CORRECTING and REPLACING Altria Group, Inc. (Altria) Reports 2008 Second-Quarter...

CORRECTING and REPLACING Altria Group, Inc. (Altria) Reports 2008 Second-Quarter Results

-- Reported diluted earnings per share from continuing operations
of $0.45 versus $0.34 in the second quarter of 2007

-- Adjusted diluted earnings per share from continuing operations
up 12.2% to $0.46 versus $0.41 in the second quarter of 2007

-- Altria reaffirms its 2008 guidance for adjusted diluted
earnings per share from continuing operations in the range of
$1.63 to $1.67, representing a growth rate of approximately 9%
to 11%, from a base of $1.50 per share in 2007

-- Philip Morris USA's adjusted operating companies income up
3.8% versus the second quarter of 2007

-- Marlboro achieves record retail share of 41.8%, up 0.8 share
points versus the second quarter of 2007

-- John Middleton Co. delivers strong cigar volume gains, up
11.0% versus the second quarter of 2007
RICHMOND, Va.--(Business Wire)--
In Schedule 1, Altria Group, Inc. and Subsidiaries Condensed
Consolidated Statements of Earnings, the line item that reads "net of
income taxes and minority interest" should read "Earnings from
discontinued operations, net of income taxes and minority interest."

The corrected release reads:

ALTRIA GROUP, INC. (ALTRIA) REPORTS 2008 SECOND-QUARTER RESULTS

-- Reported diluted earnings per share from continuing operations
of $0.45 versus $0.34 in the second quarter of 2007

-- Adjusted diluted earnings per share from continuing operations
up 12.2% to $0.46 versus $0.41 in the second quarter of 2007

-- Altria reaffirms its 2008 guidance for adjusted diluted
earnings per share from continuing operations in the range of
$1.63 to $1.67, representing a growth rate of approximately 9%
to 11%, from a base of $1.50 per share in 2007

-- Philip Morris USA's adjusted operating companies income up
3.8% versus the second quarter of 2007

-- Marlboro achieves record retail share of 41.8%, up 0.8 share
points versus the second quarter of 2007

-- John Middleton Co. delivers strong cigar volume gains, up
11.0% versus the second quarter of 2007

Regulatory News:

Altria Group, Inc. (NYSE: MO) today announced second-quarter
reported diluted earnings per share (EPS) from continuing operations
of $0.45 versus $0.34 in the second quarter of 2007, up 32.4% versus
the prior year. This quarter's reported results were impacted
primarily by lower pre-tax charges related to the closure of Philip
Morris USA's (PM USA) Cabarrus, North Carolina manufacturing facility,
solid operating companies income (OCI) performance by PM USA and John
Middleton Co. (Middleton), and lower general corporate and interest
expenses. Adjusted diluted EPS from continuing operations increased
12.2% to $0.46 versus $0.41 in the prior-year period.

"During the second quarter, Altria delivered strong earnings per
share growth, reflecting our commitment to deliver substantial
shareholder return," said Michael E. Szymanczyk, Chairman and Chief
Executive Officer of Altria Group, Inc. "Altria is reaffirming its
2008 earnings per share guidance, reflecting confidence in the
strength of our businesses."

"PM USA delivered solid income growth and achieved strong retail
share results, driven by Marlboro, and John Middleton's cigar business
delivered strong income, volume and share performance," Mr. Szymanczyk
said. "Altria also continued to realize cost savings from its
corporate restructuring program."

Conference Call

A conference call with members of the investment community and
news media will be webcast on July 31, 2008 at 9:00 a.m. Eastern Time.
Access to the webcast is available at www.altria.com.

