Altria Group, Inc. Reports 2005 Fourth-Quarter and Full-Year Results

FOURTH-QUARTER 2005

-- Diluted earnings per share from continuing operations up 13.5% to $1.09 vs. $0.96 in year-ago quarter, including the items detailed on Schedule 7

-- Earnings from continuing operations up 15.0% to $2.3 billion

FULL-YEAR 2005

-- Diluted earnings per share from continuing operations up 11.6% to $5.10 vs. $4.57 in 2004, including the items detailed on Schedule 8

-- Earnings from continuing operations up 13.2% to $10.7 billion

2006 OUTLOOK

-- Full-year 2006 diluted earnings per share from continuing operations projected in a range of $4.85 to $4.95

-- Includes approximately $0.36 per share in charges for Kraft's restructuring program, an unfavorable currency impact of $0.14 per share, based on current exchange rates, and about $0.10 per share for lower tobacco income in Spain

-- Excludes any future acquisitions or divestitures

Altria Group, Inc. (NYSE:MO) today announced fourth-quarter 2005diluted earnings per share from continuing operations were up 13.5% to$1.09, including the items detailed on Schedule 7, versus $0.96 in thesame quarter a year ago.

For the full year 2005, diluted earnings per share from continuingoperations were up 11.6% to $5.10, including items detailed onSchedule 8, versus $4.57 for the full year 2004.

"Overall, we achieved solid results in 2005, with strong incomegrowth in our tobacco businesses partially offset by weaker results infood," said Louis C. Camilleri, chairman and chief executive officerof Altria Group, Inc. "We enter 2006 with considerable momentum.However, circumstances affecting some of PMI's key markets, mostnotably Spain, dictate a cautious earnings outlook this early in theyear. In addition, unfavorable currency, Kraft's restructuring costsand the inclusion of an extra week of results at Kraft in 2005 willmake for difficult comparisons this year. I am nevertheless confidentthat we have the strategic wherewithal and resources to manage thechallenges ahead and successfully seize the considerable opportunitiesahead of us."

2006 Full-Year Forecast

Altria Group is projecting 2006 full-year diluted earnings pershare from continuing operations in a range of $4.85 to $4.95.

This forecast includes approximately $0.36 per share in chargesassociated with the Kraft restructuring program, unfavorable currencyof $0.14 per share at current exchange rates, about $0.10 per sharefor lower tobacco income in Spain, $0.05 per share due to highershares outstanding, and $0.04 per share as a result of a higher baseincome tax rate of 33.9% versus a corresponding rate of 33.4% in 2005.It does not include any future acquisitions or divestitures, or thebenefit of potential tax accrual reversals following the completion ofaudits in certain jurisdictions. The factors described in theForward-Looking and Cautionary Statements section of this releaserepresent continuing risks to this projection.

Conference Call

A conference call with members of the investment community andnews media will be Webcast at 9:00 a.m. Eastern Time on January 31,2006. Access is available at www.altria.com.

ALTRIA GROUP, INC.

As described in "Note 15. Segment Reporting" of Altria Group,Inc.'s 2005 Annual Report, management reviews operating companiesincome, which is defined as operating income before corporate expensesand amortization of intangibles, to evaluate segment performance andallocate resources. Management believes it is appropriate to disclosethis measure to help investors analyze business performance andtrends. For a reconciliation of operating companies income tooperating income, see the Condensed Statements of Earnings containedin this release.

Altria Group, Inc.'s consolidated statement of earnings for theyear ended December 31, 2005 includes a 53rd week for Kraft. Kraft'ssubsidiaries generally end their fiscal years on the last Saturday ofthe year. Accordingly, most years contain 52 weeks of operatingresults, while every fifth or sixth year includes 53 weeks. The extraweek at Kraft added an estimated $625 million in net revenues and $100million in operating income to Altria's results for the full year andfourth quarter of 2005.

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

2005 Full-Year Results

Net revenues for the full year 2005 increased 9.2% versus 2004 to$97.9 billion, including favorable currency of $2.0 billion, thefavorable impact from acquisitions of $1.6 billion and the benefit ofan additional shipping week at Kraft in 2005.

Operating income increased 9.3% to $16.6 billion, reflecting theitems described in the attached reconciliation on Schedule 6,including favorable currency of $421 million, $341 million fromacquisitions, primarily Sampoerna, the absence of the upfront expenserelated to the 2004 E.C. agreement, lower charges for assetimpairment, implementation and exit costs, primarily at Kraft, gainson sales of businesses, the reversal of a 2004 accrual related totobacco quota buyout legislation and higher results from operationsfor domestic and international tobacco, and the impact of the extraweek at Kraft. These were partially offset by a larger provision in2005 than in 2004 for airline industry exposure at Philip MorrisCapital Corporation (PMCC), a charge for PM USA's portion of thelosses incurred by the federal government on the disposition of itspool tobacco stock and lower results at Kraft.

Earnings from continuing operations increased 13.2% to $10.7billion, primarily reflecting the items mentioned above and a lowertax rate, partially offset by higher minority interest and lowerequity income from SABMiller. The Company's effective tax rate was29.9% for the full-year 2005 compared to 32.4% in 2004. This lower taxrate reflects the reversal of tax accruals no longer required at Kraftand PMI, tax benefits generated by the repatriation of $6.0 billion ofearnings under provisions of the American Jobs Creation Act andassociated foreign tax benefits, foreign rate differentials net ofassociated repatriation impacts and the new domestic manufacturers'deduction.

Net earnings, including discontinued operations, increased 10.8%to $10.4 billion. Diluted earnings per share, including discontinuedoperations as detailed on Schedule 4, increased 9.4% to $4.99.

On October 12, 2005, SABMiller plc completed its acquisition ofBavaria SA, the second-largest brewer in South America. As a result,Altria's ownership has been reduced from 33.9% to 28.7% of theenlarged SABMiller plc.

During 2005, Altria Group, Inc. increased its regular quarterlydividend by 9.6% to $0.80 per common share, which represents anannualized rate of $3.20 per common share.

2005 Fourth-Quarter Results

Net revenues for the fourth quarter of 2005 increased 9.4% versus2004 to $24.5 billion, including $582 million from acquisitions,favorable currency of $136 million and the benefit of an additionalweek at Kraft.

Operating income increased 5.3% to $3.6 billion, reflecting theitems described in the attached reconciliation on Schedule 3,including higher results from operations for North American food andinternational food, which included the benefit of the extra week atKraft, the impact of acquisitions of $121 million, primarilySampoerna, and a favorable comparison to the year-earlier period,which included a $140 million provision against PMCC's airlineindustry exposure. These were partially offset by $342 million incharges for asset impairment, implementation and exit costs, primarilyat Kraft, in the fourth quarter of 2005 versus $268 million in thefourth quarter of 2004.

