Tim Jerzyk Vice President Investor Relations - Yum!

David C. Novak, Chairman and CEO, said, “I am pleased to report we had another outstanding quarter.Our entire portfolio contributed to the strong worldwide second-quarter operating profit growth of 18% andEPS growth of 15%. Given the robust growth we expect from our China and YRI Divisions, we are able toonce again raise our full-year EPS forecast from at least $2.81 to at least $2.83.“Our China business is obviously experiencing booming growth. It’s particularly impressive that we areachieving record second-quarter restaurant margin as we are on track to open another 400 newrestaurants this year. In addition, our Yum! Restaurants International Division brings strong businesstrends into the second half and is expected to exceed our target of opening at least 750 new restaurantsfor 2006. This will be the sixth straight year of at least 1,000 new restaurants opened outside the U.S.,and we expect to maintain at least that development pace going forward into 2007.“In the U.S., significant improvement in commodity costs will more than offset what we believe is shorttermsales softness that Taco Bell and KFC experienced during Period 7, as the brands lapped last year’soutstanding same-store-sales growth of +10% and +7% respectively. We are confident of our positioningand programs for these brands and expect to have overall positive same-store-sales growth at both ofthem for the second half of 2006. At Pizza Hut, we foresee a slow recovery as the brand begins toexecute a turnaround plan. Overall, we expect to grow the operating profit of our U.S. business by 6%,our strongest performance in four years.“This will be our fifth straight year where we demonstrate the strength of our portfolio to deliver at least10% EPS growth. The key factor for the consistency of our growth is our global portfolio that provides usthe opportunity to build dominant restaurant brands in China, drive profitable international expansion,improve U.S. brands and operations, and multibrand category-leading brands.”2