2008 Full-Year Forecast

Altria reaffirms its 2008 EPS guidance. Altria forecasts that 2008
adjusted full-year diluted EPS from continuing operations will be in
the range of $1.63 to $1.67. This range represents a 9% to 11% growth
rate in EPS from an adjusted base of $1.50 per share in 2007 as shown
in Schedule 7. Altria continues to expect full-year operating
companies income growth from continuing operations in the mid-single
digits on both a reported and adjusted basis. The factors described in
the Forward-Looking and Cautionary Statements section of this release
represent continuing risks to these projections.

2008 Second-Quarter Results Excluding Special Items

Adjusted for the items shown in Table 1 below, second-quarter
adjusted diluted EPS from continuing operations increased 12.2% versus
the prior-year period to $0.46.

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Table 1 - Adjusted 2008 Second Quarter Results

Q2 2008 Q2 2007 Change
-------- -------- --------
Reported diluted EPS from continuing
operations $ 0.45 $ 0.34 32.4%
Asset impairment, exit, integration and
implementation costs 0.01 0.09
Recoveries from airline industry exposure - (0.02)
-------- --------
Adjusted diluted EPS from continuing
operations $ 0.46 $ 0.41 12.2%
*T

Adjusted for the items shown in Table 2 below, adjusted diluted
EPS from continuing operations increased 10.8% in the first half of
2008 versus the prior-year period to $0.82.

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Table 2 - Adjusted 2008 First-Half Results

Six Months Ended June 30
2008 2007 Change
-------- -------- --------
Reported diluted EPS from continuing
operations $ 0.73 $ 0.67 9.0%
Asset impairment, exit, integration and
implementation costs 0.09 0.11
Recoveries from airline industry exposure - (0.06)
Gain on sale of corporate headquarters (0.12) -
Loss on early extinguishment of debt 0.12 -
Interest on tax reserve transfers to Kraft - 0.02
-------- --------
Adjusted diluted EPS from continuing
operations $ 0.82 $ 0.74 10.8%
*T

Share Repurchase Program

Altria began repurchasing shares as part of its previously
announced share repurchase program. Altria spent $1.2 billion and
repurchased 53.5 million shares of stock at an average price of $21.81
in the second quarter of 2008.

ALTRIA GROUP, INC.

As described in "Note 15. Segment Reporting" of Altria's 2007
Annual Report, management reviews operating companies income, which is
defined as operating income before corporate expenses and amortization
of intangibles, to evaluate segment performance and allocate
resources. Management believes it is appropriate to disclose this
measure to help investors analyze business performance and trends. For
a reconciliation of operating companies income to operating income,
see the Condensed Consolidated Statements of Earnings contained in
this release.

Altria's reporting segments are Cigarettes and other tobacco
products, manufactured and sold by PM USA; Cigars, manufactured and
sold by Middleton; and Financial services, provided by Philip Morris
Capital Corporation (PMCC).

All references in this news release are to continuing operations,
unless otherwise noted.

2008 Second-Quarter Results

Net revenues increased 4.0% to $5.1 billion. Operating income
increased 30.7% to $1.3 billion, primarily driven by lower pre-tax
charges related to the closure of PM USA's Cabarrus, North Carolina
cigarette manufacturing facility, increased operating companies income
and lower general corporate expenses. In the second quarter of 2007,
Altria had a cash recovery from PMCC's assets that had been previously
written down, which positively impacted operating income in that
quarter.

Earnings from continuing operations increased 30.1% to $930
million, reflecting the items mentioned above as well as decreased
interest expense due to lower debt outstanding, partially offset by
higher income taxes.

Net earnings, including discontinued operations, decreased 58.0%
to $930 million due to the Philip Morris International (PMI) spin-off.
Diluted EPS, as detailed on Schedule 1, was $0.45.

