Philip Morris Companies Inc. (NYSE: MO) today announced that Paul Hendrys has resigned his position as president and chief executive officer, Philip Morris International Inc. ("PMI"), effective today.

Mr. Hendrys has been with Philip Morris International for more than 20 years. Prior to becoming president and chief executive officer of PMI, he also served as manager of PM Germany, and subsequently, as president of the European Union region.

"We are pleased that Paul will remain available to work with us on matters pertaining to the company for the immediate future. Paul deserves our sincere gratitude for his important contributions to the progress of the company throughout his career. All of us at Philip Morris wish Paul and his family good health, happiness and success in the future," said Mr. Webb.

The company appointed John R. Nelson, currently senior vice president, operations of Philip Morris U.S.A., to succeed Mr. Hendrys as president and CEO of the company. Mr. Nelson will report to William H. Webb, chief operating officer, Philip Morris Companies Inc.

"Jack Nelson possesses an outstanding breadth of leadership experience in our domestic tobacco business, which has provided him with a unique profile to lead our international tobacco business into the future," said Mr. Webb. "He has built a superb track record of success, based on a deep involvement in managing some of the most critical business and employee issues facing the organization today. Importantly, Jack has also played a pivotal role in shaping the solutions and building the capabilities to help our tobacco businesses evolve successfully in the years ahead."

Since November 1997, Mr. Nelson, 48, has held the position of senior vice president, operations for Philip Morris U.S.A. with responsibility for Business Development as well as the Manufacturing, Leaf, Purchasing, Research, Development & Engineering, and Quality Systems organizations in Operations.

Mr. Nelson joined Philip Morris U.S.A. in 1982 as a research analyst in the corporate affairs department. From 1984 to 1987, he held the positions of manager, public affairs research and later, manager, issues planning. In June 1987, he was appointed director, corporate affairs planning; and in June 1988, he was appointed director, public affairs and government affairs. He was appointed vice president, corporate affairs in September 1989 and was named senior vice president in April 1992. In September 1992, Jack was appointed senior vice president, planning and information services. In September 1993, he was appointed senior vice president, business development - the group responsible for the development of new non-conventional products.

With 1999 operating revenues of more than $78 billion, the Philip Morris family of companies is the world's largest producer and marketer of consumer packaged goods. Philip Morris Companies Inc. has five principal operating companies: Kraft Foods, Inc. (comprising Kraft Foods North America and Kraft Foods International), Miller Brewing Company, Philip Morris International Inc., Philip Morris Incorporated (PM USA) and Philip Morris Capital Corporation.

For more information about Philip Morris Companies Inc., please visit the company's Web site at www.philipmorris.com.