With the completion of the Philip Morris International (PMI) spin-off, we are introducing a new Altria that will provide substantial value to shareholders through its powerful brands and its focus on leadership in the U.S. tobacco industry.

I must begin by recognizing Louis Camilleri and the Board of Directors for their strategic vision and wise counsel. Louis profoundly influenced the company and delivered superior shareholder value. We will miss him, and wish him the best of luck at PMI.

As we begin this new chapter in Altria’s history, we will devote most of our corporate resources towards extending our leadership position in the U.S. tobacco industry. We will have the ability to leverage resources, including Philip Morris USA’s distribution network and strong field sales force, across an array of tobacco products, and we will have a more flexible capital structure.

Importantly, Altria maintains its historic strengths including our ability to deliver consistent and attractive returns to our shareholders over the long term; a stable of strong brands; our commitment to responsibly address society’s concerns about controversial products; and an experienced, motivated and capable management team.

Guiding our work is a new corporate mission: To own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco consumers with superior branded products.

Altria’s new mission is supported by four core strategies. Our mission begins with leadership by investing in leading brands and talented people. In addition, Altria will continue to address societal concerns relevant to its business. And, to compete effectively, Altria will satisfy evolving adult consumer preferences better than competitors. Achieving these goals will allow Altria to deliver on its fourth strategy, to create substantial value for shareholders.

Altria remains a large and diverse enterprise. Philip Morris USA (PM USA) is the largest component of the company, with its focus on domestic sales of cigarettes and smokeless tobacco products. In December 2007, Altria expanded its category focus by acquiring John Middleton, Inc., one of the leading manufacturers of machine-made large cigars.

Beyond our U.S. tobacco business, Altria also owns Philip Morris Capital Corporation, where we are managing a portfolio of assets in order to maximize financial contributions to Altria, and a 28.6% interest in SABMiller, an investment that has performed well over the past few years.

Notably, Altria took significant steps toward improving organizational efficiencies in 2007. PM USA reduced its sales, general and administrative expenses by more than $300 million. In addition, its manufacturing optimization program will result in the closure of the Cabarrus manufacturing facility for additional future annual savings. Finally, Altria’s move to Richmond in 2008 allows the organization to further reduce spending.

Listed on the facing page are members of the initial Board of Directors who will guide Altria along with the talented management team that brings deep experience in our businesses and will lead the company into the future.

Altria’s financial goal is to achieve balanced and consistent long-term earnings growth. The company is committed to making disciplined investment decisions in its cigarette business and in adjacent tobacco categories to achieve growth. We also will focus on reducing our cost base to enhance margins, and use our balance sheet to add value to our shareholders.

As we look to the future, I am confident that we have the brands, the financial strength and, most importantly, the outstanding people to continue delivering superior shareholder value.

Michael E. Szymanczyk
Chairman of the Board and
Chief Executive Officer
March 31, 2008