CIGARETTES and OTHER TOBACCO PRODUCTS

2008 Second-Quarter Results

PM USA's net revenues increased 2.2% to $4.9 billion. Revenues net
of excise taxes increased 3.8% to approximately $4.1 billion,
primarily driven by lower wholesale promotional allowance rates,
partially offset by lower volume. Following the PMI spin-off in March
2008, PM USA began reporting revenues and costs of sales for contract
volume manufactured for PMI consistent with all other sales to third
parties. PM USA's second-quarter revenues included $107 million from
contract volume manufactured for PMI under an agreement that is
expected to terminate before the end of this year. As shown in Table 3
below, PM USA's adjusted revenues net of excise taxes and contract
volume manufactured for PMI increased 1.0% to approximately $4.0
billion.

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Table 3 - PM USA Adjusted Revenues ($ Millions)

Q2 2008 Q2 2007 Change
-------- -------- --------
PM USA net revenues $ 4,916 $ 4,809 2.2%
Excise taxes on cigarettes and other
tobacco products (859) (899)
-------- --------
PM USA revenues net of excise taxes 4,057 3,910 3.8%
Revenues for contract volume manufactured
for PMI (107) -
-------- --------
Adjusted PM USA revenues net of excise
taxes and contract volume manufactured for
PMI $ 3,950 $ 3,910 1.0%
*T

PM USA's operating companies income increased 33.2% to $1.3
billion, due to lower pre-tax charges related to the closure of the
Cabarrus, North Carolina cigarette manufacturing facility, as well as
lower wholesale promotional allowance rates, partially offset by lower
volume, increased resolution expenses, and costs related to the
reduction of contract volume manufactured for PMI. Adjusted for items
related to the Cabarrus, North Carolina facility closure, PM USA's
second-quarter 2008 operating companies income increased by 3.8% to
approximately $1.4 billion as shown in Table 4 below.

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Table 4 - PM USA Adjusted OCI ($ Millions)

Q2 2008 Q2 2007 Change
-------- -------- ---------
PM USA reported operating companies income $ 1,337 $ 1,004 33.2%
Asset impairment, exit and implementation
costs 35 318
-------- --------
Adjusted PM USA operating companies income $ 1,372 $ 1,322 3.8%
-------- --------
Adjusted OCI margin* 34.7% 33.8% 0.9pp
*T

* Adjusted OCI margins are calculated as adjusted operating
companies income, divided by adjusted PM USA revenues net of excise
taxes and contract volume manufactured for PMI.

PM USA's domestic cigarette shipment volume of 43.6 billion units
was 4.5% lower than the prior-year period, but was estimated to be
down approximately 3.5% when adjusted for changes in trade
inventories. PM USA estimates that total cigarette industry volume
declined approximately 4% in the second quarter. For the first half of
2008, PM USA's domestic cigarette volume of 83.7 billion units was
2.9% lower than the prior-year period, but was estimated to be down
approximately 3.5% when adjusted for changes in trade inventories. For
the full-year 2008, PM USA estimates a total cigarette industry volume
decline of approximately 3% to 3.5%.

Cigarette volume performance by brand for PM USA is summarized in
Table 5 below.

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Table 5 - PM USA Cigarette Volume* by Brand (Billion Units)

Q2 2008 Q2 2007 Change**
---------- ---------- ----------
Marlboro 36.7 37.7 (2.9)%
Parliament 1.3 1.5 (10.6)%
Virginia Slims 1.6 1.8 (12.4)%
Basic 3.0 3.5 (13.1)%
---------- ----------
Focus Brands 42.6 44.5 (4.3)%
Other PM USA 1.0 1.1 (11.3)%
---------- ----------
Total PM USA 43.6 45.6 (4.5)%
*T

* Unit volume includes units sold as well as promotional units,
and excludes Puerto Rico, U.S. Territories, Overseas Military, Philip
Morris Duty Free Inc. and contract manufacturing for PMI.

** Calculation based on millions of units.

As shown in Table 6 below, PM USA achieved strong retail cigarette
share results in the second quarter of 2008, driven by Marlboro, which
increased its retail share by 0.8 share points versus the prior-year
period to a record 41.8%.

