2. In the 1998 lawsuit settlement the tobacco industry agreed to stop advertising in youth oriented magazines. So what really happened? In one year tobacco advertising in youth oriented magazines increased by one third.

3. Four of the Five leading brands in the youth market: Marlboro, Camel, Newport and Kool increased their advertising spending in youth oriented publications. Kool alone increased its spending by 75%.

4. Advertising of the youth preferred brands: Marlboro, Kool and Winston reached at least 89% of the 12-17 year old market in 1999.

5. Targeting teens with advertising works – 85% of smokers aged 12-18 smoke the most heavily advertised brands. Only about 1/3 of adult smokers smoke these brands.

6. Camel’s share of the youth market increased by more than 50% when they introduced the cartoon character Joe Camel; Their share of the adult market did not change as a result of the Joe Camel ads.

7. Why do convenience stores stock so much candy? – because they know kids are a large part of their customer base. Big Tobacco knows this too, and they make sure to take full advantage of the opportunity to market their products to youth.

8. Studies show that 3 out of 4 teens shop at a convenience store at least once a week.

9. Teens are far more likely to be influenced by promotional pieces in convenience stores: 73% for teens vs. 47% for adults.

10. Since the tobacco industry was forced to take down its billboards, the industry has greatly increased its convenience store advertising to reach its young target market.

11. Increased Convenience Store Advertising Targeting Youth Use of In-Store Ads up 27% Exterior Ads up 22% In-Store Promotions 65% Tobacco Branded Items up 63%

12. The Tobacco Industry spends more than $26 million dollars a day, every day in advertising.

13. Phillip Morris made $51.3 Billion in tobacco revenue in 2002. (Marlboro, Basic, Virginia Slims)

14. Phillip Morris spent $57.3 million advertising in youth oriented magazines in 2000 ( despite signing a 1998 settlement agreement which said they would not target youth)

15. R. J. Reynolds Tobacco made $8.5 billion in tobacco revenue in 2001. (Camel, Winston, Doral, Salem)

16. R. J. Reynolds Tobacco spent $57 million advertising in youth oriented magazines in 2000. ( despite signing a 1998 settlement agreement which said they would not target youth)

17. Brown and Williamson Tobacco made $3.5 billion in tobacco revenue in 2001. (Kool, Pall Mall, Lucky Strike)

18. Brown and Williamson Tobacco spent $5.9 million advertising in youth oriented magazines in 2000. ( despite signing a 1998 settlement agreement which said they would not target youth)

19. Lorillard Tobacco made $4.5 billion in tobacco revenue in 2001. (Newport, Kent, True)

20. Lorillard Tobacco spent $6.2 million advertising in youth oriented magazines in 2000. ( despite signing a 1998 settlement agreement which said they would not target youth)

21. Targeting Youth “Philip Morris should continue efforts for Marlboro in the youth market..."

22. "Smoking a cigarette for the beginner is a symbolic act.... 'I am no longer my mother's child, I'm tough, I am an adventurer, I'm not square.'... " 1969 draft report to the PM board of directors.

23. "Long after adolescent preoccupation with self-image has subsided, the cigarette will even preempt food in times of scarcity on the smoker's priority list." November 26, 1969 presentation to the PM Board of Directors

24. "We are not sure that anything can be done to halt a major exodus if one gets going among the young.” July 1974 Roper Organization report for Philip Morris,

25. "Marlboro's phenomenal growth rate in the past has been attributable in large part to our high market penetration among young smokers... 15 to 19 years old...” May 21, 1975 report from PM researcher Myron E. Johnston

26. "It is important to know as much as possible about teenage smoking patterns and attitudes. Today's teen-ager is tomorrow's potential regular customer and the overwhelming majority of smokers first begin to smoke while in their teens....

27. The smoking patterns of teen-agers are particularly important to Philip Morris... March 31, 1981 market research report by Philip Morris researcher

28. " Because of our high share of the market among the youngest smokers, Philip Morris will suffer more than the other companies from the decline in the number of teenage smokers." March 31, 1981 market research report by Philip Morris researcher

29. Targeting Youth “The ability to attract new smokers and develop them into a young adult franchise is key to brand development.” 1999 Philip Morris report,

30. ”... to reverse the preference of Marlboros among younger smokers, I wonder whether comic strip type copy might get a much higher readership among younger people than any other type of copy." April 12, 1973 RJR marketing memo

31. "Pre-smokers." Term used in a1973 RJR draft paper to describe youth smokers when they are just trying cigarettes,

32. "… we are presently, and I believe unfairly, constrained from directly promoting cigarettes to the youth market; 1973 RJR draft paper

33. .... there is certainly nothing immoral or unethical about our Company attempting to attract those (youth) smokers to our products. 1973 RJR draft paper

34. ...Realistically, if our Company is to survive and prosper, over the long term we must get our share of the youth market." A 1973 RJR draft paper

35. "The fragile, developing self- image of the young person needs all the support and enhancement it can get. Smoking may appear to enhance that self-image in a variety of ways. “ 1973 RJR draft paper, "Some Thoughts About New Brands of Cigarettes For the Youth Market."

