The Board of Directors of Philip Morris Companies Inc. (NYSE: MO) today voted to increase the company's regular quarterly dividend by 9.4%, to an annualized rate of $2.32 per common share.

The new quarterly dividend of $0.58 per common share, up from $0.53 per common share, is payable on October 10, 2001 to stockholders of record as of September 17, 2001.

The Philip Morris family of companies, including Kraft Foods Inc. (Kraft), is the world's largest producer and marketer of consumer packaged goods. Philip Morris recorded 2000 underlying operating revenues of $80.3 billion (or $88.0 billion assuming Kraft owned Nabisco for all of 2000) and owns 83.9% of the outstanding common shares of Kraft. The Philip Morris family also includes Philip Morris Incorporated (PM USA), Philip Morris International Inc., Miller Brewing Company and Philip Morris Capital Corporation. For more information about Philip Morris, including programs and philanthropy, visit the company's Web site at www.philipmorris.com.