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Table 6 - PM USA Quarterly Retail Share*
Q2 2008 Q2 2007 Change
---------- ---------- ----------
Marlboro 41.8% 41.0% 0.8pp
Parliament 1.9% 1.9% 0.0pp
Virginia Slims 2.0% 2.2% -0.2pp
Basic 4.0% 4.0% 0.0pp
---------- ---------- ----------
Focus Brands 49.7% 49.1% 0.6pp
Other PM USA 1.3% 1.4% -0.1pp
---------- ---------- ----------
Total PM USA 51.0% 50.5% 0.5pp
*T

* Retail share performance is based on data from the Information
Resources, Inc. (IRI)/Capstone Total Retail Panel, which is a tracking
service that uses a sample of stores to project market share
performance in retail stores selling cigarettes. The panel was not
designed to capture sales through other channels, including the
Internet and direct mail.

PM USA continues to test market Marlboro Snus, which is a
spit-free, smokeless tobacco pouch product designed especially for
adult smokers, in Dallas, Texas and Indianapolis, Indiana. In
addition, PM USA continues to test market Marlboro Moist Smokeless
Tobacco, which is designed to provide a premium quality product at an
attractive price for adult moist smokeless tobacco consumers, in the
greater Atlanta, Georgia area.

CIGARS

2008 Second-Quarter Results

Middleton's second-quarter net revenues were $101 million.
Revenues net of excise taxes were $85 million. Operating companies
income in the second quarter was $50 million, which includes a pre-tax
charge of $1 million for integration costs. Middleton's second-quarter
cigar shipment volume grew 11.0% versus the prior-year period to 355
million units, driven by its leading brand Black & Mild.

Middleton's second-quarter retail share increased 2.6 share points
versus the prior-year period to 27.8% of the machine-made large cigar
segment, driven by Black & Mild(1) . Second-quarter retail share for
Black & Mild increased 2.9 share points versus the prior-year period
to 27.0% of the machine-made large cigar segment.

At the end of the first quarter of 2008, PM USA's Sales Force
began representing Middleton's brands at retail. PM USA's Sales Force
efforts increased Black & Mild's retail distribution and visibility,
which contributed to Middleton's strong volume and share gains in the
second quarter.

(1) Retail share performance is based on the 12-week period ending
June 8, 2008 from the IRI Cigar Database for Food, Drug, Mass
Merchandise and Convenience trade classes, which was created to
specifically track cigar market share performance. It is substantially
similar to the IRI Syndicated Review database that was used to report
first-quarter results.

FINANCIAL SERVICES

2008 Second-Quarter Results

PMCC reported operating companies income of $30 million for the
second quarter of 2008 versus $139 million for the prior-year period.
Operating companies income was lower due to a 2007 cash recovery of
$78 million from assets that had been previously written down, as well
as lower asset management gains and lease revenues in 2008.

PMCC remains focused on managing its portfolio of leased assets to
maximize gains and cash flows from income generating assets, as well
as asset sales and related activities. PMCC is not making new
investments and expects that its operating companies income will vary
over time as investments mature or are sold.

Altria Group, Inc. Profile

As of June 30, 2008, Altria owned 100% of each of PM USA,
Middleton and PMCC, and approximately 28.5% of SABMiller plc. The
brand portfolio of Altria's tobacco operating companies includes such
well-known names as Marlboro, Parliament, Virginia Slims, Basic and
Black & Mild. Altria recorded 2007 net revenues from continuing
operations of approximately $18.7 billion.

Trademarks and service marks referenced in this release are the
property of, or licensed by, Altria Group, Inc. or its subsidiaries.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and
other forward-looking statements that involve a number of risks and
uncertainties and are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. The following
important factors could cause actual results and outcomes to differ
materially from those contained in such forward-looking statements.

