FDA Authorizes Sale of IQOS Tobacco Heating System in the U.S.

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    RICHMOND, Va.–(BUSINESS WIRE)–Altria Group, Inc. (Altria) (NYSE:MO) announces today that the Food and
    Drug Administration (FDA) authorized sale of the IQOS heated
    tobacco system in the U.S. market. FDA authorization follows review of
    the Premarket Tobacco Product Applications (PMTA) submitted by Philip
    Morris International Inc. (PMI). Philip Morris USA (PM USA), under an
    exclusive licensing agreement with PMI, will commercialize IQOS
    in the U.S. with three HeatStick variants.

    “With FDA authorization, PM USA will introduce IQOS in the U.S.
    for adult smokers in Atlanta, Georgia to learn as much as possible, as
    quickly as possible, and intends to make the most of the company’s
    first-mover advantage in heated tobacco,” said Howard Willard, Chairman
    and Chief Executive Officer of Altria. “IQOS has had terrific
    success internationally. We’re very excited to bring this platform to
    adult smokers in the U.S.”

    There are approximately 40 million adult smokers in the U.S. and IQOS
    offers an innovative alternative to cigarettes. PMI reports that
    currently more than seven million people around the world have fully
    switched to IQOS.

    PM USA will test a range of marketing, sales and consumer engagement
    approaches to raise adult smokers’ awareness of IQOS, facilitate
    guided trial of the product and provide post-purchase support – all
    while taking steps to minimize reach to unintended audiences, consistent
    with the FDA order and marketing requirements.

    To support the introduction of IQOS, PM USA plans to have a
    number of retail touchpoints in Atlanta, including an IQOS store
    at Lenox Square®, numerous mobile retail units and HeatStick
    distribution in approximately 500 retail trade partner stores including
    Circle K, Murphy USA, QuikTrip, RaceTrac, Speedway and select additional
    retail partners.

    “PM USA will act on market insights and expects to scale IQOS quickly
    and efficiently,” said Willard.

    PM USA is adding IQOS to the Altria companies’ portfolio of
    products for adult smokers looking for an alternative to cigarettes. PM
    USA’s goal is to convert U.S. adult smokers interested in
    non-combustible alternatives to IQOS.

    To secure market authorization under a PMTA, U.S. federal law obligates
    an applicant to demonstrate that marketing of a new tobacco product is
    appropriate for the protection of public health and requires the FDA to
    consider the risks and benefits to the population as a whole, including
    users and non-users of tobacco products.

    Note to Editor:

    On December 5, 2016, PMI submitted a Modified Risk Tobacco Product
    (MRTP) application for IQOS to the FDA to allow the marketing of
    the product with modified risk claims. Scientific review of the MRTP
    application is ongoing and is independent of the PMTA marketing order
    authorization.

    Altria’s Profile

    Altria’s wholly-owned subsidiaries include Philip Morris USA Inc. (PM
    USA), U.S. Smokeless Tobacco Company LLC (USSTC), John Middleton Co.
    (Middleton), Sherman Group Holdings, LLC and its subsidiaries (Nat
    Sherman), Ste. Michelle Wine Estates Ltd. (Ste. Michelle) and Philip
    Morris Capital Corporation (PMCC). Altria holds equity investments in
    Anheuser-Busch InBev SA/NV (AB InBev), JUUL Labs, Inc. (JUUL) and Cronos
    Group Inc. (Cronos Group).

    The brand portfolios of Altria’s tobacco operating companies include Marlboro®,
    Black & Mild®, Copenhagen® and
    Skoal®. Ste. Michelle produces and markets
    premium wines sold under various labels, including Chateau Ste.
    Michelle
    ®, Columbia Crest®,
    14 Hands® and Stag’s Leap Wine Cellars™,
    and it imports and markets Antinori®, Champagne
    Nicolas Feuillatte
    ™, Torres® and
    Villa Maria Estate™ products in the United States.
    Trademarks and service marks related to Altria referenced in this
    release are the property of Altria or its subsidiaries or are used with
    permission.

    More information about Altria is available at altria.com
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