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PHILIP MORRIS USA INTER-OFFICE CC}RRESPUNDENCE 120 PARKAVENUE, NEW YORK, NY 10017-5592 TO: Distribution DATE: June 29, 1994 FRO M: Marketing Information & Analysis/ Consumer Research/ Trademark Portfolio Management SUBJECT: Michigan Repor SUIVIMA RY Six weeks after the SET increase, all indicators point to a continued recovery. PM shipments are nearing the pre-tax going rate, retail volume is down 9% but steadily improving, and the premium/discount mix has remained stable. PM and Marlboro share continue to grow. HIGHLIGHTS Nielsen Share (Through 6/11/94) • Six weeks after the tax increase, the industry premium/discount mix has remained relatively stable. • Overall PM share has increased 1 point to 51. 3% of total industry, primarily due to Marlboro. PM's gain comes at the expense of a 1. 1 point drop in RJR share to 25.7%. • With the exception of a Marlboro increase of 1.2 points (22.5% share), there have been no significant shifts in major brand shares. Nielsen Volume (Through 6/11/94) • Six weeks after the tax increase, net of pantry loading, total industry retail volume has declined 9%, versus an expected loss of 13%. • Overall, premium and discount losses are proportional to the industry loss. • PM has an 8% decline in volume, the smallest net volume decline of all major manufacturers. • Marlboro's net volume loss (-6%) is comparatively better than that experienced by Premium as a whole (-10%). • Trade Class Shifting: As of June 11, there is some volume movement towards C-Stores from supermarkets and other outlets. Trade Class Base Through 11 Points afference C-Stores 64 69 +5 ~ ~ S upermarkets 20 17 -3 p~ Other 16 14 -2 Q ~ Pricing (Through 6/18/94) ~ ~ • In C-Stores, the pack price gap has increased by 40 to 600, due to a drop in the lowest discount cz price. This has resulted in an 11¢ change (3.1% change) since before the tax increase. ~ • Supermarket gaps remain relatively flat.

June 29, 1994 Page2 Promotional Activities (Through 6/11/94) • Promotion activity has picked up for all major brands in Michigan since the base period. - Monarch promotions in C-Stores rose from a 2% incidence at tje base period to 16% to date; Newport, from 4% to 27%; Camel, from 10% to 50%; GPC, from 4% to 20%, and Kool, from 0% to 10%. • Note that on an overall basis, Michigan PM promotion activity in C-Stores (61%) is lower than that in the total United States (72%). Michigan Competitive promotion activity is on par with the rest of the nation. Shipments (Through 6/24/94) • PM shipments continue to recover, up 19 million versus a week ago, making total shipments -11% below the going rate • Basic's contribution to total PM shipments has grown to 44%, attributable to the Buy 3 Get 2 national promotion. - Of the total B3G2 promotion, Michigan accounted for 18% , or 11.6 million units. Consumer Research (Through 6/24/94) • No dramatic shifts in consumer post-tax behavior have been noted. Distribution: R. Anise D. Beran C. Cohen K. Eisen S. Fuller E. Gawronski E. Gee J. Heironimus P. Henriques C. Johnson S. LeVan C. Levy N. Lund T. McGovern R. Mikulay J. Morgan C. Murray B. Neidle A Sinha N. Suter M. S zymanczyk R. Webster L. Wexler R. Whalen H. Willard (R4)

NIELSEN INTEGRATED DATA (All Outlets Combined) - FOR MICHIGAN COMPANY PM RJR B&W American Lorillard Liggett Base March 1994 50.32 26.78 7.97 6.25 7.24 1.42 June 11, 1994 (4WM) 51.60 25.33 8.09 6.03 6.96 1.98 1.28 (1.45) 0.12 (0.22) (0.28) 0.56 CATEGORY Premium Discount Branded Discount Private Label Base March 1994 61.53 38.44 31.06 7.38 June 11, 1994 (4WM) 61.05 38.91 32.03 6.88 (0.48) 0.47 0.97 (0.50) MAJOR BRANDS Marlboro PM OPB Winston Select Camel Base March 1994 21.28 8.21 5.51 0.80 3.50 June 11, 1994 (4WM) 22.09 7.93 5.22 0.73 3.55 0.81 (0.28) (0.29) (0.07) 0.05 MAJOR BRANDS Salem Vantage Now ool New or Base March 1994 3.77 0.55 0.71 4.91 5.30 June 11, 1994 (4WM) 3.52 0.54 0.64 4.88 5.06 (0.25) (0.01) (0.07) (0.03) (0.24) BRANDED DISCOUNTS asic Cambridge AV,ne Doral ist o tc air Monarch Best Value GPC Base March 1994 14.96 1.18 0.69 2.24 1.35 0.73 5.77 0.41 0.83 June 11, 1994 (4WM) 16.24 0.90 0.56 2.18 1.13 0.80 6.08 0.41 1.09 1.28 (0.28) (0.13) (0.06) (0.22) 0.07 0.31 0.00 0.26 PRIVATE LABEL PM RJR Liggett American Base March 1994 3.74 3.03 0.27 0.34 June 11, 1994 (4WM) 3.81 1.99 0.82 0.26 0.07 (1.04) 0.55 (0.08) GGETZTO909 NOTE: In the Integrated Nielsen Panel, Premium plus Discount does not equal Total due to the inclusion of miscellaneous promotional volume.