Earnings from continuing operations increased 15.0% to $2.3billion, reflecting the aforementioned factors and a lower effectivetax rate. The company's effective tax rate was 30.7% in the fourthquarter of 2005 compared to 35.5% in 2004. The effective tax ratereflects certain tax benefits from the divestiture of Stella D'oro,foreign rate differentials net of associated repatriation impacts,dividend repatriation tax benefits and the new domestic manufacturers'deduction.

Net earnings, including discontinued operations, increased 17.6%to $2.3 billion. Diluted earnings per share, including discontinuedoperations as detailed on Schedule 1, increased 16.0% to $1.09.

DOMESTIC TOBACCO

2005 Full-Year Results

For the full year 2005, Philip Morris USA Inc. (PM USA), AltriaGroup, Inc.'s domestic tobacco business, achieved balanced income andretail share growth. Shipment volume of 185.5 billion units was down0.8% from the previous year, but was estimated to be essentially flatwhen adjusted for the timing of promotional shipments and tradeinventory changes, and two less shipping days versus 2004. Premium mixfor PM USA increased by 0.2 percentage points to 91.6%.

Operating companies income increased 4.0%, to $4.6 billion,primarily driven by lower wholesale promotional allowance rates andaided by the reversal of a 2004 accrual related to tobacco quotabuyout legislation, partially offset by lower volume, charges for thedisposition of pool tobacco stock, higher R&D expenses and a $56million accrual for the Boeken case.

As shown in the following table, PM USA's total retail sharereached a record 50.0% in 2005, driven by Marlboro, which increasedits retail share by 0.5 points to a record 40.0%, as measured by theIRI/Capstone Total Retail Panel.
Philip Morris USA Annual Retail Share*
----------------------------------------------------------------------
2005 2004 Change
--------- --------- ----------
Marlboro 40.0% 39.5% 0.5 pp
Parliament 1.7% 1.7% 0.0 pp
Virginia Slims 2.3% 2.4% -0.1 pp
Basic 4.3% 4.2% 0.1 pp
--------- --------- ----------
Focus Brands 48.3% 47.8% 0.5 pp
Other PM USA 1.7% 2.0% -0.3 pp
--------- --------- ----------
Total PM USA 50.0% 49.8% 0.2 pp

* IRI/Capstone Total Retail Panel was developed to measure market
share in retail stores selling cigarettes. It is not designed to
capture Internet or direct mail sales.

PM USA's share of the premium category was stable at 62.1% for thefull year, while its share of the declining discount category grew 0.2share points to 16.3%, reflecting the performance of Basic. The totalindustry's premium category share increased 0.4 points to 73.6% forthe full year, while the discount category share declined to 26.4%.Within the discount category, the share of the deep discount segment(which includes both major manufacturers' private label brands and allother manufacturers' discount brands) was flat at 11.8%.

2005 Fourth-Quarter Results

For the fourth quarter of 2005, PM USA's total retail share was up0.1 point to 50.0%. Shipment volume of 45.5 billion units was down3.4% from the previous year, but was estimated to be essentially flatwhen adjusted for the timing of promotional shipments and tradeinventory changes, and one less shipping day versus the fourth quarterof 2004.

Operating companies income increased 0.4%, to $1.1 billion,primarily driven by lower wholesale promotional allowance rates andfavorable quota buyout costs, largely offset by lower volume and thereversal of the first three quarters of Grower's Trust expense in thefourth quarter of 2004. During the quarter, PM USA announced areduction in the wholesale promotional allowance on its Focus on Fourbrands of $0.50 per carton, from $5.50 to $5.00, effective December19, 2005. In addition, effective December 27, 2005, the price of itsnon-focus brands was increased by $0.50 per carton.

As shown in the following table, PM USA's total retail shareimproved in the fourth quarter of 2005 to 50.0%, driven by Marlboro.Share for Marlboro grew 0.4 points to 40.1% in the fourth quarter,while Basic's retail share was down 0.1 point to 4.2%.
Philip Morris USA Quarterly Retail Share*
----------------------------------------------------------------------
Q4 2005 Q4 2004 Change
----------- --------- ----------
Marlboro 40.1% 39.7% 0.4 pp
Parliament 1.7% 1.7% 0.0 pp
Virginia Slims 2.3% 2.3% 0.0 pp
Basic 4.2% 4.3% -0.1 pp
----------- --------- ---------
Focus Brands 48.3% 48.0% 0.3 pp
Other PM USA 1.7% 1.9% -0.2 pp
----------- --------- ---------
Total PM USA 50.0% 49.9% 0.1 pp

* See note above.

The total industry's premium category share increased 0.5 pointsto 73.8% in the fourth quarter of 2005, while the discount categoryshare correspondingly declined to 26.2%. Within the discount category,share was flat at 11.8% for the deep discount segment. In the premiumcategory, PM USA's segment share declined by 0.1 point to 62.0% in thefourth quarter, reflecting significant levels of competitive bonusproduct promotions.

INTERNATIONAL TOBACCO

2005 Full-Year Results

For the full year 2005, cigarette shipment volume for PhilipMorris International Inc. (PMI), Altria Group, Inc.'s internationaltobacco business, increased 5.7% to 804.5 billion units. Widespreadvolume gains in many markets, particularly Egypt, France, Mexico, thePhilippines, Russia, Thailand, Turkey and Ukraine, coupled withacquisitions in Indonesia and Colombia, were partially offset by lowershipments in the EU. Excluding the impact of acquisitions, PMI'scigarette shipment volume increased 0.7% versus 2004. PMI's totaltobacco volume, which included 7.1 billion cigarette equivalent unitsof other tobacco products (OTPs), grew 6.1% versus the prior year, and1.2% excluding acquisitions.

Operating companies income rose 19.2% to $7.8 billion dueprimarily to higher pricing, as well as the impact of acquisitions of$341 million, positive currency of $331 million, higher income fromthe return of the Marlboro license in Japan, the impact of a one-timeinventory sale in Italy and a favorable comparison with 2004 when PMIrecorded a $250 million charge for the E.C. agreement. These werepartially offset by unfavorable volume/mix, higher R&D, manufacturing,distribution, trade and selling expenses and higher asset impairmentand exit costs.

PMI achieved market share gains in 2005 in many markets, includingEgypt, France, Italy, Japan, Korea, Mexico, the Netherlands, thePhilippines, Russia, Thailand, Turkey, Ukraine and the United Kingdom.In addition, in Indonesia, Sampoerna's share in 2005 was significantlyhigher than the prior year.

