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u;/ (.1 /aH ruL. 1I .1u r:L1 - 1y,luUb ~ ~ WrtteNow9 Personal Letter Assistance Tier One .................................................................................................... ... $183,195 Tier Two .................................................................................................... ... $223,950 Patch-Thraugh Calls Per Completed Patch-Through ............................................................................... $12 The Direct Impact Company 7

v:rc~ran avn l/.1.~ rn.> WIUUB • This issue has already been addressed by individual states, and additional federal inter[erence is not required. Direct Impact will work with PM to adapt the overall campaign message to the specific interests and perspectives of the grassroots programs' targeted audiences. Programs Key Influential Communicafions Purpose Help focus key legislators on the Issue by delivering PM's message through highly respected personal sources. Aovroximate Contact Levels Tier One: 45 Contacts per Senator; 30 Contacts per Representative Tier Two: 35 Contacts per Senator; 25 Contacts per Representative (Specific contact levels will depend on the state.) In each targeted district. Direct Impact will retain a seasoned, well-connected local [ield manager to identify Influential constituents who: • Strongly believe that giving trial lawyers an additional $20 million in public funds to underwrite further attacks on a legal industry is a misuse of taxpayer dollars and federal authority; . Can speak with relevance and authority on the issue as a result of professional, personal. academic, or political experience; • Have a public status and/or personal connections sufficient to ensure that their communications to the targeted legislator will receive prompt attention and serious consideration. Appropriate prospects will be recruited to communicate their opposition to the White House proposal to their targeted legislator via personal letter or telephone call. Larger Volumes of Personai Letters and feiephone C®ils from Constituents In order to supplement key influential communications with a larger volume of constituent contact, we have targeted segments of the population who, based on past behavior, are likely to support PM's position. We would recommend that these outreach calls be placed on behalf of a third-party group, such as a tort-reform organization. The Direct Impact Company 4

~+icriea auc .1=ia r:+a wi "V,: Date: April 27, 1999 To: John Scruggs From: John Brady Tom Herrity Re; Gressroots Opposition to Federal Funding for Anti-Tobacco Lawsuits Direct Impact appreciates the opportunity to offer Philip Morris U.S.A. (PM) the following grassroots programs as a supplement to PM's campaign opposing a White House proposal to allocate $20 million to trial lawyers to pay for further lawsuits against the tobacco industry. Strategy Direct Impact will generate three forms of personal communications from constituents to key legislators expressing opposition to a recent White House request for $20 mil]ion to pay trial lawyers to pursue litigation against tobacco companies: • Personal letters and telephone calls from key influential constituents that will demonstrate strong opposition to the White House proposal from diverse political viewpoints: • Larger volumes of -personalized" letters---generated with our assistance-irom a broader segment of constituents that will emphasize the breadth of opposition to this White House proposal; •'Patch-through" telephone calls from the broader constituent base that can be generated immediately before critical votes. In many previous programs, we have coordinated our field activities with the field operations of our clients, and we will draw on this experience to coordinate with PM field teams on a Jurisdlctlon-by-iurisdiction basis, ensuring that Direct Impact and PM activities supplement each other without duplication. If necessary, we can also coordinate with any outreach that PM might conduct to smokers' groups or other audiences. In order to maximize the impact of each program, we have divided the target list into two tiers, with the most critical legislators in Tier One. where we will concentrate our efforts most intensely.

Vt~LI~JJ 1LL 1/.1V la.1 wi UU7 then mailed to the prospect along with a stamped envelope pre- addressed to the targeted legislator. • The participant signs the letter and posts It. • After several days. each participant receives a follow-up call to ensure that the letter has been received and remind them to sign and mail It if they have not done so. Patch-Through Calls When additional contacts become strategically desirable. our executive recruiters will generate patch-through telephone calls to targeted legislators working from a prospect list that Includes (but is not necessarily limited to) participants in the WriteNow! program. Prospects will be informed about the issue, and those who strongly oppose the White House proposal will be asked it they would like to contact their targeted legislator's office directly. Those who wish to participate will be provided with several brief talking points and then patched through to the appropriate legislator's office. Budget Kay Influontial Communications* Tier One .................................................................................................... ... $519,000 • Members of the House and Senate Appropriations Subcommittees on Commerce, State, and the Judiciary. • House and Senate Leadership • Approximately 45 Contacts per Senator and 30 Contacts per Representative (Specific contact levels will depend on the state.) Tier Two .................................................................................................... ... $9] 4,000 . Remaining members or the House and Senate Appropriations Committees • Approximately 35 Contacts per Senator and 25 Contacts per Representative (Specific contact levels will depend on the state.) co cN *Total cost of key influential recruitment program reflects anticipated economies w of scale. Some ad(ustment may be necessary il the target list changes. ..D:- rn N -11 The Direct Impacr Company 6

