Altria Group, Inc. (Altria) Reports 2008 First-Quarter Results

-- Net revenues increased 2.8% to $4.4 billion

-- Adjusted diluted earnings per share from continuing operations
up 12.1% to $0.37 versus $0.33 in the first 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

-- Reported diluted earnings per share from continuing operations
of $0.29, which includes net costs and charges related to the
spin-off of Philip Morris International Inc., versus $0.33 in
the first quarter of 2007

-- Spin-off of Philip Morris International Inc. completed

-- Marlboro delivers strong retail share gains, up 0.7 share
points to 41.5%

-- John Middleton, Inc. posts strong cigar volume gains, up 8.2%,
driven by Black & Mild
RICHMOND, VA.--(Business Wire)--
Regulatory News:

Altria Group, Inc. (NYSE: MO) today announced reported diluted
earnings per share from continuing operations of $0.29 in the first
quarter of 2008 versus $0.33 in the first quarter of 2007, down 12.1%
versus the prior year. This quarter's results were impacted by net
costs and charges related to the spin-off of Philip Morris
International Inc. (PMI) and the closure of Altria's headquarters in
New York as well as other items detailed in Schedule 2. Adjusted for
items detailed in Table 1, diluted earnings per share from continuing
operations were up 12.1% to $0.37 versus $0.33 in the year-earlier
period.

"In the first quarter, Altria successfully completed the spin-off
of PMI, which we expect will further enhance shareholder value," said
Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria
Group, Inc. "In conjunction with this spin-off, Altria also completed
its corporate restructuring, including relocating our corporate
headquarters to Richmond, Virginia. These actions will substantially
reduce the company's cost structure."

"Adjusted for special items, Altria delivered solid earnings per
share growth of 12.1%," Mr. Szymanczyk said. "PM USA achieved strong
retail share growth behind the strength of Marlboro. As expected, PM
USA's operating income results were lower than last year. PM USA
expects income performance to improve as the year unfolds. We are
pleased with John Middleton's strong income, volume and share
performance. This is the first full quarter that John Middleton is
reporting results as an Altria operating company."

Spin-off of Philip Morris International Inc. Completed

On March 28, 2008, Altria completed the spin-off of PMI to its
shareholders. Altria's shareholders received one share of PMI common
stock for every share of Altria common stock outstanding as of the
March 19, 2008 record date. Additional details of the spin-off are
available at www.altria.com/pmispinoff or in the information statement
mailed to all shareholders of Altria common stock as of the record
date.

Altria's 2008 reported results and previous-year results reflect
PMI as a discontinued operation. As such, net revenues and operating
companies income for PMI are excluded from the company's continuing
results, while the net earnings impact is included as a single line
item.

Tender Offer for Altria Notes Completed

On February 29, 2008, in connection with the PMI spin-off, Altria
and its subsidiary, Altria Finance (Cayman Islands) Ltd., completed
debt tender offers and consent solicitations to purchase for cash $2.3
billion of notes and debentures denominated in U.S. dollars and EUR
373 million in euro-denominated bonds. Altria arranged a $4.0 billion
bridge loan facility to finance the tender offer. Altria intends to
access the public-debt market to replace the retired debt. As a result
of the tender offer and consent solicitations, Altria recorded a $393
million pre-tax loss for the early retirement of this debt.

Sale of NY Headquarters Building Completed

On March 25, 2008, Altria completed the sale of its corporate
headquarters building at 120 Park Avenue in New York City. Altria
recorded a pre-tax gain of $404 million on the sale of the
headquarters building.

Corporate Restructuring

In connection with the PMI spin-off, Altria has restructured its
corporate headquarters functions, which included the move of its
corporate headquarters to Richmond, Virginia. Altria incurred pre-tax
charges of $247 million, consisting primarily of employee separation
costs, as well as investment banking and legal fees associated with
the PMI spin-off. This restructuring program is expected to yield
approximately $250 million in annual savings, beginning in 2009.

Share Repurchase Program Commenced

As previously announced, the Board of Directors has authorized a
$7.5 billion two-year share repurchase program. Altria began
repurchasing shares as part of this program in April 2008.

Conference Call

A conference call with members of the investment community and
news media will be webcast today at 5 p.m. Eastern Time. Access to the
webcast is available at www.altria.com.

2008 First-Quarter Results Excluding Special Items

Adjusted for the items shown in the table below, diluted earnings
per share from continuing operations increased 12.1% to $0.37 for the
first quarter of 2008.

