Phillip Morris Ingredients Report - Health Sciences

LETTER TO AUSTRALIAN DEPARTMENT OF HEALTHDRAFT 03/29/2000levels greater than 0 .5% of the weight of the tobacco rod is disclosed by-brand .Second, we have omitted from the by-brand disclosure the processing aides andpreservatives added to the tobacco which are not significantly present in, and donot functionally affect, the finished product . The processing aides andpreservatives are identified in Part Two discussed below .Part Two - Composite List of Ingredients Added to Tobacco :A composite list of each ingredient (including all "brand recipe" flavours)added to tobacco for all cigarette brands that we manufacture for sale inAustralia . These ingredients are listed in alphabetical order and are notseparated by brand . For each ingredient, we have provided (1) the "quantity notexceeded" (calculated from the highest level of use in a single brand andexpressed as percent of total weight of the cigarette) and (2) the function of theingredient . We have also other consumer products in which the ingredient ispresent or used .Part Three - Composite List of Ingredients Present in Non-TobaccoComponents of the Cigarette :In addition to the "tobacco rod" (the column of tobacco in each cigarette), thecigarette is constructed from materials and components we purchase fromindependent suppliers - such as cigarette paper and filter materials . Philip Morrismanufactures its brand styles in multiple factories using a variety of cigarettethere is no agreement that the disclosure satisfies the Government2

LETTER TO AUSTRALIAN DEPARTMENT OF HEALTHDRAFT 03/29/2000making machines . Some of the non-tobacco components used in themanufacture of a particular brand style are sourced from multiple suppliers .Accordingly, the non-tobacco materials used in a particular brand style may varydepending on the factory of manufacture, the particular machinery used in thatfactory, and the suppliers of the materials . Therefore, in an effort to provide nontobaccomaterial information to the Department in a manageable format, we havegrouped the ingredients in the non-tobacco components of the cigarette bycategory . Thus, Part Three of the Ingredients Report consists of a composite listof ingredients included in the following categories of non-tobacco components ofthe cigarette : (1) cigarette paper, (2) sideseam adhesive, (3) monogram inks,(4) filter adhesives, (5) filter paper inks, (6) filter papers, and (7) filtrationmaterials, listed by category in descending order by weight .We have provided the "quantity not exceeded" of each category of ingredients(calculated from the highest level of use in a single brand and expressed aspercent of total weight of the cigarette) . Taken as a whole, the ingredientsreported in these categories cover all of the non-tobacco materials in each of ourbrands manufactured for sale in Australia .3

Alpine Regular, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Alpine Extra Lights, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Alpine Lights, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Alpine 9 MG, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Alpine Ultimate, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Alpine Ultra Lights, 25sTobaccoWaterHoneyGlycerolPropylene GlycolSugars (sucrose and/or invert sugar and/or corn syrup)Cocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Fortune Ultra Menthol, 35sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Fortune Ultra Mild, 35sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Fortune Special Mild, 35sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach I MG, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Filter, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Menthol, 40sTobaccoWaterPropylene GlycolMentholNatural & Artificial FlavoursNVW~V~N~N

Longbeach Menthol 2 MG, 40sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Longbeach Mild, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Super Mild, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Ultimate, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Ultra Mild, 40sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach I MG, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Filter, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Menthol 8 MG, 20s & 30sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Longbeach Menthol 2 MG, 30sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Longbeach Mild, 20s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Super Mild, 20s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Ultimate, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Longbeach Ultra Mild, 20s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Peter Jackson Virginia, 20s, 25s & 30sTobaccoWaterPropylene Glycol

Peter Jackson "One", 25s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Peter Jackson Ultimate, 25s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Peter Jackson Ultra Mild, 20s, 25s & 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Superlights Ultra, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Peter Jackson Extra Mild, 20s, 25s & 30sTobaccoWaterPropylene Glycol

Peter Jackson Menthol, 25s & 30sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Peter Jackson Super Mild, 20s, 25s & 30sTobaccoWaterPropylene Glycol

Superlights, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Superlights Ultra Menthol, 30sTobaccoWaterPropylene GlycolMentholNatural & Artificial Flavours

Albany KSF, 20sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Albany Trim Virginia, 20sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Viscount Regular, 20sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Du Maurier Virginia, 25sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Park Drive Premium, 25sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Black & White Extra Mild, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Black & White Virginia, 30sTobaccoWaterPropylene GlycolNatural & Artificial Flavours

Marlboro Red Soft Pack, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene Glycol,Cocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Lights Soft Pack, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Gold 100s, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Red Box, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Lights Box, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Lights Menthol, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsMentholLicorice ExtractNatural & Artificial Flavours

Lark Mild, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Lark KS Filter, 20sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Red FTB, 25sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

Marlboro Lights, 25sTobaccoWaterSugars (sucrose and/or invert sugar and/or corn syrup)GlycerolPropylene GlycolCocoa & Cocoa ProductsLicorice ExtractDiammonium PhosphateAmmonium HydroxideNatural & Artificial Flavours

DRAFT03/29/00Philip Morris Ltd .AUSTRALIA INGREDIENTS REPORT - PART 2Composite List of Ingredients Added to TobaccoQUANTITYPrefix-INGREDIENTEXCENOT EDED(% in cig .)FUNCTIONPRESENTtUSED INPresent in cranberry, guava, grape, mango,1 ACETANISOLE 0 .0001 Flavor peppermint ; used in frozen dairy products,hard candies ..Present in banana, apple juice, apricot, blue2 ACETIC ACID 0 .0010 Flavor cheese, blueberries ; used in condimentrelishesPresent in apples, butter, yogurt,3 ACETOIN 0 .0001 Flavorasparagus, black currants, blackberry,wheat, broccoli, brussel sprouts,cantaloupe ; used in baked goods .4 ACETOPHENONE 0 .0001 FlavorPresent in apple, cheese, apricot, banana,cauliflower ; used in chewing gum .Present in coffee, popcorn, sesame seed,5 ACETYLPYRAZINE 0 .0001 Flavor almond, wheat bread, cocoa, peanut,potato chips; used in frozen dairy products .Present in bean, cocoa, potato, artichoke,6 2- ACETYLTHIAZOLE 0 .0001 Flavorasparagus, brazil nuts, rice ; used inbeverages, ice cream, ices, protein foods,candy, chewin gum, snack foods.7 AMMONIUM HYDROXIDE 0 .2500FlavorPresent in cured meat ; used as leaveningProcessing Aid agent in food .Present in apple juice, almond, apricot,8 BENZALDEHYDE 0 .0001 Flavor artichoke, asparagus, beans, used in bakedgoods, chewing gum .Vg58LZ£LOZ

