria shareholders

qualifies as a tax-free distribution for US federal income tax purposes

Non-US shareholders may be subject to tax on the distribution in jurisdictions other than

the US In this regard Altria has received advice from some foreign tax authorities and

advisors and anticipates that the distribution will be tax-free in Canada and Sweden but subject

to tax in Denmark France Germany Ireland Japan the Netherlands Norway and Switzerland

Altria is awaiting final advice from the UK tax authorities

It is extremely important that shareholders consult their tax advisors regarding the

particular consequences of the distribution in their situation including the applicability and

effect of any US federal state local and foreign tax laws

Registered shareholders in the US and Canada who would like more information should

contact Computershare Trust Company by email at altriacomputersharecom or by phone at 1-

866-538-5172 Registered shareholders outside the US and Canada should call 1-781-575-

3572

If you hold Altria shares through a broker bank or other nominee please contact your

financial institution directly or call DF King amp Co at 1-800-290-6431

Additional information including answers to frequently asked questions (FAQs) will be

available in a special section of the Altria website beginning at about 1200 noon New York City

Time today at wwwaltriacompmispinoff

Board of Directors

Set forth below are the individuals who have agreed to serve on the respective Board of

Directors of Altria and PMI following the spin-off

Altriarsquos Board of Directors post-spin will include four continuing members from the

current Altria Board of Directors They are Elizabeth E Bailey Robert ER Huntley Thomas

W Jones and George Muntildeoz They will be joined by four new directors Thomas F Farrell II

Chairman President and Chief Executive Officer of Dominion Resources Inc Gerald L

Baliles Director of the Miller Center of Public Affairs at the University of Virginia and former

Governor of Virginia Dinyar S Devitre who will step down as Chief Financial Officer of Altria

following the spin-off and Michael E Szymanczyk who will serve as Chairman of the Board

and Chief Executive Officer of Altria

PMIrsquos Board of Directors post-spin will include five members who will step down from

the current Altria Board of Directors They are Harold Brown Mathis Cabiallavetta J Dudley

Fishburn Lucio A Noto and Stephen M Wolf In addition Sergio Marchionne Chief Executive

5

Officer of Fiat SpA and Carlos Slim Heluacute will join the PMI Board of Directors at the time of

the PMI spin-off and Graham Mackay Chief Executive Officer of SABMiller has agreed to

join the PMI Board of Directors later in 2008 Louis C Camilleri will serve as Chairman of the

Board and Chief Executive Officer of PMI following his resignation from those posts at Altria

John S Reed has elected to retire from the Altria Board of Directors He is one of the

longest-serving members of the Board of Directors and has provided outstanding leadership

throughout his more than 30 years of distinguished service to the company and its shareholders

As a result of the PMI spin-off the date for the Annual Meeting of Shareholders for

Altria has been moved to May 28 2008 in Richmond Virginia Shareholders who have not

already submitted proposals for consideration at the meeting have until March 28 2008 to do so

by following the procedures described in the ldquo2008 Annual Meetingrdquo section on page 66 of

Altriarsquos March 23 2007 proxy statement

Dividends

The Board of Directors of Altria today reaffirmed its intention to adjust Altriarsquos dividend

immediately following the distribution of PMI shares so that Altria shareholders who retain their

PMI shares will receive in the aggregate the same annual cash dividend rate of $300 per share

that existed before the spin-off

Altria is expected to pay a dividend at the initial rate of $029 per share per quarter or

$116 per common share on an annualized basis Altria has established a dividend policy that

anticipates a payout ratio of approximately 75 post-spin

PMI is expected to pay a dividend at the initial rate of $046 per share per quarter or

$184 per common share on an annualized basis PMI has established a dividend policy that

anticipates a payout ratio of approximately 65 post-spin

Payment of future cash dividends will be at the discretion of the Boards of Directors of

Altria and PMI

Share Repurchase Programs

The Board of Directors today approved share repurchase programs as follows

For Altria a new $75 billion two-year share repurchase program was authorized and is

expected to begin in April after completion of the spin-off

For PMI a $130 billion two-year share repurchase program was authorized and is

expected to begin in early May consistent with SEC regulations

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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                                          175. button175
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                                          729. button729

2

NEW YORK January 30 2008 ndash Altria Group Inc (NYSE MO) today issued its 2007

full-year and fourth-quarter results and announced the spin-off of Philip Morris International Inc

(PMI) In conjunction with the PMI spin-off the company identified the new Altria and PMI

Boards of Directors announced dividend policies initial dividend rates and share repurchase

programs for each company and provided separate forecasts for 2008 earnings per share from

continuing operations for Altria and PMI

ldquoTodayrsquos announcement underscores our long-term commitment to build shareholder

valuerdquo said Louis C Camilleri Chairman and Chief Executive Officer of Altria ldquoThe PMI

spin-off and related actions position our international and domestic tobacco businesses for future

success as stand-alone companies with unique and formidable strengths including leading

brands strong cash flow experienced leadership and solid growth prospectsrdquo

ldquo2007 was a watershed year with strong underlying earnings growth and a number of

strategic actions that further strengthen our tobacco businesses for long-term growthrdquo Mr

Camilleri said ldquoWhile we are by all means not immune to the current economic uncertainties

we enter 2008 with solid momentum and I am confident that both Altria and PMI are well

positioned to not only weather these uncertainties but to deliver strong results this year and

beyondrdquo

Conference Call

A conference call hosted by Mr Camilleri with members of the investment community

and news media will be webcast at 100 pm New York City Time on January 30 2008 Access

is available at wwwaltriacom

Spin-Off of Philip Morris International (PMI)

The Board of Directors of Altria voted today to authorize the spin-off of 100 of the

shares of Philip Morris International (PMI) to Altriarsquos shareholders

The distribution will be made on March 28 2008 to Altria shareholders of record as of

500 pm New York City Time on March 19 2008 (the ldquorecord daterdquo)

Altria will distribute one share of PMI for every share of Altria common stock

outstanding as of the record date based on the number of Altria shares outstanding at 500 pm

New York City Time on that date

3

After much consideration Altriarsquos Board of Directors and management determined that

PMIrsquos separation from Altria will enhance growth and shareholder value by providing the

following benefits

An improved focus on the different market dynamics competitive frameworks

challenges and opportunities that Altria and PMI face

A more optimal and efficient capital allocation to enhance shareholder value coupled

with greater financial flexibility including an increase in the combined debt capacity

of Altria and PMI

Greater transparency leading to the elimination of the sum-of-the-parts discount under

which Altriarsquos common stock has typically traded

A significant reduction in corporate overheads including the closure of Altriarsquos

corporate headquarters in New York

The creation of a potential acquisition currency in the form of more focused equity

that neither of Altriarsquos tobacco subsidiaries has had available prior to the spin-off and

A tighter alignment of compensation and rewards with the performance of each

entity

Altria has been advised that a ldquowhen issuedrdquo public market for Altria common stock will

begin some time before the record date on the New York Stock Exchange (NYSE) and continue

through the distribution date under the symbol ldquoMO wirdquo ldquoWhen issuedrdquo refers to buying Altria

shares without the right to receive PMI shares Altria common stock will remain outstanding and

will continue to trade on the NYSE under the symbol ldquoMOrdquo

Any holder of Altria common stock who sells shares of Altria in the ldquoregular wayrdquo

market on or before the distribution date will also be selling the right to receive shares of PMI

common stock in the spin-off Holders of Altria common stock are encouraged to consult with

their financial advisors regarding the specific implications of selling Altria common stock on or

before the distribution date

Currently there is no public market for PMIrsquos common stock It is anticipated that PMI

will be listed for trading on the NYSE under the symbol ldquoPMrdquo The company anticipates that

trading in PMI common stock will commence on a ldquowhen issuedrdquo basis shortly before the record

date under the symbol ldquoPM wirdquo

On the first trading day following the distribution date ldquowhen issuedrdquo trading will end

and ldquoregular wayrdquo trading will begin for PMI common stock PMI cannot predict the trading

price for its common stock following the distribution

4

Altria has received a private letter ruling from the US Internal Revenue Service (IRS)

and an opinion of counsel that the distribution of PMI common stock to Altria shareholders

qualifies as a tax-free distribution for US federal income tax purposes

Non-US shareholders may be subject to tax on the distribution in jurisdictions other than

the US In this regard Altria has received advice from some foreign tax authorities and

advisors and anticipates that the distribution will be tax-free in Canada and Sweden but subject

to tax in Denmark France Germany Ireland Japan the Netherlands Norway and Switzerland

Altria is awaiting final advice from the UK tax authorities

It is extremely important that shareholders consult their tax advisors regarding the

particular consequences of the distribution in their situation including the applicability and

effect of any US federal state local and foreign tax laws

Registered shareholders in the US and Canada who would like more information should

contact Computershare Trust Company by email at altriacomputersharecom or by phone at 1-

866-538-5172 Registered shareholders outside the US and Canada should call 1-781-575-

3572

If you hold Altria shares through a broker bank or other nominee please contact your

financial institution directly or call DF King amp Co at 1-800-290-6431

Additional information including answers to frequently asked questions (FAQs) will be

available in a special section of the Altria website beginning at about 1200 noon New York City

Time today at wwwaltriacompmispinoff

Board of Directors

Set forth below are the individuals who have agreed to serve on the respective Board of

Directors of Altria and PMI following the spin-off

Altriarsquos Board of Directors post-spin will include four continuing members from the

current Altria Board of Directors They are Elizabeth E Bailey Robert ER Huntley Thomas

W Jones and George Muntildeoz They will be joined by four new directors Thomas F Farrell II

Chairman President and Chief Executive Officer of Dominion Resources Inc Gerald L

Baliles Director of the Miller Center of Public Affairs at the University of Virginia and former

Governor of Virginia Dinyar S Devitre who will step down as Chief Financial Officer of Altria

following the spin-off and Michael E Szymanczyk who will serve as Chairman of the Board

and Chief Executive Officer of Altria

PMIrsquos Board of Directors post-spin will include five members who will step down from

the current Altria Board of Directors They are Harold Brown Mathis Cabiallavetta J Dudley

Fishburn Lucio A Noto and Stephen M Wolf In addition Sergio Marchionne Chief Executive

5

Officer of Fiat SpA and Carlos Slim Heluacute will join the PMI Board of Directors at the time of

the PMI spin-off and Graham Mackay Chief Executive Officer of SABMiller has agreed to

join the PMI Board of Directors later in 2008 Louis C Camilleri will serve as Chairman of the

Board and Chief Executive Officer of PMI following his resignation from those posts at Altria

John S Reed has elected to retire from the Altria Board of Directors He is one of the

longest-serving members of the Board of Directors and has provided outstanding leadership

throughout his more than 30 years of distinguished service to the company and its shareholders

As a result of the PMI spin-off the date for the Annual Meeting of Shareholders for

Altria has been moved to May 28 2008 in Richmond Virginia Shareholders who have not

already submitted proposals for consideration at the meeting have until March 28 2008 to do so

by following the procedures described in the ldquo2008 Annual Meetingrdquo section on page 66 of

Altriarsquos March 23 2007 proxy statement

Dividends

The Board of Directors of Altria today reaffirmed its intention to adjust Altriarsquos dividend

immediately following the distribution of PMI shares so that Altria shareholders who retain their

