Philip Morris Companies Inc. realigns international food business, announces management changes.

NEW YORK--(BUSINESS WIRE)--Dec. 11, 1995--Philip Morris Companies Inc. (NYSE: MO) today announced a series of organizational changes designed to realign its international food business in a more defined and focused structure better able to capitalize on future growth opportunities.

Louis C. Camilleri, 40, has been named president and chief executive officer, Kraft Foods International, Inc., reporting to James M. Kilts, executive vice president, worldwide food, Philip Morris Companies Inc. Camilleri will succeed John M. Keenan, 59, who intends to retire in early 1996. In the interim, Keenan will serve as chairman, Kraft Foods International, and will continue to report to Kilts.

Camilleri previously was senior vice president, corporate planning, Philip Morris Companies Inc. He has held numerous European positions for Philip Morris International Inc., the corporation's international tobacco operating company, during his 17-year tenure with the company.

The restructured Kraft Foods International will include four separate regional units -- Kraft Jacobs Suchard Western Europe; Kraft Jacobs Suchard Northern Europe; Kraft Jacobs Suchard Central and Eastern Europe, Middle East and Africa, and Kraft Foods Asia/Pacific.

"This realignment will allow Kraft Foods International to maximize the potential of Kraft Jacobs Suchard's operations, which have grown substantially in size over the last five years," said Geoffrey C. Bible, chairman and chief executive officer, Philip Morris Companies Inc. "I am confident that Louis Camilleri's extensive experience and knowledge of the intricacies of international markets will allow the company to take full advantage of the opportunities that exist in these regions."

Under the new structure, Roger K. Deromedi has been appointed president, Kraft Jacobs Suchard Western Europe. Deromedi, 42, previously served as the company's executive vice president and area director for France, Iberia and Benelux.

Ronald J. Bell, 45, has been appointed executive vice president, Kraft Jacobs Suchard Northern Europe. Formerly, Bell was the company's executive vice president and area director for Nordic, United Kingdom and Ireland.

Bernhard Huber, 50, has been appointed executive vice president, Kraft Jacobs Suchard Central and Eastern Europe, Middle East and Africa. He was the company's executive vice president and area director for Austria and Central and Eastern Europe.

Deromedi, Bell and Huber, along with James S. King, 44, president, Kraft Foods Asia/Pacific, will each report to Camilleri.

"The restructuring and our new senior team enable Kraft Foods International to gain greater benefit from the experiences of Philip Morris International," said Kilts. "Combined with the experience derived from our North American food operations, we will be better positioned to fully leverage our best practices throughout our markets in Europe, the Middle East and Africa."

In light of the restructuring of Kraft Foods International's European business, Raymond G. Viault, 51, president and chief executive officer of Kraft Jacobs Suchard, has decided to leave the company to pursue new business challenges in a new environment. The three newly created Kraft Jacobs Suchard units formerly reported to Viault as a single entity.

"Ray was one of the principal architects of KJS's vibrant expansion in Europe," Bible noted. "Under his leadership, the company expanded into many new markets and successfully managed a wide range of brands that are ranked first or second in their categories in most European markets. We wish Ray well in his future endeavors."

In other management changes, Dinyar S. Devitre, 48, has been named senior vice president, corporate planning, Philip Morris Companies Inc., succeeding Camilleri. Devitre was formerly chairman and chief executive officer of PMKK Japan, Philip Morris' tobacco business in that country. He will report to Bible and relocate from Tokyo to New York.

James A. Scully, Jr. has been appointed president, PMKK Japan. Scully, 41, was vice president, marketing and sales, PMKK Japan, and formerly worked for Philip Morris U.S.A., the corporation's domestic tobacco operating company. Scully will report to William H. Webb, president and chief executive officer, Philip Morris International.

"Dinny Devitre and Jim Scully have both made significant contributions to the growth of our tobacco business in Japan," said Bible. "Over a 25-year career, Dinny has gained vast experience running our tobacco businesses in many different geographies. He will now use that experience in his new strategic planning role to help shape the future direction of the corporation as a whole. Jim, drawing on his extensive knowledge of the Japanese market and his experience with the U.S. tobacco business, will lead PMKK into a new era of successful growth."

Kraft Foods International, a subsidiary of Kraft Foods, Inc., is the international food business of Philip Morris Companies Inc. It has extensive coffee, confectionery, cheese and other food operations throughout Europe, the Middle East, Africa and the Asia/Pacific region.

Philip Morris Companies Inc. is the world's largest producer and marketer of consumer packaged goods, with 1994 revenues of more than $65 billion. It has five principal operating companies: Kraft Foods, Inc.; Miller Brewing Company; Philip Morris International Inc.; Philip Morris U.S.A. and Philip Morris Capital Corporation.

NOTE TO EDITORS: Biographies of the executives are available upon request.

CONTACT: Philip Morris Companies Inc.

Nicholas Rolli

[phone]

Will Thoretz

[phone]

or

Kraft Foods International, Inc.

Walter Anderau

011 (41-1) 385-12-20 (Zurich)