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BIIPERSLIME PRODUCT DETAILS Product Superslims Ultra Low 100's Regular - White Tipping Superslims Ultra Low 100's Menthol - White Tipping 20 cigarettes per pack, 10 packs per carton, 200 cigarettes per carton. 17mm circumference Box packings only "Tar^ and Nicotine Content Superslims Ultra Low 100's Regular - 6mg. "tar", .5mg nicotine Superslims Ultra Low 100's Menthol - 6mg. "tar", .5mg nicotine Universal Product Code Case Carton Superslims Ultra Low 100's Regular 02100 12100 Superslims Ultra Low 100's Menthol 02110 12110 Price 100's - Full Margin Case Information Case Packing - 12M Case Cube - 3.174 cubic feet Case Dimensions Superslims 100's - 20.63" x 11.63" x 22.87" Pack Pack Suppressed 00210 282102 00211 282112 I

FIELD INSTRUCTIONS AND DETAI S Management Meetings Management/retail meetings will be held on Tuesday, September Wednesday, September 6, 1989. Introductory Allowance ° Allowance period -- September 18 - October 27 5 and ° Introductory Allowance -- $24.00 per case up to allocation during the introductory period. ° Early Acceptance Allowance -- $24.00 per case up to allocation if shipped and received by October 6, 1989. ' The Introductory Allowance and Early Acceptance Allowance will paid "off invoice" at the time of shipment. Carton Allowance 2 For 1 be ' The usual $.10 per carton handling allowance will be offered to wholesalers during the introductory period for tax stamping 2 for 1 product. Stamping Allowance ° Machine tax stamping will be possible for all regular product. ° 2 for 1 product cannot be machine stamped. Ten cents ($.10) per carton will be paid on the 2 for 1 product for hand stamping due to different packing configuration. This is in addition to the above handling allowance. Note: The 2 for 1 handling and stamping allowances will be paid off-invoice. Two for one tax stamp reimbursement will be paid from section offices. "Off-Invoice" Procedure ° Introductory orders with "off-invoice" allowances will be billed on separate invoices. If a customer is to receive an allowance on only a portion of the order, two separate invoices will be issued. I

°"Off-invoice" allowance will be given only on those orders which are received from sales personnel during the introductory period and which specify that the allowance is to be given. Ordering procedures are the same for accounts using the Electronic Payment Program (EPP). Richmond Customer Service will call accounts using EPP to obtain their unique security order code after our sales personnel place orders. ° If an order is received directly from a customer (e.g. a chain account), Customer Service will contact the section office for determination of allowance. ° Customer Service will not check any individual customer's allocation quantity, but will bill strictly on information furnished by sales personnel. ° A weekly recap of orders billed indicating allowances paid will be provided for Section Office use. ° As is the current practice, Section Sales Directors will be responsible for all increases and decreases in allocation within the total allocated to the section. Additional allocations above section total must be approved by the New York office. Direct Account Allocation The allocation is as follows: 0.5% industry/month 60% regular 40% menthol Trade Circulars Quantities of Introductory announcement trade circulars will arrive in section offices prior to the Management/Retail meeting. These circulars must be hand delivered to each direct account. Direct Account Solicitation Direct Account presentations begin immediately following the Management/Retail meeting. Product Availabilitv Superslims will be available to direct accounts beginning September 18th.

Order Procedure ° All orders are to be phoned to our Richmond Customer Service Department. Orders may be phoned to any Customer Service Order Clerk. ° Use the Toll Free Number: 800-446-7030. No written confirmation is required when using the Toll Free Number. ° When telephoning Customer Service, information: give the following - customer name and address - quantity of cases - information for deduction of allowances ° The control for payment of introductory allowances will be the responsibility of the sales personnel as orders are phoned to Richmond. "Off-invoice" allowances will be given only if requested by sales personnel when the order for each customer's allocation is phoned to Customer Service. ' The allowance may be given example: on all or part of an order. For Ship Customer "A" 25 cases Superslims with allowance. Ship Customer "B" 15 cases Superslims with allowance and 10 cases Superslims without allowance. Ship Customer Terms nCn 10 cases Superslims without allowance. 3h% - 30 days on AU shipments of Superslims 100's made during the Introductory Period regardless of each customer's allocation. Vendina No program available. Sell-In Samples ° Sample product of Superslims is scheduled to be delivered no later than August 28th. Samples will be shipped to those distributors that were previously designated to Dee Smith. These sell-in samples will be shipped in blind cases marked "DO NOT OPEN, HOLD FOR PHILIP MORRIS REPRESENTATIVE". Distributors will receive invoices for the product the same day as delivery. ° Reimbursement to the Philip Morris Representative picking up the: sell-in samples is to be made using the Weekly Expense Voucher. If the dollars involved necessitate special invoicing, pay the additional monies using the section office funds. i

