Full Description

Altria Group, Inc. (ALG), incorporated in 1985, is a holding company. As of December 31, 2008, ALG’s wholly owned subsidiaries included Philip Morris USA Inc. (PM USA) and John Middleton Co. (Middleton). Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary, maintains a portfolio of leveraged and direct finance leases. In addition, the Company held a 28.5% interest in SABMiller plc (SABMiller), as of December 31, 2008. On January 6, 2009, the Company acquired UST Inc. (UST), which owns operating companies engaged in the manufacture and sale of smokeless tobacco products and wine. On March 28, 2008, it completed the spin-off of Philip Morris International Inc. (PMI) to Altria Group, Inc.

Tobacco Products

PM USA is engaged in the manufacture and sale of cigarettes, and other tobacco products in the United States. Middleton is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco. As of December 31, 2008, PM USA’s cigarette production approximated 21 billion cigarettes. PM USA’s major brands are Marlboro, Virginia Slims and Parliament. Its principal discount brand is Basic. All of its brands are marketed to take into account differing preferences of adult smokers.

Financial Services

PMCC holds investments in finance leases, principally in transportation (including aircraft), power generation and manufacturing equipment and facilities. PMCC’s finance asset portfolio includes leases in the investment categories, such as electric power, aircraft, rail and surface transport, manufacturing and real estate industries.