DRAFT 03/23/2000Prefix-INGREDIENTQUANTITYEXCENOT EDED(% in cig.)FUNCTION9 BENZOIN, RESINOID 0 .0001 Flavor10 BENZYL ALCOHOL 0.0500 FlavoriPRESENT/USED INUsed in baked goods, gelatin & puddings,chewing gum .Present in apricot, almonds, apple, applejuice, asparagus, bananas, black currants,blackberries ; used in chewing gum, candy,baked goods.Present in celery, parsley, black currants,11 BENZYL BENZOATE 0 .0001 Flavor butter, guava, pineapple, papaya ; used inice cream, baked goods, candy.Present in apple, apple juice, apricot,12 BENZYL BUTYRATE 0 .0001 Flavorbanana, parmesan cheese, grape, honey,mango, melon, muskmelon, orange juice,papaya ; used in cand .13 BERGAMOT OIL 0 .0010 Flavor14 BORNYL ACETATE 0 .0001 Flavor15 BUTYLALCOHOL 0 .0100Flavor16 BUTYL BUTYRATE 0 .0001 Flavor17 3- BUTYLIDENEPHTHALIDE 0 .0001 Flavor18 BUTYRIC ACID 0 .0001 FlavorPresent in Bergamot orange; used inbeverages, ice cream, ices, baked goods,icings, candy, gelatin, puddings, chewinggum, beverages .Present in carrot, black currants, ginger,kiwi fruit, pistachios, plum, sweet potato,soy sauce, black & green tea ; used ingelatin & puddings, candy, ice cream .Present in apple juice, banana, celery,cheese, peach potato ; used in beverages,ice cream, ices, candy, cream, bakedgoods .Present in banana, apricot, bfackbeny,parmesan cheese, honey, mango, melon,muskmelon, orange juice, papaya ; used incandy.Present in celery, celery stalk ; used insoups, condiments .Present in apple, black currants,blueberries, wheat bread, butter, bluecheese ; used in snack foods, candy,margarine .S658LZ£LOZ2

DRAFT 0312312000QUANTITYPrefix-INGREDIENTEXCENOT EDED(% in cig .)FUNCTIONPRESENT/USED INPresent in carrot, cheddar cheese, ginger,19 CAMPHENE 0 .0001 Flavorapricot, black currants, blackberry, celery,kiwi fruit; used in candy, baked goods, icecream .20 CARDAMOM SEED OIL 0.0001 FlavorPresent in cardamom ; used in bakedgoods, pickles .Present in carob beans ; used in baked21 CAROB BEAN & EXTRACT 0 .1000 Flavor goods, candy, gelatin & puddings, icings &toppings .22 CARROT OIL 0 .0001 Flavor Present in carrots ; used in baked goods .23 BETA- CARYOPHYLLENE 0 .0001 Flavori24 CASTOREUM EXTRACT 0 .0001 Flavor25 CELERY SEED OIL 0 . 0001FlavorPresent in carrots, artichoke, banana,cashews, apples, celery, chervil, cocoa ;used in chewing gum, ice cream,beverages .Used in baked goods, condiments, candy,chewing gum .Present in celery seeds, celery ; used inbaked goods, soups, condiments, pickles .Present in chamomile flowers; used in26 CHAMOMILE FLOWER, ROMAN EXTRACT & OIL 0 .0001 Flavor beverages, ice cream, baked goods,gelatins & puddings .Present in blueberries, cantaloupe, capers,27 CINNAMALDEHYDE 0.0010 Flavor cranberries, guava, melon ; used in gravies,cand , ice cream .28 CINNAMYL ALCOHOL 0 .0001 Flavor29 CINNAMYL ISOVALERATE 0 .0001 FlavorPresent in blackberry, blueberry,cantaloupe, cranberry, guava, melon,raspberry, strawberry, watermelon ; used inbeverages .Present in chestnut flowers, used in candy,gelatin & puddings, chewing gum .Present in grapefruit juice, orange, orangejuice, celery, apricot, black currants, grape,30 CITRAL 0 .0001 Flavor hops, kiwi fruit, mango, mango ginger,melon, plum, raspberry, rum ; used in bakedgoods, candy, ice cream .9698LZ£LOZ 3

DRAFT 03/23/2000QUANTITYPrefix-INGREDIENTEXCENOT EDED(% in cig .)FUNCTIONPRESENT/USED IN'Present in apple, apricot, black currants,31 D,L- CITRONELLOL 0 .0001 Flavor blackberry, blueberry, orangejuice, passionfruit, peach ; used in soft candy .32 COCOA AND COCOA PRODUCTS 0 .7500 FlavorPresent in cocoa, cocoa shells ; used inbaked goods .33 COFFEE EXTRACT 0 .0001 FlavorPresent in coffee, used in baked goods,candy, syrups .34 COGNAC, GREEN, OIL 0 .0001 Flavor Used in ice cream, baked goods .35 CORIANDER OIL 0 .0001Present in coriander ; used in baked goods,Flavorcondiments .FlavorPresent in food sugar sources ; used in36 CORN SYRUP 1 . 8000Humectant baked goods, candy, breakfast cereals .Present in apricot, banana, beans, black37 PARA- CYMENE 0 .0001 Flavor currants, carrots, celery; used in chewinggum .Present in apricot, buffer, blue cheese,38 GAMMA- DECALACTONE 0 .0001 Flavor wheat bread, cantaloupe, cheese ; used inbaked goods, frozen dairy products .Present in almond, apple, apple flowers,39 DECANAL 0 .0001 Flavorapricot, artichoke, avocado, wheat bread ;used in baked goods, beverages, icecream, candy.Present in apple, apple flowers, banana,40 DECANOIC ACID 0 .0001 Flavor blackberries, blue cheese, wheat bread,butter; used in imitation dai goods .Present in apple, bean, butter, artichoke,41 DIACETYL 0 .0001 Flavoravocado, black currants, blueberry, bluecheese, wheat, brussels sprouts ; used inmeat products .42 DIAMMONIUM PHOSPHATE 0 . 6000Processing Aid Used in dough, ice cream, gelatin &Flavor puddings .Present in wheat bread, wheat, hazelnut,43 2,3- DIETHYLPYRAZINE 0 .0001 Flavor baked potato, soy sauce ; used in candy,gelatin & puddings .L6S8LZ£L0Z 4

