The Pepsi Bottling Group, Inc. (NYSE:PBG) today announced results for the twelve-week third quarter of 2000, which ended on September 2, 2000:

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew 13 percent in the third quarter and 16 percent year-to-date, as a result of strong net revenue per case growth in the United States and favorable cost of sales trends.
Diluted earnings per share (EPS) were up 40 percent for the quarter at $.82, versus $.59 per share in third quarter 1999.
Worldwide physical case volume grew nearly two percent for the quarter driven by continued solid international performance and positive U.S. volumes.
Year-to-date Operating Free Cash Flow was $112 million better than a year ago, rising to $204 million.
"PBG has again delivered excellent results. We are executing well at the customer level and capitalizing on revenue and volume growth opportunities in our refreshment beverage categories," said Craig E. Weatherup, Chairman and Chief Executive Officer of PBG. "Our volume both in the U.S. and international markets showed particular strength in the latter part of the third quarter, setting the stage for a strong performance during the remainder of the year. This positive volume trend continued even as pricing in the U.S. foodstore channel remained substantially higher than prior year. We are well positioned to deliver three to four percent worldwide volume growth in the fourth quarter as we launch our new lemon-lime soda and accelerate our presence of Aquafina - the number one selling single-serve bottled water - in the foodstore channel."

On both a constant territory and as reported basis, worldwide physical case volume growth was nearly two percent for the quarter and one percent year-to-date. (Constant territory calculations assume all significant acquisitions made in 1999 were made at the beginning of the 1999 fiscal year and exclude all significant acquisitions made in 2000.) Constant territory physical case volume was positive for the quarter in the U.S. market, while international volume increased six percent. The international volume improvement was led by significant growth in Russia, which offset declines in Canada.

Reported net revenues on a worldwide basis grew more than four percent, with worldwide constant territory net revenues per case up three percent. Worldwide revenue results were lowered by more than one percent due to currency translations. In the U.S. market, net revenues per case increased more than five percent for the quarter.

Cost of sales per case was lower than the prior year due to currency translation effects, favorable impact of a depreciation accounting change and a positive country mix. Efficiencies gained from the effective and timely purchasing of raw materials and our strategic supplier partnerships continued to impact cost of sales positively.

Reported net income for the quarter was $.82 per share or $123 million, an increase of $.23 per share over third quarter 1999. Reported net income year-to-date was $1.51 per share or $225 million. Reported net income included $.06 per share or $10 million for the quarter and $.18 per share or $27 million year-to-date due to the effect of the previously announced change in the depreciation lives of certain categories of assets. These depreciation changes, effective for the full year, are forecast to be $.27 per share.

During the third quarter, PBG repurchased more than one million shares of common stock. Under the Company's share repurchase program, initiated in October 1999, nearly 10 million shares of PBG common stock have been repurchased to date. As a result of this activity, third quarter average diluted shares outstanding totaled 149 million, down four percent from the level immediately following the Company's initial public offering on March 31, 1999.

On a 53-week basis in 2000, the Company increased its EPS estimate by two cents to a range of $1.50 to $1.52 and stated that it is on target to meet its previously announced goal of 17 percent EBITDA growth.

The Pepsi Bottling Group, Inc., headquartered in Somers, N.Y., is the world's largest seller, manufacturer and distributor of Pepsi-Cola beverages, with operations in the U.S., Canada, Greece, Spain and Russia.

Listen in live to PBG's third quarter 2000 earnings discussion with financial analysts on October 4th at 2 p.m. (EDT) at http://www.pbg.com.

Statements made in this press release that relate to future performance or financial results of the Company are forward-looking statements which involve uncertainties that could cause actual performance or results to materially differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties set forth in the Company's Securities and Exchange Commission reports, including its annual report on Form 10-K for the year ended December 25, 1999.