' The following quantities of samples are to be distributed to managers: (Quantities in cartons) ~ S ! SP !UM 0% AM 2M AIIEMS Superslims 100's Reg 5 5 15 5 15 3 5 Superslims 100's Men 3 5 5 15 5 15 3 5 Management Sell-In Materials Complete quantities of sell-in at Managers' POS depots in the materials for all managers will arrive field the week of August 28th. Profit Sheets The allocation of Profit Sheets are listed below: S SAM M DM SR Direct Chain 5 20 20 5 -- Non-Direct Chain 5 20 20 5 -- Wholesale 5 20 20 5 -- Direct Account Allocation/ Shipping Dates 5 20 20 5 -- Total Profit Picture Trade Gift 5 20 20 5 20 A management trade gift fitting Superslims' image has been made available for the introduction. The gift will consist of a bottle of champagne, two glasses and two packs of Superslims in a presentation box. The trade gift will be provided in the following quantities: RD M SP ~ SAM AM r s DO 5 10 5 20 20 5 5 The trade gifts for all managers have been shipped to the Section office. The gift will arrive in a box with the champagne and the two glasses. Two packs of Superslims, 1 regular and 1 menthol, are to be placed in the designated display area

• September 6 - September 29, 1989 -- pre-booking ° October 2 - November 22, 1989 -- retail coverage Retail Merchandising/Sell-In ° Retail down-the-street coverage begins October 2nd. ° Gratis will be offered to all accounts (including direct retailers) once during the introductory period (October 2 - November 22). ° Gratis is 20% and is to be paid based on the following schedule:. Weekly Carton Volume Maximum Sell-In With Gratis Maximum Gratis 1 - 499 10 cartons 2 cartons 500 - 999 20 cartons 4 cartons 1000+ 30 cartons 6 cartons Note: In Inner-City accounts, gratis can be paid as cash. Displays/POS ' Superslims will occupy the Contract I and Set/Sell I positions from October 2 - November 22. ° The entire Virginia Slims franchise will be featured in the Contract II position from October 2 - November 22. ° From November 27 - December 29, Superslims will occupy the Contract III position and will be featured in Set/Sell II. ' In November/December, Superslims will be folded into the Book of Days carton promotion, with the entire Virginia Slims family. Set/Sell In order to pay for any set/sell placements, a POS item must be placed, i.e., posters, cards and talker. The POS requirement may be waived if accounts have a No POS policy. Set/Sell placements are as follows: 10 pack 20 pack horizontal 30 pack vertical no payment $2.00 w/POS $2.00 w/POS Note: Non self-service placements in inner-city outlets are authorized for display payment with POS. I

' Superslims will be featured in Black accounts from October 2 - November 22. A selection of ethnic materials have been producec; for October and November including: set/sells, posters, talkers and: counter cards. Specific quantities per Sales Rep will be determined at section level based on demand. SPECIAL COUPONING PROGRAM This program is designed to generate trial via intensive introductory pack and carton couponing. Coupons will be provided to the Sales Force for use on both displays and racks. Coupon Allocations/Display Allocations ' Sales Reps will be used both on displays and carton racks throughout October and November. ° Sales Reps will receive an average of 6,000 25G off coupons/stickers to be used on both displays and racks. About 80% of the total will be available in stickers. • Sales Reps will be force shipped 4000 25G off stickers and 300 $2.00 off coupons. These quantities are enough to fulfill display needs. • The additional quantities of 25G coupons/stickers and $2.00 off coupons will be allocated to sections so that they may be ordered for Sales Reps that may need additional quantities. 25G off coupons are designated primarily for chain accounts where stickers are not compatible with their internal systems. Note: Actual allocations will vary by territory based on local conditions and will be determined by Section offices. Sales Reps will also receive'the following displays to utilize placement of coupons: Designated Coupons On-pack 25G off coupons/ stickers On-pack 25p off coupons/ stickers On-carton $2.00 off coupons Display Quantities Payments 40 displays avg. per SR $3.00 40.deals per display 20 displays avg. per SR $5.00 80 deals per display w/optional base 15 displays avg. per SR $6.00 20 deals per display w/base Note: We realize that some of displays may not be used because of the flexibility in placing coupons/stickers. ° The above displays will be available during the entire two month introduction (October 2 - November 22). ' Both carton and pack coupons can be featured on B displays, set sells, carton racks or carton displays as needed, based upon opportunities in receive an average of 600 $2.00 off carton coupons to I

