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Press release from Business Wire

Philip Morris International (PMI) Acquires Common Shares of Medicago Inc. as Part of a Private Placement

Thursday, October 27, 2011

Philip Morris International (PMI) Acquires Common Shares of Medicago Inc. as Part of a Private Placement09:15 EDT Thursday, October 27, 2011 NEW YORK (Business Wire) -- Philip Morris International Inc. (NYSE / Euronext Paris: PM) announces that it has entered into a subscription agreement with Medicago Inc. (“Medicago”) to complete a private placement of CAD $22.5 million through the issuance of an aggregate of 34,550,000 common shares of Medicago in two tranches (the “Offering”). The first tranche of the Offering closed today with the acquisition of CAD $11.3 million of common shares of Medicago. Each common share was issued at a price of CAD $0.65 per share. As part of the Offering, Philip Morris Investments B.V. (“PM Investments”), a wholly-owned indirect subsidiary of PMI, acquired ownership of 17,350,000 common shares pursuant to the “minimum amount investment” prospectus exemption contained in section 2.10 of Regulation 45-106 regarding Prospectus and Registration Exemptions (Québec). The 17,350,000 common shares represent approximately 7.5% of the issued and outstanding common shares of Medicago when calculated after giving effect to the Offering on a non-fully diluted basis. Pursuant to this transaction, the holding of PM Investments in Medicago consists of 81,408,800 common shares representing approximately 35.5% of all of the issued and outstanding common shares of Medicago when calculated after giving effect to the Offering on a non-fully diluted basis. Based on the total number of common shares issued and outstanding, described in the Agency Agreement and the press release both dated September 27, 2011, and filed on SEDAR by Medicago in connection with the Offering, PMI remains the largest shareholder of Medicago after the Offering. This most recent acquisition of common shares was made for investment purposes. PMI may, subject to market conditions and in accordance with applicable securities laws, make additional investments in, or dispositions of, securities of Medicago, including additional purchases of Medicago common shares. The closing of the second tranche of the Offering is expected to occur on or about December 16, 2011. The Toronto Stock Exchange has given its conditional acceptance for the second tranche of the Offering, subject to the approval of Medicago's shareholders. Medicago plans to hold its special meeting of shareholders on December 15, 2011. Philip Morris International Inc. Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world's top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI's products are sold in approximately 180 countries. In 2010, the company held an estimated 16.0% share of the total international cigarette market outside of the U.S., or 27.6% excluding the People's Republic of China and the U.S. For more information, see www.pmi.com. Philip Morris International Inc.Investor Relations:New York: +1 (917) 663 2233Lausanne: +41 (0)58 242 4666orMedia:Lausanne: +41 (0)58 242 4500