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Table 1 First Quarter
2008 2007 Change
---------------------
Reported diluted EPS from continuing operations $0.29 $0.33 (12.1)%
Asset impairment, exit, integration and
implementation costs 0.08 0.02
Recoveries from airline industry exposure - (0.04)
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
------ ------
Diluted EPS from continuing operations, adjusted
for the above items $0.37 $0.33 12.1%
----------------------------------------------------------------------
*T

2008 Full-Year Forecast

Altria reaffirms its 2008 earnings per share guidance. Altria
forecasts that 2008 adjusted full-year diluted earnings per share from
continuing operations will grow in the range of $1.63 to $1.67. This
represents a 9% to 11% growth rate from an adjusted base of $1.50 per
share in 2007 as shown in Table 2 below. This full-year earnings per
share forecast reflects expected stronger earnings per share growth in
the second half of this year compared to the first half. This forecast
also reflects the income contribution from John Middleton, Inc.
(Middleton), the impact of share repurchases and a higher effective
tax rate. Altria also expects full-year operating companies income
growth from continuing operations in the mid-single digits on a
reported and underlying basis. The factors described in the
Forward-Looking and Cautionary Statements section of this release
represent continuing risks to these projections.

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Table 2
Full-year 2007
--------------
Reported diluted EPS from continuing operations $1.48
Tax items (0.09)
Recoveries from airline industry exposure (0.06)
Interest on tax reserve transfers to Kraft 0.02
Asset impairment, exit and implementation costs 0.15
--------------
Diluted EPS from continuing operations, adjusted for the
above items $1.50
----------------------------------------------------------------------
*T

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 has revised its reporting segments to reflect the PMI
spin-off and the December 2007 acquisition of Middleton. Beginning
with the first quarter of 2008, Altria's reporting segments are
Cigarettes and Other Tobacco Products, manufactured and sold by Philip
Morris USA (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. Schedules reflecting the PMI spin-off and the
Kraft Foods Inc. (Kraft) spin-off with associated revised results for
the years 2006 and 2007 are attached.

2008 First-Quarter Results

Net revenues increased 2.8% to $4.4 billion. Operating income
increased 8.4% to $1.2 billion, primarily driven by the $404 million
pre-tax gain on the sale of the corporate headquarters building,
partially offset by a pre-tax charge of $247 million for the corporate
restructuring, and other items detailed in Schedule 2.

Earnings from continuing operations decreased 11.8% to $614
million, reflecting a $393 million loss on the early extinguishment of
debt related to the bond tender offer, partially offset by the items
mentioned above and interest on tax reserve transfers to Kraft in
2007.

Net earnings, which include PMI and Kraft as discontinued
operations and the factors mentioned above, decreased 10.8% to $2.5
billion. This decrease was primarily due to the spin-off of Kraft in
the first quarter of 2007, partially offset by higher earnings from
PMI in the first quarter of 2008. Diluted earnings per share,
including discontinued operations as detailed on Schedule 1, decreased
10.8% to $1.16.

CIGARETTES and OTHER TOBACCO PRODUCTS

2008 First-Quarter Results

PM USA achieved strong retail cigarette share results for the
first-quarter 2008, driven by Marlboro, which increased its retail
market share 0.7 points to 41.5% in the first quarter.

Net revenues and revenues net of excise taxes were essentially
unchanged at $4.2 billion and $3.4 billion, respectively. Operating
companies income decreased 8.0% to $1.0 billion compared to the
year-earlier period. The decline was driven by lower volume, costs
related to the reduction of volume produced for PMI, higher resolution
expenses, the timing of promotional expenditures and a $26 million
pre-tax charge for the previously announced closure of the Cabarrus,
NC cigarette manufacturing facility. These factors were partially
offset by lower wholesale promotional allowance rates.

PM USA's cigarette shipment volume of 40.1 billion units was 1.2%
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 first quarter. For the full-year 2008, PM USA
estimates a total cigarette industry volume decline of approximately
3%.

Cigarette volume performance by brand for PM USA is summarized in
the table below:

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PM USA Cigarette Volume* by Brand (Billion Units)
Q1 2008 Q1 2007 Change**
----------------------------------------------------------------------
Marlboro 33.2 33.3 (0.2)%
Parliament 1.3 1.3 (3.8)%
Virginia Slims 1.5 1.7 (9.5)%
Basic 3.1 3.2 (3.0)%
------- ------- --------
Focus Brands 39.1 39.5 (1.0)%
Other PM USA 1.0 1.1 (8.3)%
------- ------- --------
Total PM USA 40.1 40.6 (1.2)%
*T

*Unit volume includes units sold as well as promotional units, and
excludes Puerto Rico, U.S. Territories, Overseas Military and Philip
Morris Duty Free Inc. **Calculation based on millions of units.