DRAFT 03/23/20007Prefix-INGREDIENTQUANTITYEXCENOT EDED(% in cig .)FUNCTION44 DILL OIL 0 .0001 FlavorPRESENT/USED INPresent in dill ; used in cheese, sauces,dips, baked goods .Present in tea, hyacinth oil, peppermint oil ;45 PARA- DIMETHOXYBENZENE 0 .0001 Flavor used in gelatin & puddings, beverages, ice46 3,7- DIMETHYL-1,3,6-OCTATRIENE 0 .0001 Flavor47 ETHYL ACETATE 0 .0100 Flavor48 ETHYL BLITYRATE 0 .0001 Flavorcream, candy, baked goods .Present in apricot, guava, pineapple,tomato; used in frozen dairy products .Present in apple, apple juice, banana,beans, blue cheese, blueberry ; used inchewing gum, beverages, ice cream,candy .Present in apple, apple juice, banana,apricot, blue cheese ; used in chewing gum .Present in cashew, apple, cocoa, grape,49 ETHYL HEPTANOATE 0 .0001 Flavorgrapefmitjuice, hazelnut, milk, olives,papaya, passion fruit, peach ; used inchewing gum .Present in banana, cheese, black currants,50 ETHYL HEXANOATE 0 .0001 Flavor blackberry, broccoli ; used in baked goods,ice cream, candy .Present in banana, celery, apple,51 ETHYL ISOVALERATE 0 .0001 Flavorcantaloupes, cashew, apple, parmesan~ cheese ; used in condiments, ice cream,baked goods .52 ETHYL LACTATE 0 .0001 FlavorPresent in apple, cocoa, pineapple, apricot,butter, capers, elderberry, elderberry juice,grape, peas, plum ; used in chewing gum,ice cream, baked goods .Present in apple, cheddar cheese, apricot,53 ETHYL LAURATE 0 .0001 Flavor blackberry, wheat bread, buffer ; used inbaked goods, candy, ice cream .54 ETHYL MALTOL 0 .0001 FlavorPresent in apple juice ; used in sweet sauce,soups, candy.g6g8LZ£L0Z5

DRAFT 03/23/2000QUANTITYPrefix-INGREDIENTEXCENOT EDED(% in cig .)FUNCTIONPRESENTIUSED IN55 ETHYL NONANOATE 0 .0001 FlavorPresent in apple, apricot, banana, apple,wheat bread, cocoa, elderberry, grape,nectarine, olive, peach ; used in bakedgoods, beverages, ice cream, candy .Present in apple, crisp bread, honey, wheat56 ETHYL PHENYLACETATE 0 .0001 Flavorbread, cantaloupe, cocoa, grape, grapefruitjuice, guava, licorice, melon ; used in gelatin& puddings .Present in apples, apricot, banana, bilberry,57 ETHYL PROPIONATE 0cantaloupe,cheddarcheese,cocoa,fig,.0010 Flavorgrape, guava ; used in baked goods, icecream .58 ETHYL VANILLIN 0 .0010 FlavorUsed in beverages, imitation vanilla extract,breakfast cereals .Present in wheat bread, cashew nuts,59 5- ETHYL-3-HYDROXY-4-METHYL-2(5H)-FURANONE 0 .0001 Flavor cocoa, coconut, coffee, eggs, hazelnut ;used in chewing gum.60 2- ETHYL-3-METHYLPYRAZINE 0 .0001 FlavorPresent in whole egg, fermented soy sauce ;used in candy, ice cream, beverages .61 FENUGREEK EXTRACT 0 .0100 FlavorPresent in fenugreek ; used in beverages,gelatins & puddings, syrups .Present in apples, apricot, bilberry, black62 Q,ERANIOL 0 .0001 Flavor currant, blackberries ; used in baked goods,' candy, ice cream .Present in geranium leaves and stems ;63 GERANIUM ROSE OIL 0 .0001 Flavor used in chewing gum, ice cream, baked64 GERANYL ACETATE 0 .0001 Flavorgoods .Present in celery, cocoa, black currants,chervil, ginger, grape, grapeBuitjuice,orange juice, passionfruit, pineapple, plum ;used in baked goods, ice cream, syrups .Present in celery, tomatoes, passionfruit65 GERANYL BUTYRATE 0 .0001 Flavor used in gelatins & puddings, ice cream,cand .66S8LZ£LOZ 6

DRAFT 03/2312000Prefix-INGREDIENTQUANTITYEXC ENOTDED(% in cig .)FUNCTION66 GERANYL FORMATE 0.0001 Flavor67 GINGER OIL 0.0010 Flavor68 GLYCEROL 2.5000 Humectant69 2,4- HEPTADIENAL 0.0001 FlavorPRESENT/USED INPresent in black and green tea ; used inbaked goods, ice cream, candy .Present in ginger; used in candy, bakedgoods .Present in cherries ; used in milk products,baked goods .Present in avocado, black currants, bread,wheat, broccoli, butter, cabbage,cauliflower ; used in baked goods, soups,candy.Present in apples, banana, bread, butter,cheese, cocoa, coffee, milk, peanut,`papaya, mushroom, pepper, potato chip,70 2- fiEPTANONE 0 .0001 Flavor apricot, asparagus, beans, blue cheese,wheat, butter; used in beverages, icecream, ices, baked goods, candy, chewinggum, condiments, gravies .Present in capsicum peppers, hazelnut ;71 3- HEPTEN-2-ONE 0 .0001 Flavor used in gelatins & puddings, ice cream,baked goods .Present in apple, apricot, banana, barley,72 HEXANOIC ACID 0 .0001 Flavor blackberry, blue cheese, blueberry, bread ;used in condiment relish, ice cream, cand .Present in apple, banana, bean, celery,73 3- HEXEN-1-OL 0 .0001 Flavorgrape, apricot, cantaloupe, pineapple,honeydew melon ; used in chewing gum, icecream, cand , baked goods .Present in apple, banana, raspberry,strawberry, grape, guava, peach, black and74 HEXEN-2-AL [2-HEXENAL] 0 .0001 Flavor75 HEXYL ACETATE 0 .0001 Flavorgreen tea ; used in frozen dairy goods,baked goods, cand .Present in apples, bananas, apricot, blackcurrants, blackberry, blueberry, candy,cantaloupe, capers, coffee ; used in candy,baked goods .0098LZ£LOZ 7

