REVOKE "LICENSE TO KILL"
April 23, 2003

ALTRIA SHAREHOLDERS MTG
April 24, 2003

TEEN ADVOCACY WORKSHOP
April 23, 2003

By MICHAEL BUETTNER, Associated Press Writer
Thu Apr 24, 2003

RICHMOND, Va. - Altria Group's chairman and chief executive told shareholders Thursday that the worst is behind the tobacco and food giant, despite numerous pending lawsuits and judgments against its Philip Morris USA unit.

Leading his first annual meeting, Louis C. Camilleri said he believes the company's Philip Morris USA unit will be successful in appealing an Illinois judge's order to pay a crippling $10.1 billion for misleading smokers into believing light cigarettes are less harmful than regular brands.

Last week, the judge slashed by half a $12 billion bond originally levied against Philip Morris to appeal the verdict. Philip Morris executives had said paying the full bond would drive the company to bankruptcy and force it to default on its share of the $206 billion promised over 25 years under the 1998 tobacco settlement.

Camilleri said Thursday that the company "will now be asking for an expedited legal review" and noted that except for some small legal fees, "the entire amount of the bond will be returned to Philip Morris USA" if the verdict is overturned.

While there are numerous other smoking-related lawsuits pending against the company, Camilleri said he is confident it can defend itself. "We have the people, the perseverance and the clear resolve to work through even the most difficult litigation," he said.

Camilleri noted that "a convergence of adverse factors," including a weak economy and sharp increases in some states' excise taxes on tobacco, caused Philip Morris USA's financial performance to lag last year.

However, in answer to an investor's question, he said he is "very confident the Philip Morris USA will do very well in the future. I think the worst is behind it."

The verdict dominated discussion during the company's annual shareholders meeting Thursday.

The parent company's name change drew comment from other speakers. Katherine Mulvey, executive director of Massachusetts based activist group Infact, accused the company of making the change to distance itself from its history as a tobacco company. Camilleri responded that "we are very proud of the Philip Morris name and very proud of our tobacco heritage."

The conglomerate, which owns Philip Morris USA and Philip Morris International Inc., also controls Kraft Foods Inc., maker of Oscar Mayer and Nabisco brand foods.

About 100 demonstrators gathered at the gate of the company's cigarette-making complex here, where the meeting was held. Props included a giant inflated cigarette pack labeled "Licensed to Kill," a reference to a sham corporation recently chartered in Virginia by activists protesting what they see as lax corporate regulation. A sign held by one protester read, "CigarettesWeapons of Mass Destruction."

Activist groups had proposed a number of resolutions for shareholder approval. Two would have required the company to prepare reports on ways to prevent cigarette sales to minors. Another would have required the company to include detailed health information in packages of its "light" cigarettes.

Altria had recommended that shareholders vote against the proposals, arguing that the company is adequately addressing the issues concerned. All were rejected by more than 90 percent of the voting shares.

Shares of Altria fell 6 cents to close at $32.90 Thursday on the New York Stock Exchange.

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