PepsiAmericas and PepsiCo to Jointly Acquire Leading Juice Company in Ukraine

PepsiAmericas, Inc. (NYSE:PAS) and PepsiCo (NYSE:PEP) today
announced that they have reached an agreement to jointly acquire 80
percent of Sandora, LLC ("Sandora"), the leading juice company in
Ukraine. The acquisition, for a total purchase price of $542 million
plus assumed debt, provides PepsiAmericas and PepsiCo a strong
platform for growth in the emerging Ukrainian market.

Ukraine is one of the fastest growing beverage markets in Europe
with more than 46 million consumers. Sandora has established itself as
the leader in the high growth juice category with a range of
distinctly positioned brands that represent approximately half of the
total juice volume consumed in Ukraine. With over 3,500 employees,
Sandora has a powerful sales and distribution organization and two
modern production facilities located in Nikolaev.

"We're excited to extend our strong partnership with PepsiCo to
create a new model for beverage growth in Ukraine," said Robert C.
Pohlad, Chairman and Chief Executive Officer of PepsiAmericas. "We
have a clear strategy to grow through the expansion of our
international business and Sandora is a great fit. It provides
immediate scale in a high growth market and a strong business platform
to leverage and expand into other categories. Ukraine's emerging
economy and beverage market, coupled with Sandora's strong brands and
distribution capabilities, provide significant growth potential."

"Our expansion into Ukraine adds another important contiguous
market to our international portfolio, following Romania last year,"
said Kenneth E. Keiser, President and Chief Operating Officer of
PepsiAmericas. "This acquisition will allow us to further leverage our
capabilities, infrastructure and go-to-market system."

"Sandora's market-leading brands will be a wonderful addition to
our portfolio," said Michael White, vice chairman of PepsiCo and chief
executive officer of PepsiCo International. "We look forward to
working in partnership with the Sandora team and to continuing to
serve consumers throughout Ukraine."

PepsiAmericas and PepsiCo will acquire 80 percent of Sandora
through a new joint venture in which PepsiAmericas will hold a 60
percent interest. Leveraging the capabilities and experience of the
Sandora team, PepsiAmericas will manage the day-to-day operations of
the business, while PepsiCo will oversee the brand development. The
joint venture expects to acquire the remaining 20 percent interest in
Sandora in November 2007.

The transaction, expected to close in the third quarter of 2007,
is subject to customary regulatory approvals. PepsiAmericas will
consolidate the joint venture into its financial results. PepsiCo will
recognize the earnings of the joint venture as equity income in
PepsiCo International's line of business. While PepsiAmericas expects
the acquisition to be $0.02 to $0.03 dilutive in 2007, PepsiAmericas
maintains its full year adjusted earnings per share outlook of $1.35
to $1.40. PepsiAmericas expects the transaction to be $0.01 accretive
to earnings per share in 2008. The transaction will have no impact on
PepsiCo's previously announced earnings per share guidance for 2007.

Investor Conference Call and Webcast

PepsiAmericas will hold a conference call and webcast, with
slides, to discuss this transaction at 7:30 AM CDT today. The slides
and access to the webcast will be available at its website at
www.pepsiamericas.com in the "Investors" section.

About PepsiAmericas

PepsiAmericas is the world's second-largest manufacturer, seller
and distributor of PepsiCo beverages with operations in 19 U.S.
states, Central Europe and the Caribbean. For more information on
PepsiAmericas, please visit www.pepsiamericas.com.

About PepsiCo

PepsiCo is one of the world's largest food and beverage companies,
with 2006 annual revenues of more than $35 billion. The company
operates in nearly 200 countries, and employs more than 168,000 people
worldwide. Its principal businesses include: Frito-Lay snacks,
Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and
Quaker foods. The PepsiCo portfolio includes 17 brands that generate
$1 billion or more each in annual retail sales.

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,
replenishing the environment through water, energy and packaging
initiatives, and supporting its employees through a diverse and
inclusive environment that recruits and retains world-class talent.
The company is listed on the Dow Jones North America Sustainability
Index. For more information, please visit www.pepsico.com.

Cautionary Statement

This release contains forward-looking statements of expected
future developments, including expectations regarding anticipated
earnings associated with the Sandora acquisition. These
forward-looking statements reflect management's expectations and are
based on currently available data; however, actual results are subject
to risks and uncertainties, which could materially affect actual
performance. Risks and uncertainties that could affect our future
performance include, but are not limited to, the following:
competition, including product and pricing pressures; changing trends
in consumer tastes; changes in our relationship and/or support
programs between brand owners and anchor bottlers; market acceptance
of new product and package offerings; weather conditions; cost and
availability of raw materials; changing legislation; outcomes of
environmental claims and litigation; availability and cost of capital
including changes in our debt ratings; labor and employee benefit
costs; unfavorable interest rate and currency fluctuations; costs of
legal proceedings; and general economic, business and political
conditions in the countries and territories where we operate. Any
forward-looking statements should be read in conjunction with
information about risks and uncertainties set forth in our Securities
and Exchange Commission reports, including our 2006 Annual Reports on
Form 10-K.