                               PHILIP MORRIS

                                 2/25/94

                      Stock    Latest      52 week     YTD Pr    Div  Gross
                      Rating    Price   --- Range ---    Chg     Rate Yield
Philip Morris Companie  RL      58.25       69-45         5      2.76  4.7

                                 Est.        - Interim EPS -    -EBITDA 94-
          FY/IP       EPS93     EPS94 PE94   --Next- -YrAgo-    per/sh  p/e
MO        12/01Q      4.58R      5.30 11.0       n/a     n/a      n/a   n/a


1.           PM USA HAS RECAPTURED MARKET SHARE AND RESTORED A POSITIVE
  SHARE GROWTH TREND - December A.C. Nielsen broad channel consumption
  figures corroborate the favorable market share trends that were reported
  for supermarkets earlier this month.  Marlboro's market share increased
  to 26.8% in December.  This was up 4.7 share points from the March low
  and, impressively, still rising 0.3 share points from November.  It is
  expected that PM USA unit volume will increase by 3-4% in 1994 and
  product mix will improve because smokers have returned to premium brands.
  Analysts' estimate revisions relate mainly to a better pricing
  assumption.  They previously assumed that net prices might fall 8% this
  year, but the recent scaling back of discounting suggests that a net
  price decline of closer to 5-6% is more probable.

2.           INTERNATIONAL CIGARETTE OPERATIONS REMAIN STRONGLY POSITIONED
  - Management estimated that demand for American style cigarettes is
  growing 3% per year outside the U.S.  Philip Morris is strongly
  positioned with a 32% overall share of the category and a 17-18% share
  for Marlboro alone.  Overall company volume in the segment has been
  growing 6% and Marlboro's volume has been growing 7-8% over the past 5
  years.  Per unit profitability is not as high as in the U.S.($14 per
  thousand), but is attractive in the established markets of Western
  Europe ($7)and Asia/Pacific ($8) and is already about parity with U.S.
  discount cigarettes even in Central and Eastern Europe ($3).

3.           DIVIDEND HIKE AND RENEWAL OF SHARE REPURCHASES ARE A MAJOR
  POSITIVE - Philip Morris raised the annual dividend by 6.2% on Wednesday
  and simultaneously announced that the current $1+billion share
  repurchase authorization is being extended through the end of 1994.  This
  share repurchase announcement had been expected in the Spring and the
  fact that the company is beginning to buy stock immediately is very
  favorable.  Analysts believe 2-3% of outstanding shares could be
  repurchased by year-end.