As shown in the following table, PM USA's total retail share
increased to 50.9% in the first quarter of 2008, driven by Marlboro,
which had a strong retail share gain of 0.7 share points.

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PM USA Quarterly Retail Share*
Q1 2008 Q1 2007 Change
----------------------------------------------------------------------
Marlboro 41.5% 40.8% 0.7pp
Parliament 1.9% 1.9% 0.0pp
Virginia Slims 2.1% 2.2% -0.1pp
Basic 4.0% 4.1% -0.1pp
------- ------- --------
Focus Brands 49.5% 49.0% 0.5pp
Other PM USA 1.4% 1.4% 0.0pp
------- ------- --------
Total PM USA 50.9% 50.4% 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 internet
and direct mail.

As part of its adjacency growth strategy to develop new revenue
and income sources for the future, PM USA is test marketing Marlboro
Snus, which is a spit-free, smokeless tobacco pouch product designed
especially for adult smokers. PM USA began testing Marlboro Snus in
Dallas, Texas in August of 2007 and expanded the test into the
Indianapolis, Indiana area in the first quarter of 2008. PM USA
believes snus offers long-term potential as an alternative product for
adult smokers as well as other adult tobacco users.

In addition, PM USA is test marketing Marlboro Moist Smokeless
Tobacco, which is designed to provide a premium quality product at an
attractive price for adult moist smokeless tobacco consumers. PM USA
began testing Marlboro Moist Smokeless Tobacco in the Atlanta area in
October 2007, and expanded the test market to include additional
counties in the greater Atlanta, Georgia area in the first quarter of
2008.

CIGARS

2008 First-Quarter Results

As previously announced, Altria completed the acquisition of
Middleton, a leading manufacturer of machine-made large cigars in
December 2007. This is the first full quarter that Altria is reporting
results for Middleton.

Middleton's first-quarter net revenues were $91 million and
revenues net of excise taxes were $76 million. Operating companies
income in the first quarter was $41 million, which includes a pre-tax
charge of $2 million for integration costs. Middleton's first-quarter
cigar shipment volume grew 8.2% versus year-ago to 312 million units,
driven by its leading brand Black & Mild.

Middleton's first-quarter retail share through February 2008
increased 2.7 share points versus year-ago to 26.8% of the
machine-made large cigar segment, driven by Black & Mild. Retail share
for Black & Mild increased 3.0 share points versus year-ago to 25.9%
of the machine-made large cigar segment. Retail share performance is
based on data from the most recent IRI Syndicated Reviews Database
(February 2008 year-to-date), which is a tracking service that uses a
sample of stores to project market share performance across multiple
product categories, including machine-made large cigars.

Middleton entered into an agreement with PM USA to leverage PM
USA's distribution network and field sales force to represent
Middleton's brands. In March 2008, PM USA's sales force began
representing Middleton's brands at retail and supporting the execution
of Middleton's trade marketing programs.

FINANCIAL SERVICES

2008 First-Quarter Results

PMCC reported operating companies income of $74 million for the
first quarter of 2008 versus $160 million for the year-earlier period.
First-quarter 2007 results reflected a cash recovery of $129 million
at PMCC from assets that had been previously written down. Excluding
the 2007 recovery, operating companies income for the first quarter of
2008 was favorable due to higher asset management gains.

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 March 31, 2008, Altria owned 100% of Philip Morris USA Inc.,
John Middleton, Inc. and Philip Morris Capital Corporation, and
approximately 28.6% 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, which includes
excise taxes billed to customers, of $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 costs;
fluctuations in levels of customer inventories; the effects of local
economic and market conditions; and changes to income tax laws. 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 with lower-priced products; and to
improve productivity.

Altria's tobacco subsidiaries continue to be subject to
litigation, including risks associated with adverse jury and judicial
determinations, and 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; 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.

