September 14, 2006 Mr. John Wayne, President Pepsi-Co 1234 ABC Avenue Boca Raton, FL 33428 Dear Mr. Wayne: As you are well aware, PepsiCo has come under attack from many organizations citing that there are pesticides in our products. One of India's leading voluntary agencies, the Center for Science and Environment (CSE) said that soft drinks manufactured in India, including those carrying the Pepsi and Coca-Cola brand names, contain unacceptably high levels of pesticide residues. We are being accused of egregious offenses in India: stealing water, poisoning land and selling drinks laced with dangerous pesticides. This is simply untrue. Therefore, we need to aggressively campaign to disprove these notions in an effort to return sales to their normal levels in the Indian market. Several Indian states maintain their position that they will continue to ban the sale of Pepsi soft drinks, even though the federal Health Ministry completely dismissed fabrications that our products contained pesticide residues. They choose to continue to ban Pepsi soft drinks from hospitals, official government buildings, schools and other public institutions. This is based off of a flawed study from the Center for Science and Environment in New Delhi. Indian Health Minister Anbumani Ramadoss told Parliament that his ministry found the center’s data flawed. This point must be stressed to the general public. There are two contradicting reports out from Indian agencies, we need to show that the larger of the two agrees with our findings. The southern state of Karala went even further than the aforementioned states, imposing a complete ban and asking two of our plants located in the state to shut down.. An environmental assembly said yesterday it would, for the time being, freeze the supply of Pepsi goods in the area after another group said it had found hazardous levels of pesticides in our drinks. These claims are unfounded. We must stress that Pepsi soft drinks are completely safe for human consumption and we should strive to provide the best products for our customers. Pepsi believe in quality first, and our purpose is only to serve our customers. Our entire company is based on the philosophy that our customers always come first. At Pepsi-Co, consumer approval is of the utmost importance. Our own internal studies prove that our products are completely safe and completely devoid of any toxic substances. All our soda products are clean and the ingredients are clearly listed on every bottle and can: carbonated water, sucrose, caramel color, phosphoric acid, caffeine, citric acid and natural flavors. Nothing else. This matter has been around for over three years, it negatively affects India’s image in the World. This is bad for our industry, and our way of life. It affect our position in the world as a trade partner and affects India’s appeal to investors. We ask the people of India to push their state governments to remove the ban on PepsiCo products. Call your representatives, and at let it be known, that you will not stand for such restrictions.

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