08-09-04

PEPSICO UNVEILS SMART SPOT™: A SHORT CUT TO OVER 100 SMARTER FOOD AND BEVERAGE CHOICES

"Smart Choices Made Easy" symbol rolls out nationally starting Sept. 1

PURCHASE, N.Y. - July 29, 2004 - PepsiCo today announced the introduction of Smart Spot™, a new symbol designed to help U.S. consumers identify more than 100 of its food and beverage choices that contribute to healthier lifestyles. Smart Spot will appear nationally on brands that include Tropicana, Gatorade, Dole, Aquafina, Baked Lays, Quaker and Diet Pepsi.

"With the Smart Spot, we're offering consumers a shortcut to make shopping easier," said Steve Reinemund, chairman and CEO, PepsiCo. "Research tells us consumers want simple, clear and positive messaging to help them identify and consume food and beverage choices that contribute to healthier lifestyles. Smart Spot, as part of PepsiCo's comprehensive commitment to health and wellness, represents the most visible symbol of our work to improve product choices and encourage healthier lifestyles."

Products with the Smart Spot designation meet nutrition criteria based on authoritative statements from the National Academy of Sciences and the U.S. Food and Drug Administration (FDA). Those criteria define limits for fat - including saturated and trans fats - sugar and sodium. They are used to identify products that are naturally nutritious and contribute fiber, vitamins, and other important nutrients. These guidelines represent the consensus opinion among numerous health and nutrition experts, based on credible nutrition science. Going forward, PepsiCo is committed to generating at least half of its new U.S. product revenues from products that carry the Smart Spot symbol.

Smart Spot criteria have been created with input from PepsiCo's external advisory board of leading health and wellness experts, including Dr. Ken Cooper of the Cooper Aerobics Center, Dr. Dean Ornish of the Preventive Medicine Research Institute, and others who advise PepsiCo on its efforts to provide healthier choices.

Acting on the recommendations of these experts, PepsiCo continues to take steps to improve existing products, such as removing trans fats from all Frito-Lay-brand snacks, which it completed in 2003.

Consumers can easily spot the bright green Smart Spot symbol in the front, lower right corner of packaging. The back of all Smart Spot product packaging will explain why the product earned the Smart Spot logo, and direct consumers to a web site which will be introduced September 1.

"Consumers increasingly want help achieving energy balance - calories consumed with calories burned. PepsiCo is committed to offering a spectrum of products that include fun-for-you products as well as Smart Spot choices, and to encouraging healthy lifestyles," said Reinemund. "Smart Spot brings together PepsiCo's great brands, terrific taste and convenience and, now, a short cut to communicate smarter choices for consumers. We continue to seek solutions to America's health and wellness challenges that thrive at the intersection of the public and business interests."

In addition to offering smart product choices, PepsiCo is promoting active lifestyles. The company is the national presenting sponsor for America on the Move, Dr. Jim Hill's innovative program that recommends small changes to achieve energy balance. PepsiCo also partners with the America on the Move to develop wellness solutions for schools that will reach more than 2.5 million elementary school children this fall.

CONTACTS:

Mark Dollins
PepsiCo
Tel. 914-253-3249
mark.dollins@pepsi.com

Rebecca Boroff
Fleishman-Hillard Inc.
Tel. 312-751-3515
boroffr@fleishman.com

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PepsiCo is one of the world's largest food and beverage companies with annual revenues of $27 billion. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 16 brands that each generates $1 billion or more in annual retail sales.

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