DRAFT 03/2312000Prefix-INGREDIENTQUANTITYEXCENOT EDED(% in cig .)FUNCTIONPRESENTIUSED INPresent in grape, tea, spearmint, black and76 HEXYL PHENYLACETATE 0 .0001 Flavor green tea ; used in frozen dairy products,~ candy, baked goods .77 HONEY 2 .6000 Flavor Common food item .78 4- HYDROXY-2,5-DIMETHYL-3(2H)-FURANONE 0 .0001 FlavorPresent in maple syrup, cassia oil ; used infrozen dairy products, baked goods, candy .79 INVERT SUGAR 0 .1000 FlavorPresent in sugar sources ; used in bakedgoods, candy, breakfast cereals .Present in carrot, almonds, apricot,80 IONONE [BETA-IONONE] 0 .0001 Flavor blackberry, broccoli, capers, cherry, endive ;used in candy, baked goods, ice cream .Present in raspberry, almond, banana,iblackberry, capers, carrots, celery, cherry,81 ALPHA- IONONE 0 .0001 Flavor grapefruit juice, mango, ginger, peach,peas, plum ; used in chewing gum, icecream .Present in apple, banana, apricot,82 ISOAMYL ACETATE 0 .0001 Flavor blackberry, wheat bread, butter : used inchewing gum, ice cream, baked goods .Present in apple, honey, eggs,83 ISOAMYL FORMATE 0 .0010 Flavor strawberries, tea, vinegar : used in baked84 ISOAMYL ISOVALERATE 0 .0001 Flavor85 ISOAMYL PHENYLACETATE 0 .0001 Flavorgoods, candy.Present in banana, tomato, spearmint ; usedin frozen dairy goods, candy .Present in peppermint oil ; used in bakedgoods, candy, chewing gum .Present in blackberry, apple, apricot,86 ISOBUTYL ALCOHOL 0 .0100 Flavor banana, barley ; used in gelatin & puddings,candy, baked goods .87 ISOBUTYL CINNAMATE 0 .0001 Flavor88 ISOBUTYRALDEHYDE 0.0001 FlavorPresent in coffee, tomato ; used in candy,ice cream, baked goods .Present in apple, banana, barley, beans,blue cheese, bread, wheat, butter; used ingelatin & puddings, candy, frozen dairyproducts .6098LZ£LOZ8

IIDRAFT 03/23/2000Prefix-' INGREDIENTQUANTITYNOTEXCEEDED(% in cig .)FUNCTIONPRESENT/USED IN89 ISOBUTYRIC ACID 0 .0001 Flavor90 JASMINE ABSOLUTE 0 .0001 Flavor91 LAURIC ACID 0 .0001 Flavor92 LEMON OIL 0 .0001 Flavor93 f'1ICORICE EXTRACT 0 . 6000 Flavor94 LIME OIL 0 .0010 Flavor95 LINALOOL 0 .0001 Flavor96 LOVAGE EXTRACT 0 .0100 Flavor97 MALTOL 0 . 0010 Flavor' baked goods .98 MANDARIN OIL 0 .0100 FlavorPresent in apple, celery, banana, bluecheese, wheat bread, cashews, apples,cheddar cheese ; used in baked goods,candy, gelatin & puddin s .Present in jasmine flowers ; used in baked Igoods, chewing gum, cand .Present in apple, blue cheese, banana,blackberry, wheat bread, buffer,cantaloupe, cashew nuts ; used in bakedgoods, candy, ice cream .Present in lemons ; used in candy, breakfastcereals, frozen dairy products .Present in licorice root ; used in candy,baked goods .Present in lime ; used in frozen dairy goods, 'cand .Present in oranges, apricot, coffee ; used in Iice cream, baked goods, candy .Used in sweet sauce, beverages, icecream .Present in barley, cocoa, coffee, wheat ~bread, butter, hazelnut, licorice, malt, milk, ,peanut; used in frozen dairy goods, jellies,Present in tangerines, mandarin oranges; 'used in cand , frozen dai products .Present in peppermint plant, honey, mint,99 L- MENTHOL 0 .7500 Flavor rum, cocoa, eggs, guava, raspberry, rice,spearmint; used in candy, mouthwash .Present in beef, cocoa ; used in hard and '100 2- METHOXY-3-METHYLPYRAZINE 0 .0001 Flavor soft candy, baked goods, gelatin &uddin s .101 PARA- METHOXYBENZALDEHYDE 0 .0001 FlavorPresent in coffee, tea, tomato ; used inbaked goods, candy, dairy products .z098czCLOz9

