As used herein, unless the context indicates otherwise, "Altria Group, Inc." refers to the consolidated financial position, results of operations and cash flows of the Altria family of companies and the term "ALG" refers solely to the parent company. ALG's wholly-owned subsidiaries, Philip Morris USA Inc. ("PM USA") and Philip Morris International Inc. ("PMI") are engaged in the manufacture and sale of cigarettes and other tobacco products.

ALG's majority owned (89.0% as of December 31, 2006) subsidiary Kraft Foods Inc. ("Kraft") is engaged in the manufacture and sale of packaged foods and beverages. Philip Morris Capital Corporation ("PMCC"), another wholly-owned subsidiary, maintains a portfolio of leveraged and direct finance leases. During 2003, PMCC shifted its strategic focus from an emphasis on the growth of its portfolio of finance leases through new investments to one of maximizing investment gains and generating cash flows from its existing portfolio of finance assets. In addition, at December 31, 2006, ALG had a 28.6% economic and voting interest in SABMiller plc ("SABMiller"), which is engaged in the manufacture and sale of various beer products.