PepsiCo International generated US$13 billion, which represents 37% of the firm's total revenues

in 2006. Snack and beverage sales from Canada and the United States accounted for the
remainder of PepsiCo's overall revenues.

In contrast, 72% of Coca-Cola's global beverages are sold outside North America.

PepsiCo International makes salty and sweet snack brands including Lay’s, Walkers, Cheetos,
Doritos, Ruffles, Gamesa and Sabritas. PepsiCo also markets Quaker brand snacks.

Beverage brands include Pepsi, 7UP, Mirinda, Gatorade, Tropicana and Mountain Dew which
are sold to authorized bottlers, independent distributors and retailers. PepsiCo also owns the
Aquafina water brand.

PepsiCo's international division operates in approximately 200 countries, with largest operations
in Mexico (Gamesa and Sabritas snack brands) and the United Kingdom (Walkers snack brand).

2007 International PepsiCo Snack Sales

Overall international snack sales rose 9%, led by double-digit growth in Russia, Turkey, Egypt
and India. Sales from Europe, the Middle East and Africa grew 17%, Asia Pacific sales rose 12%
while Latin America revenues lagged at 2.5%.

2007 International PepsiCo Beverage Sales

Overall international beverage sales grew 9%. In the Middle East, China, Argentina, Russia and
Venezuela PepsiCo drinks enjoyed double-digit growth.

PepsiCo's International Growth Engine

The portfolio of international markets continues to broaden and strengthen as PepsiCo deliver
exciting new products, tailored to local tastes, to consumers in approximately 200 countries. And
in developing and emerging markets in particular, growth in per capita GDP levels continues to
generate increased demand for the world's number two soft-drink maker.

PepsiCo's continued success depends on its ability to broaden and strengthen its presence in
emerging markets notably Brazil, Russia, India and China. Investment analysts believe that
PepsiCo's near-term results may be affected by sluggish sales in Europe. However, most agree
that PepsiCo's stock price (PEP on NYSE) should rise as Pepsi snacks and beverages win over
more consumers in developing nations.

PepsiCo's International Acquisitions

Part of PepsiCo's global strategy is growth through acquisition. The company acquired Duyvis
nuts in the Netherlands and Star Foods snacks in Poland during 2006, as well as Bluebird snacks
in New Zealand in early 2007.