Philip Morris International Inc.

(Continued)

Latin America

In Latin America, operating companies income decreased 48.4% to $520 million in 2007, due mainly to the impact of the 2006 Dominican Republic transaction, partially offset by higher pricing in 2007. Operating companies income increased 14.5% for the full year 2007 when adjusted for the impact of asset impairment and exit costs, and the 2006 Dominican Republic transaction.

Cigarette shipment volume of 89.9 billion units was up 0.8% in 2007, as higher volume in Argentina was partially offset by declines in Mexico and the Dominican Republic.

In Argentina, the total cigarette market grew 3.0% in 2007. PMI’s market share increased 2.6 points to a record 68.9%, driven by Marlboro and the Philip Morris brand. PMI shipments grew 7.1%.

In Mexico, PMI’s market share gain of 0.8 points to a record 64.3% was fueled by Benson & Hedges and Delicados. Marlboro’s share at 47.7% was flat versus the prior year. The total market declined 6.3% for the full year 2007, due to lower consumption following the price increases in January and October 2007, as well as an unfavorable comparison with the prior year, which included trade purchases in advance of the January 2007 tax-driven price increase.

Responsibility

PMI supports strong and effective regulation for both its products and its industry, and is committed to working with governments and the public health community towards that goal.

It wants regulation that will require all tobacco manufacturers to responsibly market their products to adult smokers, to communicate the public health authorities’ messages about the health effects of smoking, and to implement measures that help prevent youth smoking.

Importantly, PMI supports worldwide minimum-age laws and backs youth smoking prevention programs across the globe, including preventing kids from getting access to cigarettes.

More information on PMI’s responsibility initiatives is available at www.pmintl.com.