TACO BELL and PEPSI to launch exclusive new Mountain Dew "BAJA BLAST" soft drink

Tropical-Lime Flavored Beverage Only Available at Taco Bell Restaurants

IRVINE, CA (Thursday, August 05, 2004) - In a first-of-its-kind partnership with Pepsi, Taco Bell® today announced the introduction of Mountain Dew Baja Blast™, a soft drink available exclusively at participating Taco Bell restaurants nationwide. Mountain Dew Baja Blast™, which features a Mexican-inspired tropical lime flavor, marks the first time an international beverage company and quick service restaurant have collaborated to create a proprietary beverage specifically designed to complement the chain’s menu items.

“Pepsi has proven to be a true strategic partner and understands our need to continue to differentiate ourselves in the market place,” said Greg Creed, chief marketing officer, Taco Bell Corp. “We continue to reinforce our ‘Think Outside The Bun™’ message by offering food, and now a beverage item, that consumers can’t get anywhere else.”

The new product, available at participating Taco Bell® restaurants nationwide beginning July 29th has a unique turquoise-green color and a flavor best described as Mountain Dew blasted with tropical lime. Pepsi and Taco Bell, business partners since the 1970s, worked hand-in-hand to develop the signature flavor so it appealed to the large number of Taco Bell customers who regularly drink Mountain Dew. The companies conducted extensive research to ensure the name, color, and the taste complemented Taco Bell menu items and lived up to the personalities of both brands.

“Over the years, Taco Bell has helped grow the Mountain Dew brand to the point where Taco Bell customers and Mountain Dew drinkers have become kindred spirits,” said Dave Burwick, SVP and chief marketing officer for Pepsi-Cola North America. “They are active, energetic, and constantly looking for something they can call their own.”

Taco Bell® customers are one-and-a half times more likely to drink Mountain Dew than the average American. With two-thirds of its business being generated at the drive-thru and a growing late night business, Taco Bell has a unique opportunity with Mountain Dew Baja Blast to drive off-site beverage purchases and overall sales. By offering an exclusive drink at its restaurants, Taco Bell is giving customers a compelling reason to purchase a beverage at the drive-thru, instead of placing a "food only" order and getting an alternative beverage at their destination.

Mountain Dew Baja Blast™ will be supported nationally with a multi-million dollar marketing campaign including in-store point of purchase merchandise, on-line and print media buys and 60-second radio spots on ESPN. Extensive sampling events will also take place at 5,400 Taco Bell® restaurants and in top markets around the country to drive trial and awareness. For more information on Mountain Dew Baja Blast, visit www.dewbajablast.com.

Taco Bell Corp., based in Irvine, California, is a subsidiary of Yum! Brands, Inc. and the nation’s leading Mexican-style quick service restaurant chain serving tacos, burritos, signature Quesadillas, Border Bowls®, nachos and other specialty items. Taco Bell® serves more than 35 million consumers each week in more than 6,500 restaurants in the U.S.

Think Outside the Bun.

Purchase, N.Y.-based Pepsi-Cola North America (www.pepsi.com) is the $4 billion refreshment beverage unit of PepsiCo Inc. in the United States and Canada. Its U.S. brands include Pepsi, Diet Pepsi, Pepsi Edge, Pepsi ONE, Wild Cherry Pepsi, Pepsi Twist, Pepsi Vanilla, Mountain Dew, Mountain Dew Code Red, Sierra Mist, Mug, Slice, Aquafina, Dole single-serve juices, Tropicana Juice Drinks and SoBe. The company also makes and markets North America's best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.

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