August 13, 2001

Philip Morris International and Imperial strike agreement for Marlboro UK distribution

Philip Morris International announced today that it had entered into an agreement with Imperial Tobacco Limited for the distribution and sale of Marlboro cigarettes in the United Kingdom. This move follows the termination of a license agreement for Marlboro between Philip Morris and the Rothmans (UK) Partnership, an affiliate of BAT.

Commenting on the new arrangement, Hans Fluri, President, Philip Morris European Union Region, said: "We are delighted that Imperial will distribute and market our flagship Marlboro brand in this important market. We are optimistic that Imperial's distribution capabilities will enable us to sustain and accelerate the growth of Marlboro in a key European market."

Gareth Davis, Chief Executive Imperial Tobacco Group, said: "We are very pleased to add Marlboro to the portfolio of cigarette brands we sell in the UK. It complements our Virginia blend products by adding the world's best-selling premium American blend cigarette, which has strong growth potential in the UK. Our extensive retail coverage means Marlboro will now have much broader penetration in this market."

The agreement will take effect in mid-September when the Marlboro license agreement between Philip Morris and Rothmans (UK) Partnership terminates.



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.

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