Total Marlboro cigarette shipments of 322.1 billion increased 6.2billion units or 2.0% in 2005. Gains in Eastern Europe, the MiddleEast and Africa, as well as higher inventories in Japan following theMarlboro take-back in May 2005 and the one-time inventory sale inItaly, were partially offset by declines in Germany and worldwide dutyfree. Excluding the one-time gains in Italy and Japan, Marlboro volumewas essentially flat. Share gains for Marlboro were achieved in thetop income markets of Egypt, France, Japan, Mexico, Portugal, Russia,Turkey, Ukraine and the United Kingdom.

In the EU region, cigarette volume was down 2.7%, due primarily toGermany, and PMI's cigarette market share was 39.3%, down 0.2 pointsfrom the previous year.

In Germany, the total cigarette market declined 14.7% or 16.7billion units in 2005 versus the previous year. However, this waspartially offset by an increase of 10.2 billion units of OTPs,principally tobacco portions, which are taxed at a significantly lowerrate than cigarettes. In total, industry consumption of cigarettes andOTPs was down 4.3% for the full year. PMI's cigarette market share wasdown 0.2 points to 36.6%, while it recorded a 16.9% share of thetobacco portions segment, up 9.1 points versus prior year, driven byMarlboro, Next and f6 portions. While PMI's share of total tobaccoconsumption was down 0.8 points to 28.6%, it grew its share of totaltobacco consumption sequentially through the year from 28.1% in thefirst quarter to 29.0% in the fourth quarter. During the fourthquarter of 2005, the European Court of Justice issued a mandate thatrequires the German government to equalize the tax burden betweencigarettes and tobacco portions. As a result of this ruling, tobaccoportions in Germany will be taxed at the same rate as cigarettes forproducts manufactured as of April 1, 2006. Accordingly, lower pricedportions are expected to remain available at retail for some time dueto anticipated high stock levels.

In Italy, the total cigarette market was down 6.1% in 2005,largely reflecting tax driven pricing and the impact of indoor smokingrestrictions in public places since January 2005. PMI's cigaretteshipment volume increased 2.7%, due primarily to the one-timeinventory sale to PMI's new distributor, Logista. Excluding theone-time inventory sale of 3.0 billion units, shipment volume in Italywas down 3.2%. However, share improved to 52.6% in 2005, an increaseof 1.1 points, driven principally by Diana.

In France, PMI's volume and share performance in 2005 were robust,reflecting a stable pricing environment and moderate price gaps.Shipments rose 2.5% and share grew from 39.8% to 41.7%, an increase of1.9 points behind the strong performance of Marlboro and the PhilipMorris brand.

In Spain, the total cigarette market declined 0.6%. PMI'sshipments were down 2.2%, reflecting increased consumer down tradingto the deep discount segment, which expanded to 20% for the full year2005, double its 2004 share, and surged to a 31.2% share in the fourthquarter. As a result of growing price gaps, PMI's share declined 1.1points to 34.5% for the full year, and declined 3.4 points to 31.5% inthe fourth quarter, with a pronounced product mix deterioration. OnJanuary 21, 2006, the Spanish government raised excise taxes oncigarettes, which would have resulted in even larger price gaps if thetax increase had been passed on to consumers. Accordingly, PMI reducedits cigarette prices on January 26 to restore the competitiveness ofits brands.

In Eastern Europe, the Middle East and Africa, PMI's shipmentsgrew 6.4%, due mainly to Ukraine, Turkey, Russia and Egypt. Shipmentsin Ukraine were up versus the same period a year ago, driven byimproved economic conditions and continued up trading to Marlboro,Chesterfield, L&M and Bond Street. In Turkey, PMI shipment volume wasup 8.6% and market share increased 4.4 points to 41.4%, fueled by thegrowth of Marlboro, Parliament, Lark, and Bond Street. Shipments inRussia were up 2.7% and market share rose 0.7 points to 27.0%, due tothe continued success of Marlboro, Muratti, Parliament, Next andChesterfield. In Egypt, shipments rose 39.6% and market share climbed2.1 points to 8.8%, driven by the introduction of Next and the strongperformance of Marlboro and L&M, reflecting better economic conditionsand price stability.

In Asia (including Japan) volume increased 21.3%, primarily due tothe acquisition of Sampoerna in Indonesia. Excluding Sampoerna, volumewas essentially flat. PMI achieved a full-year 26.1% share inIndonesia, driven by A Mild, Dji Sam Soe and A Hijau. The integrationof Sampoerna into PMI's global operations has proceeded extremelywell.

In Japan, the total market declined 2.8% in 2005 while PMI'sshipments were down slightly. Market share rose 0.3 points to a record24.8%, driven by Marlboro and Virginia Slims. Marlboro Ultra LightsMenthol was successfully introduced in mid-2005, helping the Marlborofamily to increase its share 0.5 points to 9.7%.

In the Philippines, PMI's shipments increased 3.9% in 2005 andshare rose 0.8 points to 30.5%, driven by Marlboro's successful salesprograms and improved retail outlet coverage. In Thailand, PMI'sshipments were up 17.4% and market share increased 3.3 points to 20.8%on the strength of L&M. In Korea, the total market was down over 20%in 2005, due to the December 2004 tax-driven price increase, and PMI'sshipments declined 11.8%. However, PMI's market share in Korea grew0.9 points to 8.3%, driven by Marlboro and Parliament.

PMI's volume in Latin America increased 5.5%, reflecting theacquisition of Coltabaco in Colombia and higher shipments in Mexico,partially offset by declines in Argentina and Brazil. Excluding theimpact of acquisitions, volume was down 3.8%. In Mexico, the cigaretteindustry declined 1.5% in 2005. However, PMI's shipments increased1.0%, while market share rose 1.9 points to 62.1%, driven byMarlboro's continued momentum. In Argentina, the total market declined1.4% and PMI's shipments were down 7.0%. Share declined 3.7 points to61.4% in Argentina, due to a surge in the ultra low price segment. InBrazil, continued down trading to the low price segment resulted in a6.2% decline in PMI's annual shipment volume and a market share lossof 1.5 points to 12.8%.

2005 Fourth-Quarter Results

In the fourth quarter of 2005, cigarette shipment volume for PMIincreased by 6.6% to 184.2 billion units, driven by gains in Turkeyand Ukraine, and the impact of acquisitions in Indonesia and Colombia,partially offset by declines in the EU region, namely Germany, Italyand Poland. Excluding acquisitions, PMI's cigarette shipment volumedeclined 1.9% versus the same period a year ago. PMI's total tobaccovolume, which includes 2.0 billion cigarette equivalent units of OTPs,grew 7.1% versus the prior year quarter, and was down 1.3% excludingacquisitions.

