PEPSICO REPORTS OUTSTANDING Q1 RESULTS -- EPS SURGES 17%

Impressive Results Mark Sixth Consecutive Quarter

Of Double-Digit Earnings Growth



* Every division reports healthy volume gains

* Net sales advance 8% to over $4.5 billion

* Division operating profits increase by 14% to $817 million

* Superior performance delivered while Quaker transaction progresses

smoothly



Apr 23, 2001, 01:00 ET from PepsiCo

    PURCHASE, N.Y., April 23 /PRNewswire Interactive News Release/ -- PepsiCo
 reported its sixth consecutive quarter of double-digit earnings growth, with
 earnings per share increasing 17% to $.34 for the first quarter of 2001.
     Fueled by volume gains across-the-board and generally higher effective net
 pricing, every PepsiCo division reported strong revenue growth, with total net
 sales advancing 8% to $4.5 billion for the quarter.  Excluding the impact of
 the strong dollar, net sales rose 10%.
     Virtually all divisions posted healthy double-digit operating profit
 growth, leading total division operating profits to expand 14% to
 $817 million.  On the strength of this superior performance, net income grew
 18% to $498 million.
     Chairman and Chief Executive Officer Roger Enrico said:  "We had another
 outstanding quarter with each of our divisions reporting excellent results on
 the top and bottom line.  We were able to deliver results above our
 expectations because all of our divisions are performing so strongly.  Without
 the adverse effect of foreign exchange, operating profits would have been up
 an even higher 15%."
     PepsiCo President and Chief Operating Officer Steve Reinemund added:  "Our
 fundamentals are rock solid.  We continue to build momentum by focusing on
 convenient foods and beverages and leveraging our powerful brands and
 efficient distribution systems to take advantage of those significant growth
 opportunities.  We are very comfortable that we will be able to sustain our
 growth algorithm over the balance of the year.  We expect to be able to grow
 revenues 6 to 7 percent, division operating profits 10 to 12 percent and
 earnings per share 12 to 13 percent.  And that's before any benefits from the
 merger with The Quaker Oats Company."
     Reinemund went on to say:  "I'm particularly proud that all our divisions
 have maintained their sharp focus on consistent performance and strict
 financial discipline even while we prepare to merge with The Quaker Oats
 Company.  The integration is proceeding right on schedule and we are more
 confident than ever that the merger will provide substantial operating
 benefits and synergies."
     The merger is subject to approval by shareholders of both PepsiCo and
 Quaker and the Federal Trade Commission and is expected to close by the end of
 June.  The transaction has been cleared by regulators in Europe and Mexico,
 and shareholder approval is expected in early May.
 
      FRITO-LAY NORTH AMERICA (FLNA)
      (in millions)
                           2001              2000        % Change
      Net Sales          $1,946            $1,843           +6
      Operating Profit     $417              $379          +10
 
     FLNA delivered another excellent performance, reporting its ninth
 consecutive quarter of double-digit operating profit growth.  FLNA's results
 were driven by continuing solid volume growth and the higher effective net
 pricing that resulted from the successful implementation of the weight out
 action that was taken at the end of 2000.
 
     For its 13th consecutive quarter, FLNA gained market share in the U.S.
 salty snack market, as measured by IRI.  Pound volume advanced 2%, reflecting
 the impact of the weight out.  For comparison, based on standardized unit
 growth, volume grew 5%.
 
     FLNA growth was led by "core" products, as Doritos Tortilla Chips and
 Lay's Potato Chips both reported strong volume.  FLNA's full marketing
 calendar contributed to the growth, with successful promotions tied to Jeff
 Gordon of NASCAR fame and ESPN College Basketball (March Madness) events.
 
     FLNA delivered solid performance despite higher energy costs and a tough
 comparison with the first quarter of last year when several new products were
 successfully introduced.  For the balance of the year FLNA has an array of
 exciting product news scheduled.  For example, Lay's Bistro gourmet potato
 chips are in the stores now and Tostitos "Scoops" are scheduled for
 introduction at the end of the second quarter.
 
      FRITO-LAY INTERNATIONAL (FLI)
      (in millions)
                           2001             2000         % Change
      Net Sales            $980             $918            +7
      Operating Profit     $133              $99           +35
 
     Frito-Lay's international snack operations also reported impressive
 results with operating profits up 35%.  Salty snack kilos grew a very healthy
 9% and sweet snack kilos increased 8%.
 