DRAFT 03123/2000QUANTITYPrefix-INGREDIENTEXC ENOTDED(% in cig.)FUNCTIONPRESENT/USED INPresent in cocoa, grape, tea, coffee,102 METHYL ANTHRANILATE 0 .0001 Flavor strawberry ; used in baked goods, candy,i frozen dairy products .103IPresent in banana, grape, grapefruitjuice,METHYL LINOLEATE (48°/u) METHYL LINOLENATE (52%) 0 .0001 Flavor melon, strawberries; used in ice cream,baked goods, candy .104 METHYL PHENYLACETATE 0 .0001 FlavorPresent in coffee, cocoa; used in candy,syrups, baked goods .Present in almonds, asparagus, wheat105 6- METHYL-3,5-HEPTADIEN-2-ONE 0 .0001 Flavor bread, cashew nuts, chicken ; used in snackfoods .Present in guava, mango, potato ; used in106 6- METHYL-5-HEPTEN-2-ONE 0 .0001 Flavorgravies, cand , baked goods .107 4'- METHYLACETOPHENONE 0 .0010 FlavorPresent in cocoa powder, black currant ;used in chewing gum.108 3- METHYLBUTYRALDEHYDE 0 .0001 FlavorPresent in apple, banana, bread, tomato,rice, blackberry ; used in baked goods .Present in apple, apricot, avocado,109 2- METHYLBUTYRIC ACID 0 .0001 Flavor blackberry, butter, cantaloupes, carrots ;used in cheese, ice cream, candy .110 METHYLCYCLOPENTENOLONE 0 .0001 FlavorPresent in startruit, cheese, tomato; used inbreakfast cereals, baked goods, cand .111 MIMOSA ABSOLUTE 0 .0001 FlavorPresent in mimosa flowers ; used in frozendairy products .112 GAMMA- NONALACTONE 0 .0001Present in wheat bread, capers, cherdes ;Flavorused in candy, baked goods, ice cream .113 NUTMEG OIL 0 .0001 FlavorPresent in nutmeg ; used in condiments,baked goods .blackberry,Present in apple, banana,114 OCTANOIC ACID 0 .0001 Flavor wheat, butter, blue cheese ; used in snackfoods, baked goods, candy .115 OPOPONAX OIL 0 .0001 Flavor Natural flavor ; used in beverages .- Present in oranges ; used in beverages, ice116 ORANGE OIL, SWEET & BITTER 0 .0100 Flavor cream, ices, baked goods, condiments,cand , gelatin & puddings, chewin gum .C09SLZELOZ10

DRAFT 03/23/2000Prefix-INGREDIENTQUANTITYEXCENOT EDED(% in cig .)FUNCTIONPRESENTIUSED IN117 ORRIS ROOT EXTRACT 0 .0010 Flavor Used in gelatin & puddings, beverages .118 PARSLEY OIL 0 .0001 Flavor Present in parsley ; used in soups .119 OMEGA- PENTADECALACTONE 0 .0001 Flavor Used in baked goods, ice cream, candy .120 PEPPERMINT OIL 0 .0100 FlavorPresent in peppermint ; used in chewinggum, ice cream baked goods .Present in apple, mango, nectarine,121 ALPHA- PHELLANDRENE 0 .0001 Flavor papaya, paprika, parsley, beans, carrots ;used in milk products, baked goods, candy .Present in apple, banana, raspberry, wheat122 [2-j PHENETHYL ACETATE 0 .0001 Flavor bread, butter, cantaloupe ; used in candy,ice cream, baked goods .Present in apple juice, banana, blackberry,123 PHENETHYL ALCOHOL 0 .0001 Flavor blueberry, apple, apricot, asparagus ; usedin chewing gum, ice cream, baked goods .124 PHENETHYL BUTYRATE 0 .0001 FlavorPresent in banana, grape, strawberry; usedin baked goods, candy, ice cream .125 PHENETHYL ISOBUTYRATE 0 .0001 FlavorPresent in grape, olive ; used in chewinggum, baked goods, candy .126 PHENYLACETALDEHYDE 0 .0001 FlavorPresent in chicken, strawberry; used inbaked goods, ice cream, candy .Present in almond, asparagus, cocoa,127 PNENYLACETIC ACID 0 .0001 Flavorcoffee, mushroom, peanut, potato chips,sesame seed, tea ; used in sweet sauce,baked goods, candy .128 PINE OIL, SCOTCH 0 .0001 Flavor Used in candy, baked goods, beverages .Present in apple, blueberry, carrots, celery,129 ALPHA- PINENE 0 .0001 Flavor cheddar cheese ; used in condiments,cand .Present in apricot, butter, cantaloupe,130 BETA- PINENE 0 .0001 Flavor carrots, celery, cheddar cheese, cocoa,cranberry ; used in baked goods, cand .131 PIPERONAL 0 .0010 FlavorPresent in cantaloupe, capers, melon ; usedin candy, baked goods .132 POTASSIUM SORBATE 0 .0500 PreservativePresent in mountain ash berries ; used incheese.ti098LZ£LOZ 11

DRAFT 0312312000Prefix-INGREDIENTQUANTITYEXC ENOTDED(% in cig .)FUNCTIONPRESENT/USED IN133 PROPENYLGUAETHOL 0 .0001 Flavor Used in sweet sauce, baked goods, candy .134 PROPYL PARABEN [PROPYL PARA-HYDROXYBENZOATE] 0 .0250 PreservativePresent in licorice ; used in processedvegetables.135 PROPYLENE GLYCOL 2 .5000 FlavorPresent in sesame seed, mushroom ; usedin confection frostings, cheese, candy .136 3- PROPYLIDENEPHTHALIDE 0 .0001 FlavorPresent in lovage ; used in frozen dairyproducts, baked goods, candy .Present in wheat bread, celery, asparagus,137 PYRUVIC ACID 0 .0001 Flavor milk, onion ; used in frozen dairy products,baked goods, cand .Present in geranium flowers; used in138 RHODINOL 0 .0001 Flavor- chewing gum, baked goods, ice cream .139 f3OSE OIL, BULGARIAN, TRUE OTTO 0 .0001 FlavorPresent in roses; used in chewing gum, icecream, baked goods .140 RUM 0 .0100 Flavor Present in beverages ; natural flavor .141 SANDALWOOD OIL, YELLOW 0 .0001 Flavor142 SUGAR (SUCROSE) 2 .5000FlavorHumectantPresent in sandalwood ; used in candy,baked goods, ice cream .Present in sugar cane and other food sugarsources ; used in baked goods, candy,breakfast cereals .Present in apple, apple juice, apricot,143 ALPHA- TERPINEOL 0 .0001 Flavor artichoke, beans, blueberry; used inI chewing gum, baked goods, ice cream .144 PARA- TOLYL ISOBUTYRATE 0 .0001 Flavor Used in baked goods, ice cream, candy .Present in tea ; used in baked goods, candy,145 4-(2,6,6- TRIM ETHYLCYCLOHEX-1 -ENYL)BUT-2-EN-4-ONE 0 .0001 Flavor146 4-(2,6,6- TRIMETHYLCYCLOHEXA-1,3-DIENYL)BUT-2-EN-4-ONE 0 .0001 Flavorchewing gum .Present in apples, black tea ; used inbeverages, frozen dessert, baked goods,candy, gelatin & puddings, preserves,condiments .Present in barley, almond, asparagus,147 2,3,5- TRIMETHYLPYRAZINE 0 .0001 Flavor wheat bread, cocoa, coffee ; used in bakedgoods, candy, dairy products, cereals .S098LZ£LOZ12

