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

For Employees With Altria Deferred Stock

Altria Deferred Stock Awarded:

Prior to Jan 30, 2008

On or After Jan 30, 2008 - Altria Employees

On or After Jan 30, 2008 - PMI Employees

Altria Deferred Stock Awarded Prior to January 30, 2008

For each share of Altria deferred stock you have been awarded, you received one share of PMI deferred stock. This approach provides you with treatment comparable to public shareholders. See the example below for more information.

Your new PMI deferred shares will be subject to the same restrictions and other terms and conditions as those governing your Altria deferred stock. After the Spin-off, a new PMI Deferred Stock Agreement that reflects 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 deferred 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 deferred stock on January 31, 2007, that have a value of $78,000 on the Distribution Date (1,000 shares x Altria fair market value of $78 from the stock option example).
• Anne will receive one deferred share of PMI stock for each deferred share of Altria stock she was awarded.

After the Spin-off, Anne will have 1,000 deferred shares of Altria stock and 1,000 deferred shares of PMI stock.

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

• 1,000 shares of Altria deferred stock with a value of $26,000 (1,000 shares x $26); plus
• 1,000 shares of PMI deferred 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 deferred shares 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.  

Altria Deferred Stock Awarded:

Prior to Jan 30, 2008

On or After Jan 30, 2008 - Altria Employees

On or After Jan 30, 2008 - PMI Employees

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.)