     These results were fueled by strong performances in all key markets.  In
 Europe, every market turned in outstanding volume gains, driven by Pokemon
 promotions.  In the U.K., Walkers continued its consistent volume growth,
 fueled this quarter by the popular "Free Books for Schools" program.
 
     In Mexico, FLI's largest market, Sabritas turned in another strong quarter
 with net sales and profits up in the double-digits, while Gamesa continued to
 drive growth with its broad sweet snack portfolio.  Brazil delivered strong
 volume gains, driven by its recently introduced value strategy.  Asia and
 Australia continued to show improvement.  FLI is also continuing to focus on
 the large, emerging markets of China and India, where FLI had strong
 double-digit volume growth this quarter.
 
      PEPSI-COLA NORTH AMERICA (PCNA)
      (in millions)
                          2001             2000         % Change
      Net Sales           $771             $639           +21
      Operating Profit    $182             $158           +15
 
     PCNA continued its winning trend with a first quarter marked by strong
 volume gains.  Growth of non-carbonated beverages was particularly strong,
 indicating that PCNA's "Total Beverage Company" strategy is a success.
 
     PCNA's bottler case sales grew solidly at 4%.  Concentrate shipments and
 equivalents increased 6%.  The volume growth was driven primarily by:
      * The introduction of Sierra Mist, which provided a solid entry into the
        lemon-lime category and led the resurgence of flavored soft drinks;
      * Continued very strong double-digit growth of Aquafina;
      * Healthy growth in diet carbonated soft drinks (CSD's);
      * The successful introduction of the new line of popular Dole juices; and
      * The SoBe line of beverages.
     At the same time, the Joy of Pepsi campaign, now featuring pop sensation
 Britney Spears, continues to bring excitement to young consumers.
 
     Operating profits were up 15%, driven by this healthy volume growth from
 our broad beverage portfolio, as well as higher pricing.
 
      PEPSI-COLA INTERNATIONAL (PCI)
      (in millions)
                         2001            2000         % Change
      Net Sales          $275            $259            +6
      Operating Profit    $25             $21           +20
 
     PCI continued to produce excellent results for the first quarter, based on
 strong volume gains in most key markets, as well as favorable pricing and mix
 shift.
 
     Bottler case sales increased 6%, led by double-digit growth in large,
 priority markets like China, India and Russia, as well as in Brazil, South
 Korea, Pakistan and Argentina.
 
     These strong results reflect PCI's continuing strategic focus on building
 its core brands and developing the markets offering the greatest long-term
 growth opportunity, especially highly-populous emerging markets.  This ongoing
 focus has enabled PCI to post five consecutive quarters of double-digit profit
 growth.
 
      TROPICANA
      (in millions)
                         2001           2000           % Change
      Net Sales          $567           $532              +7
      Operating Profit    $60            $60             Flat
 
      The Tropicana growth story continued with net sales up a solid 7%, based
 on volume gains in the U.S., Europe and Canada.  Equivalent case volume grew
 7%, led by consistently strong growth in Tropicana Pure Premium nutritionals.
 Tropicana continued to expand its share of the chilled juice market, adding a
 full share point in the U.S.
 
     Tropicana continued to benefit from the expanded introduction of larger
 sized packaging.  One constraint to consumers getting all the great orange
 juice they want is out of stocks in their home refrigerator and the new,
 larger sized packaging for Tropicana Pure Premium addresses that issue.
 
     Tropicana also capitalized on its FDA-approved ability to claim that
 drinking orange juice promotes cardiovascular health.  This was only the
 second claim allowed by the FDA under a new process and is currently the only
 health claim obtained by a beverage company.
 
     As expected, despite the great volume performance, Tropicana's operating
 profits were flat, reflecting the impact of higher energy costs and a
 difficult comparison to the prior year.  Looking forward to the balance of the
 year, bottom line growth is expected to return to double-digits.
 
     CORPORATE ITEMS
 
     EQUITY INCOME.  In the first quarter, equity income from bottling
 interests grew 9%, principally driven by the continuing outstanding
 performance delivered by The Pepsi Bottling Group.
 