Altria's tobacco subsidiaries (PM USA and Middleton) are subject
to intense price competition; changes in consumer preferences and
demand for their products; fluctuations in raw material availability,
quality and cost; fluctuations in levels of customer inventories; the
effects of global, national and local economic and market conditions;
changes to income tax laws; legislation, including actual and
potential excise tax increases; increasing marketing and regulatory
restrictions; the effects of price increases related to excise tax
increases and concluded tobacco litigation settlements on consumption
rates and consumer preferences within price segments; health concerns
relating to the use of tobacco products and exposure to environmental
tobacco smoke; governmental regulation; privately imposed smoking
restrictions; and governmental and grand jury investigations. Their
results are dependent upon their continued ability to promote brand
equity successfully; to anticipate and respond to new consumer trends;
to develop new products and markets and to broaden brand portfolios in
order to compete effectively; and to improve productivity.

Altria's subsidiaries continue to be subject to litigation,
including risks associated with adverse jury and judicial
determinations, courts reaching conclusions at variance with the
company's understanding of applicable law and bonding requirements in
the limited number of jurisdictions that do not limit the dollar
amount of appeal bonds.

Altria and its subsidiaries are subject to other risks detailed
from time to time in its publicly filed documents, including its
Quarterly Report on Form 10-Q for the period ended March 31, 2008.
Altria cautions that the foregoing list of important factors is not
complete and does not undertake to update any forward-looking
statements that it may make.

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Schedule 1
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Statements of Earnings
For the Quarters Ended June 30,
(in millions of dollars, except per share data)
(Unaudited)

2008 2007 % Change
----------------------------
Net revenues $ 5,054 $ 4,861 4.0 %
Cost of sales 2,168 2,021 7.3 %
Excise taxes on products (*) 875 899 (2.7)%
-------------------
Gross profit 2,011 1,941 3.6 %
Marketing, administration and research
costs 576 558
Asset impairment and exit costs 18 318
Recoveries from airline industry exposure - (78)
-------------------
Operating companies income 1,417 1,143 24.0 %
Amortization of intangibles 1 -
General corporate expenses 73 116
Corporate asset impairment and exit costs 1 -
-------------------
Operating income 1,342 1,027 30.7 %
Interest and other debt expense, net 18 59
Equity earnings in SABMiller (147) (162)
-------------------
Earnings from continuing operations
before income taxes 1,471 1,130 30.2 %
Provision for income taxes 541 415 30.4 %
-------------------
Earnings from continuing operations 930 715 30.1 %
Earnings from discontinued operations,
net of income taxes and minority
interest - 1,500
-------------------

Net earnings $ 930 $ 2,215 (58.0)%
===================

Per share data:
Basic earnings per share:
Continuing operations $ 0.45 $ 0.34 32.4 %
Discontinued operations $ - $ 0.71
-------------------
Net earnings $ 0.45 $ 1.05 (57.1)%
===================

Diluted earnings per share:
Continuing operations $ 0.45 $ 0.34 32.4 %
Discontinued operations $ - $ 0.71
-------------------
Net earnings $ 0.45 $ 1.05 (57.1)%
===================

Weighted average number of shares
outstanding:
Basic 2,075 2,101 (1.2)%
Diluted 2,088 2,116 (1.3)%

(*) The segment detail of excise taxes on products sold is shown in
Schedule 2.
*T

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Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended June 30,
(in millions of dollars)
(Unaudited)

Net Revenues
---------------------------------------
Cigarettes
and other
tobacco Financial
products Cigars services Total
----------------------------------------
2008 $ 4,916 $ 101 $ 37 $ 5,054
2007 4,809 - 52 4,861
% Change 2.2% - (28.8)% 4.0%

Reconciliation:
------------------------------
For the quarter ended June 30,
2007 $ 4,809 $ - $ 52 $ 4,861

Asset impairment and exit
costs - 2007 - - - -
Recoveries from airline
industry exposure - 2007 - - - -
---------------------------------------
- - - -
---------------------------------------