Operating companies income rose 7.1% to $1.5 billion, driven byhigher pricing and the impact of acquisitions of $121 million,partially offset by higher asset impairment and exit costs, negativecurrency of $11 million, unfavorable mix, higher R&D, marketing andselling expenses.

PMI achieved market share gains in the fourth quarter in manymarkets, including Austria, Belgium, Egypt, France, Germany, Italy,Japan, Korea, Malaysia, Mexico, the Philippines, Russia, Thailand,Turkey, Ukraine and the United Kingdom. In addition, in Indonesia,Sampoerna's share in the quarter was significantly higher than theprior year.

Total Marlboro cigarette shipments were down 1.3% in the fourthquarter, principally due to declines in Germany, Italy and worldwideduty free, partially offset by higher volume in Ukraine and Japan.However, Marlboro's share improved in many of its top income markets.

In the EU region, cigarette volume declined 6.7% in the fourthquarter, due to declines in Germany, Italy and Poland. PMI's cigarettemarket share in the EU for the fourth quarter was down 1.4 points to38.6%, due to losses in Spain as a result of the surge in the deepdiscount segment, and Poland, which was also impacted by consumer downtrading.

In Germany, PMI's cigarette market share rose 0.4 share points to36.6%, off a depressed 2004 base. PMI's share of total tobaccoconsumption increased 0.6 points to 29.0%. However, PMI's cigarettevolume declined 18.1% and total tobacco volume declined 7.0%. PMI'sshare of tobacco portions rose 10.1 points to 20.4% in the fourthquarter.

In Italy, PMI's volume declined 7.6%, driven by a total marketdecline of 6.0% and the timing of shipments. Market share advanced 0.3points to 52.3%, due to Diana's continued share momentum.

In France, market share of 42.0% grew 1.7 points with Marlboro up0.9 points to 30.4%.

In Spain, PMI's shipments were down 1.4% and market share declined3.4 points to 31.5%, due to losses incurred by Marlboro, Chesterfieldand L&M, partially offset by the growth of Next and Basic.

In Poland, PMI's volume declined 12.0% due to the continued growthof the deep discount segment. PMI's share was down 6.4 points to36.9%, due mainly to L&M.

In Eastern Europe, the Middle East and Africa, volume increased4.3% in the fourth quarter, driven by Egypt, Russia, Serbia andUkraine. In Russia, volume was up slightly and share increased 0.4points to 27.0%, driven by Marlboro.

In Asia (including Japan), volume was up 34.7% in the fourthquarter, due mainly to the acquisition in Indonesia. Excluding theimpact of acquisitions, volume was down 2.5%. In Japan, the totalmarket declined 3.7% and PMI cigarette volume was up slightly. Marketshare in Japan rose 0.3 points to 24.8%, driven by Marlboro, whichadded 0.6 points to 9.8% behind the success of Marlboro Ultra LightsMenthol. During the quarter, PMI launched Virginia Slims Duo in aninnovative pack.

During the fourth quarter, PMI and the China National TobaccoCorporation (CNTC) announced the establishment of a long-termstrategic alliance. Agreements were signed for the licensedmanufacture and sale of Marlboro in China and the formation of aninternational joint venture, equally owned by CNTC and PMI. The jointventure will offer consumers a portfolio of Chinese heritage brandsglobally and pursue other business development opportunities.

In Latin America, PMI volume was up 8.2% in the fourth quarter,driven by the acquisition in Colombia. Excluding acquisitions, volumewas down 3.4%, due mainly to lower consumption and the continuedincrease in the deep discount segment in both Argentina and Brazil.

FOOD

Yesterday, Kraft Foods Inc. (Kraft) reported 2005 fourth-quarterand full-year results. For the full year 2005, Kraft's net revenueswere up 6.0% to $34.1 billion, reflecting pricing, positive mix,favorable currency of $533 million and the impact of the extrashipping week in 2005. Kraft estimates that this additional weekpositively impacted volume, revenue and operating income growth ratesby approximately 2% for the full year and 7% for the fourth quarter.

Ongoing volume was up approximately 2% for the full year, but wasessentially flat on a comparable 52-week basis, including a 0.7 pointbenefit from acquisitions. Factors contributing to the volume softnessincluded Kraft's focus on mix improvement, its SKU reduction programand the impact of pricing. The pricing impact was most pronounced inthe competitive European environment, where discount retailers' storebrands generally either lagged or did not follow Kraft's priceincreases.

Operating income increased 3.0% to $4.8 billion for the full year,driven by positive mix, productivity and restructuring savings, lowerrestructuring and impairment costs, favorable currency of $90 million,gains on sales of businesses and brands and the benefit of the extraweek. These were partially offset by significantly higher commoditycosts (net of pricing), increased post-employment benefit costs andincreased consumer marketing support.

For the fourth quarter of 2005, Kraft's net revenues were up 10.0%to $9.7 billion, reflecting the benefits of favorable currency of $68million and the benefit of the extra week, as well as pricing acrossmultiple categories and countries and positive mix, partially offsetby the impact of divestitures. Revenue growth was particularly strongin U.S. Beverages and U.S. Convenient Meals. Ongoing volume was downapproximately 2% on a comparable 13-week basis, reflecting the factorsmentioned above for full-year volume. Operating income was essentiallyflat at $1.2 billion, as increased post-employment benefit costs,higher restructuring and divestiture-related impairment costs andhigher commodity costs (net of pricing) essentially offsetproductivity and restructuring savings, positive mix, favorablecurrency of $17 million and the benefit of an extra week of results.

NORTH AMERICAN FOOD

2005 Full-Year Results

For the full year 2005, Kraft North America Commercial (KNAC) netrevenues grew 5.6% to $23.3 billion, reflecting positive mix, netpricing, the benefit of the extra week and favorable currency of $172million. Ongoing volume increased 2.8%, or approximately 1% adjustedfor the extra week. Operating companies income declined 1.0% to $3.8billion, with increased post-employment benefit costs, highercommodity costs net of pricing and increased marketing spendingpartially offset by productivity and restructuring savings, volumegrowth, positive mix, lower restructuring and impairment charges, thebenefit of the extra week and favorable currency of $31 million.

2005 Fourth-Quarter Results

For the fourth quarter of 2005, KNAC net revenues grew 11.0% to$6.4 billion, reflecting favorable currency of $44 million, thebenefit of the extra week, positive mix and pricing. Revenue growthwas strong across multiple categories, including coffee, meats,biscuits and cereals. Ongoing volume was up 7.3%, but wasapproximately flat excluding the impact of the extra week, as growthin meat and cheese was offset by the impact of the company's SKUreduction program. Operating companies income decreased 3.4% to $915million, as higher commodity costs net of pricing, increasedrestructuring and impairment charges and higher post-employmentbenefit costs were partially offset by productivity and restructuringsavings, the benefit of the extra week and favorable currency of $9million.

