SOLID RESULTS IN 2005

Building Our Businesses

• Philip Morris USA produced solid income gains and achieved total retail share of 50%, driven by Marlboro.
• Philip Morris International posted strong income growth and increased its share of the world cigarette market (excluding the U.S. and worldwide duty-free) to an estimated 15%, benefiting from the acquisition of Sampoerna in Indonesia.
• Kraft Foods made continued progress in a challenging environment, with new product revenues of approximately $1.5 billion and solid top-line growth.

Improving Litigation Environment

• The litigation climate continued to evolve favorably, with greater clarity emerging as a result of key decisions.

Committed to Responsibility

• Philip Morris USA broke ground on a new Center for Research and Technology in Virginia, and continued to distribute QuitAssist^TM resource guides to help smokers who have decided to quit.
• Philip Morris International continued to engage with governments and health authorities to achieve comprehensive regulation that combines fiscal policy, consumer information, licensing requirements and other measures to help reduce the harm caused by smoking.
• Kraft Foods introduced the Sensible Solution^TM labeling program to help consumers easily identify better-for-you choices, and adopted an approach to advertising to children that addresses consumers’ concerns.

Delivering Shareholder Value

• Total shareholder return was 27.7%, and Altria’s market capitalization grew to more than $150 billion at year-end.
• The quarterly dividend was raised 9.6% in August 2005 to $0.80 per common share, for an annualized dividend rate of $3.20 per share.