Asset impairment and exit
costs - 2008 - - - -
Integration costs - 2008 - - - -
Implementation costs - 2008 - - - -
---------------------------------------
- - - -
---------------------------------------

Acquired business - 101 - 101
Operations 107 - (15) 92
---------------------------------------
For the quarter ended June 30,
2008 $ 4,916 $ 101 $ 37 $ 5,054
=======================================

The detail of excise taxes on
products sold is as follows:
2008 $ 859 $ 16 $ - $ 875
2007 $ 899 $ - $ - $ 899
*T

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Operating Companies Income
---------------------------------------
Cigarettes
and other
tobacco Financial
products Cigars services Total
---------------------------------------
2008 $ 1,337 $ 50 $ 30 $ 1,417
2007 1,004 - 139 1,143
% Change 33.2% - (78.4)% 24.0%

Reconciliation:
------------------------------
For the quarter ended June 30,
2007 $ 1,004 $ - $ 139 $ 1,143

Asset impairment and exit
costs - 2007 318 - - 318
Recoveries from airline
industry exposure - 2007
- - (78) (78)
---------------------------------------
318 - (78) 240
---------------------------------------

Asset impairment and exit
costs - 2008 (18) - - (18)
Integration costs - 2008 - (1) - (1)
Implementation costs - 2008 (17) - - (17)
---------------------------------------
(35) (1) - (36)
---------------------------------------

Acquired business - 51 - 51
Operations 50 - (31) 19
---------------------------------------
For the quarter ended June 30,
2008 $ 1,337 $ 50 $ 30 $ 1,417
=======================================
*T

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Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Statements of Earnings
For the Six Months Ended June 30,
(in millions of dollars, except per share data)
(Unaudited)

2008 2007 % Change
----------------------------
Net revenues $ 9,464 $ 9,149 3.4 %
Cost of sales 4,055 3,809 6.5 %
Excise taxes on products (*) 1,681 1,699 (1.1)%
-------------------
Gross profit 3,728 3,641 2.4 %
Marketing, administration and research
costs 1,127 1,097
Asset impairment and exit costs 29 318
Recoveries from airline industry exposure - (207)
-------------------
Operating companies income 2,572 2,433 5.7 %
Amortization of intangibles 3 -
General corporate expenses 170 226
Gain on sale of corporate headquarters
building (404) -
Corporate asset impairment and exit costs 248 61
-------------------
Operating income 2,555 2,146 19.1 %
Interest and other debt expense, net 2 163
Loss on early extinguishment of debt 393 -
Equity earnings in SABMiller (290) (260)
-------------------
Earnings from continuing operations
before income taxes 2,450 2,243 9.2 %
Provision for income taxes 906 832 8.9 %
-------------------
Earnings from continuing operations 1,544 1,411 9.4 %
Earnings from discontinued operations,
net of income taxes and minority
interest 1,840 3,554
-------------------
Net earnings $ 3,384 $ 4,965 (31.8)%
===================

Per share data (**):
Basic earnings per share:
Continuing operations $ 0.74 $ 0.67 10.4 %
Discontinued operations $ 0.88 $ 1.70
-------------------
Net earnings $ 1.62 $ 2.37 (31.6)%
===================

Diluted earnings per share:
Continuing operations $ 0.73 $ 0.67 9.0 %
Discontinued operations $ 0.88 $ 1.68
-------------------
Net earnings $ 1.61 $ 2.35 (31.5)%
===================

Weighted average number of shares
outstanding:
Basic 2,091 2,099 (0.4)%
Diluted 2,105 2,113 (0.4)%
*T

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(*) The segment detail of excise taxes on products sold is shown in
Schedule 4.