INTERNATIONAL FOOD

2005 Full-Year Results

For the full year 2005, net revenues for Kraft InternationalCommercial (KIC) increased 7.0% to $10.8 billion, reflecting growth inboth the Europe, Middle East & Africa and the Latin America & AsiaPacific segments, favorable currency of $361 million and the benefitof the extra week. Ongoing volume was down 0.6%, or approximately 3%adjusted for the impact of the extra week. Operating companies incomeincreased 20.3% to $1.1 billion, benefiting from lower restructuringand impairment charges, a gain on sale of brands and related assets,positive mix, favorable currency of $59 million and the benefit of theextra week, partially offset by higher commodity costs net of pricing,increased developing market infrastructure costs and lost income fromdivestitures.

2005 Fourth-Quarter Results

For the fourth quarter of 2005, net revenues for KIC were up 8.1%to $3.2 billion, benefiting from favorable currency of $24 million andthe benefit of the extra week, and driven by positive mix and pricing,partially offset by the impact of divestitures. Revenues grew in mostdeveloping markets with particularly strong growth in Eastern Europe.Ongoing volume was up 0.7%, but was down approximately 6% excludingthe additional week, reflecting the impact of pricing actions,particularly in coffee and chocolate in the EU, product re-sizing,particularly in Latin America, and the company's SKU reductionprogram. Operating companies income increased 10.0% to $330 million,driven by lower restructuring and impairment charges, positive mix,favorable currency of $8 million and the benefit of the extra week,partially offset by a loss on sale of brands and related assets andlost income from divestitures.

FINANCIAL SERVICES

2005 Full-Year and Fourth-Quarter Results

Philip Morris Capital Corporation (PMCC) reported operatingcompanies income of $31 million for the full year 2005 and $41 millionfor the fourth quarter of 2005, versus operating companies income of$144 million for the full year 2004 and an operating companies loss of$106 million for the fourth quarter of 2004. Results for the full year2005 include a $200 million increase to the provision for lossesrelated to the troubled airline industry in the third quarter of 2005,an increase of $60 million over the prior year's fourth quarterprovision, and lower gains from asset sales partially offset by lowerinterest expense.

Consistent with its strategic shift in 2003, PMCC is focused onmanaging its existing portfolio of finance assets in order to maximizegains and generate cash flow from asset sales and related activities.PMCC is no longer making new investments and expects that itsoperating companies income will fluctuate over time as investmentsmature or are sold.

Altria Group, Inc. Profile

Altria Group, Inc. owns approximately 87.2% of the outstandingcommon shares of Kraft Foods Inc. and 100% of the outstanding commonshares of Philip Morris International Inc., Philip Morris USA Inc. andPhilip Morris Capital Corporation. In addition, Altria Group, Inc.owns 28.7% of SABMiller plc. The brand portfolio of Altria Group,Inc.'s consumer packaged goods companies includes such well-knownnames as Kraft, Jacobs, L&M, Marlboro, Maxwell House, Nabisco, Oreo,Oscar Mayer, Parliament, Philadelphia, Post and Virginia Slims. AltriaGroup, Inc. recorded 2005 net revenues of $97.9 billion.

Trademarks and service marks mentioned in this release are theregistered property of, or licensed by, the subsidiaries of AltriaGroup, Inc.

A complete copy of Altria Group, Inc.'s audited 2005 financialstatements will be available through Altria Group, Inc.'s Web siteafter they are filed with the Securities and Exchange Commission on orabout February 7, 2006. If you do not have Internet access but wouldlike to receive a copy of the 2005 audited financial statements forAltria Group, Inc., please call toll free (800) 367-5415 in the U.S.and Canada to request a copy.

Forward-Looking and Cautionary Statements

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

Altria Group, Inc.'s consumer products subsidiaries are subject tochanging prices for raw materials; intense price competition; changesin consumer preferences and demand for their products; fluctuations inlevels of customer inventories; the effects of foreign economies andlocal economic and market conditions; and unfavorable currencymovements or changes to income tax laws. Their results are dependentupon their continued ability to promote brand equity successfully; toanticipate and respond to new consumer trends; to develop new productsand markets and to broaden brand portfolios in order to competeeffectively with lower-priced products; to improve productivity; andto respond effectively to changing prices for their raw materials.

Altria Group, Inc.'s tobacco subsidiaries (Philip Morris USA andPhilip Morris International) continue to be subject to litigation,including risks associated with adverse jury and judicialdeterminations, courts reaching conclusions at variance with thecompany's understanding of applicable law, bonding requirements andthe absence of adequate appellate remedies to get timely relief fromany of the foregoing; price disparities and changes in pricedisparities between premium and lowest-price brands; legislation,including actual and potential excise tax increases; increasingmarketing and regulatory restrictions; the effects of price increasesrelated to excise tax increases and concluded tobacco litigationsettlements on consumption rates and consumer preferences within pricesegments; health concerns relating to the use of tobacco products andexposure to environmental tobacco smoke; governmental regulation;privately imposed smoking restrictions; and governmental and grandjury investigations.

Altria Group, Inc. and its subsidiaries are subject to other risksdetailed from time to time in its publicly filed documents, includingits Annual Report on Form 10-K for the period ended December 31, 2004and its Quarterly Report on Form 10-Q for the period ended September30, 2005. Altria Group, Inc. cautions that the foregoing list ofimportant factors is not complete and does not undertake to update anyforward-looking statements that it may make.
ALTRIA GROUP, INC. Schedule 1
and Subsidiaries
Condensed Statements of Earnings
For the Quarters Ended December 31,
(in millions, except per share data)
(Unaudited)

2005 2004 % Change
---------------------------------
Net revenues $ 24,490 $ 22,380 9.4 %
Cost of sales 9,877 9,030 9.4 %
Excise taxes on products (*) 6,663 6,016 10.8 %
----------------------
Gross profit 7,950 7,334 8.4 %
Marketing, administration and
research costs 3,745 3,394
Domestic tobacco headquarters
relocation charges 1 6
Asset impairment and exit costs 307 159
Losses (gains) on sales of
businesses, net 7 (5)
Provision for airline industry
exposure - 140
----------------------
Operating companies income 3,890 3,640 6.9 %
Amortization of intangibles 14 5
General corporate expenses 237 158
Asset impairment and exit costs 9 29
----------------------
Operating income 3,630 3,448 5.3 %
Interest and other debt expense, net 250 291
----------------------
Earnings from continuing operations
before income taxes, minority
interest, and equity earnings, net 3,380 3,157 7.1 %
Provision for income taxes 1,037 1,121 (7.5)%
----------------------
Earnings from continuing operations
before minority interest and equity
earnings, net 2,343 2,036 15.1 %
Minority interest in earnings from
continuing operations, and equity
earnings, net 54 46
----------------------
Earnings from continuing operations 2,289 1,990 15.0 %
(Loss) earnings from discontinued
operations, net of income taxes and
minority interest(**) - (43)
----------------------
Net earnings $ 2,289 $ 1,947 17.6 %
======================