     CORPORATE UNALLOCATED EXPENSE.  Upsides from reduced deferred compensation
 expenses, net of related hedge contracts, were more than offset by one time
 expenses relating to insurance and legal matters.  With the adoption of a new
 accounting standard on derivatives in 2001, gains or losses on contracts used
 to hedge a portion of the Company's deferred compensation liability are now
 included in corporate unallocated expense instead of net interest expense as
 in prior years.
 
     NET INTEREST.  Net interest expense for the quarter declined 39% over the
 prior year to $23.9 million, reflecting the reclassification of the deferred
 compensation contracts, as well as lower average debt levels and higher
 investment balances.
 
     SHARES OUTSTANDING.  The weighted average diluted number of shares
 outstanding during the first quarter increased to 1.481 billion.  In April,
 2001, the Company issued 13.2 million shares at a price of $40.50 per share in
 order for the transaction with The Quaker Oats Company to satisfy
 "pooling-of-interests" accounting requirements.
 
     CASH EPS.  Cash earnings per share, computed using net income before
 amortization of intangibles and shares outstanding assuming dilution, grew 17%
 in the first quarter to $.36, compared to $.31 in the year-earlier quarter.
 
     CONFERENCE CALL.  At 11:00 a.m. (Eastern time) today, management will host
 a conference call with investors to discuss first quarter results.  For
 details, visit our site on the internet at www.pepsico.com .
 
                              Cautionary Statement
 
     This release may discuss expectations regarding PepsiCo's future
 performance.  Any forward-looking statements based on current expectations and
 projections about future events are subject to risks, uncertainties and
 assumptions.  As a result, forward-looking statements discussed in this
 release could turn out to be significantly different from expectations or may
 not occur.
 
 
                         PepsiCo, Inc. and Subsidiaries
                        Consolidated Statement of Income
              ($ in millions except per share amounts, unaudited)
 
                                                           12 Weeks Ended
                                                       3/24/01       3/18/00
 
     Net Sales                                         $4,539         $4,191
 
     Cost and Expenses
      Cost of sales                                     1,791          1,677
      Selling, general and administrative expenses      1,972          1,827
      Amortization of intangible assets                    35             32
 
     Operating Profit                                     741            655
 
     Bottling equity income, net                            5              5
     Interest expense                                     (43)           (47)
     Interest income                                       19              7
 
     Income Before Income Taxes                           722            620
 
     Provision for Income Taxes                           224            198
 
 
     Net Income                                          $498           $422
 
     Net Income Per Share - Basic                      $ 0.34         $ 0.29
 
     Average Shares Outstanding - Basic                 1,448          1,450
 
     Net Income Per Share - Assuming Dilution          $ 0.34         $ 0.29
 
       Average Shares Outstanding -- Assuming Dilution  1,481          1,472
 
     Percentage changes in text are based on unrounded amounts.
 
 
                         PepsiCo, Inc. and Subsidiaries
            SUPPLEMENTAL NET SALES AND OPERATING PROFIT INFORMATION
                            (in millions, unaudited)
 
                                                          12 Weeks Ended
                                                      3/24/01        3/18/00
     Net Sales
     Frito-Lay
     -North America                                    $1,946         $1,843
     -International                                       980            918
                                                        2,926          2,761
     Pepsi-Cola
     -North America                                       771            639
     -International                                       275            259
                                                        1,046            898
 
     Tropicana                                            567            532
 
      Total Net Sales                                  $4,539         $4,191
 
     Operating Profit
     Frito-Lay
     -North America                                      $417           $379
     -International                                       133             99
                                                          550            478
     Pepsi-Cola
     -North America                                       182            158
     -International                                        25             21
                                                          207            179
 
     Tropicana                                             60             60
 
     Combined Segments                                    817            717
 
     Corporate Unallocated                                (76)           (62)
 
     Total Operating Profit                              $741           $655
 
 
                         PepsiCo, Inc. and Subsidiaries
                 Condensed Consolidated Statement Of Cash Flows
                            (in millions, unaudited)
 
                                                          12 Weeks Ended
                                                      3/24/01        3/18/00
     Cash Flows - Operating Activities
     Net income                                         $ 498          $ 422
     Adjustments to reconcile net income
      to net cash provided by operating activities
       Bottling equity income, net                         (5)            (5)
       Depreciation and amortization                      208            202
       Deferred income taxes                              (12)             2
       Other noncash charges and credits, net              32             63
       Net change in operating working capital           (648)          (477)
 
