Philip Morris International Spin-off (Completed)
Compensation and Benefits Programs FAQs

Stock-Based Plans Questions
Q:	Will I be able to exercise my stock options immediately following the Spin-off (i.e., will there be a black-out period)?
Q:	How were any Altria stock options that I hold be adjusted to compensate me for the reduction in the value of Altria stock resulting from Altria's Spin-off of PMI?
Q:	How were my Altria restricted or deferred stock affected by the Spin-off?
Q:	Will the PMI shares I received from my Altria restricted or deferred stock be restricted or unrestricted?
Q:	Will PMI employees with Altria stock options and/or Altria restricted or deferred stock be treated the same way as Altria employees?
Q:	Is there any tax impact to me as a result of the Spin-off?
Q:	Were my PMI shares deposited into my Altria UBS One Source account?
Q:	My stock options were set to expire after the Record Date. Do I need to do anything special to ensure that I can exercise them?

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Q:	Will I be able to exercise my stock options immediately following the Spin-off (i.e., will there be a black-out period)?
A:	There is a suspension of stock option exercise activity, sometimes referred to as a black-out period, for Altria stock options that began at 4:00 p.m. New York City Time on March 14, 2008, and will be lifted on April 3, 2008. The UBS One Source Web site will be unavailable during this time and you will not be able to exercise your Altria stock options, or view your Altria restricted or deferred stock, or your vested Altria shares held in your UBS Financial Services Inc. (UBS) account, until the suspension period is over. In addition, you will not be able to exercise your newly-issued PMI stock options, or view your newly-issued PMI restricted or deferred stock, until the suspension period is over. If you wish to sell vested Altria shares in your personal UBS account during the suspension period, you may do so, subject to the Insider Trading rules found in the Altria Code of Conduct for Compliance and Integrity, by contacting the UBS Customer Service Center at 1-800-315-5250. (You will not be able to trade these shares through the UBS One Source Web site until the suspension is over.) You will be able to exercise existing Kraft stock options or Kraft Stock Appreciation Rights (SARs) which will be unaffected by the PMI Spin-off.
Q:	How were any Altria stock options that I hold be adjusted to compensate me for the reduction in the value of Altria stock resulting from Altria's Spin-off of PMI?
A:	First, the grant price of your Altria stock options were reduced. Second, you received PMI stock options in addition to your existing Altria options. When both are combined, the aggregate intrinsic value of your options immediately before and immediately after the Adjustment remained the same. There may also be a small cash payment due to rounding.
Q:	How were my Altria restricted or deferred stock affected by the Spin-off?
A:	Holders of Altria restricted and deferred stock issued before January 30, 2008, were treated in a manner comparable to Altria shareholders in the Spin-off. In addition to their existing Altria restricted or deferred stock, holders received the same number of PMI restricted or deferred shares. Altria  employees holding Altria deferred stock issued on or after January 30, 2008, received additional Altria deferred stock rather than PMI deferred stock. PMI employees (including Altria employees scheduled to transfer to PMI on or after the Spin-off) holding Altria deferred stock issued on or after January 30, 2008, received PMI deferred stock as a replacement for their Altria deferred stock.
Q:	Will the PMI shares I received from my Altria restricted or deferred stock be restricted or unrestricted?
A:	The PMI shares you received as a result of the Spin-off are restricted in the same way and for the same period as the Altria stock from which it was derived. Your cash dividends from the PMI restricted or deferred stock are not restricted.
Q:	Will PMI employees with Altria stock options and/or Altria restricted or deferred stock be treated the same way as Altria employees?
A:	Yes, with one exception. PMI employees (including Altria employees scheduled to transfer to PMI on or after the Spin-off) who received an Altria deferred stock  award on or after January 30, 2008, had their awards converted to PMI deferred stock on the Distribution Date.
Q:	Is there any tax impact to me as a result of the Spin-off?
A:	If you are subject to personal income tax in the United States, there should be no impact to you as a result of the Spin-off (other than tax on any small cash payments necessary as a result of fractional shares and rounding).
Q:	Were my PMI shares deposited into my Altria UBS One Source account?
A:	No. Your PMI shares were deposited into your PMI UBS One Source account which was created for you. You should have received a Welcome Kit from UBS containing a temporary PIN and enrollment instructions approximately two weeks prior to the Spin-off.
Q:	My stock options were set to expire after the Record Date. Do I need to do anything special to ensure that I can exercise them?
A:	If your stock options were scheduled to expire between March 14, 2008 and April 2, 2008, you must have exercised them prior to March 14, 2008. There will be no extensions to the expiration dates as a result of the Spin-off and you will not be able to exercise your stock options during the suspension period. If your stock options are scheduled to expire on or after April 3, 2008, then you will be able to exercise your stock options after the suspension period ends. Please refer to the PMI Spin-off Compensation and Benefits Programs section on this Web site for more detailed information and a modeling tool that can be used to give you an idea of how your Altria and resulting PMI stock option portfolio will look after the Spin-off.

Glossary