Philip Morris USA Executive Addresses Prudential Back-to-School Consumer Conference

     
BW20030903002129  20030903T172046Z UTC



( BW)(ALTRIA-GROUP)(MOP) Philip Morris USA Executive Addresses
Prudential Back-to-School Consumer Conference

    Business Editors
    UK REGULATORY NEWS

    NEW YORK--(BUSINESS WIRE)--Sept. 3, 2003--

In a presentation at the Prudential Back-to-School Consumer Conference
here, Philip Morris USA chairman and chief executive officer Michael
E. Szymanczyk said today that investments the company has made over
the past year in "product, packaging, promotion, positioning and price
are continuing to have their intended effect in the marketplace." He
also reviewed what he described as "the progress we are making against
our mission, which is to be the most responsible, effective and
respected developer, manufacturer and marketer of consumer products,
especially products intended for adults." Philip Morris USA is the
domestic tobacco operating company subsidiary of Altria Group, Inc.
(NYSE: MO).

Describing the company's new product plans, Mr. Szymanczyk said that
during the fourth quarter of 2003 Philip Morris USA will begin test
marketing an addition to the Marlboro Menthol family with a new, bold
menthol cigarette that is slightly shorter than its king-size
cigarettes.

Looking further ahead, Mr. Szymanczyk said, "We hope to be able to
bring products to the marketplace utilizing reduced exposure
technology sometime next year." He said that such products are
currently being assessed scientifically, including clinical studies
and are yielding useful information. "While we would prefer Food and
Drug Administration (FDA) guidance, in the absence of regulation we
intend to work with the public health community on how best to
communicate about these products to adult smokers," Mr. Szymanczyk
said.

Altria Group, Inc. Profile

Altria Group, Inc. is the parent company of Kraft Foods Inc., with
approximately 84% ownership of outstanding Kraft common shares, Philip
Morris International Inc., Philip Morris USA Inc. and Philip Morris
Capital Corporation. In addition, Altria Group, Inc. has a 36%
economic interest in SABMiller plc, the world's second-largest brewer.
The brand portfolio of Altria Group, Inc.'s consumer packaged goods
companies includes such well-known names as Kraft, Jacobs, L&M,
Marlboro, Maxwell House, Nabisco, Oreo, Oscar Mayer, Parliament,
Philadelphia, Post and Virginia Slims. Altria Group, Inc. recorded
2002 net revenues of $80.4 billion.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other
forward-looking statements that involve a number of risks and
uncertainties and are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. The following
important factors could cause actual results and outcomes to differ
materially from those contained in such forward-looking statements.
  
Altria Group, Inc.'s consumer products subsidiaries are subject to
unfavorable currency movements; intense price competition, changes in
consumer preferences and demand for their products; changing prices
for raw materials, fluctuations in levels of customer inventories and
the effects of foreign economies and local economic and market
conditions. 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 in a consolidating environment at the retail and
manufacturing levels; to improve productivity; and to respond
effectively to changing prices for their raw materials.
   
Altria Group, Inc.'s tobacco subsidiaries (Philip Morris USA and
Philip Morris International) continue to be subject to litigation,
including risks associated with adverse jury and judicial
determinations, courts reaching conclusions at variance with the
company's understanding of applicable law, bonding requirements and
the absence of adequate appellate remedies to get timely relief from
any of the foregoing; price disparities and changes in price
disparities between premium and lowest-price brands; legislation,
including actual and potential excise tax increases; increasing
marketing and regulatory restrictions; the effects of price increases
related to excise tax increases and concluded tobacco litigation
settlements on consumption rates and consumer preferences within price
segments; health concerns relating to the use of tobacco products and
exposure to environmental tobacco smoke; governmental regulation;
privately imposed smoking restrictions; and governmental and grand
jury investigations.
  
Altria Group, Inc.'s financial flexibility may be affected by its
current inability to access credit markets for short-term and
long-term borrowings on terms as favorable as those that existed prior
to recent actions by credit rating agencies.
   
Altria Group, Inc.'s financial services subsidiary (Philip Morris
Capital Corporation) is subject to the effects of a weak economy,
particularly with respect to aircraft leases to the troubled airline
industry.

Altria Group, Inc.'s consumer products 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, 2002 and its Quarterly Report on Form 10-Q for the
period ended June 30, 2003. 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.

Note to Editors

Mr. Szymanczyk's remarks will be webcast live beginning at
approximately 1:30 p.m. Eastern Time on September 3, 2003, at
www.altria.com. The text of Mr. Szymanczyk's remarks also will be
posted under the Investor Relations link on the company's Web site
later the same day. An archived copy of the webcast will be available
until 5:00 p.m. September 10, 2003.

   Short Name: Altria Group Inc
   Category Code: MSC
   Sequence Number: 00009237
   Time of Receipt (offset from UTC): 20030903T172616+0100

    --30--ac/uk*

    CONTACT: Altria Group Inc             

    KEYWORD: NEW YORK UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: MANUFACTURING FOODS/BEVERAGES
    SOURCE: Altria Group Inc

Today's News On The Net - Business Wire's full file on the Internet
                          with Hyperlinks to your home page.
                          URL: http://www.businesswire.com