     Net Cash Provided by Operating Activities             73            207
 
     Cash Flows - Investing Activities
      Capital spending                                   (171)          (142)
      Acquisitions and investments in unconsolidated
       affiliates                                        (407)            (8)
      Short-term investments                              (93)            (4)
      Other, net                                           22             49
 
     Net Cash Used for Investing Activities              (649)          (105)
 
     Cash Flows - Financing Activities
      Proceeds from issuances of long-term debt            11            100
      Payments of long-term debt                         (129)          (240)
      Short-term borrowings                               353            272
      Cash dividends paid                                (202)          (197)
      Share repurchases                                    --           (666)
      Proceeds from exercises of stock options             89             91
 
     Net Cash Provided by (Used for) Financing
      Activities                                          122           (640)
 
     Effect of Exchange Rate Changes on Cash and Cash
      Equivalents                                          (7)            (2)
     Net Decrease in Cash and Cash Equivalents           (461)          (540)
     Cash and Cash Equivalents - Beginning of year        864            964
     Cash and Cash Equivalents - End of period          $ 403          $ 424
 
 
                         PepsiCo, Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheet
                                 (in millions)
 
                                                            (Unaudited)
                                                      3/24/01       12/30/00
     Assets
 
     Cash and cash equivalents                           $403           $864
 
     Short-term investments, at cost                      560            466
 
     Other current assets                               3,597          3,274
 
      Total Current Assets                              4,560          4,604
 
     Property, plant and equipment, net                 5,424          5,438
 
     Intangible assets, net                             4,827          4,485
 
     Investments in unconsolidated affiliates           2,964          2,978
 
     Other assets                                         885            834
 
     Total Assets                                     $18,660        $18,339
 
     Liabilities and Shareholders' Equity
 
     Short-term borrowings                               $126            $72
 
     Current liabilities                                3,581          3,863
 
     Long-term debt                                     2,492          2,346
 
     Other liabilities                                  3,559          3,448
 
     Deferred income taxes                              1,345          1,361
 
       Total Liabilities                               11,103         11,090
 
       Shareholders' Equity                             7,557          7,249
 
     Total Liabilities and Shareholders' Equity       $18,660        $18,339
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X66735073
 
 

SOURCE PepsiCo
    PURCHASE, N.Y., April 23 /PRNewswire Interactive News Release/ -- PepsiCo
 reported its sixth consecutive quarter of double-digit earnings growth, with
 earnings per share increasing 17% to $.34 for the first quarter of 2001.
     Fueled by volume gains across-the-board and generally higher effective net
 pricing, every PepsiCo division reported strong revenue growth, with total net
 sales advancing 8% to $4.5 billion for the quarter.  Excluding the impact of
 the strong dollar, net sales rose 10%.
     Virtually all divisions posted healthy double-digit operating profit
 growth, leading total division operating profits to expand 14% to
 $817 million.  On the strength of this superior performance, net income grew
 18% to $498 million.
     Chairman and Chief Executive Officer Roger Enrico said:  "We had another
 outstanding quarter with each of our divisions reporting excellent results on
 the top and bottom line.  We were able to deliver results above our
 expectations because all of our divisions are performing so strongly.  Without
 the adverse effect of foreign exchange, operating profits would have been up
 an even higher 15%."
     PepsiCo President and Chief Operating Officer Steve Reinemund added:  "Our
 fundamentals are rock solid.  We continue to build momentum by focusing on
 convenient foods and beverages and leveraging our powerful brands and
 efficient distribution systems to take advantage of those significant growth
 opportunities.  We are very comfortable that we will be able to sustain our
 growth algorithm over the balance of the year.  We expect to be able to grow
 revenues 6 to 7 percent, division operating profits 10 to 12 percent and
 earnings per share 12 to 13 percent.  And that's before any benefits from the
 merger with The Quaker Oats Company."
     Reinemund went on to say:  "I'm particularly proud that all our divisions
 have maintained their sharp focus on consistent performance and strict
 financial discipline even while we prepare to merge with The Quaker Oats
 Company.  The integration is proceeding right on schedule and we are more
 confident than ever that the merger will provide substantial operating
 benefits and synergies."
     The merger is subject to approval by shareholders of both PepsiCo and
 Quaker and the Federal Trade Commission and is expected to close by the end of
 June.  The transaction has been cleared by regulators in Europe and Mexico,
 and shareholder approval is expected in early May.
 
