"Beverage Giant PepsiCo Warned on HIV/AIDS"

CONTACT: Daniel Rosan, Program Director for Public Health
Interfaith Center on Corporate Responsibility
212-870-2317 (office)

New York - December 8, 2003 - The HIV/AIDS Caucus at the Interfaith Center on Corporate Responsibility announced today religious investors are filing a shareholder resolution on HIV/AIDS at PepsiCo (NYSE:PEP). They also warned PepsiCo that the economic and humanitarian situation in AIDS impacted regions is more severe than ever before.

Last year 8% of shareholders supported a similar resolution on increased reporting on PepsiCo's response to HIV. That is a healthy level of support for a first year resolution and well above the legal requirement for returning a resolution in the second year.

"HIV/AIDS is the gravest threat facing communities in Africa, and it is an emerging danger in India, China, and Southeast Asia. To protect PepsiCo's investment and future prospects in these regions, we believe PepsiCo needs to do all it can to fight the epidemic," said Mark Regier, Stewardship Investing Services Manager for MMA, a member of the Interfaith Center on Corporate Responsibility and the primary filer of the resolution. ICCR is a thirty-year-old coalition of faith-based institutional investors. MMA joins 36 ICCR member institutions in the HIV/AIDS Caucus.

"The United Nations estimates that 40 million people worldwide are infected with HIV, more than two thirds of them in Africa," Mr. Regier continued, "and PepsiCo is the second largest beverage maker in Africa, with approximately 18% of the market. PepsiCo is also expanding into India and China - and so is the AIDS pandemic. HIV/AIDS is not a potential crisis - it IS a crisis. The question is, as it escalates, can PepsiCo escalate its response?"

Investor concerns are borne out by recent economic studies. A recent World Bank report warns "a complete economic collapse will occur" unless there is a response to the HIV/AIDS pandemic in southern Africa. Even "a delay in responding to the outbreak of the epidemic, however, can lead to collapse."
New evidence suggests that aggressive treatment and prevention programs in the workplace make business sense. The Harvard Business Review reports "Investments in programs that prevent infection and provide treatment for employees who have HIV/AIDS are profitable … their cost is less than the savings they lead to."

Sister Doris Gormley, representing the Society of Jesus, continued "We are not talking only about treating employees properly amidst this crisis -- aggressive treatment with anti-retroviral drugs and effective prevention programs are a must. But that is only the beginning of ensuring a viable, functional marketplace in affected communities in the years ahead."

"We need to figure out how PepsiCo and other major corporate players in Africa can be a significant part of the solution on HIV/AIDS," continued Sister Vicki Bergkamp of the Adorers Of The Blood Of Christ. "Some companies - Heineken, Old Mutual, Anglo-American - are leaders in the fight against AIDS. We want PepsiCo to add its name to that list." All three companies provide their workers with treatment, including anti-retroviral drugs, but they don't stop there. They have aggressive prevention programs, often involving the larger community where they operate, and advocate for stronger government responses to the epidemic.

"Never have the moral and the business case for action been more closely aligned," concluded Sister Gormley. "This disease destroys lives, communities, and economies. Our company can get a cold Pepsi and a snack into the far corners of the continent. Surely PepsiCo can help to fight HIV and reduce its negative impact on current and future business."