NIELSEN INTEGRATED DATA (800 C-STORES) - FOR MICHIGAN COMPANY PM RJR B&W American Lorillard Liggett Base March 1994 51.24 27.59 8.44 4.19 7.91 0.63 June 11, 1994 (4WM) 53.13 25.84 7.88 3.93 7.65 1.57 1.89 (1.75) (0.56) (0.26) (0.26) 0.94 CATEGORY Premium Discount Branded Discount Private Label Base March 1994 62.98 37.02 26.55 10.47 June 11, 1994 (4WM) 61.32 38.68 29.11 9.56 (1.66) 1.66 2.56 (0.91) MAJOR BRANDS Marlboro PM OPB Winston Select Camel Base March 1994 24.44 7.76 5.11 1.00 4.09 June 11, 1994 (4WM) 25.04 7.44 4.72 0.91 3.95 0.60 (0.32) (0.39) (0.09) (0.14) MAJOR BRANDS Salem V a e Now Kool Newport Base March 1994 3.58 0.51 0.43 5.47 6.57 June 11, 1994 (4WM) 3.25 0.50 0.36 4.96 6.24 (0.33) (0.01) (0.07) (0.51) (0.33) BRANDED DISCOUNTS Basic Cambridge Alpine Doral Ust Montclair Monarch Best Value GPC Base March 1994 12.58 0.57 0.37 1.73 0.78 0.40 6.33 0.40 1.08 June 11, 1994 (4WM) 14.46 0.58 0.33 1.92 0.68 0.50 6.97 0.37 1.29 1.88 0.01 (0.04) 0.19 (0.10) 0.10 0.64 (0.03) 0.21 PRIVATE LABEL PM RJR Liggett American Base March 1994 5.22 4.53 0.21 0.51 June 11, 1994 (4WM) 5.19 2.89 1.11 0.38 (0.03) (1.64) 0.90 (0.13) 00VT9I0909 NOTE: In the Integrated Nielsen Panel, Premium plus Discount does not equal Total due to the inclusion of miscellaneous promotional volume.

NIELSEN INTEGRATED DATA (SUPERMARKETS) - FOR MICHIGAN COMPANY PM RJR B&W American Lorillard Liggett Base March 1994 47.08 29.85 6.67 7.76 6.36 2.23 June 11, 1994 (4WM) 47.92 29.53 7.10 7.41 5.86 2.14 0.84 (0.32) 0.43 (0.35) (0.50) (0.09) CATEGORY Premium Discount Branded Discount Private Label Base March 1994 58.70 41.17 38.14 3.03 June 11, 1994 (4WM) 59.11 40.76 37.88 2.88 0.41 (0.41) (0.26) (0.15) MAJOR BRANDS Marlboro PM OPB Winston Select Camel Base March 1994 16.66 9.12 6.13 0.49 2.97 June 11, 1994 (4WM) 16.86 9.15 5.97 0.51 3.54 0.20 0.03 (0.16) 0.02 a57 MAJOR BRANDS a em Vantage loW ool Newport Base March 1994 4.29 0.89 1.11 3.51 3.10 June 11, 1994 (4WM) 4.43 0.83 1.11 3.61 2.76 0.14 (0.06) 0.00 0.10 (0.34) BRANDED DISCOUNTS Basic Cambridge Alpine Doral Misty o tclair Monarch Best Value GPC Base March 1994 16.87 1.60 0.66 4.33 1.62 1.01 7.60 0.12 0.58 June 11, 1994 (4WM) 18.39 0.92 0.47 4.14 1.13 1.31 7.35 0.11 1.15 1.52 (0.68) (0.19) (0.19) (0.49) 0.30 (0.25) (0.01) 0.57 PRIVATE LABEL PM RJR Liggett American Base March 1994 1.87 0.49 0.66 0.01 June 11, 1994 (4WM) 2.02 0.37 0.48 0.01 0.15 (0.12) (0.18) 0.00 TOVT9T0909 NOTE: In the Integrated Nielsen Panel, Premium plus Discount does not equal Total due to the inclusion of miscellaneous promotional volume.

