PHILIP MORRIS DISCUSSED BUYING MEDIA OUTLET TO AID IMAGE

ST. PAUL, Minn. - Two internal Philip Morris memos suggested buying a news
service or a magazine to influence tobacco policy, but a spokeswoman for the
nation's largest cigarette manufacturer discounted the proposals as a "stray
piece of paper."

Two documents from Philip Morris files - among 33 million pages of private
tobacco-industry papers released during Minnesota's lawsuit against tobacco
companies - posed the idea of buying Knight Ridder, United Press
International or some other media outlet.

The documents were found among company papers released during Minnesota's
lawsuit against tobacco companies. They were publicized yesterday by the
organizers of the National Conference on Tobacco and Health, an event
bringing together various groups favoring stronger tobacco regulation.

Minnesota's lawsuit was settled on May 8 for $6.6 billion as the state and
Blue Cross and Blue Shield of Minnesota were about to present their closing
argument.

Philip Morris spokeswoman Peggy Roberts referred to a March 20, 1990,
document as "some stray piece of paper" and noted that it had never been
implemented.

"There's no way to tell who wrote this, what it was written for, whether it
was a joke or what," Roberts said. "Anybody would love to own AP (The
Associated Press), but if I suggested such a thing I'd be laughed right out
of this building."

The 1990 document from the files of Philip Morris was titled "Top Secret
Operation Rainmaker."

The unidentified author posed the question, "What are we trying to
accomplish?" then answers, "Prevent further deterioration of overall social,
legislative and regulatory climate, and ultimately actually improve the
climate for the marketing and use of tobacco products."

The memo says if Philip Morris is to influence public policy and public
information about tobacco products, "we must be part of it. The only way to
do this is to own a major media outlet. If we are not willing to take this
step, then we are not serious about really wanting to change the
atmosphere."

In addition to Knight Ridder and UPI, the memo specifically mentioned Copley
News Service and publications run by Mortimer Zuckerman.

Another undated and unsigned memo from Philip Morris files also suggests
that the company considered acquiring a major media vehicle.

"Magazine like Saturday Review or Insight, wire service or similar media
outlet. Needs study and costing," the second memo said.

Checked-by: Don Beck