PHILIP MORRIS WILL MAKE TOBACCO SETTLEMENT PAYMENT ON TIME

April 14, 2003

APRIL 14, 2003

CONTACT: MELISSA REYNOLDS O'DEA, ASSISTANT ATTORNEY GENERAL
207-626-8552

Despite worries over the last two weeks that a multi-billion dollar verdict
in an Illinois state court case would compromise Philip Morris's ability to
make the $2.6 billion payment to the 46 U.S. states involved in the 1998
Tobacco Settlement, Attorney General Steven Rowe announced this evening that he has received assurances that the company will make its payment on
schedule tomorrow.  At stake for Maine was approximately $20 million of its
$40 million payment.  The Illinois court cleared the way for the payment to
the states by reducing the amount Philip Morris was required to pay to
appeal the case there.

Attorney General Rowe said, "We fully expected Philip Morris to meet its
payment obligation under the Master Settlement Agreement.  We are pleased
that the vital health and human services needs that are supported by the
Fund For a Healthy Maine can continue as planned."