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CONFIDENTIAL: lVIINNESOTA TOBACCO LITIGATION Progress Report on the Responsible Living Program for the Communications Committee Monday, June i0, 19 (~D photo slide) Almost two years ago, in September 1983... when we first bro,lght to this Committee the proposal that became th:~ Insti~ute's Responsible Living - Program.., we told you we had two objectives. The firs5 objective was 5o increase public awareness that the tobacco industry does not market cigarette-.~ ~o youngsbers. The secon.t... To demonstrate to public policy makers.., and o5hers concerned wibh 5he welfare of youngs%er~... ~ha~ bhe indusbry is acting responsibl.y in %his area. PRIVILEGED AND CONYIDENTIAL Produced as required by ~he Court's March 7, 1998 Order in TIMN 174575 ....... State of Minnesota, e~ .... ,~ ~ .... ~ =.~ ~ ...... ~.~::~: : • ~.:-.~ .~.: CourIer:.. ::. :. ., •:.,~1

CONFIDENTIAL: . MINNESOTA TOBACCO LITIGATION : You recommended the program to ~he the Executive Committee, which then.., a little more ~han a year ago ...gave us a partial green light. Voting subsequently ~o skip a s~ipula~ed small-scale ~es~... in July ExComm gave us 5he full go-ahead for a launch ...in conjunction wi~h our partners a~ ~he National Association of State Boards of Education. We broke the champagne bobble on Sep%ember 2S and now.., a Dare eight and a half months later.., the bubbles a~e rising in our glass faster than ever. We could only guess las~ fall how our illustra~ed parental ,~uidebook, "Helping ~outh Decide," would be receiv;~d. We could only guess,.,tha5 because of -' the NASBE pa~%ne~ship...%he p~og~am might be difficult for our adversaries 5o damn. ~e hoped ~;e'd make ~ome poin~ ... as we gave grea~er v~.sibili~y ~o 5he indus~ry'~ longs~anding posi%ion ~tgains% you%h mmoking.., and allied our industry wi~h those concerned...that in ~oday s fast-pace,~ world...far 500 much reliance is placed on other :~han parents...~o shape 5he ~houghts and future lives of our pre-%eens and adolescents. TIMN 174576

• We hoped we'd make points.., with a positive and well received public service effort -- points on the Hill... points among state legislators.,.points among influential educators...and points with others whD recognize a lack of guidance in the home...fo~ young people...in learning decision-,~aking skills. CONFIDENTIAL:ToBACCO LITIGATION a ..... Hell t how have we done? The sucoe-~s and scope of the program.., the overwhelmingly enthusiastic support for it... have exceeded our wildest hopes, I'll get %o the numbers in a moment. But first... a sentimeqt we've heard frequently from lawmakers...educators...thought leaders in both private a.ld public sector~...from coast to coast. (Jolly/MY,) slide) Jolly Ann Davidson...~mmediate past pres£dent of NASBE and one of the program's biggest boosters... viewed it from the educators' standpoint ... on a radio sho~ with TI's Malker Merryman las5 month. PRIVILEGED AND CONFIDEN~F[AL Produced as required by th~ Courffs March 7, 1999 ~ry~der in State of Minnesota, et aL ~, p~:~:-~ s~- o 174977

CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION (~ape ~ f~ ~ ~u~) [Jolly: I think we~ve reached the point where everyone-agrees 5hat schools cannot do everySh£ng alone. ~-D we have 50 have partnerships, no5 only partnershLps wi~h parents but partnerships wish business, which I think the project between the Tobacco Iastitu%e and our educational association is an exc:~llen5 example, of one partnership reaching .)ut 5o another partnership, which are ~he parents a~d the schools.] Later in :~he show, Boston lis%eners heard Jolly and 5he h;~s5 discuss the co~t of "Helping Youth Dea~de".. (bla~k ~l~.de) I hope yo~ have picked up from ~he ~on~ole... wha~ we ~all o,:r quotes document. If you did, you may have foun,. ~he fir~ pa~e~ familiar. When la~ Commi~%ee saw %his running com~ila%ion of endo~semer~ and compl~men~,.., from paren~, ~ervive a~d relig~ou~ commun~e~, office holders.., in December, I think i~ was... TIMN 174578

there wer~ perhaps 10 pa~es. Now it runs 45...and we've bees handling orders so furiously we're several wmeks behind in adding to i~s seven sect ions. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION --- I am reminded ~hat back in January...when we hi5 5he 100,000 mark, Sara asked me how many booklets we'd budg:÷ted for. Gulping a bit, I said another 100,000. Now...as ~e pass the third of a million mark... about Hed~,esday, by my caloula%ion...we're expecting our fourth print order. He're going to 5ry to make that new total of S~0,000 books last the rest ~f ~he year. We've gob 5he Spanish language "Helping Youth Decide" y:~t ~o come! So the nD,,bers, as of May 31 are: 322,457 booklets shipped...the result of i~4,~44 £nd~vldual re~ues~ ... by oo~.pon, letter and phone call ~o NASBE or TI. PRIVILEGED AND CONFIDENTIAL Produced as required by the Court's March 7, 1998 Order in State of Minnesota, ~ ~1o ~:~ ~ !~-~ ~,:~orfis, e~ aL TIMN 174579

