13% Rise in Dividend is PepsiCo's 36th Consecutive Increase

PURCHASE, N.Y., May 7 /PRNewswire-FirstCall/ -- The Board of Directors of PepsiCo today declared an increase in the annual dividend, from the current $1.50 to $1.70 per share on PepsiCo common stock. The quarterly dividend of $0.425 is payable June 30, 2008, to shareholders of record on June 6, 2008.

"We are pleased to reward shareholders with our thirty-sixth annual dividend increase, continuing our track record of strong performance," said PepsiCo Chairman and CEO Indra Nooyi. "The dividend reflects our continued commitment to maximize the value of our shareholders' investment and our confidence in the future growth of our business."

PepsiCo (NYSE: PEP) 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. As a member of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI North America), PepsiCo is a recognized leader in sustainability. For more information, please visit www.pepsico.com.

Cautionary Statement

This release contains statements concerning PepsiCo's expectations for future performance. Any such forward-looking statements are inherently speculative and are based on currently available information, operating plans and projections about future events and trends. As such, they are subject to numerous risks and uncertainties. Actual results and performance may be significantly different from expectations. The Company undertakes no obligation to update any such forward-looking statements. Please see the Company's filing with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, for a discussion of specific risks that may affect performance.

SOURCE PepsiCo