PMI shares will receive in the aggregate the same annual cash dividend rate of $300 per share

that existed before the spin-off

Altria is expected to pay a dividend at the initial rate of $029 per share per quarter or

$116 per common share on an annualized basis Altria has established a dividend policy that

anticipates a payout ratio of approximately 75 post-spin

PMI is expected to pay a dividend at the initial rate of $046 per share per quarter or

$184 per common share on an annualized basis PMI has established a dividend policy that

anticipates a payout ratio of approximately 65 post-spin

Payment of future cash dividends will be at the discretion of the Boards of Directors of

Altria and PMI

Share Repurchase Programs

The Board of Directors today approved share repurchase programs as follows

For Altria a new $75 billion two-year share repurchase program was authorized and is

expected to begin in April after completion of the spin-off

For PMI a $130 billion two-year share repurchase program was authorized and is

expected to begin in early May consistent with SEC regulations

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
                                          2. button2
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3

After much consideration Altriarsquos Board of Directors and management determined that

PMIrsquos separation from Altria will enhance growth and shareholder value by providing the

following benefits

An improved focus on the different market dynamics competitive frameworks

challenges and opportunities that Altria and PMI face

A more optimal and efficient capital allocation to enhance shareholder value coupled

with greater financial flexibility including an increase in the combined debt capacity

of Altria and PMI

Greater transparency leading to the elimination of the sum-of-the-parts discount under

which Altriarsquos common stock has typically traded

A significant reduction in corporate overheads including the closure of Altriarsquos

corporate headquarters in New York

The creation of a potential acquisition currency in the form of more focused equity

that neither of Altriarsquos tobacco subsidiaries has had available prior to the spin-off and

A tighter alignment of compensation and rewards with the performance of each

entity

Altria has been advised that a ldquowhen issuedrdquo public market for Altria common stock will

begin some time before the record date on the New York Stock Exchange (NYSE) and continue

through the distribution date under the symbol ldquoMO wirdquo ldquoWhen issuedrdquo refers to buying Altria

shares without the right to receive PMI shares Altria common stock will remain outstanding and

will continue to trade on the NYSE under the symbol ldquoMOrdquo

Any holder of Altria common stock who sells shares of Altria in the ldquoregular wayrdquo

market on or before the distribution date will also be selling the right to receive shares of PMI

common stock in the spin-off Holders of Altria common stock are encouraged to consult with

their financial advisors regarding the specific implications of selling Altria common stock on or

before the distribution date

Currently there is no public market for PMIrsquos common stock It is anticipated that PMI

will be listed for trading on the NYSE under the symbol ldquoPMrdquo The company anticipates that

trading in PMI common stock will commence on a ldquowhen issuedrdquo basis shortly before the record

date under the symbol ldquoPM wirdquo

On the first trading day following the distribution date ldquowhen issuedrdquo trading will end

and ldquoregular wayrdquo trading will begin for PMI common stock PMI cannot predict the trading

price for its common stock following the distribution

4

Altria has received a private letter ruling from the US Internal Revenue Service (IRS)

and an opinion of counsel that the distribution of PMI common stock to Altria shareholders

qualifies as a tax-free distribution for US federal income tax purposes

Non-US shareholders may be subject to tax on the distribution in jurisdictions other than

the US In this regard Altria has received advice from some foreign tax authorities and

advisors and anticipates that the distribution will be tax-free in Canada and Sweden but subject

to tax in Denmark France Germany Ireland Japan the Netherlands Norway and Switzerland

Altria is awaiting final advice from the UK tax authorities

It is extremely important that shareholders consult their tax advisors regarding the

particular consequences of the distribution in their situation including the applicability and

effect of any US federal state local and foreign tax laws

Registered shareholders in the US and Canada who would like more information should

contact Computershare Trust Company by email at altriacomputersharecom or by phone at 1-

866-538-5172 Registered shareholders outside the US and Canada should call 1-781-575-

3572

If you hold Altria shares through a broker bank or other nominee please contact your

financial institution directly or call DF King amp Co at 1-800-290-6431

Additional information including answers to frequently asked questions (FAQs) will be

available in a special section of the Altria website beginning at about 1200 noon New York City

Time today at wwwaltriacompmispinoff

Board of Directors

Set forth below are the individuals who have agreed to serve on the respective Board of

Directors of Altria and PMI following the spin-off

Altriarsquos Board of Directors post-spin will include four continuing members from the

current Altria Board of Directors They are Elizabeth E Bailey Robert ER Huntley Thomas

W Jones and George Muntildeoz They will be joined by four new directors Thomas F Farrell II

Chairman President and Chief Executive Officer of Dominion Resources Inc Gerald L

Baliles Director of the Miller Center of Public Affairs at the University of Virginia and former

Governor of Virginia Dinyar S Devitre who will step down as Chief Financial Officer of Altria

following the spin-off and Michael E Szymanczyk who will serve as Chairman of the Board

and Chief Executive Officer of Altria

PMIrsquos Board of Directors post-spin will include five members who will step down from

the current Altria Board of Directors They are Harold Brown Mathis Cabiallavetta J Dudley

Fishburn Lucio A Noto and Stephen M Wolf In addition Sergio Marchionne Chief Executive

5

Officer of Fiat SpA and Carlos Slim Heluacute will join the PMI Board of Directors at the time of

the PMI spin-off and Graham Mackay Chief Executive Officer of SABMiller has agreed to

join the PMI Board of Directors later in 2008 Louis C Camilleri will serve as Chairman of the

Board and Chief Executive Officer of PMI following his resignation from those posts at Altria

John S Reed has elected to retire from the Altria Board of Directors He is one of the

longest-serving members of the Board of Directors and has provided outstanding leadership

throughout his more than 30 years of distinguished service to the company and its shareholders

As a result of the PMI spin-off the date for the Annual Meeting of Shareholders for

Altria has been moved to May 28 2008 in Richmond Virginia Shareholders who have not

already submitted proposals for consideration at the meeting have until March 28 2008 to do so

by following the procedures described in the ldquo2008 Annual Meetingrdquo section on page 66 of

Altriarsquos March 23 2007 proxy statement

Dividends

The Board of Directors of Altria today reaffirmed its intention to adjust Altriarsquos dividend

immediately following the distribution of PMI shares so that Altria shareholders who retain their

PMI shares will receive in the aggregate the same annual cash dividend rate of $300 per share

that existed before the spin-off

Altria is expected to pay a dividend at the initial rate of $029 per share per quarter or

$116 per common share on an annualized basis Altria has established a dividend policy that

anticipates a payout ratio of approximately 75 post-spin

PMI is expected to pay a dividend at the initial rate of $046 per share per quarter or

$184 per common share on an annualized basis PMI has established a dividend policy that

anticipates a payout ratio of approximately 65 post-spin

Payment of future cash dividends will be at the discretion of the Boards of Directors of

Altria and PMI

Share Repurchase Programs

The Board of Directors today approved share repurchase programs as follows

For Altria a new $75 billion two-year share repurchase program was authorized and is

expected to begin in April after completion of the spin-off

For PMI a $130 billion two-year share repurchase program was authorized and is

expected to begin in early May consistent with SEC regulations

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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                                          321. button321
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4

Altria has received a private letter ruling from the US Internal Revenue Service (IRS)

and an opinion of counsel that the distribution of PMI common stock to Altria shareholders

qualifies as a tax-free distribution for US federal income tax purposes

Non-US shareholders may be subject to tax on the distribution in jurisdictions other than

the US In this regard Altria has received advice from some foreign tax authorities and

advisors and anticipates that the distribution will be tax-free in Canada and Sweden but subject

to tax in Denmark France Germany Ireland Japan the Netherlands Norway and Switzerland

Altria is awaiting final advice from the UK tax authorities

It is extremely important that shareholders consult their tax advisors regarding the

particular consequences of the distribution in their situation including the applicability and

effect of any US federal state local and foreign tax laws

Registered shareholders in the US and Canada who would like more information should

contact Computershare Trust Company by email at altriacomputersharecom or by phone at 1-

866-538-5172 Registered shareholders outside the US and Canada should call 1-781-575-

3572

If you hold Altria shares through a broker bank or other nominee please contact your

financial institution directly or call DF King amp Co at 1-800-290-6431

Additional information including answers to frequently asked questions (FAQs) will be

available in a special section of the Altria website beginning at about 1200 noon New York City

Time today at wwwaltriacompmispinoff

Board of Directors

Set forth below are the individuals who have agreed to serve on the respective Board of

Directors of Altria and PMI following the spin-off

Altriarsquos Board of Directors post-spin will include four continuing members from the

current Altria Board of Directors They are Elizabeth E Bailey Robert ER Huntley Thomas

W Jones and George Muntildeoz They will be joined by four new directors Thomas F Farrell II

Chairman President and Chief Executive Officer of Dominion Resources Inc Gerald L

Baliles Director of the Miller Center of Public Affairs at the University of Virginia and former

Governor of Virginia Dinyar S Devitre who will step down as Chief Financial Officer of Altria

following the spin-off and Michael E Szymanczyk who will serve as Chairman of the Board

and Chief Executive Officer of Altria

PMIrsquos Board of Directors post-spin will include five members who will step down from

the current Altria Board of Directors They are Harold Brown Mathis Cabiallavetta J Dudley

Fishburn Lucio A Noto and Stephen M Wolf In addition Sergio Marchionne Chief Executive

5

Officer of Fiat SpA and Carlos Slim Heluacute will join the PMI Board of Directors at the time of

the PMI spin-off and Graham Mackay Chief Executive Officer of SABMiller has agreed to

join the PMI Board of Directors later in 2008 Louis C Camilleri will serve as Chairman of the

Board and Chief Executive Officer of PMI following his resignation from those posts at Altria

John S Reed has elected to retire from the Altria Board of Directors He is one of the

longest-serving members of the Board of Directors and has provided outstanding leadership

throughout his more than 30 years of distinguished service to the company and its shareholders

As a result of the PMI spin-off the date for the Annual Meeting of Shareholders for

Altria has been moved to May 28 2008 in Richmond Virginia Shareholders who have not

already submitted proposals for consideration at the meeting have until March 28 2008 to do so

by following the procedures described in the ldquo2008 Annual Meetingrdquo section on page 66 of

Altriarsquos March 23 2007 proxy statement

Dividends

The Board of Directors of Altria today reaffirmed its intention to adjust Altriarsquos dividend

immediately following the distribution of PMI shares so that Altria shareholders who retain their

PMI shares will receive in the aggregate the same annual cash dividend rate of $300 per share

that existed before the spin-off

Altria is expected to pay a dividend at the initial rate of $029 per share per quarter or

$116 per common share on an annualized basis Altria has established a dividend policy that

anticipates a payout ratio of approximately 75 post-spin

PMI is expected to pay a dividend at the initial rate of $046 per share per quarter or

$184 per common share on an annualized basis PMI has established a dividend policy that

anticipates a payout ratio of approximately 65 post-spin

Payment of future cash dividends will be at the discretion of the Boards of Directors of

