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Philip Morris Companies Inc. Announces Closing of SABMiller plc Transaction 

Philip Morris Companies Inc. (NYSE:MO) announced today that the transaction announced on May 30, 2002, to merge Miller Brewing Company into South African Breweries plc, forming the world's second-largest brewer, SABMiller plc, has closed.

Philip Morris Companies Inc. received 430, 000, 000 shares in SABMiller plc valued at $3.38 billion, based on the July 8 closing price, representing a 36% economic interest and a 24.9% voting interest in the enlarged group, without giving effect to the contemplated equity placing by SABMiller plc.

In addition, as previously announced, the assumption of $2 billion of Miller Brewing Company's debt by SABMiller plc will result in cash flow of approximately $1.7 billion for Philip Morris Companies Inc., which will be used to accelerate its share repurchase program in 2002. The company has said previously that it expects to repurchase a total of approximately $6.0 billion of its shares for the full-year 2002.

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