DRAFT 03/23/2000Prefix-INGREDIENTQUANTITYNOTEXCE EDED(% in cig .)FUNCTIONPRESENT/USED INPresent in apple, apple juice, apricot,148 GAMMA- UNDECALACTONE 0.0001 Flavor peach, plum, rice ; used in chewing gum,candy, ice cream, baked goods .Present in cocoa, coffee, mushroom,149 GAMMA- VALEROLACTONE 0 .0001 Flavor peach, peanut, wheat bread, honey ; used incandy, baked goods .- Present in vanilla bean asparagus, barely,150 VANILLA EXTRACT 0 .0001 Flavorblackberry, blueberry, coffee, cranberry ;used in baked goods, gelatin & puddings,condiments .Present in asparagus, barley, blackberry,151 VANILLIN 0 .0100 Flavor blueberry, coffee, cranberry; used inconfection frosting, baked goods, candy .PROCESSING AIDS : CARBON DIOXIDEDENATURED ETHYL ALCOHOLAND ETHYL ALCOHOLWATERProcessing Aids9098 tzs '40 z13

Part type ONE, % per Cigt . I ComponentCigarette Paper~ 4 .0 CELLULOSE2 .0 CALCIUM CARBONATE

Part type 'QNE, % . Component - ' -lSideseam Adhesive ~ ---0 .10 i ETHYLENENINYL ACETATE, COPOLYMER EMULSION IN WATER0 .10 WATER

Part type 4NE,% . Component -Monogram Ink ',~0 .001PIGMENTS (RED 53 :1, BLUE 15, YELLOW 13, RED 48 :3, BLACK 7, IBLUE 56)

Part type QNE, % ComponentFilter Paper Inks;IPIGMENTS (YELLOW 42, WHITE 6, WHITE 18, WHITE 19, RED 101, .WHITE 26, BLUE 15, BLACK 11, YELLOW 17, YELLOW 83, BLACK 7, i' 0.130 j GREEN 7)0 .100 ETHYL,PROPYL,METHOXYPROPYL,ISOPROPYLACETATE i'

MESSAGE POINTS ON INGREDIENTSTobacco and Ingredients Added to Tobacco :The major component of each of our cigarette brands is tobacco . Our Americanstyle cigarettes (e .g ., Marlboro) are "blended cigarettes" with a combination ofdifferent types of tobacco (Bright, Burley, and Oriental), as well as flavouringsand other ingredients . Our Virginia style cigarettes (e .g ., Peter Jackson) useprimarily "bright" ("Virginia") tobacco with ingredients, such as processing aides,a few flavours, and/or humectants .In addition to the "tobacco rod" (the column of tobacco in each cigarette), thecigarette is constructed from materials and components we purchase fromindependent suppliers - such as cigarette paper and filter materials .PM Position on Disclosure of IngredientsPhilip Morris supports the right of the Department of Health to obtain informationabout ingredients added to cigarettes, including those added to non-tobaccocomponents of cigarettes, such as cigarette paper . Disclosures should protectthe specific combination of flavours that give each brand its uniquecharacteristics (the "brand recipe") .This disclosure provides the Department with information about our ingredients,while, at the same time, protecting our "brand recipes ."PM Disclosure ModelThe disclosure has three parts :Part One -- By-brand DisclosureA separate disclosure is made for each brand that we manufacture for sale inAustralia . These by-brand disclosures identify each ingredient used in thebrand with two exceptions .First, like ingredients disclosures for food products, the flavours that make upeach brand's unique flavour characteristics are grouped under the category"natural and/or artificial flavours ." The identity, combination and amounts offlavours used in individual brands are highly valuable proprietary informationbelonging to Philip Morris. Their disclosure without assurance ofconfidentiality would provide our competitors with a competitive advantage .Those ingredients, therefore, are grouped under the heading "natural andartificial flavours ."

DRAFT - 0312912000However, each flavour is identified and disclosed to the government inPart Two of the disclosure : the Composite Ingredients List . Incombination, the by-brand disclosure and the composite list allow thegovernment to determine the ingredients added to tobacco in each ofour brands .Second, we have omitted from the by-brand disclosure the processing aidesand preservatives added to the tobacco which are not significantly present in,and do not functionally affect, the finished product . The processing aides andpreservatives are identified in Part Two of our disclosure .Why we don't identify each brand's specific combination of flavours :We have spent a significant amount of time, effort and money to developand improve flavour recipes for our products . We want to be the onlycompany that can offer a cigarette that tastes exactly like any of ourquality brands and we believe that, like other consumer goodsmanufacturers, we should not be required to disclose competitiveinformation to the public . A federal appeals court in the U .S . recentlyagreed with us :"Because consumers choose brands based on flavour, taste andaroma, and tend to remain loyal to those brands, small fortunes arespent creating flavour formulas for tobacco products . Theinformation needed to copy these formulas is, in turn, worth manymillions of dollars . It is no secret that tobacco companies, like othermanufacturers of brand name products, employ elaborateprocedures to safeguard their ingredient information ."Why we disclosed flavours added to tobacco at levelsweight of tobacco :.5% or more of theThese higher-use ingredients are, for the most part, commonly used bythe tobacco companies and are thus known to our competitors . Given thisfact, we decided to include the high-use ingredients in our by-branddisclosure . We recognize that the disclosure of any single ingredient thatis added at levels less than .5% is not likely to result in the disclosure of abrand recipe . However, we believe that the .5% level establishes areasonable threshold above which we commit to provide by-branddisclosure. _In the end, the decision to disclose any single "natural and/or artificialflavour" should be left to the discretion of the manufacturer, as is donewith food products . The important point is that all of the ingredients we2

