PEPSICO ANNOUNCES DEALS TO EXPAND
SNACK PRESENCE IN THE MIDDLE EAST WITH
MAJORITY-OWNED JOINT VENTURE IN EGYPT
AND ACQUISITION IN SAUDI ARABIA

Company  will also make  transaction  filings on Quaker  Oats  merger this week;
Chairman reaffirms confidence in Q4 EPS Estimate and 2001 Outlook


PURCHASE,   N.Y.,  Jan.  8  --  PepsiCo,  Inc.  today  announced  two  strategic
transactions  designed to expand the company's  snack food business in Egypt and
Saudi Arabia.

A new joint venture will be formed in Egypt combining the salty snack operations
of  Chipsy,  the  current  market  leader,   with  Tasty  Foods,  the  country's
second-largest salty snack maker, which is owned by PepsiCo.

Although exact ownership terms of the joint venture were not disclosed,  the new
company, to be called Chipsy  International,  will be majority-owned by PepsiCo.
Chipsy   International  will  have  the  strength  and  scale  to  compete  more
effectively in Egypt and eventually expand across North Africa.

PepsiCo also said it has completed  negotiations  to acquire Tasali Snack Foods,
the leader of the Saudi Arabian salty snack market. Pending government approval,
the assets of Tasali will be combined with those of Saudi Snack Foods, a PepsiCo
joint venture which had been the second-largest snack company in Saudi Arabia.

"These  transactions  are important  steps in our effort to build a global snack
business with the scale to operate efficiently and grow the salty snack category
in developing  markets," said PepsiCo Chairman and Chief Executive Officer Roger
Enrico.

Enrico  also  commented  on  PepsiCo's  broader  financial   outlook.   "We  are
comfortable  with the  consensus  estimate of earnings  per share for the fourth
quarter of 2000," he said.  "And we remain  confident  that we can  achieve  our
full-year target of 12-13% growth for 2001."

With respect to PepsiCo's planned merger with The Quaker Oats Company, which was
announced  in December,  PepsiCo said it plans to file this week a  registration
statement  with the  Securities  and Exchange  Commission  and to make  required
filings with U.S. antitrust authorities.



CONTACT:  Richard M. Detwiler,  Jr., Vice President Public  Relations,  PepsiCo,
Inc. 914-253-2725