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Altrias tobacco companies support organizations and programs

seeking to help reduce underage tobacco use.

nPhilip Morris USA, U.S. Smokeless Tobacco Company and John Middleton supported regulation of tobacco by theU.S. Food and Drug Administration (FDA) through the 2009 Family Smoking Prevention and Tobacco Control Act. Thlaw includes a number of provisions designed to address underage use of tobacco products.

nThe companies support state underage access prevention laws that complement FDA regulation. For example, theysupport laws that prohibit customers from purchasing tobacco products for minors or distributing tobacco productsto minors.

Altrias tobacco companies are committed to responsibly marketing their products.

nThey focus their marketing efforts on direct communications, websites and activities that involve self-imposedminimum-age requirements and age verication procedures, as well as advertisements at retail where adulttobacco consumers make their purchasing decisions.

nThey offer retail programs with requirements and nancial incentives for participating retailers to display theirproducts out of reach of customers, to sell their products only in clerk-assisted transactions and to place theirsignage in limited locations.

nThey do not pay for or endorse any product placement. Our tobacco companies decline all requests to use,display or even reference their companies brands in movies, television shows or other public entertainment media.

Underage Tobacco Use Prevention

Philip Morris USAn

U.S. Smokeless Tobacco Companyn

John Middletonn

Ste. Michelle Wine Estatesn

Philip Morris Capital Corporation December 2

PAST MONTH TOBACCO USE AMONG YOUTH AGED 12-17:2002-2009 (2009 National Survey on Drug Use and Health)*

Tobacco Products Cigarettes Cigars Smokeless Tobacco

0

5%

10%

15%

20%

2002

2003

2004

2005

2006

2007

2008

2009 0

10%

20%

30%

40%

50%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

RETAILER VIOLATION RATE(National Weighted Average - FFY 2009 Annual Synar Report)**

n According to several studies, underage tobacco use has declined since the mid-1990s, and underage smoking rates are

at the lowest levels in a generation.

n Underage access to tobacco in retail stores also has declined since the mid-1990s.

n Despite this progress, there is more to be done. Underage tobacco use is a difcult issue, and there is not a simple solution.

Kids should not smoke or use any tobacco product.

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They support We Card, which

trains and educates retailers and

provides them with resources to

help prevent underage tobacco

sales, including store signs, age

verication calendars and tip

sheets on how to spot fake IDs.

They connect parents to tools and

resources designed to help them

raise kids who do not use tobacco,

such as the Search Institutes

ParentFurther website, www.

parentfurther.com.

Altrias tobacco companies have spent over $2.3 billion on a variety of programs since 1998.

ParentFurther Big Brothers Big Sisters

They support organizations, such

as Big Brothers Big Sisters, that connect

kids with caring adults, enhance

community resources for kids and

help kids develop condence and

skills to avoid risky behaviors, like

using tobacco.

We Card

There are many funding sources available to states and communities for underage

tobacco prevention.

nIn April 2010, states received $6.4 billion from tobacco companies in annual tobacco settlement agreementpayments1. Since 1997, PM USA alone has paid more than $46 billion to the states.

nUnfortunately, states use this revenue for a variety of purposes unrelated to health programs or tobaccoprevention, and most fall short of the spending levels recommended by the U.S. Centers for Disease Controland Prevention for tobacco prevention programs.

nRecently, additional tobacco prevention funds became available to states and communities from the February2009 Federal Stimulus bill and the new health care law.

We encourage states to devote these available funds to effective programs that prevent underage tobacco use.

**Source:SubstanceAbuseandMentalHealthServicesAdministration.(2010).Resultsfromthe2009NationalSurveyonDrugUseandHealth:NationalFindings(OfceofAppliedStudi

NSDUHSeriesH-38A,HHSPublicationNo.SMA10-4586Findings).Rockville,MD.

**Nationalweightedaverageretailerviolationrates.Source:U.S.DepartmentofHealthandHumanServices.(2010).FFY2009AnnualSynarReports:YouthTobaccoSales.Rockville,MD

Retrievedfromhttp://prevention.samhsa.gov/tobacco/SynarReportFY2009.pdfonJune4,2010.

1.TheFinanceProject.FinancingandSustainingYouthPrograms.2010MasterSettlementAgreement(MSA)PaymentHighlights.

RetrievedonAugust9,2010,fromhttp://www.nanceproject.org/publications/2010MSAHighlights.pdf.

Produced by Altria Client Services for use with external stakeholders. To learn more, please visit altria.com.

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