MICHIGAN - SHARE ALL OUTLETS COMBINED WEEK ENDING 6/11/94 MONTH ENDING PERIODS WEEK ENDING PERIODS 4 WEEK ENDINGS CUM. Diff vs. Diff vs. Diff vs. Diff vs. $8SE Jan-94 Feb-94 Mar-94 Aor-94 May-94 Since Mav 5121 5L~.?$ S/4 SLtt rik-a44 Balm 5L21 5L2$ 6/4 6/11 -QU~ BaaQ~ Philip Morris 50.32 48.66 50.07 50.19 49.17 51.44 51.34 52.26 51.88 51.12 51.22 0.10 0.90 50.49 51.44 51.95 51.60 0.26 1.28 PM Premium-Shr Prom 47.91 48.95 48.47 48.07 47.79 49.50 49.43 49.33 48.78 48.90 49.69 0.79 1.78 48.57 49.50 49.27 4 9.17 -0.26 1.26 PM Discount-Shr Disc 54.18 48.26 52.63 53.59 51.35 54.56 54.41 56.91 56.84 54.52 53.73 -0.79 -0.45 53.59 54.56 56.20 55.45 1.04 1.27 PM Brd Dlsc-Shr Brd 55.00 51.00 54.54 54.30 50.28 54.82 54.67 56.28 56.88 54.76 54.07 -0.69 -0.93 53.65 54.82 55.96 55.47 0.80 0.47 PM PL-Shr PL 50.74 34.33 44.09 50.61 56.51 53.53 53.29 59.58 56.60 53.40 52.16 -1.24 1.42 53.33 53.53 57.31 55 .36 2.07 4.62 Marlboro 21.28 21.49 21.45 21.39 20.74 22.62 22.46 22.38 21.66 21.92 22.41 0.49 1.13 21.91 22.62 22. 30 22.09 -0.37 0.81 Red 7.11 7.34 7.45 7.20 7.26 7.69 7.44 7.23 7.32 6.90 7.04 0.14 -0.07 7.52 7.69 7.31 7.12 -0.32 0.01 Medium 1.28 1.32 1.32 1.30 1.21 1.33 1.34 1.23 1.31 1.33 1.39 0.06 0.11 1.26 1.33 1.29 1.32 -0.02 0. 04 Lights NM 9.79 9.72 9.59 9.84 9.21 10.30 9.98 10.71 9.50 8.98 9.75 0.77 -0.04 10.03 10.30 10.00 9.72 -0.26 -0.07 Menthol 1.95 1.93 1.96 1.92 1.91 1.92 1.92 1.88 1.77 1.95 1.92 -0.03 -0.03 1.94 1.92 1.90 1.88 -0.04 -0.07 Other PM Premium 8.21 7.98 8.16 8.19 8.36 7.86 7.83 7.90 8.28 7.52 8.05 0.53 -0.16 8.02 7.86 7.81 7.93 0.10 - 0.28 Benson & Hedges 1.66 1.66 1.65 1.64 1.87 1.52 1.51 1.50 1.57 1.41 1.57 0.16 -0.09 1.70 1.52 1.50 1.51 0.00 -0 .15 Merit 3.08 3.26 3.07 3.09 3.06 3.03 3.03 2.91 3.22 2.98 3.08 0.10 0.00 2.96 3.03 3.04 3.05 0.02 -0.0 3 Virginia Slims 3.14 2.72 3.04 3.11 3.08 3.02 3.00 3.18 3.20 2.86 3.06 0.20 -0.08 3.03 3.02 3.00 3.07 0.07 -0. 07 Parliament 0.16 0.18 0.18 0.16 0.16 0.11 0.12 0.14 0.10 0.12 0.16 0.04 0.00 0.14 0.11 0.12 0.13 0.01 -0.03 Saratoga 0.09 0.06 0.10 0.10 0.10 0.07 0.07 0.09 0.06 0.05 0.10 0.05 0.01 0.09 0.07 0.06 0.07 0.00 - 0.02 Cambridge 1.18 0.98 1.02 1.14 1.04 0.91 0.92 0.86 0.85 0.90 1.00 0.10 -0.18 1.08 0.91 0.94 0.90 -0.0 2 -0.28 Alpine 0.69 0.55 0.60 0.69 0.62 0.48 0.52 0.44 0.61 0.58 0.58 0.00 -0.11 0.53 0.48 0.53 0.56 0.04 -0 .13 Bristol 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 00 Basic 14.96 15.22 15.52 14.82 14.54 15.38 15:56 16.18 16.96 16.37 15.45 -0.92 0.49 14.87 15.38 16.34 16.24 0.68 1.28 PM Private Label 3.74 2.25 3.14 3.74 3.80 4.12 3.97 4.42 3.46 3.77 • 3.63 -0.14 -0.11 4.01 4.12 3.96 3.81 -0.16 0.07 R.J. Reynolds 26.78 29.96 27.61 26.80 27.80 25.64 25.66 24.67 25.15 26.69 24.75 -1.94 -2.03 26.33 25.64 2 5.31 25.33 -0.33 -1.45 RJR Premium-Shr Prem 23.99 24.34 23.90 23.94 23.30 22.97 23.08 23.06 22.91 23.88 22.68 -1.20 -1.31 23.56 22.97 23.07 23.13 0.05 -0.86 RJR Discount-Shr Disc 31.25 38.45 33.43 31.38 34.79 29.89 29.73 27.22 28.69 30.91 27.94 -2.97 -3.31 30.78 29.89 28.80 28.73 -1.00 -2.52 Brown & Williamson 7.97 7.20 7.94 8.02 7.97 8.28 8.15 8.14 8.39 7.69 8.15 0.46 0.18 8.14 8.28 8.03 8.09 -0.0 6 0.12 B & W Premium-Shr Prem 9.40 8.67 9.50 9.39 9.65 9.58 9.42 9.61 10.05 9.27 8.95 -0.32 -0.45 9.49 9.58 9.51 9.46 0.04 0. 