Altria and PMI

Share Repurchase Programs

The Board of Directors today approved share repurchase programs as follows

For Altria a new $75 billion two-year share repurchase program was authorized and is

expected to begin in April after completion of the spin-off

For PMI a $130 billion two-year share repurchase program was authorized and is

expected to begin in early May consistent with SEC regulations

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
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                                          19. button19
                                          20. button20
                                          21. button21
                                          22. button22
                                          23. button23
                                          24. button24
                                          25. button25
                                          26. button26
                                          27. button27
                                          28. button28
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                                          30. button30
                                          31. button31
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                                          35. button35
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                                          40. button40
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                                          290. button290
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                                          297. button297
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                                          315. button315
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                                          327. button327
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                                          329. button329
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                                          728. button728
                                          729. button729

5

Officer of Fiat SpA and Carlos Slim Heluacute will join the PMI Board of Directors at the time of

the PMI spin-off and Graham Mackay Chief Executive Officer of SABMiller has agreed to

join the PMI Board of Directors later in 2008 Louis C Camilleri will serve as Chairman of the

Board and Chief Executive Officer of PMI following his resignation from those posts at Altria

John S Reed has elected to retire from the Altria Board of Directors He is one of the

longest-serving members of the Board of Directors and has provided outstanding leadership

throughout his more than 30 years of distinguished service to the company and its shareholders

As a result of the PMI spin-off the date for the Annual Meeting of Shareholders for

Altria has been moved to May 28 2008 in Richmond Virginia Shareholders who have not

already submitted proposals for consideration at the meeting have until March 28 2008 to do so

by following the procedures described in the ldquo2008 Annual Meetingrdquo section on page 66 of

Altriarsquos March 23 2007 proxy statement

Dividends

The Board of Directors of Altria today reaffirmed its intention to adjust Altriarsquos dividend

immediately following the distribution of PMI shares so that Altria shareholders who retain their

PMI shares will receive in the aggregate the same annual cash dividend rate of $300 per share

that existed before the spin-off

Altria is expected to pay a dividend at the initial rate of $029 per share per quarter or

$116 per common share on an annualized basis Altria has established a dividend policy that

anticipates a payout ratio of approximately 75 post-spin

PMI is expected to pay a dividend at the initial rate of $046 per share per quarter or

$184 per common share on an annualized basis PMI has established a dividend policy that

anticipates a payout ratio of approximately 65 post-spin

Payment of future cash dividends will be at the discretion of the Boards of Directors of

Altria and PMI

Share Repurchase Programs

The Board of Directors today approved share repurchase programs as follows

For Altria a new $75 billion two-year share repurchase program was authorized and is

expected to begin in April after completion of the spin-off

For PMI a $130 billion two-year share repurchase program was authorized and is

expected to begin in early May consistent with SEC regulations

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
                                          2. button2
                                          3. button3
                                          4. button4
                                          5. button5
                                          6. button6
                                          7. button7
                                          8. button8
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                                          91. button91
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                                          93. button93
                                          94. button94
                                          95. button95
                                          96. button96
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                                          100. button100
                                          101. button101
                                          102. button102
                                          103. button103
                                          104. button104
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                                          111. button111
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                                          116. button116
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                                          118. button118
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                                          121. button121
                                          122. button122
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                                          153. button153
                                          154. button154
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                                          160. button160
                                          161. button161
                                          162. button162
                                          163. button163
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                                          165. button165
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                                          176. button176
                                          177. button177
                                          178. button178
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                                          180. button180
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                                          183. button183
                                          184. button184
                                          185. button185
                                          186. button186
                                          187. button187
                                          188. button188
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                                          190. button190
                                          191. button191
                                          192. button192
                                          193. button193
                                          194. button194
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                                          196. button196
                                          197. button197
                                          198. button198
                                          199. button199
                                          200. button200
                                          201. button201
                                          202. button202
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                                          204. button204
                                          205. button205
                                          206. button206
                                          207. button207
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                                          210. button210
                                          211. button211
                                          212. button212
                                          213. button213
                                          214. button214
                                          215. button215
                                          216. button216
                                          217. button217
                                          218. button218
                                          219. button219
                                          220. button220
                                          221. button221
                                          222. button222
                                          223. button223
                                          224. button224
                                          225. button225
                                          226. button226
                                          227. button227
                                          228. button228
                                          229. button229
                                          230. button230
                                          231. button231
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                                          233. button233
                                          234. button234
                                          235. button235
                                          236. button236
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                                          238. button238
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                                          240. button240
                                          241. button241
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                                          243. button243
                                          244. button244
                                          245. button245
                                          246. button246
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                                          248. button248
                                          249. button249
                                          250. button250
                                          251. button251
                                          252. button252
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                                          254. button254
                                          255. button255
                                          256. button256
                                          257. button257
                                          258. button258
                                          259. button259
                                          260. button260
                                          261. button261
                                          262. button262
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                                          265. button265
                                          266. button266
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                                          270. button270
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                                          273. button273
                                          274. button274
                                          275. button275
                                          276. button276
                                          277. button277
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                                          280. button280
                                          281. button281
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                                          286. button286
                                          287. button287
                                          288. button288
                                          289. button289
                                          290. button290
                                          291. button291
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                                          293. button293
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                                          297. button297
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                                          315. button315
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                                          413. button413
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                                          415. button415
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                                          420. button420
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                                          427. button427
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                                          725. button725
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                                          728. button728
                                          729. button729

6

Tender Offer for Altria Notes

Altria will commence a tender offer and consent solicitation shortly in connection with

the spin-off to purchase for cash all of Altriarsquos notes outstanding including $26 billion of

domestic notes denominated in US dollars and euro10 billion in euro-denominated notes

While Altria believes that the proposed distribution is not prohibited by the indentures it

believes it is desirable to eliminate any uncertainty by amending the indentures with the consent

of note holders

In order to finance the tender offer Altria has arranged a $40 billion 364-day credit

facility Subsequent to the spin-off Altria intends to access the public debt market to refinance

debt incurred in connection with the tender offer

PMI Form 10

PMI has filed a Form 10 which includes a preliminary Information Statement subject to

completion with the US Securities and Exchange Commission (SEC) PMI plans to file an

updated Form 10 with the SEC on or about February 8 2008 The update will include PMIrsquos

audited financial statements for 2007 managementrsquos discussion and analysis of operations and a

discussion of PMIrsquos governance and compensation In addition the Form 10 will include pro-

forma financial information which gives effect to the following

bull In establishing the initial capitalization of the two companies PMI will pay to Altria $40

billion in dividends $31 billion of which were paid at the end of 2007

bull Altria and PMI will reimburse each other for the fair value of stock awards held by their

respective employees Based on the number of stock awards outstanding at December

31 2007 the net payment from Altria to PMI would be $427 million

bull Altria will transfer to PMI federal tax contingencies of $97 million

bull Altria will transfer to PMI balances for pension and other benefits related to PMIrsquos US-

based employees and

bull PMI will incur the cost of certain headquarters functions that are currently performed by

Altria The cost of these functions was $92 million in 2007

7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

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An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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7

PMI plans to file reported and pro-forma amounts as follows At December 31 2007 ($ Billions)

Reported Pro-forma

Cash $ 17 $ 13

Total debt (63) (63)

Net debt $ (46) $ (50)

Stockholdersrsquo equity $154 $147

Following the effectiveness of the Form 10 the company will mail an Information

Statement shortly after the record date to all holders of Altria common stock as of the record

date The Information Statement will include the procedures by which the distribution will be

effected and other details of the transaction together with comprehensive data on PMI

Investor Presentation

In connection with the spin-off the company announced that it will hold an investor

presentation on March 11 2008 in New York City The presentation will be webcast beginning

at approximately 830 am until 100 pm New York City Time and will be available at

wwwaltriacom

Following opening remarks from Louis C Camilleri Altria and PMI will give

presentations on their growth strategies capital structure cost savings and productivity

initiatives opportunities and outlook followed by a question-and-answer session

Presenting for Altria will be Michael E Szymanczyk and David Beran who will become

Chairman and Chief Executive Officer and Chief Financial Officer respectively following the

spin-off

Presenting for PMI will be Andreacute Calantzopoulos and Hermann Waldemer who will

become Chief Operating Officer and Chief Financial Officer respectively following the spin-

off

2008 Full-Year Forecast for Altria and PMI

Altria (excluding PMI) forecasts that 2008 adjusted full-year diluted earnings per share

from continuing operations will grow to a range of $163 to $167 representing a growth rate of

approximately 9 to 11 for the full-year 2008 from a base of $150 per share in 2007 which is

shown in Table 1 below This projection reflects a higher effective tax rate the contribution of

8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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8

income from recently acquired John Middleton Inc and the impact of share repurchases

Earnings per share growth is expected to be stronger in the second half of 2008

PMI forecasts adjusted diluted earnings per share from continuing operations at current

exchange rates will increase to a range of $311 to $317 for the full-year 2008 reflecting a

growth rate of approximately 12 to 14 from the pro-forma adjusted base of $278 per share in

2007 as shown in Table 1

Table 1 Illustrative EPS for Year Ended Dec 31 2007 Altria

Consolidated Dec 31 2007

Altria

Ex PMI

PMI

Reported Diluted EPS $ 433 $ 148 $ 285 Tax items (012) (009) (003) PMCC recoveries from airline exposure

(006)

(006)

Interest on tax reserve transfers to Kraft

002

002

Asset impairment and exit costs 021 015 006 Adjusted Diluted EPS $ 438 $ 150 $ 288 Interest on borrowings to pay $40 billion

dividend to Altria

(007) Incremental corporate expenses

(003)

Pro-Forma Adjusted Diluted EPS

See Note Below

$ 278

Note While PMI will be required to file these pro-forma 2007 results with the SEC Altria is prohibited under current SEC guidelines from imputing interest income on the transferred cash

These forecasts exclude the impact of any potential future acquisitions or divestitures

Altriarsquos gain on the sale of its headquarters in New York City charges related to the tender offer

for Altriarsquos notes and a number of other factors including the items shown above in Table 1

The factors described in the Forward-Looking and Cautionary Statements section of this release

represent continuing risks to these projections

9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

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XBRL taxonomy linkbase mo-20071231_labxml

35

MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-12-31 MO 2006-12-31 iso4217USD iso4217USD xbrlishares xbrlishares xbrlipure 18229000000 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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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                                          319. button319
                                          320. button320
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9

2007 FULL-YEAR AND FOURTH-QUARTER RESULTS

As described in ldquoNote 15 Segment Reportingrdquo of Altriarsquos 2006 Annual Report

management reviews operating companies income which is defined as operating income before corporate expenses and amortization of intangibles to evaluate segment performance and allocate resources Management believes it is appropriate to disclose this measure to help investors analyze business performance and trends For a reconciliation of operating companies income to operating income see the Condensed Statements of Earnings contained in this release

Altriarsquos 2007 reported results and previous-year results reflect Kraft Foods Inc (Kraft) as a discontinued operation As such net revenues and operating companies income for Kraft are excluded from the companyrsquos results while the net earnings impact is included as a single line item

All references in this news release are to continuing operations unless otherwise noted References to international tobacco market shares are PMI estimates based on a number of sources 2007 Diluted EPS From Continuing Operations

For the full year 2007 diluted earnings per share from continuing operations were down

23 to $433 including items detailed on Schedule 8 versus $443 for the full year 2006

