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PepsiCo Marks Progress Toward Sustainability Goals

October 2, 2008

To: ENVIRONMENTAL EDITORS

Contact: Dave DeCecco of PepsiCo, +1-914-253-2655, david.dececco@pepsi.com

PURCHASE, N.Y., Oct. 2 /PRNewswire-FirstCall/ — PepsiCo (NYSE: PEP) announced today that it has made significant progress toward its long-term environmental sustainability goals, which include reducing water consumption by 20 percent, electricity consumption by 20 percent and fuel consumption by 25 percent per unit of production by 2015 compared to 2006. These goals are part of PepsiCos Performance with Purpose vision, the companys commitment to delivering shareholder value while leaving a positive imprint on society.

All of the credit for the progress weve made so far goes to the many talented people within PepsiCo who have found innovative ways to reduce our environmental footprint, said Indra Nooyi, PepsiCos chairman and chief executive officer. We still have much work to do, but these are important, positive steps in our long journey to constantly improve our stewardship of the environment.

In order to attain these goals PepsiCo has launched a number of activities:

— Water — Reduce consumption by 20% — Across the world, PepsiCo has saved nearly 1.5 billion gallons of water in 2007 compared

to 2006. PepsiCo is taking to scale a combination of new

technology, information sharing and employee initiatives that

reduce water consumption and increase re-use. In the U.S., the

company is using a proprietary air-rinse technology to clean

newly manufactured bottles with air instead of water in all

Gatorade and Propel manufacturing plants, saving almost 150

million gallons of water per year. Also, by instituting

comprehensive water mapping at manufacturing facilities

and increasing awareness of water conservation with associates,

the Walkers crisps business in the United Kingdom reduced the

amount of water used per kg of crisp by 42 percent between 2001

and 2007 and the India beverage business has conserved over a

half-billion gallons of water in the last two years.

— Electricity — Reduce consumption by 20% — At the Tropicana facility in Bradenton, Fla., the orange juice storage system

was converted from an ultra-low temperature freezer system to

cool refrigeration that preserves the juices freshness

without freezing it. This transition not only improved the

fresh taste of Tropicana juice, it saved the equivalent of

electricity needed to power over 7,000 houses. At the Quaker

facility in Cedar Rapids, Iowa, the development of an

innovative milling process saves almost three million kilowatt

hours of electricity per year — the same amount used by 250

typical American homes.

— Fuel — Reduce consumption by 25% — Alternative fuel sources are also a major focus for PepsiCo. This year, the Frito-Lay

manufacturing facility in Modesto, Calif., inaugurated a solar

concentrator field made up of large curved mirrors that move

with the position of the sun, focusing the heat into tubes of

glass filled with water. The water is converted into steam,

which helps heat the cooking oil used to make SunChips. In

addition, there are two U.S. PepsiCo manufacturing facilities

that use landfill gas, thereby reducing their consumption of

fossil source fuels. At several facilities in India, PepsiCo

uses local biomass material to run plants more efficiently with

less impact on the environment. Similarly, Frito-Lay is

installing a new biomass boiler in its Topeka, Kan., facility

that will use wood waste for fuel. In Mexico, the Sabritas

business conserved enough fuel in one year to serve 3,400

homes.

About PepsiCo

PepsiCo (NYSE: PEP) is one of the worlds largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. PepsiCos commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. For more information, please visit www.pepsico.com.

About Performance with Purpose

PepsiCo’s commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, reducing the company’s impact on the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive culture that recruits and retains world-class talent. PepsiCo is listed on the Dow Jones North America Sustainability Index and Dow Jones World Sustainability Index.

SOURCE PepsiCo

(c) 2008 U.S. Newswire. Provided by ProQuest LLC. All rights Reserved.