(**) Basic and diluted earnings per share are computed independently
for each period. Accordingly, the sum of the quarterly earnings per
share amounts may not agree to the year-to-date amounts.
*T

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Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Six Months Ended June 30,
(in millions of dollars)
(Unaudited)

Net Revenues
---------------------------------------
Cigarettes
and other
tobacco Financial
products Cigars services Total
---------------------------------------
2008 $ 9,149 $ 192 $ 123 $ 9,464
2007 9,054 - 95 9,149
% Change 1.0% - 29.5% 3.4%

Reconciliation:
------------------------------
For the six months ended June
30, 2007 $ 9,054 $ - $ 95 $ 9,149

Asset impairment and exit
costs - 2007 - - - -
Recoveries from airline
industry exposure - 2007 - - - -
---------------------------------------
- - - -
---------------------------------------

Asset impairment and exit
costs - 2008 - - - -
Integration costs - 2008 - - - -
Implementation costs - 2008 - - - -
---------------------------------------
- - - -
---------------------------------------

Acquired business - 192 - 192
Operations 95 - 28 123
---------------------------------------
For the six months ended June
30, 2008 $ 9,149 $ 192 $ 123 $ 9,464
=======================================

The detail of excise taxes on
products sold is as follows:
2008 $ 1,650 $ 31 $ - $ 1,681
2007 $ 1,699 $ - $ - $ 1,699
*T

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Operating Companies Income
---------------------------------------
Cigarettes
and other
tobacco Financial
products Cigars services Total
----------- -------- --------- --------
2008 $ 2,377 $ 91 $ 104 $ 2,572
2007 2,134 - 299 2,433
% Change 11.4% - (65.2)% 5.7%

Reconciliation:
------------------------------
For the six months ended June
30, 2007 $ 2,134 $ - $ 299 $ 2,433

Asset impairment and exit
costs - 2007 318 - - 318
Recoveries from airline
industry exposure - 2007
- - (207) (207)
---------------------------------------
318 - (207) 111
---------------------------------------

Asset impairment and exit
costs - 2008 (29) - - (29)
Integration costs - 2008 - (3) - (3)
Implementation costs - 2008 (32) - - (32)
---------------------------------------
(61) (3) - (64)
---------------------------------------

Acquired business - 94 - 94
Operations (14) - 12 (2)
---------------------------------------
For the six months ended June
30, 2008 $ 2,377 $ 91 $ 104 $ 2,572
=======================================
*T

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Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Quarters Ended June 30,
(in millions of dollars, except per share data)
(Unaudited)

Diluted
Net Earnings E.P.S.
------------ ------------

2008 Continuing Earnings $ 930 $ 0.45
2007 Continuing Earnings $ 715 $ 0.34
% Change 30.1 % 32.4 %

Reconciliation:
-------------------------------------------
2007 Continuing Earnings $ 715 $ 0.34

2007 Asset impairment and exit costs 205 0.09
2007 Recoveries from airline industry
exposure (50) (0.02)
------------ ------------
155 0.07
------------ ------------

2008 Asset impairment, exit, integration
and implementation costs (24) (0.01)
------------ ------------
(24) (0.01)
------------ ------------

Change in shares - 0.01
Change in tax rate (6) -
Operations 90 0.04
------------ ------------
2008 Continuing Earnings $ 930 $ 0.45
2008 Discontinued Earnings $ - $ -
------------ ------------
2008 Net Earnings $ 930 $ 0.45
============ ============

2008 Continuing Earnings Adjusted For
Special Items $ 954 $ 0.46
2007 Continuing Earnings Adjusted For
Special Items $ 870 $ 0.41
% Change 9.7 % 12.2 %
*T

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Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Six Months Ended June 30,
(in millions of dollars, except per share data)
(Unaudited)

Diluted
Net Earnings E.P.S. (*)
------------ ------------

2008 Continuing Earnings $ 1,544 $ 0.73
2007 Continuing Earnings $ 1,411 $ 0.67
% Change 9.4 % 9.0 %

Reconciliation:
-------------------------------------------
2007 Continuing Earnings $ 1,411 $ 0.67

