Philip Morris International Sells Ice Cream Business in Brazil.

RYE BROOK, N.Y. & SAO PAULO, Brazil--(BUSINESS WIRE)--Oct. 20, 1997--Philip Morris International Inc. (PMI) announced today that it had reached an agreement to sell Kibon, a unit of Kraft Suchard Brazil and the leading ice cream manufacturer in Brazil, to Unilever for approximately $930 million.

The sale includes Kraft Suchard Brazil's 50% holding in Sorvane, an ice cream company in the northeast of Brazil. The completion of the transaction is subject to various Central Bank of Brazil procedures.

"Kibon is the market leader and premier ice cream brand in Brazil. However, ice cream is not a core category for our global food operations," commented Andreas Gembler, president and chief executive officer of PMI. "This sale follows the sale of Philip Morris' other ice cream businesses. It is part of an ongoing strategy of focusing our business portfolio and engaging our resources on growing core businesses. We are strongly committed to our tobacco, confectionery and powdered beverage businesses in Brazil, as was demonstrated most recently with our acquisition of Lacta. We see Brazil as one of the most vibrant and promising markets in the world."

PMI manages the Kraft International food portfolio in Latin America. In Brazil, PMI's confectionery operations include Lacta, the leading chocolate confectionery company, and Suchard, the leading powdered beverage business. Top confectionery brands include: Bis, Diamante Negro, Laka, Sonho de Valsa, Sugus and Confeti. The beverage business includes leading brands such as Tang, Clight and Ki-Suco.

Philip Morris International Inc. is a wholly-owned subsidiary of Philip Morris Companies Inc.

CONTACT: Philip Morris International Inc., Rye Brook

Elizabeth Cho, 914/335-9221

or: Philip Morris Brazil, Sao Paulo

Marcelo Alonso/Gilberto Galan

011-55-11-545-9071