Altria and its subsidiaries are subject to other risks detailed
from time to time in its publicly filed documents, including its
Annual Report on Form 10-K for the period ended December 31, 2007.
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 March 31,
(in millions of dollars, except per share data)
(Unaudited)

2008 2007 % Change
-------------------------
Net revenues $4,410 $4,288 2.8 %
Cost of sales 1,887 1,788 5.5 %
Excise taxes on products (*) 806 800 0.8 %
------- -------
Gross profit 1,717 1,700 1.0 %
Marketing, administration and research costs 551 539
Asset impairment and exit costs 11 -
Recoveries from airline industry exposure - (129)
------- -------
Operating companies income 1,155 1,290 (10.5)%
Amortization of intangibles 2 -
General corporate expenses 97 110
Gain on sale of corporate headquarters
building (404) -
Corporate asset impairment and exit costs 247 61
------- -------
Operating income 1,213 1,119 8.4 %
Interest and other debt (income) expense, net (16) 104
Loss on early extinguishment of debt 393 -
Equity earnings in SABMiller (143) (98)
------- -------
Earnings from continuing operations before
income taxes 979 1,113 (12.0)%
Provision for income taxes 365 417 (12.5)%
------- -------
Earnings from continuing operations 614 696 (11.8)%
Earnings from discontinued operations,
net of income taxes and minority interest 1,840 2,054
------- -------
Net earnings $2,454 $2,750 (10.8)%
======= =======

Per share data:
Basic earnings per share:
Continuing operations $ 0.29 $ 0.33 (12.1)%
Discontinued operations $ 0.87 $ 0.98
------- -------
Net earnings $ 1.16 $ 1.31 (11.5)%
======= =======

Diluted earnings per share:
Continuing operations $ 0.29 $ 0.33 (12.1)%
Discontinued operations $ 0.87 $ 0.97
------- -------
Net earnings $ 1.16 $ 1.30 (10.8)%
======= =======
Weighted average number of shares
outstanding:
Basic 2,107 2,097 0.5 %
Diluted 2,122 2,112 0.5 %

(*) 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 March 31,
(in millions of dollars)
(Unaudited)

Cigarettes
and other
tobacco Financial
Net Revenues products Cigars services Total
-------------------------------------------
2008 $4,233 $91 $ 86 $4,410
2007 4,245 - 43 4,288
% Change (0.3)% - 100.0% 2.8%

Reconciliation:
--------------------------
For the quarter ended
March 31, 2007 $4,245 $ - $ 43 $4,288

Recoveries from airline
industry exposure - 2007 - - - -
------------ ------- ----------- ----------
- - - -
------------ ------- ----------- ----------

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

Acquired business - 91 - 91
Operations (12) - 43 31
------------ ------- ----------- ----------
For the quarter ended
March 31, 2008 $4,233 $91 $ 86 $4,410
============ ======= =========== ==========
The detail of excise taxes
on products sold is as
follows:
2008 $ 791 $ 15 $ - $ 806
2007 $ 800 $ - $ - $ 800

Cigarettes
and other
tobacco Financial
Operating Companies Income products Cigars services Total
-------------------------------------------
2008 $1,040 $41 $ 74 $1,155
2007 1,130 - 160 1,290
% Change (8.0)% - (53.8)% (10.5)%

Reconciliation:
--------------------------
For the quarter ended
March 31, 2007 $1,130 $ - $ 160 $1,290

Recoveries from airline
industry exposure - 2007 - - (129) (129)
------------ ------- ----------- ----------
- - (129) (129)
------------ ------- ----------- ----------

Asset impairment and exit
costs - 2008 (11) - - (11)
Integration costs - 2008 - (2) - (2)
Implementation costs -
2008 (15) - - (15)
------------ ------- ----------- ----------
(26) (2) - (28)
------------ ------- ----------- ----------

Acquired business - 43 - 43
Operations (64) - 43 (21)
------------ ------- ----------- ----------
For the quarter ended
March 31, 2008 $1,040 $41 $ 74 $1,155
============ ======= =========== ==========

*T

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Schedule
3
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Quarters Ended March 31,
(in millions of dollars, except per share data)
(Unaudited)
Diluted
Net Earnings E.P.S.
------------ --------

2008 Continuing Earnings $ 614 $ 0.29
2007 Continuing Earnings $ 696 $ 0.33
% Change (11.8)% (12.1)%

Reconciliation:
------------------------------------------------
2007 Continuing Earnings $ 696 $ 0.33

2007 Asset impairment and exit costs 36 0.02
2007 Interest on tax reserve transfers to Kraft 50 0.02
2007 Recoveries from airline industry exposure (83) (0.04)
---------------------
3 -
---------------------

2008 Asset impairment, exit, integration and
implementation costs (172) (0.08)
2008 Gain on sale of corporate headquarters
building 263 0.12
2008 Loss on early extinguishment of debt (256) (0.12)
---------------------
(165) (0.08)
---------------------