      FRITO-LAY NORTH AMERICA (FLNA)
      (in millions)
                           2001              2000        % Change
      Net Sales          $1,946            $1,843           +6
      Operating Profit     $417              $379          +10
 
     FLNA delivered another excellent performance, reporting its ninth
 consecutive quarter of double-digit operating profit growth.  FLNA's results
 were driven by continuing solid volume growth and the higher effective net
 pricing that resulted from the successful implementation of the weight out
 action that was taken at the end of 2000.
 
     For its 13th consecutive quarter, FLNA gained market share in the U.S.
 salty snack market, as measured by IRI.  Pound volume advanced 2%, reflecting
 the impact of the weight out.  For comparison, based on standardized unit
 growth, volume grew 5%.
 
     FLNA growth was led by "core" products, as Doritos Tortilla Chips and
 Lay's Potato Chips both reported strong volume.  FLNA's full marketing
 calendar contributed to the growth, with successful promotions tied to Jeff
 Gordon of NASCAR fame and ESPN College Basketball (March Madness) events.
 
     FLNA delivered solid performance despite higher energy costs and a tough
 comparison with the first quarter of last year when several new products were
 successfully introduced.  For the balance of the year FLNA has an array of
 exciting product news scheduled.  For example, Lay's Bistro gourmet potato
 chips are in the stores now and Tostitos "Scoops" are scheduled for
 introduction at the end of the second quarter.
 
      FRITO-LAY INTERNATIONAL (FLI)
      (in millions)
                           2001             2000         % Change
      Net Sales            $980             $918            +7
      Operating Profit     $133              $99           +35
 
     Frito-Lay's international snack operations also reported impressive
 results with operating profits up 35%.  Salty snack kilos grew a very healthy
 9% and sweet snack kilos increased 8%.
 
     These results were fueled by strong performances in all key markets.  In
 Europe, every market turned in outstanding volume gains, driven by Pokemon
 promotions.  In the U.K., Walkers continued its consistent volume growth,
 fueled this quarter by the popular "Free Books for Schools" program.
 
     In Mexico, FLI's largest market, Sabritas turned in another strong quarter
 with net sales and profits up in the double-digits, while Gamesa continued to
 drive growth with its broad sweet snack portfolio.  Brazil delivered strong
 volume gains, driven by its recently introduced value strategy.  Asia and
 Australia continued to show improvement.  FLI is also continuing to focus on
 the large, emerging markets of China and India, where FLI had strong
 double-digit volume growth this quarter.
 
      PEPSI-COLA NORTH AMERICA (PCNA)
      (in millions)
                          2001             2000         % Change
      Net Sales           $771             $639           +21
      Operating Profit    $182             $158           +15
 
     PCNA continued its winning trend with a first quarter marked by strong
 volume gains.  Growth of non-carbonated beverages was particularly strong,
 indicating that PCNA's "Total Beverage Company" strategy is a success.
 
     PCNA's bottler case sales grew solidly at 4%.  Concentrate shipments and
 equivalents increased 6%.  The volume growth was driven primarily by:
      * The introduction of Sierra Mist, which provided a solid entry into the
        lemon-lime category and led the resurgence of flavored soft drinks;
      * Continued very strong double-digit growth of Aquafina;
      * Healthy growth in diet carbonated soft drinks (CSD's);
      * The successful introduction of the new line of popular Dole juices; and
      * The SoBe line of beverages.
     At the same time, the Joy of Pepsi campaign, now featuring pop sensation
 Britney Spears, continues to bring excitement to young consumers.
 
     Operating profits were up 15%, driven by this healthy volume growth from
 our broad beverage portfolio, as well as higher pricing.
 
      PEPSI-COLA INTERNATIONAL (PCI)
      (in millions)
                         2001            2000         % Change
      Net Sales          $275            $259            +6
      Operating Profit    $25             $21           +20
 
     PCI continued to produce excellent results for the first quarter, based on
 strong volume gains in most key markets, as well as favorable pricing and mix
 shift.
 