Per share data(***):
Basic earnings per share from
continuing operations $ 1.10 $ 0.97 13.4 %
Basic earnings per share from
discontinued operations $ - $ (0.02)
----------------------
Basic earnings per share $ 1.10 $ 0.95 15.8 %
======================

Diluted earnings per share from
continuing operations $ 1.09 $ 0.96 13.5 %
Diluted earnings per share from
discontinued operations $ - $ (0.02)
----------------------
Diluted earnings per share $ 1.09 $ 0.94 16.0 %
======================
Weighted average number of
shares outstanding - Basic 2,078 2,052 1.3 %
- Diluted 2,098 2,068 1.5 %

(*) The detail of excise taxes on products sold is as follows:

2005 2004
----------------------
Domestic tobacco $ 898 $ 930
International tobacco 5,765 5,086
----------------------
Total excise taxes $ 6,663 $ 6,016
======================

(**) In 2004 discontinued operations includes $(59) from impairment
loss, and $16 of earnings, net of minority interest.

(***) Basic and diluted earnings per share are computed for each of
the periods presented. Accordingly, the sum of the quarterly
earnings per share amounts may not agree to the year-to-date
amounts.
ALTRIA GROUP, INC. Schedule 2
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended December 31,
(in millions)
(Unaudited)



North
Domestic International American International
tobacco tobacco food food
----------------------------------------------------
2005 Net Revenues $ 4,467 $ 10,303 $ 6,438 $ 3,225
2004 Net Revenues 4,420 9,113 5,801 2,983
% Change 1.1% 13.1% 11.0% 8.1%

Reconciliation:
---------------
2004 Net Revenues $ 4,420 $ 9,113 $ 5,801 $ 2,983
Divested
businesses - 2004 - - (38) (31)
Divested
businesses - 2005 - - - 4
Implementation -
2004 - - 2 -
Implementation -
2005 - - (1) -
Acquired
businesses - 582 - -
Currency - 68 44 24
Operations 47 540 630 245
----------------------------------------------------
2005 Net Revenues $ 4,467 $ 10,303 $ 6,438 $ 3,225
====================================================

Financial
services Total
--------------------------
2005 Net Revenues $ 57 $ 24,490
2004 Net Revenues 63 22,380
% Change (9.5)% 9.4%

Reconciliation:
---------------
2004 Net Revenues $ 63 $ 22,380
Divested
businesses - 2004 - (69)
Divested
businesses - 2005 - 4
Implementation -
2004 - 2
Implementation -
2005 - (1)
Acquired
businesses - 582
Currency - 136
Operations (6) 1,456
--------------------------
2005 Net Revenues $ 57 $ 24,490
==========================


Note: The detail of excise taxes on products sold is as follows:
2005 2004
-------------------------
Domestic tobacco $ 898 $ 930
International
tobacco 5,765 5,086
-------------------------
Total excise taxes $ 6,663 $ 6,016
=========================
Currency increased international tobacco excise taxes by $46 million.

ALTRIA GROUP, INC. Schedule 3
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended December 31,
(in millions)
(Unaudited)

North
Domestic International American International
tobacco tobacco food food
----------------------------------------------------
2005 Operating
Companies Income $ 1,080 $ 1,524 $ 915 $ 330
2004 Operating
Companies Income 1,076 1,423 947 300
% Change 0.4% 7.1% (3.4)% 10.0%
Reconciliation:
---------------
2004 Operating
Companies Income $ 1,076 $ 1,423 $ 947 $ 300

Divested
businesses - 2004 - - (7) (10)
Domestic tobacco
headquarters
relocation
charges - 2004 6 - - -
Asset impairment
and exit costs -
2004 - 20 102 37
Gains on sales of
businesses - 2004 - - - (5)
Investment
impairment - 2004 - - - 47
Implementation
costs - 2004 - - 27 6
Provision for
airline industry
exposure - 2004 - - - -
----------------------------------------------------
6 20 122 75
----------------------------------------------------

Divested
businesses - 2005 - - - 1
Domestic tobacco
headquarters
relocation
charges - 2005 (1) - - -
Asset impairment
and exit costs -
2005 - (33) (211) (63)
Losses on sales of
businesses - 2005 - - - (7)
Implementation
costs - 2005 - - (12) (14)
----------------------------------------------------
(1) (33) (223) (83)
----------------------------------------------------

Acquired
businesses - 121 - -
Currency - (11) 9 8
Operations (1) 4 60 30
----------------------------------------------------
2005 Operating
Companies Income $ 1,080 $ 1,524 $ 915 $ 330
====================================================

Financial
services Total
-------------------------
2005 Operating
Companies Income $ 41 $ 3,890
2004 Operating
Companies Income (106) 3,640
% Change NA 6.9%
Reconciliation:
---------------
2004 Operating
Companies Income $ (106) $ 3,640

Divested
businesses - 2004 - (17)
Domestic tobacco
headquarters
relocation
charges - 2004 - 6
Asset impairment
and exit costs -
2004 - 159
Gains on sales of
businesses - 2004 - (5)
Investment
impairment - 2004 - 47
Implementation
costs - 2004 - 33
Provision for
airline industry
exposure - 2004 140 140
-------------------------
140 363
-------------------------

Divested
businesses - 2005 - 1
Domestic tobacco
headquarters
relocation
charges - 2005 - (1)
Asset impairment
and exit costs -
2005 - (307)
Losses on sales of
businesses - 2005 - (7)
Implementation
costs - 2005 - (26)
-------------------------
- (340)
-------------------------

Acquired
businesses - 121
Currency - 6
Operations 7 100
-------------------------
2005 Operating
Companies Income $ 41 $ 3,890
=========================
ALTRIA GROUP, INC. Schedule 4
and Subsidiaries
Condensed Statements of Earnings
For the Twelve Months Ended December 31,
(in millions, except per share data)
(Unaudited)



