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e` PHILIP MORRIS U.S.A. INTER-OFFICE CORRESPONDENCE 120 PARK AVENUE, NEW YORK, NY 10017 TO: Ina Broeman DATE: FROM Edna Moore i SUBJECT: Status Report for Week Ending 2/19/93 COMMUNITY EVENT MARKETING eri l Event Execution Agencv: February 19, 1993 • Awaiting proofs on all materials ordered for 1993. - Lighters - Water Bottle - Cassette Player Holder - T-shirts - Caps - Banners - Sweepstakes Boards - Sweepstakes Tickets • Met with Marcella Schumann and Phoenix Marketing to review their proposal. They will return with a revised proposal. Minority Advertising: • Submitted ROP request to Media Dept. To date we have received V.S. Black and Hispanic schedule only. Still awaiting Marlboro media plan. The plan was to arrive 2/16/93. To date we have not received any ` schedule from media for our review. Creative brief submitted for Calle Ocho Festival ROP ad. Comp to arrive 2/22/93 from Leo Burnett. MARLBORO: • Met with Army, Navy and Marine Headquarters in Washington to review 1993 program, specifically, the possibility of a satellite non-branded feed to bases. - Letters to Headquarters were mailed, and Navy has approved the program for its bases. • Meeting with Air Force Headquarters in San Antonio scheduled for Feb. 19 with John Murphy and Glenn Smith. ~ .e~ Ej ~ r.r- ^ - •.t ; Ka

BENSON & HEDGES BLUES AND RHYTHM Event Execution: • Preliminary B&H Blues and Rhythm '93 marketing plans being finalized for management's review by week of February 15th. Markets SMSI VIRGINIA SLIMS VIRGINIA SLIMS TENNIS Contracts: • The following 12 markets have been established by Brand, leveraging the trial/sampling efforts that began with the SMSI program: - New York/New Jersey, Chicago, Washington, DC, Philadelphia, Detroit, Atlanta, St. Louis, New Orleans, Raleigh/Durham, Charlotte, Pittsburgh, Los Angeles, Oakland. • A four-day training program was conducted in Winston Salem for the 35 SMSI marketing managers and assistants who will be overseeing the B&H Special Kings Blitz Sampling/Retail program from 2/15-8/15. Representatives from PM's Brand, Legal, Events and Sales departments were in attendance. • Retail pre-sell activities will begin next week. • B&H brand has requested assistance of the Events Marketing department. A meeting is being planned for Monday, February 22 to discuss assistance. • - Florida: being routed • - ITP: Still awaiting final from legal • - Los Angeles: Awaiting changes/approval from the promoter.

SOUTHERN WOMEN'S SHOWS Booth: Miscellaneous MERIT • All keylines for booth approved and sent to SDI. However, SDI has informed us that in order to get booth completed in time for first show in Nashville 3/4/93, costs will be much higher than projected. This increase is due to many graphic changes and construction alterations. A breakdown of all projected costs has been requested from SDI. • Virginia Slims facts received from Leo Burnett. Coordinating with Brand on final selection. Computer Printout Paper, Name Generation Card and Folder printed hopefully by 2/26. • The Merit Bowling Program has been approved for 1993. • IMG has contacted BPWAA, LPBT and PBA. • Creative brief and program timeline being prepared.

MARLBORO PROMOTIONS STATUS REPORT Vans - All training in progress - Incentive redemption levels lowered per event recommendation. - Final draft of Power Force contract in review. - Budget to be transferred by end of March. Swat - Computers ordered - City names on T-shirts approved - Awaiting promotional bids for bar night imple mentation. Rodeo - Reviewing testing van program in select rodeo markets. Autoracing - Contracts under development for Milwaukee, Nazareth, and Marlboro Pole Award. - All materials under development - National elements memo distributed MAT - Both exhibits are on schedule considering tight timeline. - Schedule being confirmed - New trucks/motorcycles ordered

MARLBORO ADVENTURE TEAM TENT & TRUCK EXHIBITS Week of February 19 PROJECT STATUS DUE DATE LEO BURNETT: Tent & Truck Exhibits: Conference call 2/16 with DW, NL, AM & VB regarding artwork submitted 2/12. • Entranceway Slides/Posters LB to provide new slides & copy. 2/23 Currently reviewing slides in stock. • Merchandising Area A&K for "Get The Gear" poster. 2/18 A&K for "Apply Here." poster. Truck: • Exterior Graphics/Signage on all 4 A&K for exterior -- white water rafting shot 2/24 sides with MAT logo. ITEMS FOR EXHIBITS: • MAT Motorcycle Decals HPS ordered decals for bikes. • MAT Trucks Will be delivered in field 5/1. 4 new S.W.A.T. trucks will be delivered 2/26 for use during Spring Break; two each to Daytona & S. Padre. • Marlboro Flags Ten Marlboro flags delivered to HPS 2/18. • MAT Info Cards Shipped two boxes from PM to ECTS 2/16. 2/25 • Duty Free Bags Ordered 100K bags 2/16 from KDC. 2/22 Shipped to ECTS.

