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PHILIP MORRIS U.S.A. NTER-OFFICE CORRESPONDENCE ;U .ARK AVENUE, NEW YORK, NY 10017 TO: Ina Broeman DATE: March 2, 1993 ' FROM Edna Moore' SUBJECT: Status Report for Week Ending 2/26/93 COMMUNITY EVENT MARKETING 1993 Calendar: • To date we still stand at 96.5% completion of scheduled events for 1993. Still seeking two Hispanic events for B&H in Los Angeles and Dallas in order to complete calendar. ri I: • Awaiting proofs on all materials ordered for 1993. We are on target with our delivery due dates. - Water Bottle - Cassette Player Holder - Caps - Banners - Sweepstakes Boards - Sweepstakes Tickets Professional Service Agreements: Event Execution Agencv: Sooth/Tent: • Following contracts are in final form for vendor's signature: - State Fair, Glenn Smith - State Fair, See Factor - Black Expo, Fred Jones Military pending armed forces approval for 1993 program. - Glenn Smith - See Factor • Met with Marcella Schumann and Phoenix Marketing; have approval on submitted proposal. Will start to generate contract agreement with Legal. • Purchasing has approved 1220 Exhibits for manufacturing of indoor exhibits. Richmond will pay for 50% of cost. Purchase Reqs have been submitted. Outdoor tent bids are under review.

Minority Advertising: • Submitted ROP request to Media Dept., to date we have received V.S. Black and Hispanic schedule as well as Community Events Hispanic Media Plan. Still awaiting Marlboro Racing media plan. Creative brief submitted for Calle Ocho Festival ROP ad. Art and keyline to arrive 3/1/93 from Leo Burnett. MARLBORO: State Fair Music Tour: • Have continued conversations with the following five fairs: Volume Change LY/YTD - Mid South Fair 10/2 -23.5% - South Carolina 10/20 -24.6% - Jacksonville, FL 10/22 - 2.3% - Louisiana 10/24 - 7.5% - Alabama 10/23 - 8.5% Hispanic Music Events: Glenn Smith Presents at our request has submitted a bid to Brooks and Dunn, Suzy Boguss for all five state fairs, we are awaiting a response. • Schedule of events are as follows: - Calle Ocho 3/14 -31.6% - L.A. Fiesta Broadway 4/25 -51.3% - San Antonio AlamoDome 6/6 -25.3% - El Fieston, NY 9/5 -15.9% - Pan American, Chicago 8/8 -20.3% • Calle Ocho talent listing consists of Grand Combo, Joe Arroyo, and Hansel. Three pack t-shirt offer starts 2/24. • Have secured sponsorship for Fiesta Broadway, El Fieston, and AlamoDome. Chicago still in negotiations. • Trade Marketing in Region Three may apply their Flex Fund Budget to both State Fair and Hispanic concerts in order to generate off concert ticket price offer. Volume Change LY/YTD Community Events: • Proposals under review for'93 participation.

iMi itarv: • Approval request letters to Military Headquarters have been mailed: Replies from military branches have been positive to date. Navy and Marine have given us approval for 1993 tour. Air Force responded with a verbal approval. Still awaiting Army's approval, due week of 3/1 /93. BENSON & HEDGES: • Black Expo USA agreement secured. Stage sponsorships for: Change Volume LY/YT Houston 5/22 -7.5% Philadelphia 6/5 -37.9% still remain as scheduled. Have been informed to remove New York show (4/24) from schedule due to B&H Blues and Rhythm primary concert conflict and resubmit a new market. Have been informed that Fred Jones will not be booking talent. He will only support the production element of the concert. Festival Productions, as primary B&H Blues and Rhythm promoter will book talent for both units to avoid confusion in marketplace. • Have started conversations with Indiana Black Expo week of 2/22 for July 2 concert date, and with Sales Force concerning retail tie-in. • Remaining calendar of events promoters/organizers have been notified of participation in 1993. B&H Hispanic Event: • Have identified 4 of the 6 events needed: - New York - Miami - Chicago - San Antonio Still reviewing opportunity in Los Angeles and Dallas. BENSON & HEDGES BLUES AND RHYTHM Event Execution: • B&H Blues and Rhythm marketing plan was submitted to Brand and Senior Management on February 22. • Submitted program/creative timetable and expenditure schedule to Brand on February 25.

Markets: SMSI Miscellaneous VIRGINIA SLIMS/MERIT • The revised 14 market list includes: - New York/New Jersey, Chicago, Philadelphia, Detroit, Atlanta, St. Louis, New Orleans, Raleigh/Durham, Charlotte, Miami, Los Angeles, Oakland, Dallas. • A meeting with Festival Productions to negotiate and contract on May 2. • Met with SMSI representatives to explore a retail tie-in with B&H Blues and Rhythm. SMSI will submit a test market proposal by March 5th. • 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 began week of 2/22. • Meeting scheduled for 3/8 with SMSI, Brand, Legal, Government Affairs and Event Marketing to discuss final promotional plans and the PR media plan. • Just learned from Brand that B&H Special Kings may not be launched on West Coast. The following B&H Blues and Rhythm and SMSI markets (St. Louis, Oakland, Los Angeles and New Orleans) could possibly be replaced with Birmingham, Milwaukee, Richmond/Norfolk and Charlotte. VIRGINIA SLIMS TENNIS • Contracts: - Florida - held up for 4 days with Elisa Moore; now in Budgets. - ITP: Being routed - Los Angeles: Awaiting changes/approval from promoter. SOUTHERN WOMEN'S SHOWS • Contracts: - SDI: Major changes after SDI reviewed artwork; new draft received 2/26 and work progressing to meet deadline of first show March 4 in Nashville • All elements on schedule: booth reconstruction, computers and printers, materials

MERIT BOWLING • Contract: Final contract on EIIen's desk for signature. • Brand to supply list of 47 key markets • Creative brief received from IMG. Gave copy to Bob Ferrin to review. • 1800-2000 bowling centers to participate