Adjusted for items detailed in Table 2 below diluted earnings per share were up 81 to $438

versus $405 for 2006

Fourth-quarter 2007 diluted earnings per share from continuing operations were down

96 to $103 including items detailed on the attached Schedule 7 versus $114 in the year-ago

period Adjusted for items detailed in Table 2 fourth-quarter 2007 diluted earnings per share

were up 53 to $100 versus $095 in the year-earlier period which included a $488 million

gain from PMIrsquos reorganization of its tobacco and beer equity holdings in the Dominican

Republic

Table 2 2007 Results Excluding Items Full Year Fourth Quarter

2007 2006 Change 2007 2006 Change Diluted EPS (from continuing operations for full year)

$433

$443

(23)

$103

$114

(96)

(Gain) on sales of businesses (015) (015) Asset impairment exit and implementation costs

021

005

004

002

Italian antitrust charge 003 (Recoveries) Provision for airline industry exposure

(006)

003

Tax items (012) (035) (007) (006) Interest on tax reserve transfers to Kraft

002

001

_____

_____

Diluted EPS excluding above items

$438

$405

81

$100

$095

53

10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

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XBRL taxonomy linkbase mo-20071231_labxml

35

MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-10-01 2007-12-31 MO 2006-10-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-01-01 2007-12-31 MO 2006-01-01 2006-12-31 MO 2007-12-31 MO 2006-12-31 iso4217USD iso4217USD xbrlishares xbrlishares xbrlipure 18229000000 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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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10

Acquisitions and Divestitures

During the first quarter of 2007 PMI acquired an additional 502 stake in Lakson

Tobacco Company Ltd (Lakson) in Pakistan and completed a mandatory tender offer for the

remaining shares which increased PMIrsquos total ownership interest in Lakson from 40 to

approximately 98 for $383 million

During the fourth quarter of 2007 PMI completed the acquisition of an additional 30

stake in its Mexican tobacco business from its joint venture partner Grupo Carso SAB de CV

PMI previously held a 50 stake in its Mexican tobacco business and the transaction brought

PMIrsquos stake to 80 Grupo Carso retains a 20 stake in the business The transaction had a

value of approximately $11 billion

On December 11 2007 Altria announced that it had completed the acquisition of 100

of John Middleton Inc (Middleton) a leading manufacturer of machine-made large cigars from

privately held Bradford Holdings Inc for $29 billion in cash The net cost of the acquisition

after deducting approximately $700 million in present value tax benefits arising from the terms

of the transaction is $22 billion The acquisition was financed with existing cash and is

expected to be modestly accretive to Altriarsquos 2008 earnings and generate an attractive double-

digit economic return It had no material impact on Altriarsquos 2007 fourth-quarter and full-year

earnings

2007 Full-Year Results

Revenues net of excise taxes increased 58 to $381 billion for the full-year 2007

driven by increases in both US tobacco and international tobacco

Operating income increased 27 to $132 billion reflecting the items described in the

attached reconciliation on Schedule 6 including higher results from operations of $512 million

and favorable currency of $471 million

Earnings from continuing operations decreased 18 to $92 billion reflecting the items

mentioned above and a higher tax rate in 2007 partially offset by a decrease in interest expense

in 2007 due to lower debt outstanding The companyrsquos effective tax rate was 315 for the full-

year 2007 versus 272 for 2006 Full-year 2007 results included favorable tax adjustments of

$251 million or $012 per share primarily due to the reversal of tax reserves and other tax

accruals no longer required and the reduction of the German corporate tax rate versus favorable

tax adjustments of $757 million or $035 per share for the full-year 2006

11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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11

Net earnings including discontinued operations decreased 186 to $98 billion

reflecting the Kraft spin-off and other items mentioned above Diluted earnings per share

including discontinued operations as detailed on Schedule 4 decreased 191 to $462

2007 Fourth-Quarter Results

Revenues net of excise taxes increased 74 to $93 billion for the fourth quarter of 2007

largely driven by international tobacco

Operating income decreased 64 to $30 billion reflecting the items described in the

attached reconciliation on Schedule 3 primarily the impact of the 2006 Dominican Republic

transaction partially offset by higher results from operations of $143 million and favorable

currency of $150 million

Earnings from continuing operations decreased 91 to $22 billion reflecting the items

mentioned above as well as a higher tax rate in the fourth quarter of 2007 versus the year-earlier

period partially offset by lower interest expense

Net earnings including discontinued operations decreased 261 to $22 billion

reflecting the impact of the Kraft spin-off and the factors mentioned above Diluted earnings per

share including discontinued operations as detailed on Schedule 1 decreased 264 to $103

US TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris USA Inc (PM USA) Altriarsquos US tobacco business achieved strong retail

share results for the full year and fourth quarter of 2007 driven by Marlboro which increased

its retail market share 05 points to 410 for the full-year 2007 and 08 points to 412 in the

fourth quarter

Full-year revenues net of excise taxes increased 12 to $150 billion for Altriarsquos US

tobacco segment which includes both PM USA and John Middleton Inc (Middleton) Fourth-

quarter revenues net of excise taxes increased 05 to $37 billion

For the full-year 2007 US tobacco operating companies income decreased 61 to $45

billion compared to 2006 The decrease was primarily driven by lower volume increased

resolution expenses investments in support of PM USArsquos smokeless products $371 million of

pre-tax charges in 2007 related to asset impairment exit and implementation costs for the

previously announced closure of the Cabarrus cigarette manufacturing facility and a $26 million

provision for the Scott case in Louisiana Those factors were partially offset by lower wholesale

promotional allowance rates and lower selling general and administrative costs US tobacco

12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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12

operating companies income would have increased by 19 for the full-year 2007 when adjusted

for the items shown in the table below

In the fourth quarter of 2007 US tobacco operating companies income decreased 32

to $11 billion compared to the year-earlier period The decrease was driven by lower volume

investments in support of PM USArsquos smokeless products increased resolution expenses $31

million of pre-tax charges in 2007 primarily related to asset impairment exit and implementation

costs for closure of the Cabarrus facility and the provision for the Scott case Those factors were

partially offset by lower wholesale promotional allowance rates and lower selling general and

administrative costs US tobacco operating companies income would have increased 10 for

the fourth quarter of 2007 compared to the year-earlier period when adjusted for the items shown

in the table below

US Tobacco 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 4518

$4812

(61)

$1089

$1125

(32)

Implementation costs 27 15 Asset impairment and exit costs related to Cabarrus plant closure

344

10

16

10

Provision for Scott case 26 26

Adjusted Operating Companies Income

$ 4915

$4822

19

$1146

$1135

10

Adjusted OCI Margin 327 325 02 pp 313 312 01 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PM USArsquos full-year 2007 cigarette shipment volume of 1751 billion units was 46

lower than the previous year but was estimated to be down approximately 36 when adjusted

for changes in trade inventories and calendar differences For the full year 2007 PM USA

estimates a decline of about 4 in total cigarette industry volume In the fourth quarter PM

USArsquos cigarette shipment volume of 417 billion units was 78 lower than the prior-year

period but was estimated to be down approximately 33 when adjusted for changes in trade

inventories and calendar differences

13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

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An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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13

Cigarette volume performance by brand for PM USA is summarized in the table below

PM USA Cigarette Volume by Brand (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 1444 1503 (39) 343 373 (80) Parliament 60 60 00 16 15 80 Virginia Slims 70 75 (72) 16 18 (108) Basic 132 145 (88) 31 35 (113) Focus Brands 1706 1783 (43) 406 441 (79) Other PM USA 45 51 (119) 11 12 (67) Total PM USA 1751 1834 (46) 417 453 (78)

US unit volume includes units sold as well as promotional units and excludes Puerto Rico and US Territories Calculation based on millions of units

For the full-year 2007 retail share gains for Marlboro and Parliament of 05 points and

01 point respectively were partially offset by losses of 01 share point each for Virginia Slims

Basic and the non-focus brands In the fourth quarter of 2007 share gains for Marlboro of 08

points were partially offset by losses of 01 share point each for Virginia Slims and Basic as

shown in the table below

PM USA Cigarette Retail Share by Brand

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change Marlboro 410 405 + 05 pp 412 404 + 08 pp Parliament 19 18 + 01 pp 19 19 00 pp Virginia Slims 22 23 - 01 pp 22 23 - 01 pp Basic 41 42 - 01 pp 40 41 - 01 pp Focus Brands 492 488 + 04 pp 493 487 + 06 pp Other PM USA 14 15 - 01 pp 14 14 00 pp Total PM USA 506 503 + 03 pp 507 501 + 06 pp Retail share performance is based on data from the Information Resources Inc(IRI)Capstone Total Retail Panel which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes The panel was not designed to capture sales through other channels including Internet and direct mail

PM USA is focused on developing new and innovative products that are based on a deep

understanding of adult tobacco consumers During 2007 PM USA launched Marlboro Smooth

Marlboro Virginia Blend and six other new cigarette line extensions These new products

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
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                                          3. button3
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                                          729. button729

14

contributed to PM USArsquos retail share growth for the year and in the fourth quarter of 2007

generated more than one share point of business

Marlboro Smooth utilizes an innovative menthol application process to create a uniquely

different smoking experience and helped drive Marlbororsquos performance as the industryrsquos

fastest-growing menthol brand Also contributing to Marlbororsquos growth was Marlboro

Virginia Blend a single-leaf non-menthol blend that reinforces the Marlboro brandrsquos flavor

heritage In addition PM USA introduced LampM packings in select geographies offering a

unique contemporary product in the discount category

As part of its adjacency growth strategy to develop new revenue and income sources for

the future PM USA initiated a test market of Marlboro Snus in the DallasFort Worth area

beginning in August 2007 Due to initial favorable reaction by adult consumers wholesalers and

retailers to the Marlboro Snus test market PM USA announced plans to expand the test market

to the Indianapolis area in early 2008 In addition PM USA began test marketing Marlboro

Moist Smokeless Tobacco in the Atlanta area in October 2007 Marlboro Moist Smokeless

Tobacco is designed to provide a premium quality product at an attractive price for adult moist

smokeless tobacco consumers Based on the encouraging initial consumer and trade response

PM USA is expanding the Marlboro Moist Smokeless Tobacco test market to include additional

counties in the greater Atlanta area in early 2008

As previously mentioned Altria completed the acquisition of Middleton on December

11 2007 Middletonrsquos results had no material impact on Altriarsquos fourth-quarter and full-year

earnings For the full-year 2007 Middletonrsquos volume revenues net of excise taxes and operating

companies income were in line with estimates provided when the acquisition was announced on

November 1 2007 Middleton participates in the machine-made large cigar segment which had

estimated volume of 53 billion units in 2007 The segment is estimated to have grown volumes

at a compound annual rate of approximately 4 over the 2003 to 2007 period

Retail market share for Middletonrsquos leading brand Black amp Mild increased 22 share

points in 2007 to 252 of the machine-made large cigar segment Retail share performance is

based on data from the most recent IRI Syndicated Reviews Database (November 2007 year-to-

date) which is a tracking service that uses a sample of stores to project market share

performance across multiple product categories including cigars

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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                                          729. button729

