December 2, 2003

Philip Morris Holand acquires 97.8% of Papastratos

Completion of the public tender offer

Philip Morris Holland B.V., an affiliate of Philip Morris International, announced today that the public tender offer for the Greek cigarette company Papastratos Cigarette Manufacturing S.A. has been completed sucessfully. Together with the 76.5% stake acquired before the public tender offer was launched and open market purchases on the Athens Exchange, upon completion of the off-exchange transfer of the shares tendered in the public offer, Philip Morris Holland will own 97.83% of Papastratos.

Philip Morris Holland confirmed its plans for Papastratos, including its intention to invest in the improvement of Papastratos's production facilities in Greece, its commitment to keep the Papastratos name for 8 years and its intention to continue production in Greece of the Assos, President and Marlboro brands for the Greek market.

Philip Morris Holland intends to procure delisting of Papastratos shares from the Athens Exchange, in accordance with Greek securities legislation. A further announcement about the delisting will be made in due course.

About philip morris international inc.

PMI is the world’s leading international tobacco company, with six ot the world’s top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the developement and commercialization of Reduced-Risk Products (RRPs). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabalities in product development, state-of-the-art facilities, and indusrty-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements.

For more information

See pmi.com and pmiscience.com

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