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PRESS RELEASE

PepsiCo Strengthens Cross-Company Collaboration with BT and Cisco TelePresence

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Cisco TelePresence System 3000

Cisco TelePresence System 3000

EL SEGUNDO and SAN JOSE, Calif. Feb. 2, 2010 – BT and Cisco today announced that PepsiCo, one of the world's largest food and beverage companies, will be deploying Cisco TelePresenceTM systems across PepsiCo's major offices worldwide. The technology includes fully managed "concierge-level" services from BT, including intercompany capabilities that will help enable cross-company collaboration between PepsiCo and key distributors and retailers.

Cisco TelePresence systems create immersive virtual meeting experiences that make participants feel as though they are in the same room though they may be thousands of miles apart. This unique combination of high-definition video and spatial audio provides a great alternative to in-person meetings.

"This new collaboration strategy with BT and Cisco will reinvent the way we work," said Robert Dixon, senior vice president and global chief information officer for PepsiCo. "Global virtual meeting collaboration will enable us to travel less, which will allow for greater productivity and a smaller environmental footprint. In this day and age, it's simply a smarter way of going about our business."

"We look forward to providing PepsiCo with an easy-to-use, reliable, cost-effective TelePresence experience," said Michael Boustridge, president, BT Global Services Multi-National Corporations. "This game-changing technology provides live, face-to-face virtual interaction that allows people from different locations to come together and collaborate as if they were all seated in the same room. This contract builds on BT's existing relationship with PepsiCo, which we look forward to expanding worldwide, leveraging BT's global reach."

"Cisco TelePresence is transforming the way more than 500 organizations worldwide run their business and collaborate with key partners, customers and suppliers," said Cisco's Charles Stucki, vice president, Cisco TelePresence Systems business unit. "The TelePresence experience has completely reenergized the collaboration industry and will continue to facilitate video innovation that enables companies like PepsiCo to lead the way into a new era of cross-company collaboration never before possible."

About PepsiCo

PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. Its main businesses – Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade – also make hundreds of other nourishing, tasty foods and drinks that bring joy to consumers in over 200 countries. With more than $43 billion in 2008 revenues, PepsiCo employs 198,000 people who are united by a unique commitment to sustainable growth, called Performance with Purpose. By dedicating itself to offering a broad array of choices for healthy, convenient and fun nourishment, reducing its environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to communities worldwide. For more information, please visit www.pepsico.com.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2009, BT Group's revenue was £21,390 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.bt.com/aboutbt

About Cisco Systems

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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Cisco, the Cisco logo, Cisco Systems and Cisco TelePresence are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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