Yahoo!, - And Subway® Restaurants Team Up For Gosubway.Yahoo.com Grab a 32-ounce Fountain Beverage at SUBWAY Stores and Receive Holiday Savings from Yahoo! Shopping SANTA CLARA, Calif. -- December 2000 -- This holiday season, consumers can save money on a great meal and a great deal online. Yahoo! Inc. (NASDAQ: YHOO), Pepsi-Cola Company (NYSE: PEP) and SUBWAY® Restaurants today announced gosubway.yahoo.com, an integrated marketing campaign. As part of an innovativeYahoo! Fusion Marketing program, gosubway.yahoo.com is the next step in the fusion marketing relationship between Yahoo! and Pepsi-Cola Co. established with PepsiStuff.com in August 2000. With gosubway.yahoo.com, Yahoo! and Pepsi are deepening their marketing alliance by leveraging Pepsi's relationship with SUBWAY to further integrate the Internet into cost-effective consumer promotions that marry the online and retail world to deepen their connection with consumers. Yahoo! Fusion Marketing programs like Pepsistuff.com and gosubway.yahoo.com provide one-stop shopping for companies seeking to secure a measurable Internet presence and are designed to help connect Yahoo!'s significant global audience with leading offline brands. One of the largest online-offline promotions ever, PepsiStuff.com enabled consumers to earn merchandise, digital awards and discounts online by purchasing specially marked, 20-ounce and 1-liter packages of various Pepsi products. The successful under-the-cap program has generated more than three million signups (as of December 2000). "We are pleased to welcome SUBWAY to the leading brands working with Yahoo! to bring offline marketing concepts online to build consumer relationships," said Murray Gaylord, director of Fusion Marketing, Yahoo!. "Yahoo!'s comprehensive global platform is ideally suited to provide a suite of targeted, measurable and cost-effective solutions that enable category leader SUBWAY to expand their online reach and deepen its connection with consumers worldwide." More Ways to Save - gosubway.yahoo.com Now through Dec. 24, 2000, consumers in the United States and Canada (excluding Quebec) simply go to a participating SUBWAY store, purchase a 32-ounce fountain beverage in a specially marked promotional cup, and peel off the special holiday savings sticker to get a unique code. Through March 1, 2001, consumers can redeem the peel-off sticker's code at http://gosubway.yahoo.com for a coupon good for online discounts and savings through select Yahoo!® Shopping (http://shopping.yahoo.com) merchants. Featured Yahoo! Shopping merchants include: BarnesandNoble.com, FTD.COM, and SamGoody.com (valid in U.S. and Canada, excluding Quebec); macys.com and TheSportsAuthority.com (valid in U.S. only); and SportMart.com (valid in Canada only, excluding Quebec). Consumers must be 13 years of age or older to participate in the program. "Reaching consumers where they are and delivering measurable value each and every time someone interacts with SUBWAY is key to our success and to driving traffic to SUBWAY," said Tricia Kingston, manager of strategic planning, SUBWAY Franchisee Advertising Fund Trust (SFAFT). "Through Pepsi's relationship with Yahoo!, we have the unique opportunity to work with Yahoo! Shopping to deliver a program that seamlessly unites our in-restaurant and online efforts. Together, we can enhance the services we bring directly to our customers, and provide them with even more value this holiday season." According to Competitive Media Reporting, the restaurant and fast-food category is ranked among the top 10 categories in domestic advertising spending and represents 3.4 billion in advertising dollars. (Source: CMR, 1999.) In addition to the specially-marked promotional cups, SUBWAY is promoting the gosubway.yahoo.com program with a targeted marketing campaign including window banners and in-store point-of-sale materials at more than 8,000 participating restaurants in the United States and Canada (excluding Quebec) through Dec. 24, 2000, or while supplies of the specially-marked promotional cups last. National television advertising highlighting the program began airing on Nov. 27, 2000. SUBWAY Restaurants is the largest submarine sandwich franchise with more than 14,660 locations in 75 countries (as of Dec. 1, 2000). It is also the second largest fast-food chain in the world. Headquartered in Milford, Conn., SUBWAY was co-founded by Fred DeLuca and Dr. Peter Buck in 1965. SUBWAY has remained one of the most popular franchise systems, allowing entrepreneurs an opportunity to build and succeed in their own business. For more information about SUBWAY, see its Web site at www.subway.com. Pepsi-Cola Co. (http://www.pepsi.com), headquartered in Purchase, N.Y., is the global beverage division of PepsiCo, Inc. (http://www.pepsico.com). Its brands in the United States include Pepsi, , Pepsi ONE, , Mug, , , Wild Cherry Pepsi, , All Sport Body Quencher and FruitWorks. The company also makes and markets ready-to-drink iced teas and coffees, respectively, via joint ventures with and Starbucks. Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 166 million individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance the Web presence of Yahoo!'s clients, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 24 World properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif. # # #