The Pepsi Bottling Group announced today that it has commenced cash tender offers in the US and Mexico to complete the acquisition of Mexican bottler Pepsi-Gemex.

The tender offers will expire at 5pm on November 5, 2002, unless the offers are extended.

Enrique C. Molina Sobrino and PepsiCo, Inc. have each agreed to tender approximately 40% and 34.4%, respectively, of the total outstanding capital stock of Pepsi-Gemex. Pepsi-Gemex's Board of directors has recommended that all other Pepsi-Gemex shareholders accept the offers and tender their shares.

The tender offers are conditioned upon, among other things, the number of shares, CPOs and GDSs tendered and not withdrawn representing not less than 90% of all outstanding shares of capital stock of Pepsi-Gemex on the expiration date.

PBG expects to eliminate all shares of capital stock of Pepsi-Gemex not purchased in the tender offers through a reverse stock split, in which all remaining holders will receive the same prices offered in the tender offers payable in Mexican pesos.