2005 2004 % Change
---------------------------------

Net revenues $ 97,854 $ 89,610 9.2 %
Cost of sales 36,764 33,959 8.3 %
Excise taxes on products (*) 28,934 25,647 12.8 %
----------------------
Gross profit 32,156 30,004 7.2 %
Marketing, administration and
research costs 14,078 13,014
Domestic tobacco headquarters
relocation charges 4 31
Domestic tobacco loss on U.S. tobacco
pool 138 -
Domestic tobacco quota buy-out (115) -
International tobacco E.C. agreement - 250
Asset impairment and exit costs 569 648
(Gains) losses on sales of
businesses, net (108) 3
Provision for airline industry
exposure 200 140
----------------------
Operating companies income 17,390 15,918 9.2 %
Amortization of intangibles 28 17
General corporate expenses 721 651
Asset impairment and exit costs 49 70
----------------------
Operating income 16,592 15,180 9.3 %
Interest and other debt expense, net 1,157 1,176
----------------------
Earnings from continuing operations
before income taxes, minority
interest, and equity earnings, net 15,435 14,004 10.2 %
Provision for income taxes 4,618 4,540 1.7 %
----------------------
Earnings from continuing operations
before minority interest and equity
earnings, net 10,817 9,464 14.3 %
Minority interest in earnings from
continuing operations, and equity
earnings, net 149 44
----------------------
Earnings from continuing operations 10,668 9,420 13.2 %
(Loss) earnings from discontinued
operations, net of income taxes and
minority interest(**) (233) (4)
----------------------
Net earnings $ 10,435 $ 9,416 10.8 %
======================

Per share data (***):
Basic earnings per share from
continuing operations $ 5.15 $ 4.60 12.0 %
Basic earnings per share from
discontinued operations $ (0.11)$ -
----------------------
Basic earnings per share $ 5.04 $ 4.60 9.6 %
======================

Diluted earnings per share from
continuing operations $ 5.10 $ 4.57 11.6 %
Diluted earnings per share from
discontinued operations $ (0.11)$ (0.01)
----------------------
Diluted earnings per share $ 4.99 $ 4.56 9.4 %
======================
Weighted average number of
shares outstanding - Basic 2,070 2,047 1.1 %
- Diluted 2,090 2,063 1.3 %

(*) The detail of excise taxes on products sold is as follows:
2005 2004
----------------------
Domestic tobacco $ 3,659 $ 3,694
International tobacco 25,275 21,953
----------------------
Total excise taxes $ 28,934 $ 25,647
======================

(**) Discontinued operations 2005 includes $(255) from loss on sale,
and $22 of earnings, net of minority interest impact. In 2004
discontinued operations includes $(59) from impairment loss, and
$55 of earnings, net of minority interest impact.

(***) Basic and diluted earnings per share are computed for each of
the periods presented. Accordingly, the sum of the quarterly
earnings per share amounts may not agree to the year-to-date
amounts.
ALTRIA GROUP, INC. Schedule 5
and Subsidiaries
Selected Financial Data by Business Segment
For the Twelve Months Ended December 31,
(in millions)
(Unaudited)


North
Domestic International American International
tobacco tobacco food food
----------------------------------------------------
2005 Net Revenues $ 18,134 $ 45,288 $ 23,293 $ 10,820
2004 Net Revenues 17,511 39,536 22,060 10,108
% Change 3.6% 14.5% 5.6% 7.0%

Reconciliation:
---------------
2004 Net Revenues $ 17,511 $ 39,536 $ 22,060 $ 10,108
Divested
businesses - 2004 - - (166) (108)
Divested
businesses - 2005 - - 69 31
Implementation -
2004 - - 7 -
Implementation -
2005 - - (2) -
Acquired
businesses - 1,604 41 1
Currency - 1,515 172 361
Operations 623 2,633 1,112 427
----------------------------------------------------
2005 Net Revenues $ 18,134 $ 45,288 $ 23,293 $ 10,820
====================================================


Financial
services Total
--------------------------
2005 Net Revenues $ 319 $ 97,854
2004 Net Revenues 395 89,610
% Change (19.2)% 9.2%

Reconciliation:
---------------
2004 Net Revenues $ 395 $ 89,610
Divested
businesses - 2004 - (274)
Divested
businesses - 2005 - 100
Implementation -
2004 - 7
Implementation -
2005 - (2)
Acquired
businesses - 1,646
Currency - 2,048
Operations (76) 4,719
--------------------------
2005 Net Revenues $ 319 $ 97,854
==========================


Note: The detail of excise taxes on products sold is as follows:
2005 2004
-------------------------
Domestic tobacco $ 3,659 $ 3,694
International
tobacco 25,275 21,953
-------------------------
Total excise taxes $ 28,934 $ 25,647
=========================

Currency increased international tobacco excise taxes by $939
million.
ALTRIA GROUP, INC. Schedule 6
and Subsidiaries
Selected Financial Data by Business Segment
For the Twelve Months Ended December 31,
(in millions)
(Unaudited)



North
Domestic International American International
tobacco tobacco food food
----------------------------------------------------
2005 Operating
Companies Income $ 4,581 $ 7,825 $ 3,831 $ 1,122
2004 Operating
Companies Income 4,405 6,566 3,870 933
% Change 4.0% 19.2% (1.0)% 20.3%
Reconciliation:
---------------
2004 Operating
Companies Income $ 4,405 $ 6,566 $ 3,870 $ 933

Divested
businesses - 2004 - - (11) (28)
Domestic tobacco
headquarters
relocation
charges - 2004 31 - - -
International
tobacco E.C.
agreement - 2004 - 250 - -
Asset impairment
and exit costs -
2004 1 44 391 212
Loss on sales of
businesses - 2004 - - - 3
Investment
impairment - 2004 - - - 47
Implementation
costs - 2004 - - 40 10
Provision for
airline industry
exposure - 2004 - - - -
---------------------------------------------------
32 294 420 244
---------------------------------------------------

Divested
businesses - 2005 - - 2 4
Domestic tobacco
headquarters
relocation
charges - 2005 (4) - - -
Domestic tobacco
loss on U.S.
tobacco pool -
2005 (138) - - -
Domestic tobacco
quota buy-out -
2005 115 - - -
Asset impairment
and exit costs -
2005 - (90) (335) (144)
(Losses) / Gains
on sales of
businesses - 2005 - - (1) 109
Implementation
costs - 2005 - - (55) (32)
Provision for
airline industry
exposure - - - -
----------------------------------------------------
(27) (90) (389) (63)
----------------------------------------------------

Acquired
businesses - 341 - -
Currency - 331 31 59
Operations 171 383 (101) (51)
----------------------------------------------------
2005 Operating
Companies Income $ 4,581 $ 7,825 $ 3,831 $ 1,122
====================================================


Financial
services Total
--------------------------
2005 Operating
Companies Income $ 31 $ 17,390
2004 Operating
Companies Income 144 15,918
% Change (78.5)% 9.2%
Reconciliation:
---------------
2004 Operating
Companies Income $ 144 $ 15,918