06 B& W Discount-Shr Dlsc 5.68 4.97 5.51 5.83 5.35 6.19 6.16 5.81 5.77 5.31 6.91 1.60 1.23 5.98 6.19 5.72 5.95 -0.21 0.27 Lorillard 7.24 6.56 6.90 7.19 7.30 7.45 7.24 7.15 7.04 6.62 7.06 0.44 -0.18 7.45 7.45 7.11 6.96 -0.2 8 -0.28 Lorillard Premium-Shr Prem 11.43 10.62 11.04 11.35 11.55 11.07 11.01 10.80 10.98 10.60 11.15 0.55 -0.28 11.18 11.07 11.01 10.89 -0.12 -0.54 Lorlllard Discount-Shr Disc 0.54 0.43 0.41 0.54 0.67 1.65 1.27 1.36 0.80 0.59 0.58 -0.01 0.04 1.46 1.65 0.99 0.82 -0.45 0.2 8 American Tobacco 6.25 6.14 5.94 6.35 6.22 5.55 5.80 5.84 5.72 5.93 6.59 0.66 0.34 5.98 5.55 5.82 6.03 0.23 -0 .22 American Premium-Shr Pren 5.50 5.55 5.37 5.44 5.71 5.11 5.32 5.41 5.39 5.71 5.76 0.05 0.26 5.36 5.11 . 5.38 5.57 0.25 0.07 American Discount-Shr Disc 7.45 7.04 6.84 7.81 7.01 6.26 6.55 6.54 6.25 6.26 7.92 1.66 0.47 6.97 6.26 6.50 6.75 0.20 -0.70 Liggett 1.42 1.46 1.50 1.43 1.53 1.64 1.79 1.93 1.80 1.94 2.22 0.28 0.80 1.60 1.64 1.77 1.98 0.19 0. 56 Liggett Premium-Shr Prom 1.75 1.86 1.71 1.79 1.98 1.76 1.74 1.78 1.91 1.64 1.77 0.13 0.02 1.83 1.76 1.75 1.77 0.03 0.02 Liggett Dlscount-Shr Disc 0.90 0.86 1.18 0.85 0,83 1.45 1.88 2.17 1.64 2.41 2.94 0.53 2.04 1.22 1.45 1.79 2.30 0.42 1.40 Source: Nielsen Integrated Database. Sample Size: Michigan 98 Stores. Z©VTZ1=0909 Base Period is w/e 3/5/94 thru 3/26/94.

MICHIGAN DISCOUNT- SHARE ALL OUTLETS COMBINED WEEK ENDING 6/11/94 MONTH ENDING PERIODS WEEK ENDING PERIODS 4 WEEK ENDINGS CUM. Diff vs. Diff vs. Diff vs. Diff vs. )3ASF ,i.8rL94 Fep-4 V~I -94 Aor-94 May-94 Since May 5L21 5M S(4 §L11 wk-aao Ea:Q f?L21 W2$ -614 EL11 Q..1lLl. 5&1W PRIVATE LABEL PM PL 3.74 2.25 3.14 3.74 3.80 4.12 3.97 4.42 3.46 3.77 3.63 -0.14 -0.11 4.01 4.12 3.96 3.81 -0.16 0.07 RJR PL 3.03 3.66 3.38 2.96 2.47 2.93 2.61 2.08 1.89 2.07 1.93 -0.14 -1.10 2.95 2.93 2.11 1.99 -0.62 -1.0 4 American PL 0.34 0.38 0.34 0.44 0.19 0.16 0.22 0.17 0.20 0.32 0.34 0.02 0.00 0.16 0.16 0.22 0.26 0.04 -0.08 Liggett PL 0.27 0.26 0.26 0.25 0.26 049 0.66 0.76 0.56 0.90 1.07 0.17 0.80 0.41 0.49 0.62 0.82 0.16 0.55 Total PL 7.38 6.54 7.12 7.40 6.72 7.70 7.46 7.41 6.11 7.06 6.96 -0.10 -0.42 7.53 7.70 6.91 6.88 -0.58 -0.5 0 PL SHARE OF SEGMENT PM PL 50.74 34.33 44.09 50.61 56.51 53.53 53.29 59.58 56.60 53.40 52.16 -1.24 1.42 53.33 53.53 57.31 55.36 2.07 4.62 RJR PL 41.03 55.93 47.48 39.97 36.76 38.07 34.93 28.00 30.96 29.32 27.65 -1.67 -13.38 39.15 38.07 30.48 28.91 -6.02 -12.12 American PL 4.58 5.82 4.73 5.98 2.81 2.05 2.91 2.23 3.34 4.50 4.86 0.36 0.28 2.11 2.05 3.18 3.76 0.85 -0.82 Liggett PL 3.64 3.93 3.70 3.44 3.93 6.34 8.87 10.20 9.10 12.78 15.32 2.54 11.68 5.41 6.34 9.03 11.97 3.10 8. 