KFC OPENS 700TH RESTAURANT IN CHINA

KFC is China's Largest, Most Popular and Fastest Growing QSR

LOUISVILLE, KY - KFC, a subsidiary of Yum! Brands, Inc. (NYSE:YUM) and the leading quick-service restaurant chain in China, announced the grand opening of the country's 700th KFC restaurant. The new restaurant is located in Shenzhen.

"KFC is rapidly building on its dominant position as the leading quick-service restaurant company in China," said J. Samuel Su, president of Yum! Brands International Greater China. "We are capitalizing on the brand's wide consumer appeal, strong infrastructure and established processes and resources," said Su.

KFC leads the way as China's largest, oldest and most popular quick-service restaurant chain with locations in approximately 150 cities. KFC was the first QSR to enter China in 1987 in Beijing. KFC had approximately 200 restaurants in 1997 and has quickly grown to 700 today.

KFC is also considered the most popular international brand throughout China, ranking higher than all others, according to a consumer survey conducted by ACNielsen.

The company's success in China is attributed to a seasoned management team; marketplace expertise; talented franchisees, and a highly motivated 40,000-member workforce focused on Customer Mania.

KFC recently announced the debut of China's first drive-thru restaurant in the Asian Olympics Village district of Beijing. The company is capitalizing on China's increasing mobility, fast-paced lifestyle, greater consumer spending power and desire for luxury items such as automobiles. Currently, more than 10 percent of households in Beijing own automobiles and the number continues to increase.

Yum! Brand's number one goal is to drive global expansion with its portfolio of five leading QSR brands. In addition to China, Yum! Brands continues to focus and invest in the bulk of its capital in three additional high-growth, high return markets for the company -- Mexico, United Kingdom and Korea. The company opened over 1,000 new international restaurants in 2001 and expects to open another 1,000 in 2002. The company's target for new restaurant growth is +5% to +6% per year in net new international restaurants.

A 1999 study conducted by ACNielsen Media International, an operating unit of ACNielsen, found KFC to be the most popular international brand with Chinese consumers. The study was conducted among 44,000 consumers across 30 Chinese cities.

Yum! Restaurants International owns or franchises nearly 11,500 restaurants outside of the United States, primarily KFC and Pizza Hut. The company ended 2001 with $7.7 billion in worldwide system sales, and is a division of Louisville-based Yum! Brands, Inc., which additionally owns or franchises Taco Bell, Long John Silver's and A&W All-American Food Restaurants.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those identified by such words as may, will, expect, anticipate, believe, plan and other similar terminology. These "forward-looking" statements reflect management's current expectations regarding future events and operating and financial performance and are based on currently available data. However, actual results are subject to future events and uncertainties, which could cause actual results to differ from those projected in this announcement. Factors that can cause actual results to differ materially include changes in global and local business, economic and political conditions in the countries and territories where Yum! Brands operates; changes in currency exchange and interest rates; changes in commodity, labor and other operating costs; changes in competition in the food industry, consumer preferences, spending patterns and demographic trends; the effectiveness of our operating initiatives and advertising and promotional efforts; new-product and concept development by Yum! Brands and other food-industry competitors; the success of our refranchising strategy; the ongoing business viability of our franchise and license operators; our ability to secure alternative distribution to our restaurants at competitive rates and to ensure adequate supplies of restaurant products and equipment in our stores; our actuarially determined casualty loss estimates; changes in legislation and governmental regulation; and changes in accounting policies and practices. Further information about factors that could affect Yum! Brands financial and other results are included in the company's Forms 10-Q and 10-K filed with the Securities and Exchange Commission.