Delta Beverage Group, Inc. today announced results for the quarter ended September 30, 2000.

Net sales of Delta Beverage Group, Inc. (and its majority-owned subsidiary, the Pepsi-Cola/Seven-Up Beverage Group of Louisiana, collectively "the company") for the third quarter of 2000 increased by 1.8 percent to $99.3 million as compared with $97.5 million for the same period in 1999. Franchise case volume decreased 4.5 percent which occurred while the company increased its wholesale prices. The sales growth was thus due primarily to a 5.4 percent increase in revenue per franchise case. Gross margin percentage improved to 33.2 percent for the third quarter of 2000 from 31.5 percent for the same period in 1999.

Operating expenses grew modestly despite the volume trend as the company continues to invest in cold bottle equipment and personnel to better serve the market and experienced an increase in its fuel costs. EBITDA increased 16.8 percent in the third quarter of 2000 to $11.1 million as compared with $9.5 million for the third quarter of 1999.

During the fourth quarter of 1999, Delta Beverage combined with two other Pepsi-Cola bottlers, PepsiAmericas, Inc. (NYSE: PAS - news), formerly Pepsi-Cola Puerto Rico Bottling Company, and Dakota Beverage Company. Delta Beverage and Dakota Beverage are now wholly owned subsidiaries of PepsiAmericas. PepsiCo, Inc. (NYSE: PEP) holds a 24 percent equity interest in PepsiAmericas, which is PepsiCo's third largest U.S.-based anchor bottler.

The combined companies manufacture, distribute and market PepsiCo soft drinks and Cadbury Schweppes products in exclusive franchise territories that include Puerto Rico, Jamaica and portions of Arkansas, Iowa, Louisiana, Minnesota, Mississippi, North Dakota, South Dakota, Tennessee and Texas. Delta Beverage is the largest operating unit of PepsiAmericas and its exclusive territory includes Memphis, Little Rock, New Orleans and Tupelo, Mississippi. In addition, the company distributes products of Miller Brewing Company and Heineken USA, in its greater New Orleans territory.

On August 18, 2000, PepsiAmericas announced plans to merge with Whitman Corporation, the second largest anchor bottler in the PepsiCola system. PepsiAmericas and Whitman have each called for shareholder vote on the merger proposal on November 30, 2000. The merger will become effective immediately after shareholder vote.

This release may contain forward-looking statements of expected future developments. We wish to ensure such statements are accompanied by meaningful cautionary statements pursuant to the safe harbor established by the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the release refer to the expectations regarding continuing operating improvement and other matters. These forward-looking statements reflect management's expectation and are based on currently available data; however, actual results are subject to future events and uncertainties, which could materially affect actual performance. Our future performance also involves a number of risks and uncertainties. Accordingly, any forward-looking statements should be read in conjunction with information about risks and uncertainties set forth in the company's Securities and Exchange Commission reports, including its annual report and Form 10K for the year ended December 31, 1999.

(Dollars in thousands)

Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Net sales $99,336 $97,466 $282,402 $275,208
Cost of sales 66,327 66,786 189,147 188,765

Gross profit 33,009 30,680 93,255 86,443

Selling, general and
administrative expenses 24,765 24,077 73,780 68,672
Amortization of franchise
rights 912 912 2,736 2,736

Operating income 7,332 5,691 16,739 15,035

Interest, net (5,095) (4,844) (15,115) (14,462)
Other, net 5 (47) (18) (121)

(5,090) (4,891) (15,133) (14,583)

MINORITY INTEREST 2,242 800 1,606 452

Minority interest, net
of taxes 0 92 0 163
Income tax provision (1,128) (1,161) (1,135) (1,032)

NET INCOME (LOSS) $1,114 $(269) $471 $(417)

EBITDA $11,063 $9,524 $28,391 $26,457