33 BRANDED DISCOUNT Basic 14.96 15.22 15.52 14.82 14.54 15.38 15.56 16.18 16.96 16.37 15.45 -0.92 0.49 14.87 15.38 16.34 16.24 0.68 1.28 Best Value 0.41 0.55 0.51 0.43 0.46 0.37 0.39 0.40 0.39 0.37 0.48 0.11 0.07 0.39 0.37 0.38 0.41 0.02 0.00 Monarch 5.77 8.31 6.03 5.73 6.94 5.49 5.81 5.37 6.08 7.03 5.78 -1.25 0.01 5.55 5.49 6.05 6.08 0.27 0 .31 GPC 0.83 0.82 0.85 0.88 0.80 1.18 1.17 1.04 1.04 0.97 1.31 0.34 0.48 1.06 1.18 1.04 1.09 -0.08 0.26 Raleigh Extra 0.03 0.02 0.02 0.02 0.01 0.01 0.02 0.01 0.01 0.01 0.02 0.01 -0.01 0.02 0.02 0.01 0.01 -0.01 -0 .02 Doral 2.24 2.22 2.43 2.38 3.11 2.18 2.19 2.06 2.26 2.33 2.07 -0.26 -0.17 2.33 2.18 2.16 2.18 -0.01 - 0.06 Cambridge 1.18 0.98 1.02 1.14 1.04 0.91 0.92 0.86 0.85 0.90 1.00 0.10 -0.18 1.08 0.91 0.94 0.90 -0.0 2 -0.28 Viceroy 1.12 0.95 1.07 1.14 1.08 1.00 1.02 1.08 1.01 0.96 1.17 0.21 0.05 0.99 1.00 1.01 1.06 0.04 -0 .06 Misty 1.35 1.08 1.12 1.34 1.24 1.13 1.13 1.13 1.10 1.01 1.27 0.26 -0.08 126 1.13 1.18 1.13 0.00 -0.2 2 Montclair 0.73 0.89 0.71 0.75 0.81 0.72 0.75 0.83 0.77 0.66 0.95 0.29 0.22 0.82 0.72 0.70 0.80 0.05 0.07 Alpine 0.69 0.55 0.60 0.69 0.62 0.48 0.52 0.44 0.61 0.58 0.58 0.00 -0.11 0.53 0.48 0.53 0.56 0.04 -0 .13 Old Gold 0.21 0.23 0.19 0.21 0.26 0.63 0.49 0.52 0.31 0.24 0.22 -0.02 0.01 0.56 0.63 0.39 0.32 -0.17 0.1 1 Sterling 0.21 0.21 0.27 0.23 0.27 0.20 0.18 0.20 0.12 0.18 0.12 -0.06 -0.09 0.25 0.20 0.17 0.15 -0.0 3 -0.06 Bristol 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 00 Magna 0.03 0.04 0.03 0.03 0.02 0.03 0.03 0.04 0.03 0.02 0.02 0.00 -0.01 10.03 0.03 0.03 0.03 0.00 0. 00 Pyramid 0.06 0.07 0.19 0.06 0.05 0.06 0.06 0.06 0.07 0.05 0.07 0.02 0.01 0.05 0.06 0.06 0.06 0.00 0. 00 Riviera 0.20 0.15 0.21 0.20 0.18 0.18 0.18 0.09 0.13 0.21 0.18 -0.03 -0.02 0.17 0.18 0.18 0.15 -0.03 -0.05 Bucks 0.07 0.03 0.06 0.06 0.03 0.03 0.03 0.03 0.03 0.04 0.05 0.01 -0.02 0.03 0.03 0.03 0.04 0.01 -0. 03 Richland 20'S 0.21 0.18 0.21 0.20 0.20 0.18 0.17 0.12 0.16 0.17 0.17 0.00 -0.04 0.22 0.18 0.16 0.16 -0.01 -0. 05 American FflLts 0.02 0.03 0.03 0.03 0.02 0.04 0.03 0.03 0.01 0.01 0.01 0.00 -0.01 0.03 0.04 0.02 0.01 -0.02 - 0.01 Covington 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A/O Branded Discount 0.74 0.69 0.70 0.72 0.70 0.51 0.58 0.70 0.55 0.59 0.76 0.17 0.02 0.60 0.50 0.57 0.65 0.07 - 0.09 Total Branded Discount 31.06 33.22 31.77 31.06 32.38 30.71 31.23 31.19 32.49 32.70 31.68 -1.02 0.62 30.84 30.71 31 .95 32.03 0.80 0.97 Basfc Share Of Discount 38.91 38.27 39.90 38.54 37.19 40.04 40.23 41.91 43.95 41.15 39.99 -1.16 1.08 38.75 40.04 42 .07 41.73 1.50 2.82 Total Discount Category 38.44 39.76 38.89 38.46 39.09 38.41 38.69 38.61 38.59 39.77 38.64 -1.13 0.20 38.36 38.41 38 .85 38.91 0.22 0.47 gOrTZ10909 Source: Nielsen Integrated Database. Sample Size: Michigan 98 Stores. Base Period is w/e 3/5/94 thru 3/26/94.