DRAFT - 0312912000add to our products - including every single "natural and/or artificialflavour" -- is disclosed to the government in the Composite List ofIngredients (Part Two of our disclosure) .Part Two -- Composite List of Ingredients Added to TobaccoWe list every ingredient (including each "natural and/or artificial flavour" -- "brandrecipe" flavour) added to tobacco for all brands that we manufacture for sale inAustralia .The ingredients are listed in alphabetical order . In addition to the name of theingredient, we provide information about the amount of the ingredient used andthe reason why we use the ingredient .Amounts are expressed as a "quantity not exceeded" ("QNE number") . Theingredient's QNE number signifies that the ingredient is not added to any singlecigarette brand at levels higher than indicated .We have calculated the QNE number from the highest level of use in a singlebrand and expressed the level as percent of total weight of the cigarette .We also show other consumer goods in which the specific ingredient is presentor used .Taken as a whole, the ingredients listed in the Composite List cover all of theingredients added to tobacco in each of our brands manufactured for sale inAustralia .Part Three - Composite List of Ingredients in Non-Tobacco ComponentsPart Three of the Ingredients Report consists of a composite list of ingredientsthat are in the non-tobacco components of the cigarette .The non-tobacco components are :. Cigarette paper is the wrapping material surrounding the tobacco rod toform a cigarette rod . The cigarette paper is made of cellulose and maycontain additives to provide whiteness, improve ash appearance and tohelp ensure burn uniformity .. Sideseam adhesive is used to secure the cigarette paper around thetobacco rod . Sideseam adhesives are used in minute amounts .3

DRAFT - 0312912000• Monogram Ink : Cigarette papers often have a small brand identifyingmark (monogram) printed either on the cigarette paper towards the filterend of the cigarette or on the tipping paper . The monogram is printed onthe paper using a small amount of ink . The monogram inks used on PhilipMorris cigarettes are pigment inks and may contain black, blue, red and/oryellow pigments .. Cigarette Filters are attached to the end of the cigarette rod to trap someof the particulate matter in the smoke and thus reduce the yield of tar andnicotine in the mainstream smoke, as measured by the standard machinetest method . Filters are made in a variety of designs . They consist of thefollowing components :• filtration materials (bundle of cellulose acetate fibers or paper thatcomprise the bulk of the filter and the plasticizer (softening agentadded in small quantities to bind the filter fibers together))• filter papers (paper wrappers used to contain the filter material)• filter paper inks (used to color the filter paper)• filter adhesive (to secure the plug wrap to the filter rod) .The ingredients in the non-tobacco components are listed by category indescending order by weight. Philip Morris manufactures its brand styles inmultiple factories using a variety of cigarette making machines . In addition, someof the non-tobacco materials used in the manufacture of a particular brand styleare sourced from multiple suppliers . Accordingly, the non-tobacco materialsused in a particular brand style may vary depending on the factory ofmanufacture, the particular machinery used in that factory, and the suppliers ofthe materials . Therefore, in an effort to provide this information to theDepartment in a manageable format, we have grouped the ingredients in thenon-tobacco components of the cigarette by category .We have provided the quantity not exceeded of ingredients in non-tobaccocomponents (calculated from the highest level of use in a single brand andexpressed as percent of total weight of the cigarette) . Taken as a whole, theingredients reported in these categories cover all of the non-tobacco materials ineach of the brands that we manufacture for sale in Australia .Are brands without ingredients or with fewer ingredients "safer"?We're not aware of any public health authority that has concluded that cigarettesmade only of tobacco and paper are associated with any less risk than those withadded ingredients . Indeed, the United States Federal Trade Commission'sDirector of Consumer Protection has recently taken action to "clear up anymisconception that cigarettes without additives are safer to smoke than othercigarettes ."4

DRAFT - 0312912000Allegations on IngredientsAllegations have been made concerning specific ingredients in our products . Wetake these allegations seriously .We are currently engaged in a series of meetings with the U .K . Department ofHealth and other governmental bodies on these issues . Philip Morris welcomesthe opportunity to respond directly to the allegations . We are confident in ourviews and look forward to an analysis of the data and information we haveprovided .Individual Substances (ingredients and constitutents)AcetaldehydeRaised in litigation and media since 1994 ; alleged that acetaldehyde actssynergistically with nicotine to enhance "addiction" and that PM increasedacetaldehyde levels by increasing amount of sugars in the tobacco .Response : Acetaldehyde is not an ingredient added to our tobaccoproducts . Acetaldehyde is a naturally occurring constituent in tobaccosmoke that is formed when tobacco is burned .Acetaldehyde is a naturally occurring substance found in cooked foods,fruit, juices and cheese, and is formed in the human body, primarily as ametabolite of alcohol .The facts :• Philip Morris does not design cigarettes in order to increaseacetaldehyde levels in smoke .• The addition of sugars to tobacco used in our cigarettes does notincrease acetaldehyde levels in smoke .• There are no credible data to support the allegation that acetaldehydein cigarette smoke is addictive or increases the effects of nicotine .We have presented scientific arguments and data, including publishedresearch, to the U .K . Department of Health in support of our views . Webelieve that an objective review of the data will establish that theallegations concerning acetaldehyde are incorrect .5

