Tobacco Documents Online

government power run amok (especially in light of the governments long involvement with tobacco). We believe we need to repeatedly remind our audiences of the facts which show how the industry has changed, what it is doing today to address the concerns of the public, and that this lawsuit is no more than piling on. "Enough is enough" should be a subtext of our efforts because that is clearly the case in light of all that has happened the past several years. Other Issues and Activities We will be mindful that this plan needs to complement and be consistent with PM21 and other ongoing communications efforts. We will be sensitive to other issues that are at the top of the public agenda, including the Supreme Court's review of the FDA appeal and other litigation, and will work to coordinate our activities to ensure we do not eclipse other important communications efforts. We suggest a weekly meeting of the project team to manage the implementation of this program. Communications Targets Our primary communications targets for this effort will be political elites, including: • Members of Congress • Editorial writers and columnists • State and local business leaders • State and local political leaders • Industry analysts To reach these targets we will focus our media and grassroots outreach activities on:  National and local editorial boards  Key Washington news media that cover tobacco and/or the Justice Department • Conservative opinion writers • Talk radio commentators, both conservative and liberal • Regional, state, and local business groups and associations • Key local business leaders  Business allies and customers N O • Employees ~ 0 • Targeted paid media v A • Shareholders W ~ co O 2

Materials For both our continuing education effort and new communications activities we propose updating our current briefing materials, as well as developing new turnkey documents for use by field managers and third party allies. Our new leave behind material would include: • An updated white paper on Federal Government tobacco policy; • An updated white paper on the lack of legal merit of the Federal lawsuit; • A one pager demonstrating why the lawsuit is political, pointing to public quotes and events; • RICO and politics - How the law is being abused • Updated editorial commentary and useful news articles; • A one-page summary of the CRS report; • The CRS report; • "Who's Next?" - Outline of the slippery slope • "Enough is Enough" - Summary of what governments extract from the industry/consumers today • Transcript of Greg Little's National Press Club news conference; • "What We Have Done - A Summary of Industry Initiatives in the MSA" We would also prepare a fact book that can be used by field managers and third party allies in direct mailings, at business lunch addresses, and other public events to help educate public audiences and stimulate discussion. This book would include: • An essay on the Federal Government's partnership with the tobacco industry; • White paper on the lack of legal merit of the Federal lawsuit; • An essay on the ramification for business and the public in general if politically motivated lawsuit become the gold standard of the government (perhaps authored by a prominent legal scholar, think tank expert, or former attorney general); • Bullet points and fact that the reader could use as a guide for letters to Congress, White House, or news organizations; • Summary of industry initiatives on youth smoking, MSA 6

Non-Media Activities This campaign will be comprised of media relations activities and active grassroots outreach to inform and activate third-parties. Notwithstanding the industry's success in transmitting its messages on the lawsuit this year, it is equally important that our target audiences hear from other credible parties. These third party groups include: • Governors • State legislators • Local political allies • Local business leaders • Local legal experts/academics • Civil libertarians • Customers and suppliers • Employees Responsibilities for coordinating activities will rest with the following: Program Management Scott Williams, BSMG FAT/MAN Mike Pfiel, PMUSA Research David Silvia, PMMC State Govt Affairs David Laufer Legal Greg Little Federal John Scruggs, PMMC Corporate Peggy Roberts Third Party Mobilization We propose that in markets where PM has a MAN representative on the ground, committees of third party allies be established. The groups would be chaired by the local PM MAN representative and act as our eyes and ears on main street. Committee members would generate local speaking opportunities for PM spokesmen, serve as surrogates with media, author Opeds and letters-to-the-editor of local newspapers, and other related activities. The committees would meet (or talk via conference call) on a regular basis throughout the campaign, perhaps as frequently as every week or every other week. We would provide updated communications materials as needed and ensure that committee members receive editorials, opeds and LTE's published across the country. We would include them in our regular mailings and blast faxes to editorial pages and columnists. 7

