(in millions except per share and employee amounts, unaudited)
PepsiCo, Inc. and Subsidiaries

	Compounded Growth Rates 5-Year 1993-1998
			.	1998	(a)(b)	1997	(a)	1996	(a)	1995	(c)	1994	(d)(e)(f)	1993
Summary of Operations			.
Net Sales	7	%	$	22,348	.	20,917	20,337		19,067		17,984		15,706
Operating profit	4	%	$	2,584	.	2,662	2,040		2,606		2,506		2,141
Income from continuing operations	12	%	$	1,993	.	1,491	942		1,422		1,363		1,152
Cash Flow Data			.
Provided by operating activities			$	3,211	.	3,419	3,192		2,642		NA		NA
Dividends paid	10	%	$	757	.	736	675		599		540		462
Share repurchases	37	%	$	2,230	.	2,459	1,651		541		549		463
Per Share Data			.
Income from continuing operations -			.
assuming dilution	13	%	$	1.31	.	0.95	0.59		0.88		0.85		0.71
Cash dividends declared	11	%	$	0.515	.	0.49	0.445		0.39		0.35		0.305
Book value per share at year-end	2	%	$	4.35	.	4.62	4.29		4.64		4.34		3.97
Market price per share at year-end (g)	14	%	$	40 7/16	.	34 11/16	29 5/8		27 15/16		18 1/8			20 15/16
Market price per share at year end -			.
continuing operations (h)	16	%	$	40 7/16	.	34 11/16	27 15/64		25 43/64		16 21/32		19 1/4
Balance Sheet			.
Net assets of discontinued			.
operations (i)			$	-	.	-	4,450		4,744		5,183		4,548
Total assets (j)			$	22,660	.	20,101	22,160		22,944		22,533		21,628
Long-term debt			$	4,028	.	4,946	8,174		8,248		8,570		7,148
Total debt (k)			$	7,949	.	4,946	8,174		8,806		9,114		9,209
Shareholders' equity			$	6,401	.	6,936	6,623		7,313		6,856		6,339
Other Statistics			.
EBITDA from continuing operations (l)			$	4,072	.	4,001	3,479		3,718		NA		NA
Return on invested capital (m)			.	16	%	18	17		18		18		17
Number of shares repurchased			.	59.2	.	69.0	54.2		24.6		30.0		24.8
Shares outstanding at year-end			.	1,471	.	1,502	1,545		1,576		1,580		1,598
Average shares outstanding used to			.
calculate income per share from			.
continuing operations -			.
assuming dilution			.	1,519	.	1,570	1,606		1,608		1,608		1,620
Employees of continuing operations			.	151,000	.	142,000	137,000		137,000		129,000		119,000
NA - Not Available
We made a significant acquisition in 1998 (see Note 2), numerous acquisitions in most years presented and a few divestitures in certain years. Such transactions do not materially affect the comparability of our operating results for the periods presented. In 1997, we disposed of our restaurants segment and accounted for it as discontinued operations (see Note 4). Accordingly, all information has been reclassified for the years 1997 and prior. All share and per share amounts reflect a two-for-one stock split in 1996 and per share amounts are computed using average shares outstanding, assuming dilution. (a) Includes unusual impairment and other items of $288 ($261 after-tax or $0.17 per share) in 1998, $290 ($239 after-tax or $0.15 per share) in 1997 and $576 ($527 after-tax or $0.33 per share) in 1996. See Note 3. (b) Includes a tax benefit of $494 (or $0.32 per share). See Note 12. (c) Includes the initial, noncash charge of $66 ($64 after-tax or $0.04 per share) upon adoption in 1995 of Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. (d) Includes the cumulative effect of adopting SFAS 112, Employers' Accounting for Postemployment Benefits of $77 ($51 after-tax or $0.03 per share) and changing to a preferable method for calculating the market-related value of plan assets used in determining the return-on-asset component of annual pension expense and the cumulative net unrecognized gain or loss subject to amortization of $32 ($20 after-tax or $0.01 per share). Prior years were not restated for these changes in accounting. (e) Includes a benefit of changing to the preferable method for calculating the market-related value of plan assets in 1994, which reduced full year pension expense by $29 ($18 after-tax or $0.01 per share). (f) Fiscal year 1994 consists of 53 weeks. Normally, fiscal years consist of 52 weeks; however, because the fiscal year ends on the last Saturday in December, a week is added every 5 or 6 years. The fifty-third week increased 1994 earnings by approximately $31 ($28 after-tax or $0.02 per share). (g) Represents historically reported market price of one share of PepsiCo capital stock. (h) For 1996 and prior, represents approximately 92% of the historical market price of one share of PepsiCo capital stock, which is the allocated market value of our packaged goods businesses used by the NYSE on or before October 6, 1997. The remaining 8% represents the market value allocated to TRICON. See Note 4. (i) Represents net assets of discontinued operations, which are included in total assets. See Note 4. (j) Includes net assets of discontinued operations. (k) Includes short-term borrowings and long-term debt. (l) Defined as earnings before interest, taxes, depreciation, amortization and the noncash portion of unusual impairment and other items of $254 in 1998, $233 in 1997, $366 in 1996 and $66 in 1995. EBITDA is used by certain investors as a measure of a company's ability to service its debt. It should be considered in addition to, but not as a substitute for, other measures of financial performance in accordance with generally accepted accounting principles. (m) Defined as income from continuing operations before after-tax interest expense, amortization of intangible assets, unusual impairment and other items and 1998 tax benefit divided by an average of the 5 most recent quarters net asset base before accumulated amortization of intangible assets and net asset base of discontinued operations. Return on invested capital is used by certain investors as a measure of a company's return on its investments. It should be considered in addition to, but not as a substitute for, other measures of financial performance in accordance with GAAP. In addition, our EBITDA may not be comparable to similar measures reported by other companies.