Actuality March 20, 2008

   PepsiCo and Pepsi Bottling Group signed the agreement about 75,53% stocks purchase of the largest Russian juice producer Lebedyansky JSC, is said in PepsiCo report.

The transaction sum totals $1,4 bln.

   By transaction terms PepsiCo and PBG purchase Lebedyansky JSC stocks at the four largest company stockholders – physical bodies.

Stocks will be distributed among PepsiCo and PBG – 75% and 25% respectively. The transaction stipulates the businesses separation for baby food and mineral water production, which PepsiCo and PBG do not purchase.

To separate businesses Lebedyansky JSC stockholders should take the number of decisions.

They are not the transaction parties. As expected, separation procedure and the transaction for 75,53% Lebedyansky JSC purchase takes place not earlier than in the 3Q 2008.

On the Lebedyansky JSC balance remains the juice business only.

The transaction sum implies the value of Lebedyansky JSC juice business estimated at $2 bln (including the corrected net debt and excluding business for baby food and mineral water production). In case of successful business separation for baby food and mineral water production PepsiCo and PBG will offer all, without exception, company stockholders to repurchase the rest of stocks right after the transaction close.

It can increase the total stake of PepsiCo and PBG in Lebedyansky JSC up to 100%.

   The transaction should be approved by the regulative authorities.

The additional agreement terms are not exposed. "This transaction provides us with the excellent basis for expansion continuation on one of the most quickly growing juice markets of the world", declared PepsiCo International director general Michael White.

His words were quoted in the report.

"Russia is the most quickly growing market for our company. We do well-considered investments, so that our positions became stronger here", marked Pepsi Bottling head Eric Foss. Yuriy Bortsov, the head of Lebedyansky JSC directors' board and one of the main stockholders, declared that they are very pleased with the agreement signed with PepsiCo and PBG companies.

And that these companies for many years invested into Russia and are interested in further Lebedyansky JSC growth and prosperity.

Their investments into development and powerful distribution system allow Lebedyansky JSC to stay the strong and competitive company.

   Lebedyansky JSC stake on the Russian juice market is estimated approximately at 30%. The profit of the company juice business totaled about $800 mln in 2007.

Lebedyansky JSC combines three production enterprises: Lebedyan (Lipetsk region), Progress JSC (Lipetsk) and TROYA-Ultra (St. Petersburg). Lebedyansky JSC main stockholders are the former plant director and the State Duma deputy Nikolay Bortsov (30% stocks), his son Yuriy Bortsov, directors' board head (25,1%), directors' board members Olga Belyavtseva (18,4%) and Dmitry Fadeev (2%). Company stocks (23,87%) are quoted at RTS and MICEX.