MARLBORO ADVENTURE TEAM TENT & TRUCK EXHIBITS Week of February 19 PROJECT STATUS DUE DATE LE AL: • MAT Exhibit Front MB to approve A&K of exhibit front warning 2/19 box. PLAY-TO-WIN & INCENTIVES: • Play-to-Win Card Blueprint approved 2/17. Purchase Req. submitted 2/9/93 -- 300K. Ship 3/1 -- 120K to ECTS. 3/22 -- 80K • MAT Lighters Sample approved 2/17. Purchase Req. submitted 2/2 -- 100K. 3/1 -- 50K ECTS -- 50K; KDC -- 450K. 3/22 -- 450K • MAT Souvenir Poster A&K for warning box due 2/19. (New policy that incentive posters must have a warning box.) Purchase Req. submitted 2/9 -- 50K. 3/2 -- 20K Ship to ECTS. 3/22 -- 30K APPROVALS: • POS/Retail Poster A&K from LB. 2/19 • Directional Signage A&K from LB. 2/19 • Touring Schedule Approved by AM 2/16. • MAT Gear to Display Ordered and shipped to ECTS 2/16. 2/23 UNIFORMS: Borrowing select merchandise and sizes from Spring Break CP for Spring Break. CF, Ent Mktg, is shipping to ECTS. Purchase Reqs submitted 2/12. 4/2 '93 Tour EXHIBIT SCHEDULES: Confirming space and cost with events. MAT Tent & Truck

V PROJECT CONTRACTS: • Spring Break • Touring Contract Alicia Huaman MARLBORO ADVENTURE TEAM TENT & TRUCK EXHIBITS Week of February 19 STATUS Received first draft for Daytona, Panama and S. Padre from legal. All three have been sent to accounting for approval 2/17. Still waiting on confirmed site for Myrtle Beach. Finalized all contract and budget issues 2/18. Final contract with budget due from HPS 2/22. DUE DATE

Christine Merhi e February 19, 1993 PROJECT STATUS DUE DATE SHOW CAR PROGRAM - Awaiting revised artlkeyline for show car 2/23 transporter with legal requirements. - Cindy at Off Track Management is sending w/o 2/22 estimate on painting of show car road course wings. - Reviewing race market show cars scheduled appearance dates. PROGRAM - Joan Cryan confirmed that "say no to smoking" 2/18 ADVERTISEMENTS ads will run in all '93 Indy Car programs. - James approved Long Beach Blur creative to be 2/18 used in Indy 500 Parade magazine insert. RACING MATERIALS - Awaiting MWCT logo sheet artlkeyline w/crest 2/24 and alphabetized logo's. - Awaiting PM Purchasing to confirm 2/19 sample/production due dates. - Awaiting MWCT crest color seperations. 2/22 - Awaiting confirmation of racing materials/ w/o 2/22 quantities from Ajay Arora (Australian Indy Car Grand Prix). - Distributed revised MR materials status report. 2/17 - Awaiting Meg to approve scripto lighter 2/22 packaging samples and red suade jacket sample w/embroidery. - Joe Severino varified that the 2 year old scripto 2/18 lighters are fine to use. - Reviewing with Karen MR inventory/shipping 2/19 list per race market. MPSRJAN

PROJECT STATUS DUE DATE FULFILLMENT/SHIPMENT MISCELLANEOUS - Shipped Billy Kamphausen at Cart 30 stop watches. - Awaiting kiosks artlkeylinelegal requirements. 2/26 2/22 MPSRJAN

Karen Howe-2/12/93 PROJECT I STATUS DUE DATE Nomadic Display redentials -2/18 Will'check with Ken on the header piece 3/15 extending from two towers. -Will start the agency working on creative for the Marlboro Pole award backdrop. -Will start a req. for updating existing backdrop. -Will start a req. for purchasing one black pedastal A&K with purchasing 2/19 Elements Memo to Phoenix MWCT Bar Night Exhibit howcar exhibit lst draft with you for comments --Structural Display has won the bid-purchase req. signed off on -with purchasing -Contract with legal for revisions-Due 2/19 -Comp of video unit approved-will request A&K -getting prices for the bar night collateral materials, retail poster and souvenir poster -Lance will send me a price quote for new 2/19 Phoenix Marketing contract Motorsports International Hotel reservations Pack Sales Trailers Ticket Jacket Race track brochure stanchions and grid lock flooring system. waiting for insurance approval-comments Waiting for T. Nagorson,insurance comments Rick Mears roast will be on May 16 -Trailer A&K received -Structural has overnighted the paint chip sample- it will be here today. Sent to Dan for his review-will follow up. E-mailed brand that we want to eliminate this piece. Meg is not sold on the rational. She thinks that it will help move product. Next step? *******Should I just let it die?/I need to produce a seperate scratch off ticket. ~ Materials -memo sent out which outlines all materials and 2/22 ~ ~ proposed redemption levels. ~ ***I asked Meg about the redemption levels and she said that she can't confirm them yet.2/18 01 o• ~s _J MPSR.JAN