Yum! Restaurants International Opens 1000th KFC in China *** KFC is China’s Largest and Most Popular Quick-Service Restaurant China is Yum! Brands’ Key Growth Country

LOUISVILLE, KY, January 16, 2004 – Yum! Brands, Inc. (NYSE:YUM) announced the grand opening of its 1000th KFC restaurant in China by its international division, Yum! Restaurants International (YRI). The new restaurant is located in Beijing.

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

“KFC’s localization strategy has been a key to the company’s success,” said J. Samuel Su, president of Yum! Brands International Greater China. “This includes the integration of all aspects of KFC’s operations. including product development, human resources, supply chain management, logistics and quality control,” added Su.

In addition to the classic KFC menu, the company creates products that appeal to local and regional tastes and draw inspiration from China’s rich culinary tradition. In 2003, KFC introduced products influenced by Sichuan, Guangdong and Beijing regional tastes.

To mark the special occasion, 1,000 KFC restaurant employees assembled at the Great Wall for a photograph.

KFC was the first QSR to enter China in 1987 in Beijing. KFC had approximately 200 restaurants in 1997 and has quickly grown to 1,000 today. Today, KFC employs over 50,000 employees.

KFC introduced China’s first drive-thru restaurant to capitalize on the country’s increasing mobility, fast-paced lifestyle, greater consumer spending power and desire for luxury items such as automobiles.

Yum! Brands’ key is driving global expansion with its portfolio of leading brands. For each of the past three years, the company has opened over 1,000 new international restaurants. China today makes almost as much money as the United States KFC business.

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.

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, project, 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, including the effects of war and terrorist activities; 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; severe weather conditions; effects of legal claims; changes in effective tax rates; our actuarially determined casualty loss estimates; changes in legislation and governmental regulations; 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.

Yum! Restaurants International (YRI), based in Dallas, is the largest and fastest growing division of Louisville, Ky-based Yum! Brands, Inc., in terms of system units. Currently, there are over 12,000 international system restaurants in over 100 countries and territories outside the United States. In each of the last three years, YRI has opened over 1,000 new restaurants outside of the United States. At year-end 2002, the company generated $2.4 billion in revenue at its nearly 12,000 restaurants — primarily KFC and Pizza Hut. The company’s highest growth markets are China, United Kingdom, Mexico and Korea.

Yum! Brands Inc., based in Louisville, Kentucky, is the world’s largest restaurant company in terms of system units with more than 33,000 restaurants in more than 100 countries and territories. Four of the company’s restaurant brands — KFC, Pizza Hut, Taco Bell and Long John Silver’s — are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories respectively. Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver’s brands. The company and its franchisees today operate over 2,000 multibrand restaurants. Outside the United States in 2003, the Yum! Brands’ system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world. In 2002, the company changed its name to Yum! Brands Inc. from Tricon Global Restaurants Inc. to reflect its expanding portfolio of brands and its ticker symbol on the New York Stock Exchange. In 2003 the company was recognized in Fortune Magazine’s top 50 “Best Companies for Minorities,” claiming the number-one spot for “managerial diversity.”


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