PREPARE YOUR SENSES FOR PEPSI BLUE: A FUSION OF BERRY AND COLA

Pepsi's Latest Soft Drink Innovation to Launch Nationally this Summer

PURCHASE, NY, May 7, 2002 You've never seen or tasted anything like this: It's new. It's blue. And, later this summer, it's coming to a store near you.

Pepsi-Cola North America (PCNA), the industry's fastest-growing total beverage company, today unveiled its latest soft drink innovation a fusion of berry and cola, Pepsi Blue. Providing a whole new beverage experience, Pepsi Blue will be launched nationally in 20-ounce bottles in August.

"With its unique look and taste, Pepsi Blue has the potential to reinvigorate the cola category," said Gary Rodkin, president and CEO of PCNA. "We're convinced innovation is the key to growth. In the past 15 months alone, with exciting new products like Mountain Dew Code Red, Pepsi Twist and Sierra Mist, we've proved consumers particularly teens and young adults will respond enthusiastically to new carbonated soft drinks. We think Pepsi Blue can do for cola what Code Red did for Dew that is, grow the entire category."

"Pepsi Blue was developed by and for teens," said Dave Burwick, SVP, marketing, carbonated soft drink brands, for PCNA. "We talked to thousands of teens about creating a cola fusion, and they told us two things: Make it berry and make it blue. Teens understand fusion better than any other age group. They live it every day in their music, fashion and culture."

Nine months in the making, Pepsi Blue was one of more than 100 cola fusion concepts tested by PCNA's innovation and R&D groups. It was the resounding choice among thousands of teens, two-thirds of whom said they would purchase Pepsi Blue regularly when available.

Pre-launch marketing activities will reflect the grassroots approach PCNA established last year for Mountain Dew Code Red. Gradually building Pepsi Blue awareness among retail customers and consumers, sampling efforts will begin in teen hangouts and other youth-oriented venues over the next few weeks. The impending introduction of Pepsi Blue also will be teased on the Internet, outdoor postings and other nontraditional outlets.

Purchase, NY-based Pepsi-Cola North America (www.pepsi.com) is the $4 billion refreshment beverage division of PepsiCo, Inc. In addition to Pepsi Blue, its other brands in the United States include Pepsi, Diet Pepsi, Pepsi ONE, Pepsi Twist, Wild Cherry Pepsi, Mountain Dew, Mountain Dew Code Red, Sierra Mist, Mug, Slice, Aquafina, FruitWorks, Dole single-serve juices and SoBe. The company also makes and markets North America's best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.

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