- Net Revenue Growth of 11 Percent, Driven by Strong Performance in PepsiCo Americas Foods and PepsiCo International

- Company Delivered $0.99 EPS; Excluding Commodity Mark-to-Market Impact, EPS was $1.06

- Announces Productivity for Growth Initiative to Generate Pre-tax Savings of More Than $1.2 Billion Over the Next 3 Years; Majority of Savings to Be Invested in Brand Building, Long-Term R&D, Innovation and Growth Initiatives in Key Markets

- Identifies Potential Foreign Exchange Impact to its Full-Year 2008 EPS Guidance

PepsiCo, Inc. (NYSE: PEP) reported third-quarter operating results of 11 percent net revenue growth and 6 percent core EPS growth, excluding mark-to-market losses on commodity positions and prior-year tax benefits.

         Summary of PepsiCo Third-Quarter and Year-to-Date 2008 Results

                                          Quarter Alone     Year-to-Date
                                            % Growth         % Growth
                                            --------         --------
          Volume (Servings)                     2               4
          Net Revenue                          11              13
    Reported
    --------
          Operating Profit                     (4)              5
          Division Operating Profit             4               7
          Net Income                          (10)              1
          Earnings Per Share (EPS)             (6)              4
    Core*
    -----
          Operating Profit                      3               7
          Division Operating Profit             4               7
          Net Income                          2.5               5
          Earnings Per Share (EPS)              6               8

    *excludes commodity mark-to-market impact included in corporate
     unallocated expenses and prior-year tax benefits.

PepsiCo Chairman and Chief Executive Officer, Indra Nooyi, said, "In the third quarter, our worldwide snacks and international beverage businesses performed well once again. We had solid top- and bottom-line results in the face of a challenging macro environment and the most difficult quarterly comparisons on commodity cost inputs. We were adversely impacted by continued weakness in the U.S. liquid refreshment beverage category, which resulted in disappointing performance in our domestic beverage business. We are taking important steps to revitalize our beverage portfolio."

About PepsiCo

PepsiCo is one of the world's 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. The PepsiCo portfolio includes 18 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, 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 Sustainability North America Index and the Dow Jones Sustainability World Index. For more information, visit www.pepsico.com.