     Bottler case sales increased 6%, led by double-digit growth in large,
 priority markets like China, India and Russia, as well as in Brazil, South
 Korea, Pakistan and Argentina.
 
     These strong results reflect PCI's continuing strategic focus on building
 its core brands and developing the markets offering the greatest long-term
 growth opportunity, especially highly-populous emerging markets.  This ongoing
 focus has enabled PCI to post five consecutive quarters of double-digit profit
 growth.
 
      TROPICANA
      (in millions)
                         2001           2000           % Change
      Net Sales          $567           $532              +7
      Operating Profit    $60            $60             Flat
 
      The Tropicana growth story continued with net sales up a solid 7%, based
 on volume gains in the U.S., Europe and Canada.  Equivalent case volume grew
 7%, led by consistently strong growth in Tropicana Pure Premium nutritionals.
 Tropicana continued to expand its share of the chilled juice market, adding a
 full share point in the U.S.
 
     Tropicana continued to benefit from the expanded introduction of larger
 sized packaging.  One constraint to consumers getting all the great orange
 juice they want is out of stocks in their home refrigerator and the new,
 larger sized packaging for Tropicana Pure Premium addresses that issue.
 
     Tropicana also capitalized on its FDA-approved ability to claim that
 drinking orange juice promotes cardiovascular health.  This was only the
 second claim allowed by the FDA under a new process and is currently the only
 health claim obtained by a beverage company.
 
     As expected, despite the great volume performance, Tropicana's operating
 profits were flat, reflecting the impact of higher energy costs and a
 difficult comparison to the prior year.  Looking forward to the balance of the
 year, bottom line growth is expected to return to double-digits.
 
     CORPORATE ITEMS
 
     EQUITY INCOME.  In the first quarter, equity income from bottling
 interests grew 9%, principally driven by the continuing outstanding
 performance delivered by The Pepsi Bottling Group.
 
     CORPORATE UNALLOCATED EXPENSE.  Upsides from reduced deferred compensation
 expenses, net of related hedge contracts, were more than offset by one time
 expenses relating to insurance and legal matters.  With the adoption of a new
 accounting standard on derivatives in 2001, gains or losses on contracts used
 to hedge a portion of the Company's deferred compensation liability are now
 included in corporate unallocated expense instead of net interest expense as
 in prior years.
 
     NET INTEREST.  Net interest expense for the quarter declined 39% over the
 prior year to $23.9 million, reflecting the reclassification of the deferred
 compensation contracts, as well as lower average debt levels and higher
 investment balances.
 
     SHARES OUTSTANDING.  The weighted average diluted number of shares
 outstanding during the first quarter increased to 1.481 billion.  In April,
 2001, the Company issued 13.2 million shares at a price of $40.50 per share in
 order for the transaction with The Quaker Oats Company to satisfy
 "pooling-of-interests" accounting requirements.
 
     CASH EPS.  Cash earnings per share, computed using net income before
 amortization of intangibles and shares outstanding assuming dilution, grew 17%
 in the first quarter to $.36, compared to $.31 in the year-earlier quarter.
 
     CONFERENCE CALL.  At 11:00 a.m. (Eastern time) today, management will host
 a conference call with investors to discuss first quarter results.  For
 details, visit our site on the internet at www.pepsico.com .
 
                              Cautionary Statement
 
     This release may discuss expectations regarding PepsiCo's future
 performance.  Any forward-looking statements based on current expectations and
 projections about future events are subject to risks, uncertainties and
 assumptions.  As a result, forward-looking statements discussed in this
 release could turn out to be significantly different from expectations or may
 not occur.
 
 
                         PepsiCo, Inc. and Subsidiaries
                        Consolidated Statement of Income
              ($ in millions except per share amounts, unaudited)
 
                                                           12 Weeks Ended
                                                       3/24/01       3/18/00
 
     Net Sales                                         $4,539         $4,191
 
     Cost and Expenses
      Cost of sales                                     1,791          1,677
      Selling, general and administrative expenses      1,972          1,827
      Amortization of intangible assets                    35             32
 
     Operating Profit                                     741            655
 
     Bottling equity income, net                            5              5
     Interest expense                                     (43)           (47)
     Interest income                                       19              7
 
     Income Before Income Taxes                           722            620
 
     Provision for Income Taxes                           224            198
 
 
     Net Income                                          $498           $422
 
     Net Income Per Share - Basic                      $ 0.34         $ 0.29
 
     Average Shares Outstanding - Basic                 1,448          1,450
 
     Net Income Per Share - Assuming Dilution          $ 0.34         $ 0.29
 
       Average Shares Outstanding -- Assuming Dilution  1,481          1,472
 
     Percentage changes in text are based on unrounded amounts.
 
