May 27, 2009

PLANO, Texas and SEATTLE, May 27 /PRNewswire-FirstCall/ -- Frito-Lay North America and the Oberto Sausage Co. have agreed to end their partnership of the last 10 years for distribution and sales of Oh Boy! Oberto brand meat snack products in the United States and Canada.

Under terms of the joint decision, Frito-Lay will sell and distribute "Oh Boy! Oberto" meat snacks until Aug. 15, 2009, at which time Oberto Sausage Co. will transition to a direct sales and distribution model. Existing customers will receive full sales and distribution coverage through Aug. 15, 2009 from Frito-Lay.

"We've had a strong partnership with Oberto over the past 10 years, and both companies helped grow Oberto into a national brand," said Frito-Lay North America President and CEO Al Carey. "Both of our companies benefited from the partnership, and we each remain committed to the meat snacks category."

"As our business and the industry evolves, this new agreement puts us in the best possible position to continue the tremendous growth and success Oberto has enjoyed for more than 90 years," said Dennis Delaye, Chairman and interim CEO of the Oberto Sausage Co. "Our focus now is working together with Frito-Lay to secure a seamless transition in the marketplace, with minimal disruptions for our customers," added Hal Jackson, VP Sales Oberto.

The distribution agreement between the companies will remain in effect through Aug. 15, 2009, and current customers are encouraged to continue purchases of Oberto products from Frito-Lay until sales are transitioned. Frito-Lay and Oberto are committed to ensuring that this transition is seamless, and that their consumers and retail partners continue receiving the quality products and exceptional service they've come to expect from the two companies.

  Terms of the agreement were not disclosed.

  About Oberto Sausage Company

Founded in Seattle in 1918, the Oberto Sausage Company is one of the nation's top beef jerky producers and meat snack food brands. For more than 90 years, three generations of the Oberto family have been making fine quality meat snacks while living up to the company motto - Have Fun! Oberto products are available online and in convenience, grocery and mass market retailers nationwide. Oberto's goal is to continue to develop new products to meet the demands and desires of today's customers. Oberto offers a tradition of quality you can taste! Come join the fun at www.obertosausagecompany.com.

About Frito-Lay

Frito-Lay North America is the $12 billion convenient foods business unit of PepsiCo, which is headquartered in Purchase, N.Y. In addition to Frito-Lay, PepsiCo business units include Pepsi-Cola, Quaker Foods, Gatorade and Tropicana. Learn more about Frito-Lay at the corporate Web site, www.fritolay.com, and the Snack Chat blog, www.snacks.com.

Source: Frito-Lay North America

CONTACT: Charles Nicolas of Frito-Lay, +1-972-334-5520,
charles.nicolas@fritolay.com; or Cara Jacobson of Oberto, +1-206-268-2203,
cara.jacobson@edelman.com

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