1 MICHIGAN TOP 25 - SHARE ALL OUTLETS COMBINED WEEK ENDING 6/11/94 MONTH ENDING PERIODS WEEK ENDING PERIODS 4 WEEK ENDINGS CUM. Diff vs. Diff vs. Diff vs. Diff vs. BASE Jan-94 Feb-84 Mar-94 ADf-94 May-94 Since May 5121 ;zL2$ SL4 6/1_1 w k-sao 5aap, 5121 ~(2$ -Q/_4 6Lt1 QUM. 13.a~Q Marlboro 21.28 21.49 21.45 21.39 20.74 22.62 22.46 22.38 21.66 21.92 22.41 0.49 1.13 21.91 22.62 22. 30 22.09 -0.37 0.81 Marlboro B4G1 F 0.00 0.00 0.00 0.00 0.00 0.03 0.10 0.05 0.08 0.19 0.23 0.04 0.23 0.01 0.03 0.08 0.14 0.04 0.14 Winston 5.51 5.38 5.60 5.40 4.90 5.16 5.20 5.33 4.99 5.47 5.09 -0.38 -0.42 5.31 5.16 5.20 5.22 0.02 -0.29 Winston Select 0.80 0.73 0.80 0.75 0.66 0.73 0.71 0.91 0.71 0.82 0.51 -0.31 -0.29 0.77 0.73 0.78 0.73 0.02 - 0.07 Winston Select Lights 0.43 0.42 0.39 0.39 0.37 0.45 0.44 0.58 0.47 0.56 0.27 -0.29 -0.16 0.46 0.45 0.50 0.47 0.03 0 .04 Basic 14.96 15.22 15.52 14.82 14.54 15.38 15.56 16.18 16.96 16.37 15.45 -0.92 0.49 14.87 15.38 16.34 16.24 0.68 1.28 Doral 2.24 2.22 2.43 2.38 3.11 2.18 2.19 2.06 2.26 2.33 2.07 -0.26 -0.17 2.33 2.18 2.16 2.18 -0.01 - 0.06 GPC 0.83 0.82 0.85 0.88 0.80 1.18 1.17 1.04 1.04 0.97 1.31 0.34 0.48 1.06 1.18 1.04 1.09 -0.08 0.26 Camel 3.50 3.52 3.23 3.55 3.54 3.60 3.56 3.58 3.65 3.49 3.49 0.00 -0.01 3.50 3.60 3.59 3.55 -0.01 0. 05 Camel Filters 2.99 3.03 2.78 3.05 3.01 3.11 3.05 3.07 3.17 2.91 2.93 0.02 -0.06 2.98 3.11 3.07 3.02 -0.03 0.03 Camel Special Light 0.36 0.44 0.41 0.40 0.46 0.37 0.35 0.33 0.30 0.32 0.31 -0.01 -0.05 0.39 0.37 0.34 0.31 -0.04 - 0.05 Camel Non-Filter 0.51 0.49 0.45 0.50 0.52 0.49 0.52 0.51 0.47 0.58 0.55 -0.03 0.04 0.53 0.49 0.51 0.53 0.0 1 0,02 Salem 3.77 3.65 3.72 3.76 3.77 3.59 3.57 3.53 3.47 3.67 3.41 -0.26 -0.36 3.79 3.59 3.54 3.52 -0.05 - 0.25 Newport 5.30 4.73 4.97 5.28 5.17 5.25 5.17 4.99 5.21 4.81 5.22 0.41 -0.08 5.13 5.25 5.13 5.06 -0.11 -0.24 Kool 4.91 4.33 4.89 4.91 4.87 5.00 4.87 4.92 5.34 4.58 4.68 0.10 -0.23 4.91 5.00 4.88 4.88 0.0 i -0.03 Virginia Slims 3.14 2.72 3.04 3.11 3.08 3.02 3.00 3.18 3.20 2.86 3.06 0.20 -0.08 3.03 3.02 3.00 3.07 0.07 -0. 07 Merit 3.08 3.26 3.07 3.09 3.06 3.03 3.03 2.91 3.22 2.98 3.08 0.10 0.00 2.96 3.03 3.04 3.05 0.02 -0.0 3 Benson & Hedges 1.66 1.66 1.65 1.64 1.87 1.52 1.51 1.50 1.57 1.41 1.57 0.16 -0.09 1.70 1.52 1.50 1.51 0.00 -0 .15 Monarch 5.77 8.31 6.03 5.73 6.94 5.49 5.81 5.37 6.08 7.03 5.78 -1.25 0.01 5.55 5.49 6.05 8.08 0.27 0 .31 Cambridge 1.18 0.98 1.02 1.14 1.04 0.91 0.92 0.86 0.85 0.90 1.00 0.10 -0.18 1.08 0.91 0.94 0.90 -0.0 2 -0.28 Vantage 0.55 0.65 0.56 0.57 0.54 0.58 0.56 0.48 0.65 0.45 0.56 0.11 0.01 0.55 0.58 0.52 0.54 -0.02 - 0.01 Best Value 0.41 0.55 0.51 0.43 0.46 0.37 0.39 0.40 0.39 0.37 0.48 0.11 0.07 0.39 0.37 0.38 0.41 0.02 0.00 Cariton 1.35 1.29 1.30 1.33 1.34 1.23 1.26 1.50 1.29 1.32 1.33 0.01 -0.02 1.31 1.23 1.33 1.36 0.10 0 .01 Kent 0.86 0.82 0.81 0.87 0.90 0.78 0.77 0.89 0.66 0.73 0.81 0.08 -0.05 0.90 0.78 0.76 0.77 0.00 -0.0 9 Pall Mall 1.24 1.23 1.20 1.22 1.32 1.17 1.22 0.99 1.26 1.24 1.41 0.17 0.17 1.20 1.17 1.15 1.23 0.01 -0.01 Misty 1.35 1.08 1.12 1.34 1.24 1.13 1.13 1.13 1.10 1.01 1.27 0.26 -0.08 1.26 1.13 1.18 1.13 0.00 -0. 22 Viceroy 1.12 0.95 1.07 1.14 1.08 1.00 1.02 1.08 1.01 0.96 1.17 0.21 0.05 0.99 1.00 1.01 1.06 0.04 -0 .06 Montclair 0.73 0.89 0.71 0.75 0.81 0.72 0.75 0.83 0.77 0.66 0.95 0.29 0.22 0.82 0.72 0.70 0.80 0.05 0.07 Now 0.71 0.69 0.69 0.70 0.69 0.60 0.61 0.63 0.65 0.63 0.66 0.03 -0.05 0.68 0.60 0.63 0.64 0.03 -0.07 Capri 0.53 0.48 0.52 0.52 0.60 0.52 0.54 0.54 0.53 0.62 0.51 -0.11 -0.02 0.55 0.52 0.54 0.55 0.01 0. 02 More 0.73 0.76 0.80 0.74 0.74 0.61 0.63 0.60 0.65 0.67 0.70 0.03 -0.03 0.69 0.61 0.63 0.66 0.03 -0.0 7 ' Top 25 is based on Total Industry All Outlets Combined. TUM0909 Source: Nielsen Integrated Database. Sample Size: Michigan 98 Stores. Base Period is w/e 3/5/94 thru 3/26/94.