15

INTERNATIONAL TOBACCO

2007 Full-Year and Fourth-Quarter Results

Philip Morris International Inc (PMI) Altriarsquos international tobacco business achieved

strong income results for the full year and fourth quarter of 2007

Reported revenues net of excise taxes for the full-year 2007 of $228 billion were up

96 In the fourth quarter revenues net of excise taxes grew 116 to $55 billion

Operating companies income increased 55 to $89 billion for the full-year 2007 due

primarily to higher pricing favorable currency of $471 million and productivity and cost

savings partially offset by the impact of the 2006 gain on the Dominican Republic transaction

and higher marketing and RampD Operating companies income grew 125 for the full-year

2007 when adjusted for the impact of the Dominican Republic transaction and other items shown

in the table below

For the fourth quarter operating companies income decreased 100 to $20 billion due

primarily to the impact of the Dominican Republic transaction in the fourth quarter of 2006 as

well as unfavorable mix partially offset by higher pricing and favorable currency of $150

million Operating companies income grew 155 for the fourth quarter of 2007 when adjusted

for the impact of the Dominican Republic transaction and other items shown in the table below

PMI 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 8922

$8458

55

$2010

$2233

(100)

Divested businesses (51) (6) Asset impairment and exit costs

195

126

42

38

Gains on sales of businesses

(488)

(488)

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$ 9117

$8106

125

$2052

$1777

155

Adjusted OCI Margin 400 390 10 pp 373 361 12 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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16

Cigarette shipment volume as shown in the table below increased 22 or 186 billion

units to 8500 billion units for the full year 2007 due to the acquisition of Lakson in Pakistan

Excluding Lakson and the acquisition of local trademarks in Mexico effective November 1

2007 cigarette shipments were down 07 or 56 billion units due mainly to lower shipments in

Germany and Poland and the unfavorable impact of timing and trade inventory movements

primarily in Japan and Mexico Partially offsetting the decline were strong gains in Argentina

Egypt Indonesia Korea and Ukraine as well as favorable timing in Italy Absent acquisitions

and the net impact of unfavorable timing and inventory movements PMI shipments were

essentially flat in 2007

In the fourth quarter cigarette shipment volume increased 37 or 71 billion units to

1984 billion units due to acquisition volume from Lakson and local trademarks in Mexico as

well as gains in Argentina Colombia Egypt Indonesia Korea and Russia and favorable timing

in Italy partially offset by lower volume in Poland and the United Kingdom and unfavorable

timing primarily in Japan and Mexico Excluding the impact of acquisitions in Pakistan and

Mexico cigarette shipment volume was down 04 or 700 million units Absent the above

mentioned acquisitions and the net impact of unfavorable timing and inventory movements PMI

shipments rose 17 in the fourth quarter reflecting improving trends and strengthened business

fundamentals

PMI Cigarette Volume by Segment (Billion Units)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change European Union 2571 2590 (07) 572 573 (02) Eastern Europe Middle East amp Africa

2913

2886

09

651

639

19

Asia 2117 1946 88 510 465 97 Latin America 899 892 08 251 236 64 Total PMI 8500 8314 22 1984 1913 37 Calculation based on millions of units

PMIrsquos full-year 2007 market share performance improved versus the year-ago period in

many markets including Argentina Australia Austria Brazil Egypt Finland Greece Hungary

Israel Italy Korea Mexico the Netherlands the Philippines Portugal Singapore Sweden and

Ukraine

PMIrsquos fourth-quarter 2007 market share performance improved versus the year-ago

period in Argentina Australia Austria Brazil Dominican Republic Egypt Finland Germany

17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
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                                          201. button201
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                                          215. button215
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                                          259. button259
                                          260. button260
                                          261. button261
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                                          281. button281
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                                          392. button392
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17

Greece Hungary Israel Italy Korea the Netherlands Slovak Republic Sweden Switzerland

Taiwan and Ukraine

For the full-year 2007 Marlboro cigarette shipment volume of 3112 billion units was

down 15 due mainly to timing in Mexico and unfavorable distributor inventory movements in

Japan partially offset by gains in Argentina Bulgaria Indonesia Korea and Russia Absent

timing and inventory distortions in Japan Mexico and other markets Marlboro shipments were

down slightly at 02 in 2007 Marlboro market share was up in Argentina Brazil Egypt

Greece Hungary Indonesia Israel Korea the Philippines Poland Russia and Ukraine

In the fourth quarter total Marlboro cigarette shipment volume of 724 billion units was

down 14 due primarily to the timing and inventory distortions mentioned above partially

offset by gains in Argentina Indonesia and Russia Absent timing and inventory distortions in

Japan Mexico and other markets Marlboro cigarette shipments were up 10 in the fourth

quarter of 2007 versus the year-earlier period

Shipment volume for PMIrsquos other international brands grew by 15 or 48 billion units

to 327 billion units for the full-year 2007 driven by gains in Parliament Virginia Slims the

Philip Morris brand Merit Chesterfield Bond Street and Muratti partially offset by lower

volume for LampM and Lark

During 2007 PMI continued to build strong brand equity through innovation Notable

new product introductions included Marlboro Filter Plus in Kazakhstan Korea Romania

Russia Taiwan and Ukraine and Marlboro kretek in Indonesia Marlboro Intense a new short

cigarette developed to deliver more full-flavor taste was recently launched nationally in Turkey

In the rapidly growing menthol segment Marlboro Fresh Mint and Marlboro Crisp Mint

were successfully launched in Hong Kong and Marlboro Ice Mint was introduced in Japan

Other innovations in 2007 included Parliament Platinum in Japan Virginia Slims Uno in

Russia Ukraine Kazakhstan and Greece Virginia Slims Noire in Japan and a new smoother

tasting LampM in Russia Ukraine and Romania Also a new packaging design and

communication platform for Chesterfield was recently implemented in Eastern Europe In the

other tobacco products (OTP) segment in Germany Next Tobacco Block and LampM Tobacco

Block were introduced in the fine cut category

18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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18

EUROPEAN UNION (EU)

2007 Full-Year and Fourth-Quarter Results

In the European Union (EU) operating companies income grew 187 to $42 billion in

2007 primarily driven by higher pricing and favorable currency of $417 million Operating

companies income grew 171 for the full-year 2007 when adjusted for the impact of the items

shown in the table below

In the fourth quarter operating companies income grew 174 to $917 million driven by

higher pricing and favorable currency of $123 million Operating companies income grew

185 for the quarter when adjusted for the items shown in the table below

EU 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$4173 $3516

187 $ 917

$ 781

174

Asset impairment and exit costs

137

104

36

23

Italian antitrust charge _____ 61 _____ _____ Adjusted Operating Companies Income

$4310 $3681

171 $ 953

$ 804

185

Adjusted OCI Margin 489 466 23 pp 460 448 12 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

The total cigarette market in the EU declined 07 in 2007 PMIrsquos cigarette shipment

volume in the EU of 2571 billion units was down 07 for the full-year 2007 as declines in

Germany and Poland and unfavorable distributor inventory movements in France were partially

offset by increased shipments in Hungary and the Baltics and the impact of favorable inventory

movements in Italy Cigarette market share in the EU at 393 was down 01 point for the full-

year 2007 versus 2006 primarily due to the Czech Republic Absent distorted trade inventories

in the Czech Republic market share in the EU is estimated to have been 394 for the full-year

2007

PMIrsquos cigarette shipment volume of 572 billion units declined 02 in the fourth quarter

The total market in the EU increased 02 or 390 million units versus the fourth quarter of 2006

PMIrsquos market share in the EU at 392 was down 03 points Adjusted for the impact of trade

19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
                                          2. button2
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19

inventories in the Czech Republic PMI share in the EU is estimated to have been 395 in the

fourth quarter of 2007

In France for the full-year 2007 the total market declined 15 due to higher pricing

PMIrsquos cigarette shipments were down 48 versus 2006 Market share for PMI of 424 was

down 03 points with Marlboro down 07 share points to 302 reflecting the temporary

impact of crossing the euro500 per pack threshold In the mid-price segment the Philip Morris

brand gained 03 points to 62 PMI achieved sequential improvement in market share every

month since September

In Germany the cigarette market declined 40 for the full-year 2007 due mainly to the

tax-driven price increase in October 2006 PMIrsquos in-market cigarette sales were down 50 and

market share of 365 declined 04 points due to lower Marlboro share partially offset by share

gains for LampM PMIrsquos cigarette shipments were down 46 versus 2006 Market share in the

fourth quarter was up 14 points to 376

In Italy the total market was down 11 for the full-year 2007 while PMIrsquos in-market

sales rose 04 PMIrsquos cigarette market share of 546 grew 08 points driven by Chesterfield

and Merit Share for Marlboro in Italy of 228 was essentially unchanged PMIrsquos full-year

2007 cigarette shipments were up 29 due mainly to favorable timing of shipments compared to

2006

In Poland consumer price sensitivity within the low-price segment following significant

tax-driven price increases led to a total cigarette market decline of 35 for the full-year 2007 as

consumers switched to other tobacco products PMIrsquos market share was down 10 point to

390 primarily reflecting share declines for its low-price and local 70mm brands However

Marlboro market share rose 04 points to 85 PMIrsquos cigarette shipments in Poland declined

60 for the full-year 2007 but profits more than doubled due to improved pricing and product

mix

In Spain the total cigarette market was down 12 for the full-year 2007 while PMIrsquos

market share of 321 was down slightly Marlboro share declined 06 points to 165

partially offset by gains for Chesterfield LampM and the Philip Morris brand Cigarette

shipments in Spain rose 07 in 2007 and operating companies income climbed close to 40

20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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20

EASTERN EUROPE MIDDLE EAST amp AFRICA (EEMA)

2007 Full-Year and Fourth-Quarter Results

In Eastern Europe Middle East amp Africa (EEMA) PMIrsquos operating companies income

increased 175 to $24 billion for the full year 2007 due mainly to higher pricing improved

volumemix and favorable currency of $90 million Operating companies income grew 180

for the full year 2007 when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income for the segment increased 211 to

$516 million due mainly to higher pricing lower costs and favorable currency of $25 million

Operating companies income grew 206 for the fourth quarter of 2007 when adjusted for the

impact of the items shown in the table below

EEMA 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$2427 $2065

175 $516 $426

211

Asset impairment and exit costs

12

2

_____

2

Adjusted Operating Companies Income

$2439 $2067

180 $516 $428

206

Adjusted OCI Margin 384 369 15 pp 344 328 16 pp

Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 2913 billion units was up 09 as gains in

Algeria Bulgaria Egypt and Ukraine were partially offset by declines in Romania Russia

Serbia and Turkey In the fourth quarter of 2007 cigarette shipment volume of 651 billion units

was up 19 driven by solid gains in Eastern Europe Turkey and the Middle East partially

offset by lower duty-free shipments

In Egypt PMIrsquos cigarette shipments rose 256 for the full-year 2007 while market

share advanced 19 points to 120 driven by Marlboro LampM and Merit

In Russia shipment volume declined 20 for the full-year 2007 as lower volume for

LampM was partially offset by the continued growth of higher-margin brands including

Marlboro Parliament Chesterfield and Muratti PMI market share of 266 was unchanged

Improved brand mix and better pricing resulted in income growth of 24 In September 2007

