FTC Issues Request for Additional Information in PepsiCo/Quaker Merger

PURCHASE,  NY and CHICAGO, IL, Feb. 8-- PepsiCo, Inc. (NYSE: PEP) and The Quaker
Oats Company (NYSE:  OAT) announced today that the Federal Trade  Commission has
requested  additional  information  in connection  with its antitrust  review of
PepsiCo's  proposed  merger  with  Quaker.  Such a request is not  uncommon in a
transaction of this size and was anticipated.

The companies also said that they have received  preliminary  clearance from the
Securities  and  Exchange  Commission  of the joint  proxy  statement/prospectus
relating to the merger.

As previously announced, the parties expect to complete the transaction sometime
in the second quarter of 2001.


Safe Harbor Statement

This release contains certain "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management's  current  expectations and are naturally  subject to uncertainty
and  changes in  circumstances.  Actual  results  may vary  materially  from the
expectations contained herein. Factors that could cause actual results to differ
materially  from  those  described   herein  include  the  inability  to  obtain
shareholder or regulatory  approvals and actions of the U.S.,  foreign and local
governments. Forward-looking statements speak only as of the date they are made,
and neither PepsiCo, Inc. nor The Quaker Oats Company is under any obligation to
(and  expressly   disclaims  any  such   obligation  to)  update  or  alter  its
forward-looking  statements,  whether  as a result  of new  information,  future
events, or otherwise.
                                    - more -

On  January  9,  2001,  PepsiCo  filed a  joint  proxy  statement/prospectus  in
connection  with its proposed  merger with The Quaker Oats Company.  PepsiCo and
Quaker   will  be  jointly   preparing   an   amendment   to  the  joint   proxy
statement/prospectus  and will be filing such  amendment with the Securities and
Exchange Commission.  Investors are urged to read the proxy statement/prospectus
when it becomes  available and any other relevant  documents  filed with the SEC
because  they will  contain  important  information.  Investors  will be able to
obtain the  documents  free of charge at the web site  maintained  by the SEC at
www.sec.gov.  In addition,  investors may obtain documents filed with the SEC by
PepsiCo free of charge by  requesting  them in writing from PepsiCo,  Inc.,  700
Anderson  Hill Road,  Purchase,  New York  10577,  Attention:  Secretary,  or by
telephone at (914) 253-2000.  Investors may obtain  documents filed with the SEC
by Quaker  free of charge by  requesting  them in writing  from The Quaker  Oats
Company, 321 North Clark Street, Chicago,  Illinois 60610, Attention:  Corporate
Secretary, or by telephone at (312) 222-7111.

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