MICHIGAN MANUFACTURERS - SHARE ALL OUTLETS COMBINED WEEK ENDING 6111/94 MONTH ENDING PERIODS WEEK ENDING PERIODS 4 WEEK ENDINGS BASE Jan-94 Feb-94 Mar-94 Lpr-94 May-94 CUM. in ~L21. 5/2$ -UM rz/]1 Diff vs. M-a44 Diff vs. l~ =1. 5L2 Q rz/4 Slll Diff vs. cllM, Diff vs. aaa@ Philip Morris 50.32 48.66 50.07 50.19 49.17 51.44 51.34 52.26 51.88 51.12 51.22 0.10 0.90 50.49 51.44 51. 95 51.60 0.26 1.28 PM Premium 29.48 29.47 29.60 29.57 29.10 30.47 30.29 30.27 29.93 29.44 30.46 1.02 0.98 29.93 30.47 30 .11 30.02 -0.27 0.54 PM Discount 20.83 19.19 20.47 20.61 20.07 20.96 21.05 21.97 21.94 21.68 20.76 -0.92 -0.07 20.56 20.96 21.83 21.58 0.53 0.75 PM Branded Discount 17.08 16.94 17.33 16.86 16.28 16.83 17.07 17.55 18.48 17.91 17.13 -0.78 0.05 16.55 16.83 17.88 17.77 0.70 0.69 PM Private Label 3.74 2.25 3.14 3.74 3.80 4.12 3.97 4.42 3.46 3.77 3.63 -0.14 -0.11 4.01 4.12 3.96 3.81 -0.16 0.07 PM Assorted Promo 0.01 0.00 0.00 0.01 0.00 0.27 0.67 0.29 0.74 1.61 1.24 -0.37 1.23 0.07 0.27 0.70 0.99 0.32 0 .98 R.J. Reynolds 26.78 29.96 27.61 26.80 27.80 25.64 25.66 24.67 25.15 26.69 24.75 -1.94 -2.03 26.33 25.64 ' 25.31 25.33 -0.33 -1.45 RJR Premium 14.76 14.65 14.60 14.73 14.19 14.14 14.14 14.15 14.06 14.38 13.90 -0.48 -0.86 14.52 14.14 14.10 14.12 -0.02 -0.64 RJR Discount 12.01 15.29 13.00 12.07 13.60 11.48 11.50 10.51 11.07 12.29 10.80 -1.49 -1. 21 11.81 11.48 11.19 11.18 -0.32 -0.83 RJR Branded Discount 8.98 11.63 9.62 9.11 11.13 8.55 8.90 8.43 9.18 10.22 8.87 -1.35 -0.11 8.86 8.55 9.09 9.19 0.29 0.21 RJR Private Label 3.03 3.66 3.38 2.96 2.47 2.93 2.61 2.08 1.89 2.07 1.93 -0.14 -1.10 2.95 2.93 2.11 1.99 -0.62 -1.04 RJR Assorted Promo 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.01 0.02 0.02 0.06 0.04 0.05 0.01 0.01 0.02 0.03 0.01 0. 02 Brown & Williamson 7.97 7.20 7.94 8.02 7.97 8.28 8.15 8.14 8.39 7.69 8.15 0.46 0.18 8.14 8.28 8.03 8.09 -0 .06 0.12 B & W Premium 5.79 5.22 5.80 5.78 5.88 5.90 5.77 5.90 6.16 5.58 5.49 -0.09 -0.30 5.85 5.90 5.81 5.78 0.0 1 -0.01 B & W Discount 2.18 1.98 2.14 2.24 2.09 2.38 2.38 2.24 2.23 2.11 2.67 0.56 0.49 2.29 2.38 2.22 2.32 -0.0 6 0.14 Lorillard 7.24 6.56 6.90 7.19 7.30 7.45 7.24 7.15 7.04 6.62 7.06 0.44 -0.18 7.45 7.45 7.11 6.96 -0 .28 -0.28 Lorillard Premium 7.03 6.39 6.74 6.98 7.04 6.82 6.74 6.63 6.74 6.38 6.84 0.46 -0.19 6.89 6.82 6.73 6.65 -0.0 9 -0.38 Lorillard Discount 0.21 0.17 0.16 0.21 0.26 0.63 0.49 0.52 0.31 0.24 0.22 -0.02 0.01 0.56 0.63 0.39 0.32 -0. 