Change in tax rate 6 -
Operations 74 0.04
---------------------
2008 Continuing Earnings $ 614 $ 0.29
2008 Discontinued Earnings $1,840 $ 0.87
---------------------
2008 Net Earnings $2,454 $ 1.16
=====================

2008 Continuing Earnings Adjusted For Special
Items $ 779 $ 0.37
2007 Continuing Earnings Adjusted For Special
Items $ 699 $ 0.33
% Change 11.4 % 12.1 %

*T

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Schedule
4
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Statements of Earnings
Revised for Discontinued Operations
for the quarters ended March 31, June 30, September 30, and December
31, 2007
(in millions of dollars, except per share data)
(Unaudited)

Q1 2007 Q2 2007 Q3 2007 Q4 2007
Revised Revised Revised Revised
-----------------------------------

Net revenues $ 4,288 $4,861 $4,987 $4,528
Cost of sales 1,788 2,021 2,096 1,922
Excise taxes on products 800 899 927 826
-------- -------- -------- --------
Gross profit 1,700 1,941 1,964 1,780
Marketing, administration and
research costs 539 558 621 639
Asset impairment and exit costs - 318 10 16
Recoveries from airline industry
exposure (129) (78) (7) -
-------- -------- -------- --------
Operating companies income 1,290 1,143 1,340 1,125
General corporate expenses 110 116 115 86
Corporate asset impairment and exit
costs 61 - 3 34
-------- -------- -------- --------
Operating income 1,119 1,027 1,222 1,005
Interest and other debt expense,
net 104 59 27 15
Equity earnings in SABMiller (98) (162) (132) (118)
-------- -------- -------- --------
Earnings from continuing operations
before income taxes 1,113 1,130 1,327 1,108
Provision for income taxes 417 415 427 288
-------- -------- -------- --------
Earnings from continuing operations 696 715 900 820
Earnings from discontinued
operations, net of
income taxes and minority interest 2,054 1,500 1,733 1,368
-------- -------- -------- --------
Net earnings $ 2,750 $2,215 $2,633 $2,188
======== ======== ======== ========

Per share data: (*)
Basic earnings per share:
Continuing operations $ 0.33 $ 0.34 $ 0.43 $ 0.39
Discontinued operations 0.98 0.71 0.82 0.65
-------- -------- -------- --------
Net earnings $ 1.31 $ 1.05 $ 1.25 $ 1.04
======== ======== ======== ========

Diluted earnings per share:
Continuing operations $ 0.33 $ 0.34 $ 0.43 $ 0.39
Discontinued operations 0.97 0.71 0.81 0.64
-------- -------- -------- --------
Net earnings $ 1.30 $ 1.05 $ 1.24 $ 1.03
======== ======== ======== ========

Weighted average number of shares
outstanding:
Basic 2,097 2,101 2,103 2,104
Diluted 2,112 2,116 2,117 2,119

2007
Full
Year
Revised
--------

Net revenues $18,664
Cost of sales 7,827
Excise taxes on products 3,452
--------
Gross profit 7,385
Marketing, administration and
research costs 2,357
Asset impairment and exit costs 344
Recoveries from airline industry
exposure (214)
--------
Operating companies income 4,898
General corporate expenses 427
Corporate asset impairment and exit
costs 98
--------
Operating income 4,373
Interest and other debt expense,
net 205
Equity earnings in SABMiller (510)
--------
Earnings from continuing operations
before income taxes 4,678
Provision for income taxes 1,547
--------
Earnings from continuing operations 3,131
Earnings from discontinued
operations, net of
income taxes and minority interest 6,655
--------
Net earnings $ 9,786
========

Per share data: (*)
Basic earnings per share:
Continuing operations $ 1.49
Discontinued operations 3.17
--------
Net earnings $ 4.66
========

Diluted earnings per share:
Continuing operations $ 1.48
Discontinued operations 3.14
--------
Net earnings $ 4.62
========

Weighted average number of shares
outstanding:
Basic 2,101
Diluted 2,116

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

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Schedule
5
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Statements
of Earnings
Revised for Discontinued Operations
for the quarters ended March 31,
June 30, September 30, and
December 31, 2006
(in millions of dollars, except per
share data)
(Unaudited)

Q1 2006 Q2 2006 Q3 2006 Q4 2006
Revised Revised Revised Revised
-------- -------- -------- --------