THE PEPSI BOTTLING GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
in millions except per share amounts, unaudited

12 Weeks Ended 36 Weeks Ended
--------------------------- --------------------------
September 2, September 4, September 2, September 4,
2000 1999 2000 1999
------------- ------------ ------------ -----------

Net Revenues $ 2,125 $ 2,036 $ 5,583 $ 5,319
Cost of sales 1,163 1,162 3,041 3,043
------------- ------------ ------------ -----------

Gross Profit 962 874 2,542 2,276
Selling, delivery
and administrative
expenses 706 669 2,020 1,892
Non-cash compensation
charge - - - 45
------------- ------------ ------------ -----------

Operating Income 256 205 522 339
Interest expense,
net 44 44 133 141
Foreign currency loss 1 1 1 1
Minority interest 16 12 31 19
------------- ------------ ------------ -----------

Income before
income taxes 195 148 357 178
Income tax expense 72 56 132 69
------------- ------------ ------------ -----------

Net Income $ 123 $ 92 $ 225 $ 109
============= ============ ============ ===========

EBITDA $ 365 $ 324 $ 845 $ 726

Pro Forma Diluted
Earnings per
Share (1)
As reported $ 0.82 $ 0.59 $ 1.51 $ 0.70
Excluding the
Effect of
Changes in
Depreciation
Lives and
Non-cash
Compensation
Charge 0.76 0.59 1.33 0.89
Pro Forma
Weighted-Average
Shares Outstanding 149 155 149 155

(1) 1999 reflects our initial public offering of 100 million shares
of common stock on March 31, 1999 as if the shares had been
outstanding during the entire 1999 periods presented.

Basic Earnings
per Share
As reported $ 0.84 $ 0.59 $ 1.52 $ 0.93
Weighted-Average
Shares Outstanding 147 155 148 117

Diluted Earnings
per Share
As reported $ 0.82 $ 0.59 $ 1.51 $ 0.93
Weighted-Average
Shares Outstanding 149 155 149 117


THE PEPSI BOTTLING GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
in millions, unaudited

36 Weeks Ended
-------------------------------
September 2, September 4,
2000 1999
--------------- --------------

Operating Free Cash Flow:
Net Income $ 225 $ 109
Adjustments to reconcile net
income to operating free cash flow:
Depreciation 232 252
Amortization 91 90
Changes in working capital and
other non-cash charges, excluding
effects of acquisitions - (17)
Capital expenditures (342) (371)
Other, net (2) 29
--------------- --------------

Operating Free Cash Flow 204 92
--------------- --------------

Cash Flow from Financing
and Acquisitions:
Acquisitions of bottlers (2) (166)
Borrowing activities, net 3 (167)
Net IPO proceeds - 2,208
Dividends paid (9) (3)
Treasury stock transactions (95) -
Decrease in advances from PepsiCo - (1,834)
--------------- --------------

Net Cash Flow from Financing
and Acquisitions (103) 38
--------------- --------------

Effect of Exchange Rate Changes
on Cash and Cash Equivalents (6) (2)
--------------- --------------

Net Increase in Cash and
Cash Equivalents 95 128
Cash and Cash Equivalents - Beginning
of Period 190 36
--------------- --------------

Cash and Cash Equivalents - End
of Period $ 285 $ 164
=============== ==============



THE PEPSI BOTTLING GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
in millions, except per share amounts

(Unaudited)
September 2, December 25,
2000 1999
------------ ------------
Assets
Current Assets
Cash and cash equivalents $ 285 $ 190
Trade accounts receivable, net 1,000 827
Inventories 311 293
Prepaid expenses, deferred income
taxes and other current assets 154 183
------------ ------------
Total Current Assets 1,750 1,493

Property, plant and equipment, net 2,296 2,218
Intangible assets, net 3,726 3,819
Other assets 78 89
------------ ------------
Total Assets $ 7,850 $ 7,619
============ ============

Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and other
current liabilities $ 1,041 $ 924
Short-term borrowings 24 23
------------ ------------
Total Current Liabilities 1,065 947

Long-term debt 3,270 3,268
Other liabilities 430 385
Deferred income taxes 1,128 1,178
Minority interest 307 278
------------ ------------
Total Liabilities 6,200 6,056

Shareholders' Equity
Common stock, par value $.01 per share:
Authorized 300 shares, issued 155 shares 2 2
Additional paid-in capital 1,736 1,736
Retained earnings 354 138
Accumulated other comprehensive loss (257) (223)
Treasury stock: 9 shares (185) (90)
------------ ------------
Total Shareholders' Equity 1,650 1,563
------------ ------------
Total Liabilities and
Shareholders' Equity $ 7,850 $ 7,619
============ ============