Philip Morris International Spin-off (Completed)
Stock-Based Plans

For Employees with Altria Restricted Stock

For each share of Altria restricted stock you have been awarded, you received one share of PMI restricted stock. This approach treats you, as an employee-shareholder, the same as all other public shareholders. See the example below for more information.

Your new PMI restricted stock will be subject to the same restrictions and other terms and conditions as those governing your Altria restricted stock. After the Spin-off, new PMI Restricted Stock Agreements that reflect the changes described below will be available on the UBS One Source Web site, www.ubs.com/onesource/pm (available after the Distribution Date), and, for active employees, on the ALCS and PMI intranet sites.

Example

In this example, let's take a look at how the Spin-off affects Anne's Altria restricted stock. Some of the assumptions used in this example were first introduced in the stock option example.

• Anne was awarded 1,000 shares of Altria restricted stock that have a value of $78,000 on the Distribution Date (1,000 shares x Altria fair market value of $78 per share).
• Anne will receive one share of PMI restricted stock for each restricted share of Altria stock she was awarded.
• After the Spin-off, Anne will have 1,000 shares of Altria restricted stock and 1,000 shares of PMI restricted stock.

Using the post-Adjustment price of Altria stock of $26 and the post-Adjustment price of PMI stock of $52 from the stock option example, Anne's holdings now have the following value:

• 1,000 shares of Altria restricted stock with a value of $26,000 (1,000 shares x $26); plus
• 1,000 shares of PMI restricted stock with a value of $52,000 (1,000 shares x $52).
• Total value of holdings: $78,000

After the Spin-off, the stock of each company will now trade independently, so the value of Anne's PMI and Altria restricted stock will reflect the movement of the stock prices of both independent companies.

Note: The above example is for illustrative purposes only and is not intended to reflect the price of Altria or PMI stock on the Distribution Date.

Glossary

Contact Information

Altria Contacts
www.ubs.com/
onesource/mo
Tel: 1-800-315-5250
(U.S. only)
Tel: 1-201-352-2316
(Outside U.S.)

Philip Morris International Contacts
www.ubs.com/
onesource/pm
Tel: 1-877-762-8827
(U.S. only)
Tel: 1-201-272-7741
(Outside U.S.)