Any paid media should be considered in the broader context of the company's ongoing paid communications activities, including PM21 and any issues advertisements. ACTION ITEMS Knowing that this is a somewhat comprehensive communications proposal, here is a list of items that we believe should be giving priority as the scope of this program is considered. We have then added a second list of activities that would fill out the program nicely, but are not viewed as essential to this effort. MUST DO Research Revise press materials Complete editorial briefings Ongoing media briefmgs, as needed FAT/MAN training/briefing Speakers Bureau Regional Business Forums/Luncheons (At least 6) Radio tours Local press availabilities NICE TO HA VE Satellite media tours Web site Paid media from third parties Governors statement at NGA winter meeting Resolutions from state legislators 15

Research To measure the effectiveness of our communications effort, and to develop and refine new messages and counter arguments, we recommend both qualitative and quantitative research. Our research targets for our research would include: • Opinion elites in key congressional targets • Opinion elites in top media markets • Business leaders  Upper income independents • Smokers  Key groups in primary states First, we suggest a telephone survey of opinion elites to establish a baseline for awareness of the lawsuit by opinion leaders. We would use this as a benchmark to track how successful our communications and grassroots efforts are in reaching this key target audience. As our campaign unfolds we should do additional tracking polling to test the effectiveness of our communications and grassroots efforts, and possible provide information to the news media about declining public support for the lawsuit. We propose conducting six to eight focus groups of opinion elites in key markets to examine the strength and effectiveness of our current messages, to test counter arguments, and to test possible new messages. We will use the results of this research to refine our current messages to be incorporated across all our communications and outreach activities. Our target markets for the groups could include: • Atlanta • Los Angeles • Salt Lake City  St. Louis • Seattle • Chicago • Boston • New York (Upstate and city) • Key primary states 5

We suggest our initial round of business forums/luncheons be in key media markets and business markets of important Congressional allies or targets, such as: • Richmond  Salt Lake City  Charlotte • Boston/Manchester • Seattle • Los Angeles • Philadelphia • St. Louis • Denver  Chicago  Atlanta • Washington, D.C. One-on-One Business Leader Meetings We suggest a targeted grassroots outreach effort to business leaders of major U.S. companies to educate them about the ramifications of politically charged lawsuits for U.S. businesses, and to request that they join a broad based business advertisement condemning taxation through litigation. Some of the business leaders could also assume the role as master of ceremonies at a regional business forum/luncheon, pen an editorial, or agree to participate in media interviews. The purpose of this effort is to develop a solid base of thoughtful business leaders who, ideally, will not be directly linked to the industry, but who have serious concerns about the threat to legitimate business from political lawsuits. Once such a network is established, we could ask them to participate in round table discussions with reporters, conference calls with key opinion leaders/writers, or analysts. Rapid Response We will establish a rapid response protocol to respond quickly to critics and misinformation. This effort would be coordinated between the media relations team and the grassroots and government relations teams. Our goal is to ensure that any misinformation or effort to define the lawsuit as something other than it is - a politically motivated lawsuit designed to extort money from the industry and its adult consumers - is quickly confronted. Materials used for rapid response would include boilerplate letters to the editors, Op-eds, talking points, but we could also include placement of surrogates on local radio programs or other activities, depending upon the level of response required. 10

TIMELINE Here is a suggested timeline for the roll out of the campaign. NOVEMBER - LAY THE GROUNDWORK • Develop and field benchmark poll • Conduct focus groups • Start development of print collateral materials • Develop rapid response materials • Identify media targets/markets • Identify 3'" Party targets • Select Forum cities and initiate planning of January meetings • Develop list of business leaders for one-one-one meetings • Develop Speakers bureau list (coordinate w/PM21 programming) • Start website design • Start advertisement development • Editorial board/journalist meetings • Mailing of updated materials to all media targets • Initiate planning for Washington D.C. Forum (January target)  Rapid response materials ready • Exploit press opportunities if any, around Hatch hearing  Blastfax and mailings (as appropriate) • Tracking poll DECEMBER - LAUNCH • Editorial board/journalist meetings • Grassroots/MAN training session • Media briefing begin • Radio and satellite media tours around SCOTUS arguments • Conservative talk radio tours in wake of SCOTUS arguments • Launch microweb page • Test Third-party advertisements  Blastfax and mailings (as appropriate) • Tracking poll 16

