Pepsico Foodservice and Subway® Restaurants Extend and Expand Snack Relationship

May 15, 2008

Companies Sign Long-Term North American Contract and Establish Global Partnership


PLANO, Texas - PepsiCo Foodservice, SUBWAY® and IPC today announced the expansion of their working relationship. The companies signed a seven-year long term contract to provide Frito-Lay snacks to North American franchisees. The North American contract renews an established relationship in the U.S. and expands it to include Canada. IPC represents franchisees in both the US and Canada.

Outside North America, the two companies are also creating a global partnership, which will further develop and align businesses across Europe, Asia and Latin America. The Subway restaurant chain has more than 28,000 locations around the world.

“PepsiCo Foodservice is proud to extend and build on our successful partnership with Subway,” said Chris Furman, president, PepsiCo Foodservice. “Subway is a key destination to connect consumers to our snack products in the U.S. The new expanded relationship will allow more consumers globally to experience our great tasting snack foods.”

“The Subway restaurant chain values partners who understand our consumers and who deliver the quality products people have come to expect of our restaurants,” said Suzanne Greco, director, R&D, Subway/Doctor’s Associates Inc. “By providing our customers a wide array of Frito-Lay snacks, PepsiCo Foodservice meets the needs of our restaurants and is well suited to help contribute to our success both domestically and internationally.”

About SUBWAY® Restaurants
Headquartered in Milford, Connecticut, and with regional offices in Amsterdam, Beirut, Brisbane, Miami, and Singapore, the SUBWAY® restaurant chain was co-founded by Fred DeLuca and Dr. Peter Buck in 1965. Their partnership marked the beginning of a remarkable journey - one that makes it possible for thousands of individuals to build and succeed in their own business.

About Frito-Lay
Frito-Lay North America is the $11 billion convenient foods division of PepsiCo, which is headquartered in Purchase, NY. In addition to Frito-Lay, PepsiCo divisions include Pepsi-Cola, Quaker Foods, Gatorade and Tropicana.

About IPC
IPC is an independent SUBWAY® franchisee-owned and –operated purchasing cooperative. IPC’s goal is to implement purchasing and distribution programs that help build a competitive environment for SUBWAY® franchisees. Working under the direction of the franchisee Board of Directors, IPC’s management team carefully selects strong trading partners and manages the risks inherent to the costing and distribution of products in the food service industry. IPC’s mission is to negotiate the lowest cost for purchased goods and services, improve quality, enhance competitiveness and ensure the best value to SUBWAY® franchisee members and their customers. For more information, visit www.ipcoop.com.