Whitman Corporation today reported results for the second quarter and 26 weeks ended July 1, 2000.

Reported Second Quarter Results

Reported sales totaled $682.6 million, up from sales of $505.2 million reported in the second quarter of 1999.

Reported net income was $39.5 million (29 cents per share) in the second quarter compared to a net loss of $37.5 million (33 cents per share) in the second quarter of 1999. The current quarter included income from discontinued operations of $8.9 million (seven cents per share) resulting from insurance settlements for environmental matters related to a former subsidiary, Pneumo Abex, net of certain increased environmental and related accruals. The 1999 second quarter included a number of special charges and a loss from discontinued operations, which reduced 1999 second quarter net income by $60 million (52 cents per share).

EBITDA (reported earnings before interest, taxes, depreciation, and amortization) for the quarter totaled $118.3 million. In the second quarter of 1999, EBITDA, before special charges, totaled $88.5 million.

Second Quarter Results on a Pro Forma Basis

Pro forma results assume that the 1999 acquisition from PepsiCo of domestic and international territories, net of those territories divested, occurred at the beginning of 1999. Pro forma results for both years also exclude all special charges, credits, and the results of discontinued operations. In addition, 2000 results have been adjusted to align the reporting calendars of the acquired domestic territories.

On a pro forma basis, worldwide sales of $673.9 million were up 7.2 percent from $628.4 million.

On a pro forma basis, net income of $29.7 million (22 cents per share) was up from $24.6 million (18 cents a share) in the second quarter of 1999.

EBITDA of $116.6 million was up 12.4 percent from $103.7 million in the second quarter of 1999.

Pepsi-Cola General Bottlers Pro Forma Domestic Operating Results

Pepsi-Cola General Bottlers domestic sales totaled $590 million, up 4.8 percent from the second quarter of 1999. The improvement principally reflects an increase of 5.5 percent in the average net selling price on a raw case basis. Eight-ounce equivalent case volume was down approximately one half of one percent.

Domestic operating income totaled $75 million, up 7.4 percent from the second quarter of last year.

Domestic EBITDA in the quarter totaled $107.5 million, up 5.8 percent from second quarter 1999 EBITDA of $101.6 million, which excludes a $3.6 million one-time reversal of real estate tax accruals for non-operating property unrelated to Pepsi-Cola General Bottlers.

Pepsi-Cola General Bottlers Pro Forma International Operating Results

Pepsi-Cola General Bottlers international sales were $83.9 million in the second quarter, up 28.3 percent from the second quarter of 1999. Reported results include approximately $13 million of sales by Toma, a Czech beverage company acquired in the fourth quarter of last year, which accounted for approximately two-thirds of the increase in revenue.

Volume for the second quarter on an eight-ounce equivalent basis, including Toma's volume for last year, was up 22.5 percent from the second quarter of 1999. Strong growth by trademark Pepsi products and additional volume from juices and waters now being distributed in some Central European markets contributed to the increase.

For the second quarter, international operations reported operating income of $2.4 million, compared to an operating loss of $7.5 million in the second quarter of 1999.

International EBITDA for the quarter totaled $9.1 million, up from $2.1 million in the second quarter of 1999.

Perspective on the Quarter

Bruce S. Chelberg, Chairman and CEO, said, "Our accomplishments in the second quarter speak for themselves. The fundamentals of our business are very strong. Pricing has improved significantly in our domestic markets and we expect volume growth to improve in the second half of the year.

"International operations were profitable. Everything came together for us, including the weather.

"We continue to improve our operating and EBITDA margins. We are improving our returns on investment as well, which is key to creating value for our shareholders."

First Half Results on a Pro Forma Basis

Through the end of the second quarter, worldwide sales were $1,209.9 million, up 6.5 percent from 1999 pro forma sales of $1,135.8 million.

Net income was $37.5 million (27 cents per share), up from $30.8 million (22 cents per share) for the first half of 1999. EBITDA was $194.2 million, up 13.8 percent from the $170.6 million in the first half of 1999.

The following table summarizes selected second quarter and first half pro forma financial information.


