Change of Share Ownership of PT HM Sampoerna Tbk.

JAKARTA, Indonesia -- The Board of Directors of PT Hanjaya Mandala Sampoerna Tbk., (the "Company") received on the 13 March 2005 a letter dated 12 March 2005 from PT Philip Morris Indonesia ("PT PMI"), a wholly-owned subsidiary of Philip Morris International Inc., advising the following:

--(a) PT PMI has entered into sale and purchase of shares agreements with a number of shareholders of the Company for the purchase of 40% of all issued shares in the Company with a price of Rp 10,600 per share.

--(b) the sale and purchase of shares agreements shall be completed on 18 March 2005.

--(c) following such completion, as required by the prevailing laws and regulations, PT PMI will conduct a tender offer for the rest of the issued shares at the same price, such tender offer is expected to complete approximately 80 days thereafter.

PT PMI has also advised the Board of Directors of the Company that PT PMI will continue the Company's core business and continue to build the brand equity of its strong and well-established brands. PT PMI has also advised that they have the highest regard for the Company's employees, they look forward to working with the employees of the Company, and will work closely with the employees of the Company, to ensure that in this process their rights are protected under the prevailing laws and regulations.

The Company will take all necessary efforts to ensure that this transition takes place smoothly and will not adversely affect the operations of the Company.

The Company prides itself in being professionally managed and will maintain these high standards. We will take a "business as usual approach" and make all necessary efforts to maintain the strong momentum we have built in the marketplace.

The Company recognizes strong similarities between itself and PT PMI. Both companies are well managed, market driven, produce high quality products and have strong commitment to both the community and their employees.