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Philip Morris USA Launches Test Market of a New Smoke-Free, Spit-Free Tobacco Product


RICHMOND, VA (July 14, 2006) - July marks the launch of Taboka (tuh’-BOH-kuh), a smoke-free, spit-free tobacco pouch product manufactured and marketed by Philip Morris USA. Taboka is designed for adult smokers interested in smokeless tobacco alternatives to smoking and is available in test market only in the Indianapolis area.

Taboka Tobaccopaks™ are small pouches which come in two versions - Original and Taboka Green, which is the menthol version. It is manufactured in Richmond, Va. and uses pasteurized U.S. grown tobacco.

Taboka, which does not need to be refrigerated, is intended to be merchandised in the cigarette category. Philip Morris USA is conducting this test market to understand adult smoker acceptance of this new product.

“We hope those adult smokers who are interested in smokeless tobacco alternatives to smoking will switch to Taboka,” said John R. Nelson, president, operations and technology, Philip Morris USA.

Philip Morris USA’s core business is manufacturing and marketing the best quality tobacco products to adults who use them. Within this context, the company’s adjacency growth strategy looks at potential moves into complementary tobacco or tobacco-related products or processes that would allow Philip Morris USA to use it existing core infrastructure elements to grow beyond cigarettes. The test market launch of Taboka is the company’s first step in executing its adjacency growth strategy.

Smokeless tobacco products are addictive and cause serious diseases. The U.S. Surgeon General and other public health authorities have determined that smokeless tobacco products are addictive, cause serious diseases such as cancer, cardiovascular disease and other diseases of the mouth, gums and teeth; may increase the risk of serious diseases when used in combination with smoking; cause adverse reproductive effects and should not be used during pregnancy; and are not a safe alternative to smoking. To reduce the health effects of using tobacco, the best thing to do is quit. Consistent with our cigarette business, we are communicating health information and warnings to adult smokers through on-pack messages, onserts and on our website.

The company is committed to responsibly marketing its products to adult smokers. In addition to complying with the tobacco settlement agreements, Philip Morris USA has implemented responsible retailing principles in its Taboka trade programs consistent with its youth access prevention efforts for cigarettes, such as placing Taboka behind the selling counter.

Philip Morris USA has had, and maintains, a long term commitment to helping prevent youth smoking, which is now expanding to include other tobacco products. Kids should not use Taboka or any other tobacco product.

Philip Morris USA is an operating company of Altria Group Inc (NYSE: MO).

Philip Morris USA assumes no obligation to update, correct or otherwise modify any of these communication materials. We recommend that you view the most recent press releases and statements in order to receive the most current information.


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