21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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21

PMI replaced the entire LampM brand family with a completely new smoother tasting product

line-up in response to changing adult consumer preferences

In Turkey the total market was down slightly by 04 for the full-year 2007 versus 2006

while PMIrsquos market share declined 21 points to 404 due mainly to the decline of lower-

margin brands in PMIrsquos portfolio Although PMIrsquos shipments were down 16 income grew in

the double digits driven by strong pricing and growth in premium brand volume

In Ukraine shipments grew 47 for the full-year 2007 and market share rose 08 points

to 339 driven by adult consumer uptrading to Marlboro Parliament and Chesterfield

Profit growth was robust at more than 25

ASIA

2007 Full-Year and Fourth-Quarter Results

In Asia operating companies income decreased 36 to $18 billion for the full-year

2007 primarily due to lower volume in Japan and unfavorable currency of $36 million partially

offset by favorable pricing Operating companies income decreased 31 for the full-year 2007

when adjusted for the impact of the items shown in the table below

In the fourth quarter operating companies income decreased 56 to $390 million

primarily due to lower volume in Japan partially offset by favorable pricing Operating

companies income decreased 68 for the fourth quarter of 2007 when adjusted for the impact of

the items shown in the table below

Asia 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$1802 $1869

(36) $390 $413

(56)

Asset impairment and exit costs

28

19

6

12

Adjusted Operating Companies Income

$1830 $1888

(31) $396 $425

(68)

Adjusted OCI Margin 324 341 (17) pp 292 316 (24) pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

PMIrsquos full-year 2007 cigarette shipments of 2117 billion units rose 88 reflecting the

acquisition of Lakson in Pakistan and higher volume in Indonesia and Korea partially offset by a

decline in Japan Excluding the Lakson volume shipments were down 32 or 62 billion units

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
                                          1. button1
                                          2. button2
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                                          215. button215
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                                          729. button729

22

reflecting the negative impact of inventory movements and the lower in-market sales in Japan in

the fourth quarter of 2007 In the fourth quarter of 2007 PMIrsquos cigarette shipment volume of

510 billion units rose 97 due to acquisition volume in Pakistan and gains in Indonesia Korea

and Thailand partially offset by Japan Excluding acquisition volume in Pakistan volume was

down 51

In Indonesia the total cigarette market was up 39 for the full-year 2007 PMI market

share was down slightly to 280 reflecting the share decline of A Mild and Dji Sam Soe due

to a temporary stick-price disadvantage versus competitive brands partially offset by the growth

of Marlboro which gained 04 points to 40 PMIrsquos cigarette shipments grew 28 while

Marlboro shipments rose 147 driven by focused marketing and improved distribution and the

July 2007 Marlboro kretek launch

In Japan the total cigarette market declined 48 or 130 billion units for the full-year

2007 due primarily to the impact of the 2006 mid-year excise tax-driven price increase PMIrsquos

in-market sales were down 62 and market share declined 04 points to 243 due mainly to

Lark Marlbororsquos share at 99 was flat for the full-year 2007 but up 02 points in the fourth

quarter of 2007 versus the year-earlier period For the full-year 2007 cigarette shipment volume

was down 126 reflecting lower in-market sales and a reduction in distributor inventory

durations at year-end 2007 versus 2006

In Korea the total market was up 46 for the full-year 2007 PMIrsquos shipments rose

203 and market share increased 13 points to 99 The share increase was driven by

Marlboro Parliament and Virginia Slims and benefited from recent new line extensions

including Marlboro Filter Plus Income was significantly higher in 2007

LATIN AMERICA

2007 Full-Year and Fourth-Quarter Results

In Latin America operating companies income decreased 484 to $520 million in 2007

due mainly to the impact of the 2006 Dominican Republic transaction partially offset by higher

pricing in 2007 Operating companies income increased 145 for the full-year 2007 when

adjusted for the impact of the items shown in the table below

In the fourth quarter of 2007 operating companies income decreased 695 to $187

million due mainly to the impact of the 2006 Dominican Republic transaction in the year-earlier

period partially offset by higher pricing Operating companies income increased 558 for the

fourth quarter of 2007 when adjusted for the impact of the items shown in the table below

23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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23

Latin America 2007 Operating Companies Income ($ Millions)

Full Year Fourth Quarter 2007 2006 Change 2007 2006 Change

Reported Operating Companies Income

$ 520

$1008

(484) $ 187

$ 613

(695)

Divested businesses (51) (6) Asset impairment and exit costs

18

1

1

Gains on sales of businesses

_____

(488)

_____

(488)

Adjusted Operating Companies Income

$ 538

$ 470

145 $ 187

$ 120

558

Adjusted OCI Margin 270 268 02 pp 327 247 80 pp Margins are calculated as adjusted operating companies income divided by net revenues excluding excise taxes

Full-year 2007 cigarette shipment volume of 899 billion units was up 08 as higher

volume in Argentina more than offset declines in Mexico and the Dominican Republic Fourth

quarter 2007 cigarette shipment volume of 251 billion units was up 64 driven by gains in

Argentina Brazil Colombia and acquisition volume in Mexico Excluding local brands acquired

in Mexico full-year 2007 volume was down 03 while fourth-quarter 2007 volume was up

25

In Argentina the total cigarette market grew 30 for the full-year 2007 PMIrsquos market

share increased 26 points to a record 689 driven by Marlboro and the Philip Morris brand

PMI shipments grew 71 and profits advanced more than 40

In Mexico the total market declined 63 for the full-year 2007 due to lower

consumption following the price increases in January and October 2007 as well as an

unfavorable comparison with the prior year which included trade purchases in advance of the

January 2007 tax-driven price increase PMIrsquos market share gain of 08 points to a record 643

was fueled by Benson amp Hedges and Delicados Marlbororsquos share at 477 was flat versus the

prior year

24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

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An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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24

FINANCIAL SERVICES

2007 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operating companies income of $421

million for the full-year 2007 and $89 million for the fourth quarter of 2007 versus $176 million

for the full-year 2006 and $38 million for the fourth quarter of 2006 Results for the full-year

2007 include cash recoveries of $214 million related to certain airline leases previously written

down versus a provision of $103 million in 2006 Results for the fourth quarter of 2007 reflect

higher asset management gains versus the same period in 2006

Consistent with its strategic shift in 2003 PMCC is focused on managing its existing

portfolio of finance assets in order to maximize gains and generate cash flow from asset sales

and related activities PMCC is no longer making new investments and expects that its operating

companies income will fluctuate over time as investments mature or are sold

Altria Group Inc Profile

As of December 31 2007 Altria owned 100 of Philip Morris International Inc Philip

Morris USA Inc John Middleton Inc and Philip Morris Capital Corporation and

approximately 286 of SABMiller plc The brand portfolio of Altriarsquos tobacco operating

companies includes such well-known names as Marlboro LampM Parliament Virginia Slims

and Black amp Mild Altria recorded 2007 net revenues from continuing operations of $738

billion

Trademarks and service marks mentioned in this release are the registered property of or

licensed by the subsidiaries of Altria Group Inc

A complete copy of Altriarsquos audited 2007 financial statements will be available through

Altriarsquos website after they are filed with the Securities and Exchange Commission on or about

February 4 2008 If you do not have Internet access but would like to receive a copy of the 2007

audited financial statements for Altria please call toll-free (800) 367-5415 in the US and

Canada to request a copy

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

25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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25

Altria Group Incrsquos tobacco subsidiaries (Philip Morris USA Inc John Middleton Inc

and Philip Morris International Inc) are subject to 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

unfavorable currency movements and 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 and to improve productivity

Altria Group Incrsquos tobacco subsidiaries continue to be subject to litigation including

risks associated with adverse jury and judicial determinations and courts reaching conclusions at

variance with the companyrsquos understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds legislation

including actual and potential excise tax increases discriminatory excise tax structures

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 2006 and Quarterly Report on Form 10-Q for the period ended September 30

2007 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

Contact Nicholas M Rolli (917) 663-3460 Timothy R Kellogg (917) 663-2759

ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 1

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 18229$ 16027$ 137

Cost of sales 4048 3836 55

Excise taxes on products () 8976 7413 211

Gross profit 5205 4778 89

Marketing administration and research costs 1959 1822

Asset impairment and exit costs 58 48

(Gains) on sales of businesses - (488)

Operating companies income 3188 3396 (61)

Amortization of intangibles 10 6

General corporate expenses 95 139

Asset impairment and exit costs 47 7

Operating income 3036 3244 (64)

Interest and other debt expense net 28 42

Earnings from continuing operations before income taxes and equity earnings and

minority interest net 3008 3202 (61)

Provision for income taxes 862 860 02

Earnings from continuing operations before equity earnings

and minority interest net 2146 2342 (84)

Equity earnings and minority interest net 42 64

Earnings from continuing operations 2188 2406 (91)

Earnings from discontinued operations net of

income taxes and minority interest - 553

Net earnings 2188$ 2959$ (261)

Per share data

Basic earnings per share from continuing operations 104$ 115$ (96)

Basic earnings per share from discontinued operations -$ 026$

Basic earnings per share 104$ 141$ (262)

Diluted earnings per share from continuing operations 103$ 114$ (96)

Diluted earnings per share from discontinued operations -$ 026$

Diluted earnings per share 103$ 140$ (264)

Weighted average number of

shares outstanding - Basic 2104 2092 06

- Diluted 2119 2110 04

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

26

ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 2

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 4487$ 6429$ 2944$ 2748$

2006 4536 5504 2256 2475

Change (11) 168 305 110

Reconciliation

For the quarter ended December 31 2006 4536$ 5504$ 2256$ 2475$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 76

Currency - 686 307 108

Operations (64) 239 381 89

For the quarter ended December 31 2007 4487$ 6429$ 2944$ 2748$

() The detail of excise taxes on products sold is as follows

2007 826$ 4358$ 1445$ 1391$

2006 893$ 3710$ 953$ 1132$

2007 Currency increased international tobacco excise taxes -$ 472$ 196$ 78$

Net Revenues Latin America Total International tobacco Financial services Total

2007 1527$ 13648$ 94$ 18229$

2006 1211 11446 45 16027

Change 261 192 +100 137

Reconciliation

For the quarter ended December 31 2006 1211$ 11446$ 45$ 16027$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 32 108 - 123

Currency 43 1144 - 1144

Operations 241 950 49 935

For the quarter ended December 31 2007 1527$ 13648$ 94$ 18229$

() The detail of excise taxes on products sold is as follows

2007 956$ 8150$ 8976$

2006 725$ 6520$ 7413$

2007 Currency increased international tobacco excise taxes 26$ 772$ 772$

27

ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 3

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 1089$ 917$ 516$ 390$

2006 1125 781 426 413

Change (32) 174 211 (56)

Reconciliation

For the quarter ended December 31 2006 1125$ 781$ 426$ 413$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 10 23 2 12

Gains on sales of businesses - 2006 - - -

Provision for airline industry exposure - 2006 - - - -

10 23 2 12

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (16) (36) - (6)

Implementation costs - 2007 (15) - - -

Recoveries from airline industry exposure - 2007 - - - -

(31) (36) - (6)

Acquired businesses 7 - - 3

Currency - 123 25 -

Operations (22) 26 63 (32)

