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MiLLANo KrvowLTIO,w F I I September 1, 1988 Robert L. Dilenschneider President, Chief Executive Officer Hill and Knowlton, Inc. 420 Lexington Avenue New York, NY 10017 Dear Bob: Hili and Knowlton, Inc. International Public Relations Counsel 420 lexington Avenue New Yorlc, New York 10017 212-697•S600 Susan L Hullin . Vice President e I Thank you for the gentle reminder that you had not heard from me last month. Sometimes the minutia of the bureaucracy becomes overwhelming and temporarily warps one's perspective. I was feeling like an accountant who did a little public relations on the side and I let you down by not communicating with you. This has been an exciting time. We have finally "Premiered" in three lead markets, Tucson, Phoenix and St. Louis. While our role dramatically changed due to the liability trials and impending FDA consequences, we did what Hill and Knowlton does best: provided strategic counsel and training at the highest levels, at a moment's notice. PRMLEGED MATERIAL REDACTED With less than a week's notice Virgil Scudder and MediaCom provided several training sessions culminating with a major editorial board rehearsal the day before the real event. Virgil and X wanted to make this as realistic as possible. Therefore, an all day editorial board was conducted in the John Hill room. Jeff Thompson of MediaCom did a wiring job that would make the CIA proud; Bob Young videotaped the proceedings; Virgil chaired the extravaganza.

I In my next month's letter, I'd like to address this concept of -being an accountant who does a little public relations on the side. There seems to be-a difference of opinion as to whether the accounting practice supports the needs of the public relations practice or the reverse. I'd love to work on a SWAT team to resolve this issue. Thank you for your continued support. It's nice to know we have someone with vision at the helm. I can't resist closing with a lawyer comment. In 1936, Yale University law professor, Fred Rodell wrote: "There are two things wrong with almost all legal writing. one is style. The otheris content." Regards, ~./ SLH/sd -

-The editorial professionals the client): board was comprised of six Hill and Knowlton from four different business units (strangers o Jeff Jeffcoat o Ralph Goldberg o David Kalson o Joyce Dolin o Verlee Prybyloski o Jim Lane editor of the editorial page business editor science editor marketing general news editorial board member Our people played their roles to the hilt. Six senior officers of R.J. Reynolds Tobacco, in tow, spent a long, worthwhile day with us. to a with five lawyers And: i : o RJRT presented its legally approved presentation; o The editorial board debriefed; o The presentation was dramatically revised; o Mike Aldinger created several new slides in 3 hours; o Another rehearsal, and o Showtimel Milt Freudenheim, New York Times business writer and a member of the actual editorial board, told Dave Fishel, vice president public relations for RJRT, that it was the best editorial board he had participated in. "The Reynolds executives were obviously well prepared... not too slick...willing to communicate and ready to respond to every question." A copy of his breaking news story is attached. It's a positive story about a new product in a very controversial environment. As much as we would like to promote this success, we must take quiet satisfaction in this achievement. The FDA has not ruled as to whether-or-not Premier will be regulated. Our Washington office, under a•separate letter of agreement, is quietly and confidentially working behind the scenes. For the time being, we must respect this client-counsel confidence. We also don't want to offend any of our health care clients. However, we can take satisfaction in knowing that a thirty day press conference project has evolved into an on-going relationship that has billed one million dollars in fees the past twelve months.