36. "They represent tomorrow's cigarette business... As this 14-24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years." September 30, 1974 R.J. Reynolds Tobacco Co. marketing plan

37. 14 year old “Adults”? "… to meet our marketing objective: To increase our young adult franchise… the brand must increase its share penetration among the 14- 24 age group which … represent tomorrow's cigarette business.” January 23, 1975 RJR memo from Mr. C.A. Tucker.

38. Targeting Youth “Evidence is now available to indicate that the 14-to-18- year- old group is an increasing segment of the smoking population." 1976 Claude Teague - R.J. Reynolds Tobacco Company

39. Targeting Youth “RJR-T must soon establish a successful new brand in this (14- 18 year old) market if our position in the industry is to be maintained over the long term." 1976 Claude Teague - R.J. Reynolds Tobacco Company

40. “No more than 5 percent of smokers start after age 24....Younger adult smokers are the only source of replacement smokers... If younger adults turn away from smoking, the industry must decline…." February 29, 1984 RJR report

41. "Overall, Camel advertising will be directed toward using peer acceptance/influence to provide the motivation for target smokers to select Camel." March 12, 1986 letter, "Camel New Advertising Campaign Development."

42. "[Camel advertising will create] the perception that Camel smokers are non- conformist, self-confident and project a cool attitude, which is admired by their peers... March 12, 1986 letter, "Camel New Advertising Campaign Development."

43. “Aspiration to be perceived as cool/a member of the in-group is one of the strongest influences affecting the behavior of younger adult smokers." March 12, 1986 letter, "Camel New Advertising Campaign Development."

44. Targeting Youth "It's a well-known fact that teen-agers like sweet products. Honey might be considered (as an additive)." September 1972 memo to Brown & Williamson from Marketing Innovations,

45. Targeting Youth "KOOL has shown little or no growth in share of users in the 26+ age group. Growth is from 16-25 year olds... February 21, 1973 Brown & Williamson marketing memo

46. Targeting Youth ”...all magazines will be reviewed to see how efficiently they reach this (16 to 25-year-old) group and other groups as well." February 21, 1973 Brown & Williamson marketing memo

47. The younger smoker is of pre-eminent importance Significant in numbers 'Lead in' to prime market Starts brand preference patterning Still volatile in habits" September 1974 marketing report

48. Targeting Youth "The purpose of this research was to gain insight into the perceptions, attitudes and behavior of younger, recently-starting smokers regarding initial product usage, current smoking and health concerns.” 1974 report, "Young Adult Smoker Lifestyles and Attitudes."

49. Targeting Youth “...As long as young people are curious, anticipatory of adulthood and seek bravado, cigarettes will be tried." 1974 report, "Young Adult Smoker Lifestyles and Attitudes."

50. Targeting Youth “We have been asked by our client to come up with a package design… a design that is attractive to kids…” August 13, 1970 letter from Lorillard advertising account executive

51. Targeting Youth The package design should be geared to attract the youthful eye… not the ever-watchful eye of the Federal Government.” August 13, 1970 letter from Lorillard advertising account executive.

52. Targeting Youth "… the base of our business is the high school student." August 30, 1978 Lorillard memo.

53. Disregarding the Health of Children / Infants "If children don't like to be in a smoky room, they'll leave." When asked by a shareholder about infants, who can't leave a smoky room, Harper stated, "At some point, they begin to crawl." Charles Harper, R.J. Reynolds Chairman

54. Manipulating the political process "About 90% of legislation at the state level [adversely] affecting our industry will not be enacted... [Why?] Because we're good. That may sound arrogant, but I don't know any other way to put it." Walker Merryman Vice President, The Tobacco Institute

55. Buying Political Supprt When asked why Philip Morris contributed $1,687,478 in donations to political parties, Phillip Morris VP George Knox said it was because: "we hope to get good government out of participating in the process."

56. Misleading the public Refering to EPA scientist James Repace's damaging findings on second hand smoke: "… we should begin eroding (public) confidence in this work as soon as possible." Dr. Anthony Colucci, R.J. Reynolds (RJR)

57. Lying under oath "We did not look at the underage market even though I am holding a document in my hand that says we did." Videotaped testimony of James Morgan Former president & CEO of Philip Morris

58. Misleading the public "When (Tobacco Industry sponsored) researchers found that cigarettes were bad and it was better not to smoke. we didn't publicize that." Dorothea Cohen, former Council for Tobacco Research employee, February 11, 1993

59. Manipulating the political process When asked how a $50 billion tax break for tobacco companies was written into the July tax bill, Kenneth Kies, Staff Director, Joint Committee on Taxation replied, "The industry wrote it and submitted it, and we just used their language."