Whitman Corporation
Summary Pro Forma Financial Data (A)
For the Second Quarter and First Half of 2000 and 1999
(Unaudited and in millions, except per share data)

Second Quarter
2000 1999 % Change

Sales $673.9 $628.4 7.2%
Operating Income 77.4 62.3 24.2%
Net Income 29.7 24.6 20.7%
Earnings per Share 0.22 0.18 22.2%
EBITDA 116.6 103.7 12.4%

Year-to-Date
2000 1999 % Change

Sales $1,209.9 $1,135.8 6.5%
Operating Income 113.0 90.9 24.3%
Net Income 37.5 30.8 21.8%
Earnings per Share 0.27 0.22 22.7%
EBITDA 194.2 170.6 13.8%

(A) The pro forma comparative information includes the results of the
1999 domestic and international territories acquired, net of those
divested, from PepsiCo, and assumes those transactions occurred at
the beginning of 1999. The pro forma results exclude all special
charges, gains from sold franchises, and results of discontinued
operations. In addition, the results for 2000 were adjusted to align
the reporting calendars of the domestic territories acquired in 1999.
The EBITDA results for 1999 are shown before the benefit of a
one-time reversal of real estate tax accruals for non-operating
property unrelated to Pepsi-Cola General Bottlers.


Safe Harbor

This press release contains forward-looking statements which are subject to the following safe harbor language: Forward-looking statements reflect management's expectations, estimates, and assumptions, based on information available at the time such statements are made. Forward-looking statements involve risks, uncertainties, and other factors which may cause actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including such things as: competition; product and pricing pressures; weather; economic and market conditions; cost and availability of raw materials; changing trends in consumer tastes; availability of capital; unfavorable interest rate and currency fluctuations; labor and employee benefit costs; and other circumstances which could cause actual results to differ materially from those expressed in any forward-looking statements. Such events and uncertainties are difficult or impossible to predict accurately and many are beyond the company's control.

WHITMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SECOND QUARTERS AND RELATED YEAR-TO-DATE PERIODS OF 2000 AND 1999
(IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)

Second Quarter Year-To-Date
2000 1999 2000 1999

Sales $682.6 $505.2 $1,231.5 $875.5
Cost of goods sold 403.5 298.1 723.2 517.8
Gross profit 279.1 207.1 508.3 357.7
Selling, general and
administrative expenses 189.7 141.4 371.2 256.9
Amortization expense 10.3 5.5 20.4 9.4
Special charges -- 23.4 -- 23.4
Operating income 79.1 36.8 116.7 68.0
Interest expense, net (21.3) (14.2) (41.6) (25.5)
Other income (expense), net
(notes A, D and G) 0.9 (54.4) 3.0 (47.8)
Income (loss) before income
taxes 58.7 (31.8) 78.1 (5.3)
Income taxes 28.1 (24.2) 37.3 (15.9)
Income (loss) from
continuing operations
before minority interest 30.6 (7.6) 40.8 10.6
Minority interest -- 2.7 -- 6.6
Income (loss) from
continuing operations 30.6 (10.3) 40.8 4.0
Income (loss) from
discontinued operations
after taxes 8.9 (27.2) 8.9 (27.2)
Net income (loss) $39.5 $(37.5) $49.7 $(23.2)

Weighted average common
shares:
Basic 136.4 114.9 137.2 105.5
Incremental effect of stock
options 0.3 -- 0.4 1.2
Diluted 136.7 114.9 137.6 106.7

Income (loss) per share -
basic:
Continuing operations $0.22 $(0.09) $0.30 $0.04
Discontinued operations 0.07 (0.24) 0.06 (0.26)
Net income (loss) $0.29 $(0.33) $0.36 $(0.22)

Income (loss) per share -
diluted:
Continuing operations $0.22 $(0.09) $0.30 $0.04
Discontinued operations 0.07 (0.24) 0.06 (0.26)
Net income (loss) $0.29 $(0.33) $0.36 $(0.22)

Cash dividends per share
(note E) $-- $0.01 $0.04 $0.06


See accompanying notes.


WHITMAN CORPORATION AND SUBSIDIARIES
SUMMARY OF SALES, OPERATING INCOME AND EBITDA
FOR THE SECOND QUARTERS AND RELATED YEAR-TO-DATE PERIODS OF 2000 AND 1999
(IN MILLIONS)
(UNAUDITED)


Second Quarter Year-To-Date
2000 1999 2000 1999
Sales:
Domestic $598.7 $461.9 $1,092.2 $818.7
International 83.9 43.3 139.3 56.8
Sales $682.6 $505.2 $1,231.5 $875.5

Operating income:
Domestic $76.7 $64.3 $126.5 $102.9
International 2.4 (4.1) (9.8) (11.5)
Operating income
before special
charges 79.1 60.2 116.7 91.4
Special charges -- (23.4) -- (23.4)
Operating Income $79.1 $36.8 $116.7 $68.0

EBITDA:
Domestic $109.2 $87.8 $195.2 $152.0
International 9.1 0.7 5.9 (5.0)
EBITDA $118.3 $88.5 $201.1 $147.0


See accompanying notes.