Net revenues $ 4,431 $4,840 $4,939 $4,580
Cost of sales 1,735 1,888 1,921 1,843
Excise taxes on products 855 931 938 893
-------- -------- -------- --------
Gross profit 1,841 2,021 2,080 1,844
Marketing, administration and
research costs 629 676 709 672
Asset impairment and exit costs - - - 10
Provision for airline industry
exposure - 103 - -
-------- -------- -------- --------
Operating companies income 1,212 1,242 1,371 1,162
General corporate expenses 96 102 110 119
Corporate asset impairment and exit
costs - 32 3 7
-------- -------- -------- --------
Operating income 1,116 1,108 1,258 1,036
Interest and other debt expense,
net 104 74 25 22
Equity earnings in SABMiller (116) (112) (109) (123)
-------- -------- -------- --------
Earnings from continuing operations
before income taxes 1,128 1,146 1,342 1,137
Provision for income taxes 254 440 504 373
-------- -------- -------- --------
Earnings from continuing operations 874 706 838 764
Earnings from discontinued
operations, net of
income taxes and minority interest 2,603 2,005 2,037 2,195
-------- -------- -------- --------
Net earnings $ 3,477 $2,711 $2,875 $2,959
======== ======== ======== ========

Per share data: (*)
Basic earnings per share:
Continuing operations $ 0.42 $ 0.34 $ 0.40 $ 0.37
Discontinued operations 1.25 0.96 0.98 1.04
-------- -------- -------- --------
Net earnings $ 1.67 $ 1.30 $ 1.38 $ 1.41
======== ======== ======== ========

Diluted earnings per share:
Continuing operations $ 0.42 $ 0.34 $ 0.40 $ 0.36
Discontinued operations 1.23 0.95 0.96 1.04
-------- -------- -------- --------
Net earnings $ 1.65 $ 1.29 $ 1.36 $ 1.40
======== ======== ======== ========

Weighted average number of shares
outstanding:
Basic 2,082 2,085 2,090 2,092
Diluted 2,101 2,102 2,107 2,110

2006
Full
Year
Revised
---------

Net revenues $18,790
Cost of sales 7,387
Excise taxes on products 3,617
--------
Gross profit 7,786
Marketing, administration and
research costs 2,686
Asset impairment and exit costs 10
Provision for airline industry
exposure 103
--------
Operating companies income 4,987
General corporate expenses 427
Corporate asset impairment and exit
costs 42
--------
Operating income 4,518
Interest and other debt expense,
net 225
Equity earnings in SABMiller (460)
--------
Earnings from continuing operations
before income taxes 4,753
Provision for income taxes 1,571
--------
Earnings from continuing operations 3,182
Earnings from discontinued
operations, net of
income taxes and minority interest 8,840
--------
Net earnings $12,022
========

Per share data: (*)
Basic earnings per share:
Continuing operations $ 1.52
Discontinued operations 4.24
--------
Net earnings $ 5.76
========

Diluted earnings per share:
Continuing operations $ 1.51
Discontinued operations 4.20
--------
Net earnings $ 5.71
========

Weighted average number of shares
outstanding:
Basic 2,087
Diluted 2,105

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

-0-
*T
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)

March 31, December 31,
2008 2007
----------------------
Assets
------------------------------------------------
Cash and cash equivalents $ 4,813 $ 4,842
Other current assets 3,822 3,281
Property, plant and equipment, net 2,207 2,422
Goodwill and other intangible assets, net 3,125 3,125
Investment in SABMiller 4,126 3,960
Other long-term assets 1,868 1,782
Total assets of discontinued operations - 31,736
----------------------
Total consumer products assets 19,961 51,148
Total financial services assets 5,886 6,063
----------------------
Total assets $25,847 $57,211
======================

Liabilities and Stockholders' Equity
------------------------------------------------
Current portion of long-term debt 1,269 2,354
Accrued settlement charges 5,167 3,986
Other current liabilities 4,656 4,169
Long-term debt 236 1,885
Accrued postretirement health care costs 1,872 1,916
Other long-term liabilities 2,400 2,406
Total liabilities of discontinued operations - 16,338
----------------------
Total consumer products liabilities 15,600 33,054
Total financial services liabilities 5,539 5,603
----------------------
Total liabilities 21,139 38,657
Total stockholders' equity 4,708 18,554
----------------------
Total liabilities and stockholders' equity $25,847 $57,211
======================

Total consumer products debt $ 1,505 $ 4,239
Total debt $ 2,005 $ 4,739
*T

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

Copyright Business Wire 2008