April 24, 2005

Philip Morris International Inc. announces successful public tender offer for Coltabaco S.A.

GWP C.V., an affiliate of Philip Morris International Inc. (PMI), acquired 96.65% of the outstanding shares of Compañía Colombiana de Tabaco S.A. (“Coltabaco”) in a public tender offer completed today.

The price offered per share was COP 11,398.13 (US $4.878817). GWP has purchased 96.65% for a value of COP 700.007 billion (US $299.6 million). The offer valued 100% of Coltabaco shares at COP 724.237 billion (US $310 million).

“Our investment in Coltabaco is a great opportunity to significantly expand our business in Colombia and in Latin America,” said André Calantzopoulos, President and Chief Executive Officer of PMI. “Our investment reflects the confidence we have in the future of Colombia, its economy and its tobacco industry. It positions us for profitable future growth by partnering with a well managed and successful company that has outstanding people, and an excellent manufacturing and distribution infrastructure.”

Coltabaco was founded in 1919 and is the largest tobacco company in Colombia and the largest independent tobacco company in Latin America. Coltabaco produces and markets leading cigarette brands in the local market including Boston, Green, and Piel Roja, and has a total estimated share of 48% of the 20 billion unit domestic cigarette market. Colombia is the fourth largest cigarette market in Latin America.

“We look forward to a bright future in Colombia with Coltabaco. It is a great company with a strong heritage,” said Miroslaw Zielinski, President of the Latin America and Canada region of PMI. “We now have the opportunity to bring together the strengths of PMI, which has four brands among the top ten selling cigarette brands in the world, and Coltabaco, which leads the Colombian market and has a strong, well developed portfolio.”

Highlights of the transaction

In September 2004 GWP C.V. (an affiliate of Philip Morris International Inc.), executed sale and purchase agreements with a group of shareholders representing 51.8% of outstanding shares. Under the agreement GWP further agreed to make a public tender offer to acquire up to 100% of Coltabaco shares at a price per share of US $4.878817, representing a total of US $310 million.

Philip Morris International Inc.

PMI whose business is headquartered in Lausanne, Switzerland, held a 14.5% share of the international cigarette market in 2004. Its brands, led by Marlboro and L&M, are manufactured in more than 50 factories around the world and sold in over 160 countries. PMI is a subsidiary of Altria Group, Inc. More information is available at www.philipmorrisinternational.com.

Philip Morris International Inc. 2004 results:

Net revenues: US $39.5 billion

Income: US $6.6 billion

Unit volume: 761.4 billion

Worldwide market share 14.5%

Coltabaco headquarters are based in Medellín, Colombia.

COLTABACO 2004 estimated results, domestic tobacco:

Net revenues: US $100.6 million

Operating income: US $12.4 million

Unit volume: 10.4 billion

Share of total Colombian market: 48%

(exchange rate of COP 2,389/1 USD)

Source: Coltabaco

Media enquiries

Bogotá – Guillermo de la Torre

+57 1 628-0565

Mobile: +57 3 11 287 8804

Investor and media enquiries

New York – Nicholas M. Rolli

+1 917 663 3460

Lausanne press office

+41 21 618 4500


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

View source version on businesswire.com