Notes:

A. On January 25, 1999, the Company announced that its Board of Directors
had approved a new business relationship with PepsiCo, Inc.
("PepsiCo"). The new relationship was approved by Whitman
shareholders on May 20, 1999 and is more fully described in the
Company's 1999 Annual Report on Form 10-K. In connection with the new
relationship, in the first quarter of 1999, the Company sold to
PepsiCo its operations in Marion, Virginia; Princeton, West Virginia
and the St. Petersburg area of Russia. This sale resulted in a pretax
gain of $11.4 million, subject to final working capital adjustments,
which is included in year-to-date 1999 "Other income (expense), net"
on the Consolidated Statement of Income. The gain, after taxes and
minority interest, was $8.0 million.

The acquisitions of the domestic and Central European territories have
been accounted for under the purchase method. Accordingly, the
results of operations of the acquired territories have been included
for periods subsequent to the dates of acquisition.

B. The Company's fiscal year consists of 52 or 53 weeks ending on the
Saturday closest to December 31. The Company's second quarters of
2000 and 1999 were based on thirteen weeks and ended July 1, 2000 and
July 3, 1999, respectively.

C. Discontinued operations in the second quarter of 2000 includes income
arising from insurance settlements for environmental matters related
to a former subsidiary, Pneumo Abex, net of certain increased
environmental and related accruals. Loss from discontinued operations
in the second quarter of 1999 includes a $12 million settlement of
environmental litigation filed against Pneumo Abex and an increase of
$30.8 million in accruals for estimated future environmental
remediation and other matters. The pretax income in the second
quarter of 2000 has been reduced by income taxes of $5.8 million, and
the pretax loss in the second quarter of 1999 has been reduced by
income tax benefits of $15.6 million.

D. In the first quarter of 2000, the Company sold its operations in the
Baltics. This sale resulted in a gain of $2.6 million, which is
reflected in "Other income (expense), net" on the Consolidated
Statement of Income. The gain, net of taxes, was $1.4 million.

E. In the first quarter of 2000, the Company's Board of Directors
authorized an annual cash dividend of $0.04 per share, payable on
April 3, 2000. Prior to 2000, the Company paid cash dividends on a
quarterly basis.

F. As a result of the acquisition of the domestic and Central European
territories from PepsiCo in the second quarter of 1999, the Company
recorded a special charge of $18.6 million ($11.4 million after tax)
for staff reduction costs and non-cash asset write-downs. In
addition, the Company recorded a $4.8 million write-down of its
Baltics operations in the second quarter of 1999.

G. Based on negotiations for the sale of property held in the downtown
area of Chicago, the Company recorded a charge of $56.3 million
($35.9 million after tax) to reduce the book value of the property.
This charge is reflected in "Other (expense), net" on the Consolidated
Statements of Income.

H. Interest expense, net, is comprised of the following:


Second Quarter Year-To-Date
2000 1999 2000 1999

Interest expense $(21.6) $(15.6) $(42.4) $(27.6)
Interest income 0.3 1.4 0.8 2.1

Interest expense,
net $(21.3) $(14.2) $(41.6) $(25.5)


I. Depreciation expense was as follows:

Second Quarter Year-To-Date
2000 1999 2000 1999

Domestic $21.9 $16.3 $46.0 $31.0
International 6.1 4.5 15.0 6.7

Total depreciation $28.0 $20.8 $61.0 $37.7

J. Due to the loss from continuing operations in the second quarter of
1999, no potential common shares were included in the computation of
average diluted shares. The effect of potential common shares,
assuming they were not anti-dilutive, would have resulted in average
diluted shares of 115.8 million.

K. EBITDA is defined as income from continuing operations before
interest and income taxes plus the sum of depreciation and
amortization. Information concerning EBITDA has been included
because it is used by some investors as a measure of operating
performance and of the ability to service potential debt. EBITDA is
not required by Generally Accepted Accounting Principles ("GAAP");
accordingly, it should not be considered an alternative to net income
or any other measure of performance required by GAAP. It also should
not be used as a measure of cash flow or liquidity under GAAP.