Philip Morris' (PM) Swedish Match Reports District of Columbia Subpoena

Swedish Match North America LLC (“SMNA”), a Philip Morris International Inc. (“PMI” or “Company”) affiliate acquired in November 2022, has received a subpoena from the Attorney General of the District of Columbia (also referred to in this press release as, “D.C.”) requesting, among other things, information about SMNA’s compliance with D.C.’s ban on the sale of flavored products as it relates to ZYN nicotine pouches.

The Company’s affiliate, SMNA, intends to comply with the Attorney General’s request for information concerning sales of its nicotine pouch products in D.C. Our preliminary investigation indicates that there have been sales of flavored nicotine pouch products in D.C., predominantly related to certain online sales platforms and some independent retailers. In the event of an unfavorable outcome related to this matter, a material liability is reasonably possible though not estimable at this time. At the request of PMI, SMNA is conducting a full review of its sales and supply chain arrangements in D.C. and other U.S. localities where flavor bans may apply.

As an initial remedial measure, while our investigation continues, SMNA is taking steps to immediately suspend online sales on ZYN.com. We reaffirm our commitment to 21+ only access and confirm that ZYN.com sales have been fully age-gated. ZYN.com sales have represented a very small percentage of nationwide ZYN volumes since PMI’s acquisition of SMNA.

We remain committed to ensuring compliance with all laws and regulations concerning the sale of our affiliates’ products in the U.S. and worldwide.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested over $12.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI's smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 33 million adults around the world use PMI's smoke-free products. Smoke-free business accounted for approximately 37% of PMI’s total full-year 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.

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