Strategy for Financial Growth

Altria Group's scale, market position, balance sheet strength and improved operational focus make the company one of the most compelling investment opportunities available in tobacco and consumer products.

Altria Group now has greater focus, with most of our corporate resources directed toward building our leadership position in the U.S. tobacco industry. The U.S. tobacco industry remains one of the largest and most profitable markets in the world, and has additional growth opportunities for Altria Group. Altria Group will have the ability to leverage resources, such as Philip Morris USA's distribution network and strong field sales force, across an array of tobacco products including acquisitions like John Middleton. Altria Group will also have a more flexible capital structure.

Altria Group will maintain its historic strengths of a strong commitment and ability to deliver consistent and attractive return to our shareholders over the long-term; a stable of strong brands; continued efforts to responsibly address society's concerns about controversial products; and an experienced, motivated and capable management team.

We believe we can achieve our financial goals:

• By efficiently and moderately growing market share and income in the cigarette category;
• By making disciplined investment decisions in adjacent categories, both organically and potentially through acquisition, provided we have a strategic rationale and the expected return exceeds our cost of capital;
• By executing against disciplined cost management opportunities, Altria Group's objective is to reduce costs at a rate that exceeds cigarette volume declines; and
• By prudently leveraging our strong balance sheet while maintaining necessary financial flexibility.

These efforts are driven by:

• Powerful brands like Marlboro and Black & Mild;
• Industry leading innovation and consumer insight;
• A unique ability to connect with adult tobacco consumers;
• Significant efforts to align with society's expectations;
• Passionate and talented people;
• Disciplined cost management; and
• Formidable financial strength that gives the company great ability to deliver consistent and substantial shareholder return.