PepsiCo Shareholders Urge Company to Follow Coke's Lead
on Disclosing Global AIDS Pandemic Risks

7.7 Percent Back Proxy Measure Urging Pepsico to Report on HIV/AIDS Issues;
Pepsico Vote Contrasts With 97 Percent Support Level Among Coke Shareholders

PLANO, TX and NEW YORK, N.Y.///May 5, 2004///Religious shareholders at Pepsico (NYSE: PEP) today received a preliminary vote total of 7.7 percent in favor of their resolution asking the beverage giant to report on how it plans to deal with the business and employee impact of the global AIDS pandemic. The proxy vote at Pepsico's annual meeting here came after the company chose not to follow the lead of competitor Coca Cola (NYSE: KO), which worked with shareholders on its policies regarding the disease.

A second-year support level of only 6 percent is required by the U.S. Securities and Exchange Commission (SEC) for a proxy resolution to be reintroduced for a third year. The Pepsico resolution, filed by MMA, which is a member of the Interfaith Center on Corporate Responsibility (ICCR), called on the company to report on how it plans to deal with the business and employee impact of the illness. During last year's annual meeting, a strong 7.5 percent of shareholders voted for the resolution.

"The economic fortunes of PepsiCo and of the people affected by the pandemic are tightly bound together," MMA Stewardship Investing Services Manager Mark Regier said. "We believe HIV/AIDS is a critical social and economic issue facing the company, so we felt compelled to address it along with other shareholders. We are pleased that many of them joined with us to reiterate to Pepsico our concern about this tragic disease. We believe it is in both the company and shareholders' best interest to implement a proactive approach. It's also the moral thing to do. We have had general discussions with Pepsi for two years, but are still missing firm evidence that the company has fully analyzed the future business risks of the pandemic and shaped their response accordingly."

On March 9, 2004, ICCR members declared victory in the wake of the decision by global beverage giant Coca-Cola to support a shareholder resolution focusing on the global HIV/AIDS pandemic. The board of Coca-Cola urged its shareholders to vote "yes" on Item 3, a resolution asking the company to review the economic impact on its operations of the HIV/AIDS pandemic. At the Coca-Cola annual meeting on April 21st, the resolution attracted a 97 percent support level, the highest ever shareholder proposal vote at the company. This is believed to be the first time Coca-Cola has urged shareholders to support a resolution.

The filers of the Pepsico resolution include ASC Investment Group, Congregation of the Sisters of St. Joseph, Mercy Investment Program, Meritas Mutual Funds, Missionary Oblates of Mary Immaculate, MMA, Northwest Women Religious Investment Fund, several provinces of the Society of Jesus, School Sisters of Notre Dame Cooperative Investment Fund, Sisters of Mercy of the St. Louis Regional Community, Sisters of St. Dominic of Caldwell, The Unitarian Universalist Service Committee, and Walden Asset Management.

In part, the Pepsico resolution reads as follow:

"Shareholders request that our Board review the economic effects of the HIV/AIDS, tuberculosis and malaria pandemics on the company's business strategy, and its initiatives to date, and report to shareholders within six (6) months following the 2004 annual meeting. This report developed at reasonable costs and omitting proprietary information, will identify the impacts of these pandemics on the company."

Even though HIV medicines can turn AIDS from a death sentence into a chronic disease, only 4 percent of the estimated 40 million world citizens suffering from the disease have access to the life-saving medicines. Economists have projected significant negative impact from the disease on emerging market economies, including regions Pepsi has identified as key international growth areas.

MMA, together with its MMA Praxis Mutual Funds, helps individuals meet their financial goals in ways that support their beliefs. MMA practices stewardship investing, a philosophy that balances a need for productive use of financial resources with a deep-seated concern for others. For more information on MMA Praxis, visit http://www.mmapraxis.com. As a stewardship solutions organization, MMA helps Anabaptists and others practice biblical stewardship through its expertise in insurance, financial services, charitable-giving programs, and educational resources. For more information, visit http://www.mma-online.org.

The Interfaith Center on Corporate Responsibility is an association of 275 faith-based institutional investors, including national denominations, religious communities, pension funds, endowments, hospital corporations, economic development funds and publishing companies. ICCR and its members press companies to be socially and environmentally responsible. Each year ICCR-member religious institutional investors sponsor over 100 shareholder resolutions on major social and environmental issues. The combined portfolio value of ICCR's member organizations is estimated to be $110 billion.

CONTACT: Stephanie Kendall, for ICCR, (703) 276-3254 or skendall@hastingsgroup.com.

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