For the quarter ended December 31 2007 1089$ 917$ 516$ 390$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 187$ 2010$ 89$ 3188$

2006 613 2233 38 3396

Change (695) (100) +100 (61)

Reconciliation

For the quarter ended December 31 2006 613$ 2233$ 38$ 3396$

Divested businesses - 2006 (6) (6) - (6)

Italian antitrust charge - 2006 - - - -

Asset impairment and exit costs - 2006 1 38 - 48

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - - -

(493) (456) - (446)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 - (42) - (58)

Implementation costs - 2007 - - - (15)

Recoveries from airline industry exposure - 2007 - - - -

- (42) - (73)

Acquired businesses 8 11 - 18

Currency 2 150 - 150

Operations 57 114 51 143

For the quarter ended December 31 2007 187$ 2010$ 89$ 3188$

28

ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 4

and Subsidiaries

Condensed Statements of Earnings

For the Twelve Months Ended December 31

(in millions except per share data)

(Unaudited)

2007 2006 Change

Net revenues 73801$ 67051$ 101

Cost of sales 16547 15540 65

Excise taxes on products () 35750 31083 150

Gross profit 21504 20428 53

Marketing administration and research costs 7318 7170

Italian antitrust charge - 61

Asset impairment and exit costs 539 136

(Gains) on sales of businesses - (488)

(Recoveries) Provision (from) for airline industry exposure (214) 103

Operating companies income 13861 13446 31

Amortization of intangibles 28 23

General corporate expenses 487 494

Asset impairment and exit costs 111 42

Operating income 13235 12887 27

Interest and other debt expense net 215 367

Earnings from continuing operations before income taxes

equity earnings and minority interest net 13020 12520 40

Provision for income taxes 4096 3400 205

Earnings from continuing operations before equity earnings

and minority interest net 8924 9120 (21)

Equity earnings and minority interest net 237 209

Earnings from continuing operations 9161 9329 (18)

Earnings from discontinued operations net of

income taxes and minority interest 625 2693

Net earnings 9786$ 12022$ (186)

Per share data ()

Basic earnings per share from continuing operations 436$ 447$ (25)

Basic earnings per share from discontinued operations 030$ 129$

Basic earnings per share 466$ 576$ (191)

Diluted earnings per share from continuing operations 433$ 443$ (23)

Diluted earnings per share from discontinued operations 029$ 128$

Diluted earnings per share 462$ 571$ (191)

Weighted average number of

shares outstanding - Basic 2101 2087 07

- Diluted 2116 2105 05

() The segment detail of excise taxes on products sold is shown in the Net Revenues page

() Basic and diluted earnings per share are computed for each of the periods presented Accordingly

the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

29

ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 5

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Net Revenues

US tobacco European Union EEMA Asia

2007 18485$ 26682$ 12149$ 11099$

2006 18474 23752 9972 10142

Change 01 123 218 94

Reconciliation

For the twelve months ended December 31 2006 18474$ 23752$ 9972$ 10142$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 15 - - 227

Currency - 2306 760 371

Operations (4) 624 1417 359

For the twelve months ended December 31 2007 18485$ 26682$ 12149$ 11099$

() The detail of excise taxes on products sold is as follows

2007 3452$ 17869$ 5801$ 5452$

2006 3617$ 15859$ 4365$ 4603$

2007 Currency increased international tobacco excise taxes -$ 1558$ 439$ 296$

Net Revenues Latin America Total International tobacco Financial services Total

2007 5166$ 55096$ 220$ 73801$

2006 4394 48260 317 67051

Change 176 142 (306) 101

Reconciliation

For the twelve months ended December 31 2006 4394$ 48260$ 317$ 67051$

Divested businesses - 2006 - - - -

Divested businesses - 2007 - - - -

Acquired businesses 143 370 - 385

Currency 76 3513 - 3513

Operations 553 2953 (97) 2852

For the twelve months ended December 31 2007 5166$ 55096$ 220$ 73801$

() The detail of excise taxes on products sold is as follows

2007 3176$ 32298$ 35750$

2006 2639$ 27466$ 31083$

2007 Currency increased international tobacco excise taxes 42$ 2335$ 2335$

30

ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 6

and Subsidiaries

Selected Financial Data by Business Segment

For the Twelve Months Ended December 31

(in millions)

(Unaudited)

Operating Companies Income

US tobacco European Union EEMA Asia

2007 4518$ 4173$ 2427$ 1802$

2006 4812 3516 2065 1869

Change (61) 187 175 (36)

Reconciliation

For the twelve months ended December 31 2006 4812$ 3516$ 2065$ 1869$

Divested businesses - 2006 - - - -

Italian antitrust charge - 2006 - 61 - -

Asset impairment and exit costs - 2006 10 104 2 19

Gains on sales of businesses - 2006 - - - -

Provision for airline industry exposure - 2006 - - - -

10 165 2 19

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (344) (137) (12) (28)

Implementation costs - 2007 (27) - - -

Recoveries from airline industry exposure - 2007 - - - -

(371) (137) (12) (28)

Acquired businesses 7 (2) - 12

Currency - 417 90 (36)

Operations 60 214 282 (34)

For the twelve months ended December 31 2007 4518$ 4173$ 2427$ 1802$

Operating Companies Income Latin America Total International tobacco Financial services Total

2007 520$ 8922$ 421$ 13861$

2006 1008 8458 176 13446

Change (484) 55 +100 31

Reconciliation

For the twelve months ended December 31 2006 1008$ 8458$ 176$ 13446$

Divested businesses - 2006 (51) (51) - (51)

Italian antitrust charge - 2006 - 61 - 61

Asset impairment and exit costs - 2006 1 126 - 136

Gains on sales of businesses - 2006 (488) (488) - (488)

Provision for airline industry exposure - 2006 - - 103 103

(538) (352) 103 (239)

Divested businesses - 2007 - - - -

Asset impairment and exit costs - 2007 (18) (195) - (539)

Implementation costs - 2007 - - - (27)

Recoveries from airline industry exposure - 2007 - - 214 214

(18) (195) 214 (352)

Acquired businesses 6 16 - 23

Currency - 471 - 471

Operations 62 524 (72) 512

For the twelve months ended December 31 2007 520$ 8922$ 421$ 13861$

31

ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 7

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Quarters Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS

2007 Continuing Earnings 2188$ 103$

2006 Continuing Earnings 2406$ 114$

Change (91) (96)

Reconciliation

2006 Continuing Earnings 2406$ 114$

2006 Asset impairment and exit costs 38 002

2006 Gains on sales of businesses (317) (015)

2006 Tax items (126) (006)

(405) (019)

2007 Asset impairment exit and implementation costs (85) (004)

2007 Tax items 154 007

69 003

Currency 104 005

Change in shares - -

Change in tax rate (104) (005)

Operations 118 005

2007 Continuing Earnings 2188$ 103$

2007 Discontinued Earnings -$ -$

2007 Net Earnings 2188$ 103$

2007 Continuing Earnings Excluding Special Items 2119$ 100$

2006 Continuing Earnings Excluding Special Items 2001$ 095$

Change 59 53

32

ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 8

and Subsidiaries

Net Earnings and Diluted Earnings Per Share

For the Twelve Months Ended December 31

($ in millions except per share data)

(Unaudited)

Diluted

Net Earnings EPS ()

2007 Continuing Earnings 9161$ 433$

2006 Continuing Earnings 9329$ 443$

Change (18) (23)

Reconciliation

2006 Continuing Earnings 9329$ 443$

2006 Italian antitrust charge 61 003

2006 Asset impairment and exit costs 118 005

2006 Gains on sale of businesses (317) (015)

2006 Interest on tax reserve transfers to Kraft 29 001

2006 Provision for airline industry exposure 66 003

2006 Tax items (757) (035)

(800) (038)

2007 Asset impairment exit and implementation costs (452) (021)

2007 Recoveries from airline industry exposure 137 006

2007 Interest on tax reserve transfers to Kraft (50) (002)

2007 Tax items 251 012

(114) (005)

Currency 316 015

Change in shares - (002)

Change in tax rate (41) (002)

Operations 471 022

2007 Continuing Earnings 9161$ 433$

2007 Discontinued Earnings 625$ 029$

2007 Net Earnings 9786$ 462$

2007 Continuing Earnings Excluding Special Items 9275$ 438

2006 Continuing Earnings Excluding Special Items 8529$ 405

Change 87 81

() Basic and diluted earnings per share are computed for each of the periods

presented Accordingly the sum of the quarterly earnings per share amounts

may not agree to the year-to-date amounts

33

ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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ALTRIA GROUP INC Schedule 9

and Subsidiaries

Condensed Balance Sheets

(in millions except ratios)

(Unaudited)

December 31 December 31

2007 2006

Assets

Cash and cash equivalents 6498$ 4781$

All other current assets 16392 13724

Property plant and equipment net 8857 7581

Goodwill 8001 6197

Other intangible assets net 4953 1908

Other assets 6447 6837

Assets of discontinued operations - 56452

Total consumer products assets 51148 97480

Total financial services assets 6063 6790

Total assets 57211$ 104270$

Liabilities and Stockholders Equity

Short-term borrowings 638$ 420$

Current portion of long-term debt 2445 648

Accrued settlement charges 3986 3552

All other current liabilities 11713 10941

Long-term debt 7463 6298

Deferred income taxes 2182 1391

Other long-term liabilities 4627 5208

Liabilities of discontinued operations - 29495

Total consumer products liabilities 33054 57953

Total financial services liabilities 5603 6698

Total liabilities 38657 64651

Total stockholders equity 18554 39619

Total liabilities and stockholders equity 57211$ 104270$

Total consumer products debt 10546$ 7366$

Debtequity ratio - consumer products 057 019

Total debt 11046$ 8485$

Total debtequity ratio 060 021

34

This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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This is an Intelligent Financial Statementtrade by CoreFiling The Intelligent Financial Statementtrade embeds XBRL financial data in a viewable and printable document Bymoving your mouse over the displayed data pop-up CoreFiling TagTipstrade will show you how the data is internally expressed as XBRL (Please note that TagTipstraderequire Adobereg Readerreg 70 or later) To obtain the embedded XBRL report and any XBRL extension taxonomies double-click or right-click the paperclip icon or icons below For more information on the Intelligent Financial Statementtrade or XBRL please see httpwwwcorefilingcom

XBRL report mo-20071231xml

XBRL taxonomy schema mo-20071231xsd

XBRL taxonomy linkbase mo-20071231_prexml

XBRL taxonomy linkbase mo-20071231_calxml

XBRL taxonomy linkbase mo-20071231_labxml

35

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The XBRL 21 instance documentDouble click to open or right click for menu

Condensed Statement Earnings linkpresentationLink linkcalculationLink Revenue By Business Segment linkpresentationLink Operating Companies Income By Business Segment linkpresentationLink Balance Sheets linkpresentationLink linkcalculationLink Net Earnings linkpresentationLink Diluted Earnings Per Share linkpresentationLink

An extension taxonomy schemaDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu
An extension taxonomy linkbaseDouble click to open or right click for menu