 
                         PepsiCo, Inc. and Subsidiaries
            SUPPLEMENTAL NET SALES AND OPERATING PROFIT INFORMATION
                            (in millions, unaudited)
 
                                                          12 Weeks Ended
                                                      3/24/01        3/18/00
     Net Sales
     Frito-Lay
     -North America                                    $1,946         $1,843
     -International                                       980            918
                                                        2,926          2,761
     Pepsi-Cola
     -North America                                       771            639
     -International                                       275            259
                                                        1,046            898
 
     Tropicana                                            567            532
 
      Total Net Sales                                  $4,539         $4,191
 
     Operating Profit
     Frito-Lay
     -North America                                      $417           $379
     -International                                       133             99
                                                          550            478
     Pepsi-Cola
     -North America                                       182            158
     -International                                        25             21
                                                          207            179
 
     Tropicana                                             60             60
 
     Combined Segments                                    817            717
 
     Corporate Unallocated                                (76)           (62)
 
     Total Operating Profit                              $741           $655
 
 
                         PepsiCo, Inc. and Subsidiaries
                 Condensed Consolidated Statement Of Cash Flows
                            (in millions, unaudited)
 
                                                          12 Weeks Ended
                                                      3/24/01        3/18/00
     Cash Flows - Operating Activities
     Net income                                         $ 498          $ 422
     Adjustments to reconcile net income
      to net cash provided by operating activities
       Bottling equity income, net                         (5)            (5)
       Depreciation and amortization                      208            202
       Deferred income taxes                              (12)             2
       Other noncash charges and credits, net              32             63
       Net change in operating working capital           (648)          (477)
 
     Net Cash Provided by Operating Activities             73            207
 
     Cash Flows - Investing Activities
      Capital spending                                   (171)          (142)
      Acquisitions and investments in unconsolidated
       affiliates                                        (407)            (8)
      Short-term investments                              (93)            (4)
      Other, net                                           22             49
 
     Net Cash Used for Investing Activities              (649)          (105)
 
     Cash Flows - Financing Activities
      Proceeds from issuances of long-term debt            11            100
      Payments of long-term debt                         (129)          (240)
      Short-term borrowings                               353            272
      Cash dividends paid                                (202)          (197)
      Share repurchases                                    --           (666)
      Proceeds from exercises of stock options             89             91
 
     Net Cash Provided by (Used for) Financing
      Activities                                          122           (640)
 
     Effect of Exchange Rate Changes on Cash and Cash
      Equivalents                                          (7)            (2)
     Net Decrease in Cash and Cash Equivalents           (461)          (540)
     Cash and Cash Equivalents - Beginning of year        864            964
     Cash and Cash Equivalents - End of period          $ 403          $ 424
 
 
                         PepsiCo, Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheet
                                 (in millions)
 
                                                            (Unaudited)
                                                      3/24/01       12/30/00
     Assets
 
     Cash and cash equivalents                           $403           $864
 
     Short-term investments, at cost                      560            466
 
     Other current assets                               3,597          3,274
 
      Total Current Assets                              4,560          4,604
 
     Property, plant and equipment, net                 5,424          5,438
 
     Intangible assets, net                             4,827          4,485
 
     Investments in unconsolidated affiliates           2,964          2,978
 
     Other assets                                         885            834
 
     Total Assets                                     $18,660        $18,339
 
     Liabilities and Shareholders' Equity
 
     Short-term borrowings                               $126            $72
 
     Current liabilities                                3,581          3,863
 
     Long-term debt                                     2,492          2,346
 
     Other liabilities                                  3,559          3,448
 
     Deferred income taxes                              1,345          1,361
 
       Total Liabilities                               11,103         11,090
 
       Shareholders' Equity                             7,557          7,249
 
     Total Liabilities and Shareholders' Equity       $18,660        $18,339
 
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 SOURCE  PepsiCo