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File No. 33-1480
Rule 424(b)(3)
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KGF THRIFT PLAN
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AUGUST 1994
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Plan News
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Fund Performance
Closing PM Stock Price as of June 30, 1994
1994 Interest Income Fund Rate of Return
Thrift Plan and Benefits Express Improvements Update
Diversification of Investments
"Managing Your Future"
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Your statement is enclosed showing the activity in your account during the
second quarter, and a "snapshot" of your account balances with investments
valued as of June 30, 1994.
Fund Performance
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<TABLE>
<CAPTION>
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Second Quarter Only
April 1 through June 30, 1994 Annualized Fund Performance
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Funds % Funds 1990 1991 1992 1993 1994
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<S> <C> <C> <C> <C> <C> <C> <C>
Philip Morris Philip Morris
Stock Fund 3.1% Stock Fund 32.2% 57.5% -0.9% -24.3% -4.9%
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Equity Fund 0.46% Equity Fund -1.8% 31.3% 7.8% 10.3% -3.3%
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Interest Income Interest Income
Fund 1.7% Fund 10.1% 9.5% 8.8% 7.9% 3.5%
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Government Government
Securities Fund 0.54% Securities Fund 8.9% 9.3% 5.2% 4.1% 0.82%
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</TABLE>
The fund performance for 1990 through 1993 applies to dollars that were in the
fund on January 1 and remained in the fund until December 31. Dollars that were
invested, withdrawn, or transferred between funds during the year may have
earned a higher or lower rate of return due to market fluctuations. 1994 rates
of return only apply to dollars that were invested in the fund on January 1
and remained in the fund until June 30, 1994.
June 30 Stock Price
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The price per share of Philip Morris stock on June 30, 1994 was $51.500.
1994 Interest Income Fund Rate of Return
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The rate of return in the Interest Income Fund during 1994 is estimated to
be 6.7%.
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This page constitutes a supplement to a prospectus covering securities that have
been registered under the Securities Act of 1933. THIS SUPPLEMENT REVISION IS
DATED AUGUST 15, 1994.