Wj U U(i V-!~<1/JJ 11.L 11.1J I:fA letters ur os Reinforce legislators' attention to the issue by demonstrating the broad nature of opposition to the White House proposal. Approximate Contact Levels Approximately 200 Letters per Senator and 70o Letters per Representative In order to supplement both the key influential program described above and PM's own outreach to smokers, Direct Impact will utilize its WriteNow! program to generate a substantial volume of individualized letters from constituents in targeted districts who strongly oppose abuse of the tort system. Letters will be distinguished from one another through: • The use of different paper stocks; • The use of different fonts and formats: • Personal tnformation such as parental status, number of children, number of years living in district, etc. • Individual choice of pre-written sentences and paragraphs expressing different aspects of PM's message; • Variable placement or these components from letter to letter. WriteNowi generates these letters through the following process: . We contact each prospect and explains that we are calling with information about an important issue concerning abuse of the tort system and taxpayers' money. We briefly explain the issue and gauge the prospect's response. • Prospects who strongly oppose the White House proposal are asked if they have two or three minutes to help us compose a letter for them, which will then be mailed to them in a stamped envelope addressed to their targeted legislator. • Prospects who agree are asked a brief series of questions about the issue and about themselves. • Based on their answers, a personalized letter to the prospect's legislator is generated, customized with the signatory's specific views as well as other personal information. The letter is printed out and The Direct Impact Company 5

v..L,.aG 1u1: 1I .1J r:L] • • T'ier Two Remainine members of the House and Senate Annrouriations Committees Senator Larry Craig (ID) Senator Richard Durbin (IL) Senator Christopher Bond (MO) Senator Thad Cochran (MS) Senator Conrad Burns (MT) Senator Byron Dorgan (ND) Senator Harry Reid (NV) Senator Arlen Specter (PA) Senator Robert Bennett (UT) Senator Patrick Leahy (VT) Senator Slade Gorton (WA) Senator Patty Murray (WA) Senator Herb Kohl (WI) Representative Todd Tiahrt (KS-04) Representative Anne Northup (KY-03) Representative John Olver (MA-01) Representative Steny Hoyer (MD-05) Representative Joe Knollenberg (MI-i 1) Representative Carolyn Kilpatrick (MI-15) Representative Martin Sabo (MN-05) Representative Jo Ann Emerson (MO-08) Representative Roger Wicker (MS-01) Representative David Price (NC-04). Representative John Sununu (NH-01) Representative Rodney Frelinghuysen (NJ- 11) Senator Robert Byrd (WV) Ranking Representative Sonny Callahan (AL-01) Representative Robert Aderholt (AL-04) Representative Robert Cramer (AL-05) Representative Jay Dickey (AR-04) Representative Ed Pastor (AZ-02) Representative Nancy Pelosi (CA-08) Representative Sam Farr (CA-17) Representative Jerry Lewis (CA-40) Representative Ron Packard (CA-48) Representative Randy Cunninghgm (CA- 51) Representative Joe Skeen (NM-02) Representative Michael Forbes (NY-01) Representative Nita Lowey (NY-18) Representative James Walsh (NY-25) Representative Maurice Hinchey (NY-26) Representative David Hobson (OH-07) Representative Marcy Kaptur (OH-09) Representative Ernest Istook (OK-05) Representative John Peterson (PA-05) Representative John Murtha (PA-12) Representative James Clyburn (SC-06) Representative Chet Edwards (TX-11) Representative Rosa DeLauro (CT-03) Representative F. Boyd (FL-02) Representative C. Young (FL-10) Chairman Representative Carrie Meek (FL-17) Representative Jack Kingston (GA-01) Representative Jesse Jackson (IL-02) Representative John Porter (IL-10) Representative Peter Visclosky (IN-01) Message Representative Kay Granger (TX-12) Representative Tom DeLay (TX-22) Representative Henry Bonilla (TX-23) Representative James Moran (VA-08) Representative Frank Wolf (VA-10) Representative George Nethercutt (WA-05) Representative Norm Dicks (WA-06) Representative David Obey (WI-07) 0 Recruitment messages and educational materials for advocates will emphasize w 00 two key points: • Using taxpayer dollars to help fund further abuse of the American tort system is a misuse of government funds. w -p m N ~ The Direct Impact Company

ut1 41 iao •Ut ii-it tna Tier One • • Senate Appropriations Subcommittee on Commerce Justice State and Judiciary Senator Ted Stevens (AK) Senator Ben Campbell (CO) Senator Daniel Inouye (HI) Senator Mitch McConnell (KY) Senator Barbara Mikulski (MD) Senator Judd Gregg (NH) Chairman Senator Frank Lautenberg (NJ) Senator Pete Domenici (NM) Senator Ernest Hollings (SC) Ranking Senator Kay Hutchison (TX) tia_um-ADp r 0 ons_Subco In" ttee on_ 1 mm Representative Jim Kolbe (AZ-05) Representative Julian Dixon (CA-32) Representative Lucille Roybal-Allard (CA-33) Representative Dan Miller (FL-13) Representative Tom Latham (IA-05) Representative Harold Rogers (KY-05) Chairman Representative Charles Taylor (NC-11) Representative Jos€ Serrano (NY-16) Ranking Representative Ralph Regula (0H-16) Representative Zach Wamp (TN-03) Representative Alan Mollohan (WV-01) House and Senate LeadershiD and Judicl Senator Trent Lott (MS) Majority Leader of the Senate Senator Dan Nickles (OK) Majority Whip of the Senate Senator Strom Thurmond (SC) President Pro Tempore ot the Senate Senator Thomas A. Dasohle (SD) Minority Leader o( the Senate Representative J. Dennis Hastert (1L-14) Speaker ot the House Representative David E. Bonior (MI-10) Minority Whip of the House Representative Richard A. Gephardt (MO-03) Minority Leader of the House Representative Tom DeLay (TX-22) Majority Whip of the House Representative Richard K. Armey (TX-26) Majority Leader of the House WJ UUJ The Dlrect {mpacc Company 2