<PAGE>
Rule 424(b)(3)
File Nos. 33-1480
33-37115
33-17870
33-39162
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KGF THRIFT PLAN
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May 1994
A
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PLAN NEWS
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Fund Performance
Closing PM Stock Price as of March 31, 1994
1994 Interest Income Rate of Return
Thrift Plan and Benesit Express Improvements
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Your statement is enclosed showing the activity in your account during the first
quarter, and a "snapshot" of your account balances with investments valued as of
March 31, 1994.
FUND PERFORMANCE
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<TABLE>
<CAPTION>
First Quarter Only
January 1 through March 31, 1994* Annualized Fund Performance
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Funds % Funds 1989 1990 1991 1992 1993
- ------------------------ ----- ------------------------ ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Philip Morris Stock Fund -7.7% Philip Morris Stock Fund 49.4% 32.2% 57.5% -0.9% -38.4%
Equity Fund -3.7% Equity Fund 29.3% -1.8% 31.3% 7.8% 7.8%
Interest Income Fund 1.8% Interest Income Fund 10.5% 10.1% 9.5% 8.8% 5.9%
Government Securities Fund 0.3% Government Securities Fund 9.5% 8.9% 9.3% 5.2% 3.7%
</TABLE>
The fund performance for 1989 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invested, withdrawn, or transferred between funds during the year may have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
through March 31, 1994.*
MARCH 31 STOCK PRICE
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The price per share of Philip Morris stock on March 31, 1994 was $50.625.
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 is dated
May 9, 1994.
