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Altria Releases Spin Details

Altria (MO) just released the spin information we have been waiting for.

PHILIP MORRIS INTERNATIONAL SPIN-OFF EFFECTIVE MARCH 28, 2008

* Identifies new Board of Directors post-spin for both Altria and PMI
* Sets spin-off share distribution ratio of one-for-one

* Announces dividend policies, initial dividend rates and share repurchase programs

— Altria dividend policy anticipates payout ratio of 75% post-spin

— Altria initial post-spin annualized dividend rate of $1.16 per common share

— Altria post-spin share repurchase program of $7.5 billion over 2 years

— PMI dividend policy anticipates payout ratio of 65% post-spin

— PMI initial post-spin annualized dividend rate of $1.84 per common share

— PMI post-spin share repurchase program of $13.0 billion over 2 years

* To commence tender offer shortly for all outstanding Altria notes

* Forecasts 2008 earnings per share growth rates
— Altria 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 9% to 11% from a 2007 adjusted base of $1.50, excluding PMI, which will be accounted for as a discontinued operation for the full-year 2008

— PMI 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 12% to 14% at current exchange rates, from a 2007 pro-forma adjusted base of $2.78

Disclosure (“none” means no position): Long MO

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