DRAFT - 0312912000Ammonia Compounds (Ammonium Hydroxide, DiammoniumPhosphate)Ingredient identified on by-brand disclosure .Allegations have been raised in litigation, reguiatory/fegislativeproceedings and in the media . Three central arguments : (1) ammoniacompounds added to tobacco increase the pH of the tobacco smoke andthus increase the amount of "free nicotine" which is allegedly "moreaddictive", (2) ammonia compounds increase the amount of nicotinetransferred from the filler to the smoke, and (3) ammonia compoundsincrease the amount of "gas phase nicotine" which is not recorded by theFTC or ISO test methods .Response : Over the past six years, numerous allegations have beenmade concerning the use of ammonia in cigarettes . These allegationshave been taken seriously, and regulators and critics have been shown --with scientific data -- that these allegations are just not supportable .Simply put, this is old news .The facts concerning ammonia are as follows :• Ammonia compounds naturally occur in tobacco leaf .• Ammonia compounds are used as flavourants and "processing aids" inthe manufacture of reconstituted tobacco . Many companies useammonia compounds as flavourants and "processing aids" in a varietyof common consumer products, including baked goods, ice cream,gelatin and puddings .• The use of ammonia compounds in the manufacture of our cigarettesis not intended to, and does not, increase the amount or effect ofnicotine delivered to smokers nor the total rate at which that nicotine isabsorbed by the smoker .• Ammonia compounds do not increase the amount of nicotinetransferred to the smoke .• The FTC and ISO test methods record virtually all nicotine in thesmoke, regardless of the amount of ammonia compounds added to thetobacco .6

DRAFT - 0312912000We have presented scientific arguments and data, including publishedresearch, to the U .K . Department of Health in support of our views . Webelieve that an objective review of the data will establish that theallegations concerning ammonia are incorrect .ButaneRaised in UK press in 2000 :Response : Philip Morris does not add butane to its products .Beta-naphthvlmethyfetherRaised in UK press in 2000 :Response : Philip Morris does not add beta-naphthylmethylether to itsproducts .Castor OilRaised in UK press in 2000 :Response : Philip Morris does not add castor oil to its products .CocoaRaised in litigation, media since 1996 : Allegations have been made thatcocoa (theobromine) in tobacco acts as a bronchodilator-that it dilates(or opens) the airways in a smokers' lungs, allowing more nicotine to beinhaled .Response : Philip Morris does not add cocoa for this purpose - and thecocoa added to tobacco in our cigarettes does not have that effect .Allegations concerning the use of cocoa are based on the conjecture ofDr . William Farone, a former Philip Morris employee . Dr . Farone hasadmitted under oath that he has no evidence that Philip Morris used cocoafor these purposes or whether the amount of cocoa added to Philip Morris'cigarettes would cause bronchodilation .Moreover, the facts do not support the allegation . Theobromine is acomponent of cocoa . At high levels, theobromine could act as abronchodilator . Based on published data, however, any theoreticalplasma theobromine levels from cigarette smoke would be 120 to 250times too low to cause bronchodilation .7

DRAFT - 0312912000We have presented scientific arguments and data, including publishedresearch, to the U .K . Department of Health in support of our views . Webelieve that an objective review of the data will establish that theallegations concerning cocoa are incorrect .Corn 5vrupIngredient on by-brand disclosure .Corn syrup is used to replace sugars lost during the processing of thetobacco . It smoothes the taste of the smoke and helps maintain themoisture and pliability of the tobacco .Ethyl alcohol/ethanolPhilip Morris uses denatured ethyl alcohol as a processing aid to applyflavourings to tobacco .Many food products use colouring and flavouring ingredients extractedwith the use of ethyl alcohol .Virtually all of the alcohol used in the manufacturing process evaporatesand only trace elements remain in the finished product .Alcohol occurs naturally in many food products that are consumed dailyaround the world, including bread, cheeses, fruit and fruit juices .The presence of alcohol in food products has been recognized andaccepted in all Moslem countries, including those that ban the importationand consumption of alcoholic beverages .The use of alcohol as a flavour carrier is a practice recognized and appliedby the cigarette industry worldwide in the manufacture of American-styleblended cigarettes . This industry norm is accepted by regulatoryauthorities and state cigarette manufacturing monopolies in many Moslemcountries where cigarettes are manufactured, including Egypt and Jordan .FurfuralRaised in UK press in 2000 :Response : Philip Morris does not add furfural to its products .8

DRAFT - 03l29/2000GlycerolIngredient identified in by-brand disclosure .Glycerol is a humectant used to maintain moisture and pliability oftobacco during processing .LicoriceIngredient identified in by-brand disclosure .Allegations have been made that licorice, like cocoa, causesbronchodilation - the opening of the airways in the lungs . The claim isthat glycyrrhizic acid, a component of licorice, causes the bronchodilation .Response : The licorice we add to our tobacco is not used for and doesnot have this effect .The facts are :• Licorice is permitted for use as an additive under the German food law .• The total amount of licorice added is typically less than 2% of thetobacco weight .• Scientific studies report that when glycyrrhizic acid is added tocigarettes, it is not transferred to the smoke intact .We have presented scientific arguments and data, including publishedresearch, to the U .K. Department of Health in support of our views . Webelieve that an objective review of the data will establish that theallegations concerning licorice are incorrect .Pa ra meth oxy c i n na ma l de hyd eRaised in UK press in 2000 :Response : Philip Morris does not add paramethoxycinnamaldehydeto its products. _Propylene GlycolIngredient in by-brand disclosure .N0VWN4wrn N~9

DRAFT - 03/29/2000Propylene glycol is a humectant that is used to maintain moistureand pliability of tobacco during processing . It can also be used tocarry flavours .Suaars and Other FlavouringsIngredient(s) identified in by-brand disclosure .Raised in media : Allegations have been made that ingredients, such assugars, are used to make cigarettes more palatable to children .Response : Sugars are used to replace natural sugars lost during theprocessing of tobacco . Sugar smooths the smoke and helps maintainmoisture and pliability of the tobacco .Cigarettes, like many other adult consumer products, may contain sugar,honey, cocoa and similar ingredients . The presence of those ingredientsdoes not mean that the product is intended for children . Philip Morris addsthese or other similar ingredients for a number of purposes . For example,in addition to adding flavour, sugars function as humectants . Asflavourings, the ingredients highlighted by the report are used to provideour cigarettes with their unique taste characteristics that appeal to adultsmokers . Philip Morris does not use sugars to give cigarette smoke a"confectionary-like" taste and does not add ingredients to attract children .Turpentine oilRaised in UK press in 2000 :Response : Philip Morris does not add turpentine oilto its products .10