5 2 For 1 Displays Each Sales Rep will receive a total of twenty (20) 20-deal 2 for 1 displays. This limited quantity is for outlets where distribution cannot be achieved by any other means. The 2 for 1 display is to be placed from October 2 - October 27. Two dollar payment allowance per outlet. Note: Each Sales Rep will receive 3 cases of 2 for 1 product. Section office should fax specific shipping instructions for 2 for 1 product to Dee Smith (212-880-3112) with territory numbers no later than September 5th. Provide purchase order numbers for Direct Accounts where necessary. Pre-Booking Following the Section meeting on September 6, 1989, Sales Reps should begin soliciting retailers for the purpose of pre-booking Superslims. A pre-booking form has been developed for this brand. Product should be pre-booked to arrive no later than the week of October 2, 1989, the first week of the retail program. For gratis to be paid on pre-booked product after October 2nd: ° The introductory offer must be delivered in a single shipment. • The delivery must be verified during the first contact after delivery by checking invoices or by taking inventory or product. Note: Pre-booking forms will be shipped to AM, DM, and SR POS Depots. One pad will be sent to each section office for demonstration purposes. Pre-booking forms are scheduled for delivery during the week of August 28th. e s Sales Reps will receive carton and pack rack labels during the week of August 28th. This will give Sales Reps the option of labelling carton and package fixtures while pre-booking, thus providing instant visibility and availability for pre-booked product when it initially arrives in the store. Sampl ing Proqram Sampling will be a critical element of the Superslims introduction. During weeks 1 - 8 (October 2 - November 22), the Sales Force will conduct a sampling program. This program is intended to generate trial and conversion among smokers of competitive ultra low tar brands. Sales Force Sampling ° Sample 20's will be distributed throughout the introductory period by a combination of Sales Force and part-time samplers. ' Sales Reps and Merchandising Reps will utilize sample 20's at a rate of 15 per day for 8 weeks (October 2 - November 22). ° All sample 20's and 2 for 1's will have a Buy One Get One Free coupon attached, as well as a visual low smoke demonstration. 1

C . I . P . Prog,ram • A consumer intercept program will be provided for Sales Reps/ Merchandising Reps for weeks 1 - 8 (October 2 - November 22). ° CIP's are to be distributed at a rate of 3 per day. ° CIP's contain an offer of: - 1 free pack coupon - $2.00 off carton coupon Part-Time Samplers Beginning October 2nd, we will conduct an eight week Superslims sampling program to complement the retail introduction. ° Sampling should be conducted in high traffic locations. ° Sample 20's will be distributed in a sleeve with a B1G1F coupon attached. ° Part-time samplers will be provided with uniforms, bags and support material. ° Listed below is information pertaining to this program: Dates: October 2 - November 22, 1989 Hours: 20 hours per week (up to 28 hours if involved in store sales) Samples: Sample 20's only 30 average per hour Auto Expenses: 24G per mile Salary: $6.00 per hour ° Section Directors must allocate their samplers to the appropriate Division Managers. This information, including the P.O.S. location where materials should be shipped, must be sent to Mike Mancuso, Merchandising Planning, NYO, by September 8, 1989. Total number of samplers allocated to each section are listed below: Section # Samplers Section # Samplers 11 14 34 8 12 9 35 10 13 10 36 11 14 15 41 11 15 10 42 9 16 8 43 12 21 10 44 8 22 10 45 8 ® 23 8 46 10 ~ 24 8 51 8 ~ 25 8 52 8 CD 26 10 53 15 2~? 31 8 54 18 C 32 11 55 14 33 11 ~ 1

Part-Ti er In-Store Couponing Procrram In addition •to normal outside sampling responsibilities, part-timers will also conduct an in store coupon program. ° During weeks 4 - 8 (October 23 - November 22) part time samplers will also distribute CIP's in-store. ° Part-timers will work 20 hours Monday - Friday sampling with 20's, plus for five weeks (October 23 - November 22), they will work an additional eight hours each week distributing CIP's in supermarkets. ° For the in-store phase, they will work four hours each day either Thursday/Friday or Friday/Saturday (a total of eight hours in a single store). ° SAM's and AM's are to sell in the program to chains and make arrangements for product to be in-store. ° The CIP will include a free pack coupon and a $2.00 off carton coupon. Advertising A comprehensive media plan will support the Superslims introduction. Media vehicles include: magazines, Sunday supplements and outdoor. Media support will begin in October. Direct Marketing An integral part of the Superslims introductory program will be direct marketing. The overall objective is to get product to the consumer and generate trial, awareness and ultimately convert competitive smokers. The following outlihes the basic program structure. 1) Branded Teaser Ad in Strong Capri Markets - A Parade supplement. with add-a-card will run in the top 20 Capri markets offering "Free Samples". 2) Unbranded Teaser Mailer to Existing Competitive Female Low/Ultra Low Tar Smokers - 200,000 names will be targeted, offering threet free packs to respondents. 3) Trial Mailing - This will be sent to all those who responded to one of the above "teaser offers". It will include product samples, coupons, a premium offer, survey and a BRC. 4) Repurchase Mailing - To be sent to all respondents who returned the survey or responded to the Parade offer (see #1 above). It will include a premium, coupons and.a self-liquidation offer. 5) Conversion Mailing - Sent to all competitive smokers who are included in the repurchase mailing. It will include a year end card and self-destruct coupons.