Comments on Shareholder Proposal #3:
Stop All Company-Sponsored "Campaigns" Allegedly Oriented to Prevent Youth from Smoking
2007 Altria Shareholders Meeting

CONTENTS:

• Nicole Sutton, Cancer Research Center (University of Hawaii), HI
• David Trinnes, stand, OH

COMMENTS BY NICOLE SUTTON, CANCER RESEARCH CENTER, UNIVERSITY OF HAWAII, HI

NICOLE SUTTON: Mr. Camilleri, my name is Nicole Sutton. And I've come all the way from Hawaii today to be here. I work for the Cancer Research Center at the University of Hawaii. And I have in my hand, a letter that was written to us on November 29th, 2006, asking that we partner with Philip Morris youth smoking prevention program to provide data about underage cigarette sales in Hawaii.

And it says that more than 17 or so states are complying in providing this detailed information on what stores are selling to minors, because Philip Morris wants to be able to work with the retailers to educate them.

However, I think it is absolutely unethical for a tobacco company to have access to this detailed data when there is absolutely no guarantee that this info and data will actually be used for youth prevention efforts and not for the benefit of the company's marketing development and product sales that may be targeted at young people.

So, it's my feeling that a tobacco company cannot necessarily be trusted to do -- to have access to this data and that we really do need to have prevention in the hands of public health professionals. Thank you for this opportunity to speak.

LOUIS CAMILLERI: Thank you.

DAVID TRINNES: Okay. I just want to say, thank you once again for having me up here Mr. Camilleri. Altria telling you not to smoke is the ultimate hypocrisy! You like facts Mr. Camilleri, so let's go straight to the facts from this.

In 2003, [according to] the FTC report, the tobacco industry spent $15 billion on marketing and promotion in the US. In contrast, during the same year, tobacco companies spent $72.9 million that was directed to youth or their parents that are intended to reduce youth smoking. If we are to believe that you are committed to reducing youth smoking, why then do you spend only a fraction of your budget on youth prevention?

We have heard your rhetoric about a supposed concern for our community and your alleged desire to prevent youth smoking. However, these company-sponsored campaigns seem to be intentionally designed to be ineffective. In essence, your programs seem to be poorly veiled attempts at marketing your deadly products to youth and young adults! After all, why would you want to persuade consumers not to use your products?

Let's go with some more facts Mr. Camilleri. The Honorable Gladys Kessler -- you know that case very well, don't you? In her ruling, she said: "the defendants lied, misrepresented and deceived the American public including smokers, and the young people they avidly sought as 'replacement smokers,' about devastating health effects of smoking and environmental tobacco smoke. They suppressed research, they destroyed documents, they manipulated the use of nicotine as to increase and perpetuate addiction." You were found in a court of law to have conspired to deceive the public, and yet you expect us to believe you honestly want to reduce youth smoking? Your so-called youth prevention campaign is just another way for you to promote your product to youth under the guise of prevention. Obviously, you will use any chance you can to get your name onto the youth.

Now, since Philip Morris launched its first television campaign to persuade youths not to smoke, shareholder resolutions have requested the ad campaign be submitted to independent testing and that you release your own research about the ads. You have refused, claiming the ads are effective without showing the evidence to justify your claim. If your ads are effective, why are you hiding the stats?

You claim to be a responsible company, so do the responsible thing and stay away from youth altogether. Leave the youth smoking prevention campaigns to groups like the American Legacy Foundation, who actually care about preventing youth from smoking.

LOUIS CAMILLERI: [inaudible]

DAVID TRINNES: And are able to to product ads that actually work. Respect the Master Settlement Agreement. Stop targeting, selling, and promoting to youth altogether.

LOUIS CAMILLERI: Thank you. I said wouldn't comment. But, if you look at the one side, you will find that we commissioned a study called the teenage behavior study -- attitudes and behavior study. You can see that over the last eight years, children of the age of 11 to 17, their smoking incidence has decreased by 56%. And 11 to 14-year olds has decreased by 65%.

Now, I think we have a lot more to do, but there has been significant progress. And this is not about who's getting credit for what. This is about trying to ensure that youth will not smoke. And everybody has a role to play. And I don't think anybody can try to get the monopoly of what they're trying to achieve.

As regards our own programs, as we have said, they are guided by an eminent advisory board that is composed of eminent, well-respected, worldwide-recognized experts in child behavior, youth development and their education. So, please try to understand what the facts are before you let emotions take over. Thank you.