2007 Asset impairment and exit costs 241 0.11
2007 Interest on tax reserve transfers to
Kraft 50 0.02
2007 Recoveries from airline industry
exposure (133) (0.06)
------------ ------------
158 0.07
------------ ------------

2008 Asset impairment, exit, integration
and implementation costs (196) (0.09)
2008 Gain on sale of corporate headquarters
building 263 0.12
2008 Loss on early extinguishment of debt (256) (0.12)
------------ ------------
(189) (0.09)
------------ ------------

Operations 164 0.08
------------ ------------
2008 Continuing Earnings $ 1,544 $ 0.73
2008 Discontinued Earnings $ 1,840 $ 0.88
------------ ------------
2008 Net Earnings $ 3,384 $ 1.61
============ ============

2008 Continuing Earnings Adjusted For
Special Items $ 1,733 $ 0.82
2007 Continuing Earnings Adjusted For
Special Items $ 1,569 $ 0.74
% Change 10.5 % 10.8 %
*T

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(*) Diluted earnings per share is computed independently for each
period. Accordingly, the sum of the quarterly earnings per share
amounts may not agree to the year-to-date amounts.
*T

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Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Diluted Earnings Per Share from Continuing Operations
for the quarters ended March 31, June 30, September 30, and December
31, 2007
(Unaudited)

2007
----------------------------------------
Full
Q1 Q2 Q3 Q4 Year (*)
----------------------------------------

Reported diluted EPS from
continuing operations $ 0.33 $ 0.34 $ 0.43 $ 0.39 $ 1.48

Tax items - - (0.03) (0.06) (0.09)

Recoveries from airline
industry exposure (0.04) (0.02) - - (0.06)

Interest on tax reserve
transfers to Kraft 0.02 - - - 0.02

Asset impairment, exit and
implementation costs 0.02 0.09 - 0.02 0.15
------- ------- ------- ------- --------

Adjusted diluted EPS from
continuing operations $ 0.33 $ 0.41 $ 0.40 $ 0.35 $ 1.50
======= ======= ======= ======= ========
*T

-0-
*T
(*) Diluted earnings per share are computed independently for each
period. Accordingly, the sum of the quarterly earnings per share
amounts may not agree to the total for the year.
*T

-0-
*T
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)

June 30, December 31,
2008 2007
------------ ------------
Assets
---------------------------------------------
Cash and cash equivalents $ 415 $ 4,842
Other current assets 3,142 3,281
Property, plant and equipment, net 2,179 2,422
Goodwill and other intangible assets, net 3,124 3,125
Investment in SABMiller 4,273 3,960
Other long-term assets 1,854 1,782
Total assets of discontinued operations - 31,736
------------ ------------
Total consumer products assets 14,987 51,148
Total financial services assets 5,864 6,063
------------ ------------
Total assets $ 20,851 $ 57,211
============ ============

Liabilities and Stockholders' Equity
---------------------------------------------
Short-term borrowings 1,711 -
Current portion of long-term debt 378 2,354
Accrued settlement charges 2,409 3,986
Other current liabilities 2,383 4,169
Long-term debt 101 1,885
Accrued postretirement health care costs 1,887 1,916
Other long-term liabilities 2,548 2,406
Total liabilities of discontinued operations - 16,338
------------ ------------
Total consumer products liabilities 11,417 33,054
Total financial services liabilities 5,500 5,603
------------ ------------
Total liabilities 16,917 38,657
Total stockholders' equity 3,934 18,554
------------ ------------
Total liabilities and stockholders' equity $ 20,851 $ 57,211
============ ============

Total consumer products debt $ 2,190 $ 4,239
Total debt $ 2,690 $ 4,739
*T

Altria Group, Inc.
Clifford B. Fleet, 804-484-8222
Vice President, Investor Relations
or
Daniel R. Murphy, 804-484-8222
Director, Investor Relations

Copyright Business Wire 2008