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PEPSICO AND PORTUGUESE GOVERNMENT SIGN ACCORD FOR $150 MILLION INVESTMENT

 /NOTE TO EDITORS: The following PepsiCo release, which moved earlier today, is being re-released by PepsiCo with revisions to the third graph./
 PEPSICO AND PORTUGUESE GOVERNMENT SIGN ACCORD
 FOR $150 MILLION INVESTMENT
 LISBON, Portugal, Dec. 19 /PRNewswire/ -- PepsiCo Foods International (PFI), the international snack food division of PepsiCo, Inc. (NYSE: PEP), today signed an agreement with the Government of Portugal to invest 20 billion Escudo (Esc.) (US$150 million) in this country over the next 10 years.
 The investment -- representing the largest agriculture-based, export-oriented investment in Portugal -- will cover construction of a state-of-the-art snack food manufacturing plant, the development of information systems, and the necessary distribution support to supply the growing demand for snack foods in the Iberian Peninsula.
 In return, pending approval by the European Community, the Government has agreed to grant PFI Esc. 2.94 billion (US$20 million) in grants and incentives to assist with building, staffing and employee training for the new snack food production facility in Carregado, outside of Lisbon.
 At the formal signing ceremony today, PFI President and CEO John S. Pingel Jr. said: "The Portuguese Government's willingness to provide these incentives and grants for advanced technology training shows a determination to equip Portuguese industry with skills that are necessary for them to compete on a global basis."
 The plant will be PFI's first Portuguese food manufacturing facility specifically designed to produce snack foods for consumers in the European Community. This is expected to increase Portuguese exports by over Esc. 15 billion (US$100 million) yearly and generate annual government revenues for over Esc. 4.5 billion (US$30 million).
 PFI has already invested Esc. 1.2 billion (US$8 million) in Portugal through its Laprovar subsidiary, which is the largest snack food company in the country. The 10-year investment is to include the new Esc. 10.5 billion (US$70 million) plant, with an additional Esc. 9.5 billion (US$65 million) in capital expenditure including sales and distribution vehicles and management information systems. The plant will be the most technologically advanced snack food facility run by any of the 26 companies PFI operates around the world. Operating at full capacity it will produce 22 million kilos of crisps a year and will require the purchase of 100,000 tons of raw potatoes annually. The plant will have a significant impact on the agricultural economy, especially potato production. Potato supplies for the new plant will provide steady revenue for 1000 Portuguese farmers. Through intensive local training programs, PFI will also provide Portuguese farmers with state-of-the-art agricultural technology to improve locally sourced products.
 The PFI division already employees 595 people in Portugal and with the help of government training grants will be creating an additional 1300 jobs. The grants will be used for corporate training programs in manufacturing, sales and merchandising.
 PFI estimates that the growth projected for the next four years alone will add 430 jobs in allied industries from corn milling and vegetable oil production to carton making. The service sector will benefit, too, as financial, legal, accounting and consulting services are stimulated by the expanded presence of a multinational corporation like PepsiCo.
 PepsiCo has a long-standing and growing commitment to the Portuguese market, providing not only high quality products but also the transfer of agricultural and food processing technology. Other PepsiCo operations in Portugal include Pepsi-Cola International's franchisee, Refrigor Group, with six bottling plants; and Pizza Hut, with five restaurants. Pizza Hut plans to open an additional 10 restaurants by late 1992, while Kentucky Fried Chicken plans to open three restaurants in the near future.
 "Such major expansion will undoubtedly attract new foreign investment and encourage other foreign corporations to use Portugal as the Iberian base," said Pingel at the signing ceremony in Lisbon's Palacio dos Condes D'Obidos. He added that "Portugal is on the forefront of attracting and retaining international commerce."
 -0- 12/19/91
 /CONTACT: Kenneth Ross of PepsiCo, 914-253-2725/
 (PEP) CO: PepsiCo, Inc. ST: New York IN: FOD SU:


JT-TS -- NY037A -- 3916 12/19/91 12:49 EST
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Date:Dec 19, 1991
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