PURCHASE, NY - PepsiCo continued its strong momentum in the fourth quarter of 2007, with net revenue up 17% to $12.35 billion from $10.57 million. higher costs led to a slight decline in income to $1.26 billion from $1.83 billion during last year's comparable quarter. For the year, net revenue increased 12% from $35.14 billion to $39.47 billion year over year. net income of $5.66 billion was in line with last year's $5.64 billion.

The snack and drink giant grew worldwide revenue 12% for the full year, driven by snack volume growth of 6% and beverage gains of 4%.

Frito-Lay North America delivered 3% volume growth, led by strong momentum in Doritos and the Smart Spot - eligible products. The Quaker snacks portfolio saw double digit revenue growth, led by Chewy Granola Bars and Quakers Rice Cakes.

Volume in PepsiCo Beverages North America Beverage increased 1% in the quarter, reflecting high - single digit growth in noncarbonated beverages partially offset by a low single digit decline in carbonated soft drinks. Within noncarbonated beverages, Gatorade, Lipton ready to drink teas, enhanced waters and energy drinks each increased by double digits, Aquafina grew in the mid single digits. Juices and juice drinks declined slightly as a result of the ongoing effect of previous price increases.

Internationally, PepsiCo posted broad gains in snacks and beverages, with snack volume growth of 8% led by double digit growth in Russia, the Middle East, Turkey and India.

Beverage volume grew 9%, with double digit growth in the Middle East, China, Brazil, Argentina,India and Russia, partially offset by declines in Mexico, Thailand and Spain.

The Company expects 2008 performance to be sonsistent with long term targets of 3% to 5% volume growth, mid to high sibgle digit net revenue growth and earnings per share of at least $3.72