Divested
businesses - 2004 - (39)
Domestic tobacco
headquarters
relocation
charges - 2004 - 31
International
tobacco E.C.
agreement - 2004 - 250
Asset impairment
and exit costs -
2004 - 648
Loss on sales of
businesses - 2004 - 3
Investment
impairment - 2004 - 47
Implementation
costs - 2004 - 50
Provision for
airline industry
exposure - 2004 140 140
--------------------------
140 1,130
--------------------------

Divested
businesses - 2005 - 6
Domestic tobacco
headquarters
relocation
charges - 2005 - (4)
Domestic tobacco
loss on U.S.
tobacco pool -
2005 - (138)
Domestic tobacco
quota buy-out -
2005 - 115
Asset impairment
and exit costs -
2005 - (569)
(Losses) / Gains
on sales of
businesses - 2005 - 108
Implementation
costs - 2005 - (87)
Provision for
airline industry
exposure (200) (200)
--------------------------
(200) (769)
--------------------------

Acquired
businesses - 341
Currency - 421
Operations (53) 349
--------------------------
2005 Operating
Companies Income $ 31 $ 17,390
==========================
ALTRIA GROUP, INC. Schedule 7
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Quarters Ended December 31,
($ in millions, except per share data)
(Unaudited)


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

2005 Continuing Earnings $ 2,289 $ 1.09
2004 Continuing Earnings $ 1,990 $ 0.96
% Change 15.0 % 13.5 %

Reconciliation:
---------------
2004 Continuing Earnings $ 1,990 $ 0.96

2004 Domestic tobacco headquarters
relocation charges 4 -
2004 Asset impairment, exit and
implementation costs, net of
minority interest impact 122 0.06
2004 Gain on sales of business, net
of minority interest impact (3) -
2004 Corporate asset impairment and
exit costs 19 0.01
2004 Investment impairment, net of
minority interest impact 26 0.01
2004 Provision for airline industry
exposure 85 0.04
2004 Tax items, net of minority
interest impact (4) -
-------------- --------------
249 0.12
-------------- --------------

2005 Asset impairment, exit and
implementation costs, net of
minority interest impact (198) (0.10)
2005 Loss on sales of businesses,
net of minority interest impact (4) -
2005 Corporate asset impairment and
exit costs (6) -
2005 Tax items, net of minority
interest impact 51 0.02
-------------- --------------
(157) (0.08)
-------------- --------------

Currency 5 -
Change in shares - (0.01)
Change in tax rate 106 0.05
Operations 96 0.05
-------------- --------------
2005 Continuing Earnings $ 2,289 $ 1.09
-------------- --------------
2005 Discontinued Earnings $ - $ -
-------------- --------------
2005 Net Earnings $ 2,289 $ 1.09
============== ==============

(*) Basic and diluted earnings per share are computed for each of the
periods presented. Accordingly, the sum of the quarterly earnings
per share amounts may not agree to the year-to-date amounts.
ALTRIA GROUP, INC. Schedule 8
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Twelve Months Ended December 31,
($ in millions, except per share data)
(Unaudited)


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

2005 Continuing Earnings $ 10,668 $ 5.10
2004 Continuing Earnings $ 9,420 $ 4.57
% Change 13.2 % 11.6 %

Reconciliation:
---------------
2004 Continuing Earnings $ 9,420 $ 4.57

2004 Domestic tobacco headquarters
relocation charges 20 0.01
2004 Asset impairment, exit and
implementation costs, net of
minority interest impact 401 0.19
2004 International tobacco E.C.
agreement 161 0.08
2004 Loss on sales of businesses,
net of minority interest impact 2 -
2004 Corporate asset impairment and
exit costs 45 0.02
2004 Investment impairment, net of
minority interest impact 26 0.01
2004 Provision for airline industry
exposure 85 0.04
2004 Tax items, net of minority
interest impact (419) (0.20)
2004 Gains from investments at
SABMiller (111) (0.05)
-------------- --------------
210 0.10
-------------- --------------

2005 Domestic tobacco headquarters
relocation charges (2) -
2005 Domestic tobacco loss on U.S.
tobacco pool (87) (0.04)
2005 Domestic tobacco quota buy-out 72 0.03
2005 Asset impairment, exit and
implementation costs, net of
minority interest impact (393) (0.19)
2005 Gains on sales of businesses,
net of minority interest impact 60 0.03
2005 Corporate asset impairment and
exit costs (33) (0.02)
2005 Provision for airline industry
exposure (129) (0.06)
2005 Tax items, net of minority
interest impact 521 0.25
-------------- --------------
9 -
-------------- --------------

Currency 272 0.13
Change in shares - (0.07)
Change in tax rate 332 0.16
Operations 425 0.21
-------------- --------------
2005 Continuing Earnings $ 10,668 $ 5.10
-------------- --------------
2005 Discontinued Earnings $ (233) $ (0.11)
-------------- --------------
2005 Net Earnings $ 10,435 $ 4.99
============== ==============


(*) Basic and diluted earnings per share are computed for each of the
periods presented. Accordingly, the sum of the quarterly earnings
per share amounts may not agree to the year-to-date amounts.
ALTRIA GROUP, INC. Schedule 9
and Subsidiaries
Condensed Balance Sheets
(in millions, except ratios)
(Unaudited)

December 31, December 31,
2005 2004
------------ ------------
Assets
------
Cash and cash equivalents $ 6,258 $ 5,744
Assets of discontinued operations held for
sale - 1,458
All other current assets 19,523 18,699
Property, plant and equipment, net 16,678 16,305
Goodwill 31,219 28,056
Other intangible assets, net 12,196 11,056
Other assets 14,667 12,485
------------ ------------
Total consumer products assets 100,541 93,803
Total financial services assets 7,408 7,845
------------ ------------
Total assets $ 107,949 $ 101,648
============ ============

Liabilities and Stockholders' Equity
------------------------------------
Short-term borrowings $ 2,836 $ 2,546
Current portion of long-term debt 3,430 1,751
Accrued settlement charges 3,503 3,501
All other current liabilities 16,389 15,776
Long-term debt 15,653 16,462
Deferred income taxes 8,492 8,295
Other long-term liabilities 13,813 14,287
------------ ------------
Total consumer products liabilities 64,116 62,618
Total financial services liabilities 8,126 8,316
------------ ------------
Total liabilities 72,242 70,934
Total stockholders' equity 35,707 30,714
------------ ------------
Total liabilities and
stockholders' equity $ 107,949 $ 101,648
============ ============

Total consumer products debt $ 21,919 $ 20,759
Debt/equity ratio - consumer products 0.61 0.68
Total debt $ 23,933 $ 22,980
Total debt/equity ratio 0.67 0.75