Philip Morris International Spin-off (Completed)

Stock-Based Plans

Administrative Matters

• Administration During the Spin-off
• Post-Spin-off Administration 
• Vested Shares

Administration During the Spin-off

UBS Financial Services Inc. (UBS) will track each grant separately as the calculation for each grant will be different.

After the Spin-off, you will be able to reconcile your new grants to your old grants by looking at the grant ID. Each grant has a unique ID that can be viewed on the UBS One Source Web sites, www.ubs.com/onesource/mo and www.ubs.com/onesource/pm (available after the Distribution Date). Please note this is not your personal user ID which remains unchanged. The new grant ID will end with the same digits as your current grant ID and will be preceded by the following codes:

• Existing Altria options with adjusted exercise prices: Grant ID will begin with AA (existing Altria options beginning with the letter A will show as canceled);
• New PMI options: Grant ID will begin with P;
• Existing Altria restricted and deferred shares remain unchanged; and
• New PMI restricted and deferred shares will begin with PR and PD, respectively.

For example, if your current option ID is A00000000345, then your new Altria grant will be AA0000000345 and your new PMI grant will be P00000000345.

• A PMI UBS One Source account was created for each participant as a result of the Spin-off and, approximately two weeks prior to the Spin-off, you should have received a Welcome Kit in the mail containing a temporary PIN with enrollment instructions for your PMI account, enabling you to log on to the newly-created PMI UBS One Source Web site once the suspension is lifted.
• On or after April 3, 2008, you will need to log on to the Web site that relates to the share or stock option you wish to view (i.e., even if you are an Altria employee or former employee, you will view and transact your PMI options, restricted or deferred stock on the PMI UBS One Source Web site). 
• There are no changes to the Kraft UBS One Source Web site or customer service telephone numbers as a result of the PMI Spin-off.

Once the suspension of stock option activity is over, you can log on to see how your grants have changed after the Spin-off. In addition, shortly after the Spin-off, UBS will send you a copy of your revised portfolio(s).

Post-Spin-Off Administration

After the Spin-off, Altria and PMI will continue to work together, and with UBS, to ensure smooth administration of your shares and stock options as follows:

• Status Changes for Active Employees: As an active employee of Altria, PMI, Kraft or SABMiller, your employer will continue to notify UBS of any employment status change (e.g., retirement, termination of employment) that would affect your holdings, and that information will apply to Altria, PMI, and Kraft shares and stock options. In addition, all tax reporting will continue to be handled by your employer. 
• Status Changes for Former Employees: All tax reporting is handled by the employer where you last worked before leaving Altria (or a company that was formerly a subsidiary of Altria).
• Change of Address for Active and Former Employees: Your employer does not supply UBS with a mailing address for you. It continues to be your responsibility to inform UBS if you change your address. It is best to change your address online on the UBS One Source Web sites, www.ubs.com/onesource/mo and www.ubs.com/onesource/kft. 

Notes:

To ensure you receive all written communications from UBS (including important information such as notices of impending stock option expiration), please verify that the address UBS currently has on file for you is accurate in each database where you hold unexercised stock options and/or unvested restricted or deferred stock.

In general, the underlying terms and conditions (e.g., vesting period, expiration date) of your grants remain unchanged. In particular, although Altria and PMI will no longer be affiliated after the Spin-off, this alone will not trigger a termination of employment at the time of the Spin-off for purposes of Altria, PMI or Kraft stock option expirations or restricted or deferred stock forfeitures.

Vested Shares

If you have vested Altria shares in your UBS brokerage account (or an account with any other broker), you received an allocation of an equal number of PMI shares. These shares were delivered into your account the day after the Spin-off.  You may not be able to view these shares on your UBS One Source account, however, until approximately 3 - 5 business days after the Spin-off. UBS will send a notice in the mail indicating the deposit of the shares. If you need to sell or transfer your shares prior to their availability on the UBS One Source Web site, please contact the UBS Customer Service Center at 1-800-315-5250.

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.)