JANUARY - FILL THE VOID • Editorial board/journalist meetings • Brief White House/political/Congressional media on federal suit prior to State of the Union • Blastfax State of the Union talking points (highlight MSA accomplishments, January payment) • Rapid response and spokespeople ready for State of the Union react  Washington, D.C. Forum • Regional Business Forums (minimum 4 in January)  Third-party advertising launch  Grassroots activities • Promotion of state legislature resolutions against lawsuit  Blastfax and mailings (as appropriate) • National Governors Association winter meeting resolution/MSA report • Tracking poll • FEBRUARY - CONTINUE THE DIALOGUE • Complete all editorial board/journalist meetings • Regional Business Forums (minimum 4 in February) • Grassroots activities • Blastfax and mailings (as appropriate) • Third-party advertising • Tracking poll (Possibly release results) MARCH - PREPARE FOR RULINGS • Third-party advertising • Regional Business Forums  Grassroots activities • Blastfax and mailings (as appropriate) APRIL - BEYOND THE RULINGS • Continue basic outreach activities • Adjust strategy according to Court rulings, as necessary 17

Governors Governors will be playing an increasing visible role in presidential campaign activities and the NGA winter meeting in Washington will be good opportunity for a NGA-led statement against the federal lawsuit. We will work closely with governors' offices when appropriate to encourage their participation in the regional business forums, as well as other possible discussions about the bad precedent the lawsuit is setting for the country. In addition, governors can raise the issue of the federal lawsuit and its potential impact upon the state settlement payments, as well as emphasize the accomplishments of the MSA Speakers Bureau To expand the stable of surrogates to carry our message during this campaign, we suggest the establishment of a speakers bureau to coordinate and promote company spokespeople and third-party allies for speaking and media opportunities. We would work to coordinate our activities with other speakers bureau programs that are underway - such as the PM21 effort - to use our resources most efficiently, avoid conflicting messages or scheduling problems. We will have a "stump speech" prepared in text and outline form for use by our speakers. We will take advantage of opportunities to include messages about change, about the industry's effort to combat youth smoking, and our effort to open the channels of communication with the public, as well as our fundamental messages about the federal lawsuit. We will also draft appropriate lawsuit language for insertion into PM21 speeches that will be given in the weeks and months ahead. Regional Business Forums/Luncheons We suggest the industry reach out directly to local and regional business leaders to inform them about the substance of the lawsuit and the ramifications for business if such politically driven lawsuits become the norm. This could be accomplished by hosting a series of forums or small luncheons in target markets where an industry, chamber of commerce, or other third party spokesperson would speak about the lawsuit. Background materials would be made available to the attendees of the luncheon. These forums would also provide an opportunity to tell the story of change in the industry, and provide a case history of how the industry is working to address public concerns through the MSA and other activities. 9

In addition, we would arrange for our third-party allies and ground troops to receive a training/briefing session to prepare them for the communications effort. Some of the messages we would suggest for the third party messages include: • Government suits have been filed against three industries that produce controversial, yet legal products. Who's next?; • The Administration failed to raise tobacco taxes in 1998. It is now resorting to raising taxes through litigation; • Use of the legal system in this manner is a gross abuse of the government's authority and the legal process • The federal tobacco suit endangers the benefits won by the states last year Business and Civil Liberty Allies Naturally, business allies will focus on the "Who's next?" message. And there is ample ammunition since the slippery slope is no longer just a theory. Governmental lawsuits against firearms and lead paint manufacturers bear out what the tobacco companies have been saying for the last year. Assuming the necessary support can be generated, civil justice advocates would be enlisted to raise the "abuse of power" message. Even though these groups, who are typically on the left wing of the political spectrum, may harbor little or no sympathy for the companies, their dedication to fighting government injustice may prove beneficial. Moreover, their devotion to issues of individual freedom could also lead to their support of our effort. Regardless of what they may think of smoking, their support for individual rights may lend itself to the rights of adults to choose to smoke. Local Government Allies Finally, local political allies will be mobilized to raise awareness of the danger to the MSA should the Federal government be successful. As states begin to receive MSA funds and finalize their plans for spending them, local civic allies would be encouraged to speak publicly about their plans for the money. We should see to obtain resolutions opposing the lawsuit from as many state legislatures and local municipalities as possible. We may want to push for such resolutions around the time that the multi-billion dollar settlement payments begin flowing to the states in January. 8