17 0.11 American Tobacco 6.25 6.14 5.94 6.35 6.22 5.55 5.80 5.84 5.72 5.93 6.59 0.66 0.34 5.98 5.55 5.82 6.03 0.23 -0.22 American Premium 3.39 3.34 3.28 3.35 3.48 3.14 3.26 3.32 3.31 3.44 3.53 0.09 0.14 3.30 3.14 3.29 3.40 0.14 0.01 American Discount 2.86 2.80 2.66 3.00 2.74 2.41 2.53 2.52 2.41 2.49 3.06 0.57 0.20 2.67 2.41 2.53 2.62 0.09 -0.24 Amer Branded Discount 2.53 2.42 2.32 2.56 2.55 2.25 2.32 2.36 2.21 2.17 2.72 0.55 0.19 2.51 2.25 2.31 2.37 0.05 -0.16 Amer Private Label 0.34 0.38 0.34 0.44 0.19 0.18 0.22 0.17 0.20 0.32 0.34 0.02 0.00 0.16 0.16 0.22 0.26 0.04 -0 .08 Liggett 1.42 1.46 1.50 1.43 1.53 1.64 1.79 1.93 1.80 1.94 2.22 0.28 0.80 1.60 1.64 1.77 1.98 0.19 0.56 Llggett Premium 1.08 1.12 1.05 1.10 1.21 1.08 1.07 1.09 1.17 0.99 1.08 0.09 0.00 1.13 1.08 1.07 1.08 0.01 0.00 Liggett Discount 0.34 0.34 0.46 0.33 0.32 0.56 0.73 0.84 0.63 0.96 1.13 0.17 0.79 0.47 0.56 0.69 0.89 0.16 0.55 Lig Branded Discount 0.08 0.08 0.19 0.07 0.06 0.07 0.07 0.08 0.08 0.05 0.07 0.02 -0.01 0.06 0.07 0.07 0.07 0.0 0 -0.01 Lig Private Label 0.27 0.26 0.26 0.25 0.26 0.49 0.66 0.76 0.56 0.90 1.07 0.17 0.80 0.41 0.49 0.62 0.82 0.16 0. 55 AlO Co-International 0.02 0.02 0.03 0.02 0.01 0.01 0.01 0.01 0.01 0.00 0.01 0.01 -0.01 0.01 0.01 0.01 0.01 0.00 -0.01 e0VT7T0909 Source: Nielsen Integrated Database. Sample Size: Michigan 98 Stores. Base Period is w/e 3/5/94 thru 3/26/94.

.ALL OUTLETS COMBINED MICHIGAN 1M & 1 WK SHARE 56.0 10.0 COMPANY TOTALS Philip Morris R.J. Reynolds M M M M M M C`') C•'J M M Ch Ch ~t -qt It Vtf.'t ~'V' 'd' "t orn rn orn orn rn arn arn rn rn rn rn rn~i ~i z Q~i ~i ~' ~' z ~~ON -i LL2 a~ ~Qfn UZO N a~~ ~ ~ ~ N NN ch 1 M & 1 WK SHARE SET INCREASE 1-+--{--i -+-i 56.0 52.0 48.0 44.0 40.0 36.0 32.0 28.0 24.0 20.0 Q> (~O ~ ~ t0 M ~p Co ~ ~ r N N CO c) c~J '~ 'V ~ tD N l(SVj U) (0 Brown & Williamson \ - -, /~, N i'\ / 8.0 \ \`/ ^ `' '~ -\ / ~ \~/ \ ~i + Lorillar 6.0 , ~--- + _ American 4.0 -F 2.0 ~- •' ' -, Liggett 10.0 + 8.0 + 6.0 + 4.0 + 2.0 .. , .- . __ - _, , • 0.0 1 1 ' ' ' ! I I I I I 1 1 1 ' ' ' I I I I 1 1 1 1 1 I 1 1 '1 , 1 1 1 1 1 1 40.0 (+) M C) M M M M C~') C+) M C~7 C'~) '7 d' ~' V' V V' ~V' V' V V' <J' 7 V V~ V V V~ V' ~t V orn rn orn arn orn arn arn rnrn rn rn rn~ ~' ~' ~~ ~ ~~ ~ ~' o' a~ ~' ~Q' ~ ~p ~~' ~ ~ ~~ ~ U) N~ t0 N O~ CO t\ N Q~ N ~~ N C\ e K N V' •- fC6 mCZ fl- (6 7~?) a) V O 0 Q N•- e- CV ~,7 r.- V 7`- tn ~~ t0 '- c0 ~lL~ ~ QU) ZC]T,-.-~ NNN Ch c)cn V V V ultn 0 Source: Monthly Integrated Nielsen, Weekly Integrated Nielsen Note: Weekly Integrated Nielsen service began w/e 1/8/94. *First weekly observation data point AOC COMPANY SET INCREASE , /