Accrued Settlement Charges Acquired Businesses Operating Companies Income Acquired Businesses Net Revenues Acquired Businesses Operating Revenue Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Balance Sheet Basic Earnings Per Share Continuing Operations Change in Shares Continuing Earnings Change in Tax Rate Continuing Earnings Asset Impairment and Exit Costs Operating Companies Income Operating Expenses Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets Total Consumer Products Liabilities Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs Corporate Asset Impairment and Exit Costs Companies Asset Impairment and Exit Costs Continuing Earnings General Expenses Corporate Operating Expenses Corporate Currency Operating Companies Income Currency Continuing Earnings Currency Net Revenues Diluted Earnings Per Share Continuing Operations Diluted Earnings Per Share Discontinued Operations Divested Businesses Net Revenues Divested Businesses Operating Companies Income Excise Taxes on Products Financial Services Assets Total Financial Services Liabilities Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Implementation Costs Operating Companies Income Implementation Net Revenues Income(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Earnings from continuing operations before income taxes equity earnings and minority interest net International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment Net Minority Interest Impact Investment Impairment Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses Operating Companies Income Losses on Sales of Businesses Net of Minority Interest Impact Loss on Sales of Businesses Net of Minority Interest Impact Diluted EPS Gains on Sales of Businesses Operating Companies Income Gains on Sales of Businesses Net of Minority Interest Impact Gain on Sales of Businesses Net of Minority Interest Impact Diluted EPS Marketing Administration and Research Costs Equity earnings and minority interest net Operations Operating Companies Income Operations Continuing Earnings Operations Net Revenues Other Intangible Assets Excluding Goodwill Net (Recoveries) from airline industry exposure Provision Airline Industry Exposure Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation Total Basic Earnings Per Share Discontinued Operations Asset Impairment Exit and Implementation Costs Net Minority Interest Impact Diluted EPS Change in Shares Continuing Earnings Diluted EPS Change in Tax rate Continuing Earnings Diluted EPS Total consumer products debt Asset Impairment and Exit Costs Continuing Earnings Diluted EPS Currency Continuing Earnings Diluted EPS Debtequity ratio - consumer products Total debtequity ratio Total debt Domestic Tobacco Headquarters Relocation Charges Continuing Earnings Diluted EPS Income (Loss) from Continuing Operations After Minority Interest Diluted EPS Income (Loss) Continuing Operations After Minority Interest Reconciliation Total Diluted EPS Income (Loss) Discontinued Operations Net Tax Effect Diluted EPS Italian Antitrust Charge Diluted EPS Net Income Diluted EPS Operations Continuing Earnings Diluted EPS Tax Items Net Minority Interest Impact Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges Operating Companies Income Italian Antitrust Charge Continuing Earnings Provision for Airline Industry Exposure Operating Companies Income Provision for airline industry exposure Diluted EPS Domestic Tobacco Loss on US Tobacco Pool Domestic Tobacco Loss on US Tobacco Pool Operating Companies Income Domestic Tobacco Quota Buy-Out Operating Companies Income13 Domestic Tobacco Loss on US Tobacco Pool Continuing Earnings Domestic Tobacco Quota Buy-Out Continuing Earnings Gains (Losses) on Sales of Businesses Net of Minority Interest Impact Domestic Tobacco Loss on US Tobacco Pool Diluted EPS13 Domestic Tobacco Quota Buy-Out Diluted EPS13 Gain on Redemption of United Biscuits Investment Net of Minority Interest Impact Diluted EPS13 Gain on redemption of United Biscuits Investment Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge Net Revenues Italian antitrust charge Net Revenues Asset impairment and exit costs Net Revenues Asset impairment and exit costs Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries for airline industry exposure Net Revenues Recoveries from airline industry exposure Operating Companies Income Net Revenues Reconciliation Total Interest on tax reserve transfers to Kraft Continuing Earnings Recoveries from airline industry exposure Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft Diluted EPS Recoveries from airline industry exposure Diluted EPS Continuing Earnings Excluding Special Items Continuing Earnings Excluding Special Items Diluted EPS Recoveries for airline industry exposure Earnings from continuing operations before equity earnings and minority interest net

An extension taxonomy linkbaseDouble click to open or right click for menu
  • Net revenues
    • Cost of sales
    • Excise taxes on products ()
    • Gross profit
    • Marketing administration and research costs
    • Asset impairment and exit costs
    • (Gains) on sales of businesses
    • Operating companies income
    • Amortization of intangibles
    • General corporate expenses
    • Asset impairment and exit costs
    • Operating income
    • Interest and other debt expense net
    • Earnings from continuing operations before income taxes and equity earnings and
    • minority interest net
    • Provision for income taxes
    • Earnings from continuing operations before equity earnings
    • and minority interest net
    • Equity earnings and minority interest net
    • Earnings from continuing operations
    • Earnings from discontinued operations net of
    • income taxes and minority interest
    • Net earnings
    • Per share data
    • Basic earnings per share from continuing operations
    • Basic earnings per share from discontinued operations
    • Basic earnings per share
    • Diluted earnings per share from continuing operations
    • Diluted earnings per share from discontinued operations
    • Diluted earnings per share
    • Weighted average number of
    • shares outstanding - Basic
    • - Diluted
    • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
      • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
        • Net Revenues
        • 2007
        • 2006
        • Change
        • Reconciliation
        • For the quarter ended December 31 2006
        • Divested businesses - 2006
        • Divested businesses - 2007
        • Acquired businesses
        • Currency
        • Operations
        • For the quarter ended December 31 2007
        • () The detail of excise taxes on products sold is as follows
        • 20070
        • 20060
        • 2007 Currency increased international tobacco excise taxes
          • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
            • Operating Companies Income
            • 2007
            • 2006
            • Change
            • Reconciliation
            • For the quarter ended December 31 2006
            • Divested businesses - 2006
            • Italian antitrust charge - 2006
            • Asset impairment and exit costs - 2006
            • Gains on sales of businesses - 2006
            • Provision for airline industry exposure - 2006
            • Divested businesses - 2007
            • Asset impairment and exit costs - 2007
            • Implementation costs - 2007
            • Recoveries from airline industry exposure - 2007
            • Acquired businesses
            • Currency
            • Operations
            • For the quarter ended December 31 2007
              • Net revenues
                • Cost of sales
                • Excise taxes on products ()
                • Gross profit
                • Marketing administration and research costs
                • Italian antitrust charge
                • Asset impairment and exit costs
                • (Gains) on sales of businesses
                • (Recoveries) Provision (from) for airline industry exposure
                • Operating companies income
                • Amortization of intangibles
                • General corporate expenses
                • Asset impairment and exit costs
                • Operating income
                • Interest and other debt expense net
                • Earnings from continuing operations before income taxes
                • equity earnings and minority interest net
                • Provision for income taxes
                • Earnings from continuing operations before equity earnings
                • and minority interest net
                • Equity earnings and minority interest net
                • Earnings from continuing operations
                • Earnings from discontinued operations net of
                • income taxes and minority interest
                • Net earnings
                • Per share data ()
                • Basic earnings per share from continuing operations
                • Basic earnings per share from discontinued operations
                • Basic earnings per share
                • Diluted earnings per share from continuing operations
                • Diluted earnings per share from discontinued operations
                • Diluted earnings per share
                • Weighted average number of
                • shares outstanding - Basic
                • - Diluted
                • () The segment detail of excise taxes on products sold is shown in the Net Revenues page
                • () Basic and diluted earnings per share are computed for each of the periods presented Accordingly
                • the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts
                  • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                    • Net Revenues
                    • 2007
                    • 2006
                    • Change
                    • Reconciliation
                    • For the twelve months ended December 31 2006
                    • Divested businesses - 2006
                    • Divested businesses - 2007
                    • Acquired businesses
                    • Currency
                    • Operations
                    • For the twelve months ended December 31 2007
                    • () The detail of excise taxes on products sold is as follows
                    • 2007
                    • 2006
                    • 2007 Currency increased international tobacco excise taxes
                      • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                        • Operating Companies Income
                        • 2007
                        • 2006
                        • Change
                        • Reconciliation
                        • For the twelve months ended December 31 2006
                        • Divested businesses - 2006
                        • Italian antitrust charge - 2006
                        • Asset impairment and exit costs - 2006
                        • Gains on sales of businesses - 2006
                        • Provision for airline industry exposure - 2006
                        • Divested businesses - 2007
                        • Asset impairment and exit costs - 2007
                        • Implementation costs - 2007
                        • Recoveries from airline industry exposure - 2007
                        • Acquired businesses
                        • Currency
                        • Operations
                        • For the twelve months ended December 31 2007
                          • 2007 Continuing Earnings
                            • 2006 Continuing Earnings
                            • Change
                            • Reconciliation
                            • 2006 Continuing Earnings
                            • 2006 Asset impairment and exit costs
                            • 2006 Gains on sales of businesses
                            • 2006 Tax items
                            • 2007 Asset impairment exit and implementation costs
                            • 2007 Tax items
                            • Currency
                            • Change in shares
                            • Change in tax rate
                            • Operations
                            • 2007 Continuing Earnings
                            • 2007 Discontinued Earnings
                            • 2007 Net Earnings
                            • 2007 Continuing Earnings Excluding Special Items
                            • 2006 Continuing Earnings Excluding Special Items
                            • Change
                              • 2007 Continuing Earnings
                                • 2006 Continuing Earnings
                                • Change
                                • Reconciliation
                                • 2006 Continuing Earnings
                                • 2006 Italian antitrust charge
                                • 2006 Asset impairment and exit costs
                                • 2006 Gains on sale of businesses
                                • 2006 Interest on tax reserve transfers to Kraft
                                • 2006 Provision for airline industry exposure
                                • 2006 Tax items
                                • 2007 Asset impairment exit and implementation costs
                                • 2007 Recoveries from airline industry exposure
                                • 2007 Interest on tax reserve transfers to Kraft
                                • 2007 Tax items
                                • Currency
                                • Change in shares
                                • Change in tax rate
                                • Operations
                                • 2007 Continuing Earnings
                                • 2007 Discontinued Earnings
                                • 2007 Net Earnings
                                • 2007 Continuing Earnings Excluding Special Items
                                • 2006 Continuing Earnings Excluding Special Items
                                • Change
                                • () Basic and diluted earnings per share are computed for each of the periods
                                • presented Accordingly the sum of the quarterly earnings per share amounts
                                • may not agree to the year-to-date amounts
                                  • Assets
                                    • Cash and cash equivalents
                                    • All other current assets
                                    • Property plant and equipment net
                                    • Goodwill
                                    • Other intangible assets net
                                    • Other assets
                                    • Assets of discontinued operations
                                    • Total consumer products assets
                                    • Total financial services assets
                                    • Total assets
                                    • Liabilities and Stockholders Equity
                                    • Short-term borrowings
                                    • Current portion of long-term debt
                                    • Accrued settlement charges
                                    • All other current liabilities
                                    • Long-term debt
                                    • Deferred income taxes
                                    • Other long-term liabilities
                                    • Liabilities of discontinued operations
                                    • Total consumer products liabilities
                                    • Total financial services liabilities
                                    • Total liabilities
                                    • Total stockholders equity
                                    • Total liabilities and stockholders equity
                                    • Total consumer products debt
                                    • Debtequity ratio - consumer products
                                    • Total debt
                                    • Total debtequity ratio
                                      • Items not shown
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