Co ENTIAL: ,- (map slide - requests) MINNESOTA TOBACCO LITIGATION ~.~ Here's how %he number of requests breaks down. No real surprises. They're all pre~%y much in line wi~h population.., wish California, New ?ork, New Jersey an~ Pennsylvania perhaps a %ad above wha% migh% be ~xpec%ed on popula%ion patten%ages. (map slide - %o%ai copies) _ And here'.s %he breakdown on %hose more bhan 320,000 No surpri~;es here, eiSher.,, bus evidence in Californi~, New York and Pennsylvania,.. again... %ha% prin,:ipals, 5eachers, guidance professionals, priva%e a~d public sector family agencies.., and oShers...have been quick %0 recognize She book's wor%h...a~d %0 volun%eer 5o ge% copies %0 parents of young ~;eenagers who migh% miss our adver%ising. Ac~ually, we don'5 know exac%ly whom all our orders are from. We have lashers we can 5ell are from parents.., older sis~ers.,.aun~s...and grandpare~%s. Bu% many more from educators and guidance professionals..,from scou% leaders and Boys Club direc%ors.., from Big Brothers and Jack and Jill ~eaders ....... PRIVILEGED AND CONFIDENTIAL Produced as required by the Court's March 7, 1998 Order/.n State of Minnesota, et ~l, ~,Co~rt F;~ !~ ~'~ ~ ~'~s, etal. TININ 174580

from church youth ministers and probation officers ... from Planned Parenthood people.., from suicide, chemical abuse, delinguency and drop-out preven5ion programs...from pediatricians, orthodontists and family therapisbs in private practice.., from corporate human resources departments and governors' summer jobs programs. (pie oharb - single vs. bulk Yes...as -:erry Como used to say...we go% letters. But we've also logged in almost i00,000 coupons... which ~yp[cally give no~hing more than name and address. And we know 5ha% as of May 15 our mailhouse said we'd filled more %hart 109,000 single- a~d two-copy orders.., and some 4,400 separate ~)ulk request, in all. CONFIDENTIAL: : _. M NNESOTA TOBACCO LITIGATION ~ .... PRIVILEGED AND CONFIDENTIAL Produc_.e_ d as required by, the Court's March 7- ~tate of Minnesota, et a/. v. Phi/',-, Court File No.:C1-94-8565 TIMN 174581 7

All of these multiple orders, incidentally...have been reviewed by us here.., to make sure our volunteer passer-alongers weren't planning to just hand the books bo kids to carry home to unaware... and perhaps uncon=erned.,, parents...who might not know the flifferenoe if the books were left on the bus or pl~yground.., and never made it home. "Helping {outh Decide" is...after all...for parents -- and those we hope are recognizing.., and appreciat~ng...the industry's public service effort. NASBE agr:~es we should insist that third party distributors use the booklets.., as much as possible.., in one-on-one situations.., mailing them home with recommendation by the principal .., arranging for guidance and other professionals who work with families to deliver ~hem in person... discussing the suggested techniques for improving family ~o,,munioa~ion...before giving ~he books ou~ for ins~a,~oe a~ PTA workshops or pare~i=g courses. Pazem~ing courses are a Big Thing ~hese days...this CO~E~: ~ ~SOTA TOBACCO LITIGATION TIMN 174582 8

(HYD ad/u~upon Many of our eager volunSeers -- I began 5o along abo~g ghe end of February -- have been very pleased w£~h 5hemeelves for discovering a fine, free resozrce...one 5hag has been uniformly praised by ~he behavioral specialisSs. This cynic could no~ help bus ~onjec~ure ~ha5 some could see a big of ~he gl,~ry reflecting upon 5hemselves... as greed£1y ~:eques~ ~housands of copies ~o blanke~ whole ci~es.., or heal%h fairs.., or So, go av.)id hut5 feelings...£n denying bulk orde;~s we feel inappropriage and unnecessarily expensive:..we produced an ad reprinS...wi%h ~oupon .... ~% abou~ one hundredgh ~he cos~ each... 50 offer ~n unlimiSed quang&%~es ins%ead. The parengs w|,o geg 5hem ghrough our volunteers can send for :,heir own copies, and...we feel...will b~ more likely £n ghe long run go use ~he bco~s...and go appreoiage where ghey gog ~hose books. ~ithou~ ~he ~easonable oongrols we've ins~iguSe~.., we could easily give away a million copies by ghe mid-year mark...if we needed higher numbers and mee% program goals. CONFIDENTIAL: " MINNESOTA TOBACCO LITIGATION :.__ TIMN 174583

• We shall continue 5o supply books to those who will US~ ~hem ... and ~c. give special a~en~ion ~o bulk orders for use in oen~er city sohools...and in other possibly lower-income situations. - Meantime, we have set a 24-book limit on bulk orders.., supplying more when we find out about distributLon plans. The E1 CeritSo School District in the Sa~ Fr~ancisco Bay Area... for instance... requested 10,000 copies.., bus pared ~hat down 2,500... :)he number of 105h graders expected next year. "He Lping Youth Decide" will be used in all ~he ~ea~h~r/paren~/s~uden~ conferences California law zequi::es schools 5o schedule annually for s~phomore- ~. BuS ba~k bo ~he numbers. Bamed on bo~h observation and mailh,~use computer data.., we can esbimabe about halC of the single and two-copy requests ... by coupon and letter.., come from parents. Bu~ we are also ~uessing ~ha% a grea~ many individuals who ask for o..,e, %hen quan~i%ies of, say, ~ 5o several ~housand...use 5ha5 firs~ copy wi~h youngsters of 5heir own. Many have %old us so. CO~E~I~: ~~SOTA TOBACCO LITIGATION ~.~ TIMN 174584 10