Letter from the Chief Public
Affairs Officer

Dear Stakeholders,

Thank you for your interest in our first Corporate Responsibility Report. We hope you find it informative and useful. In the spirit of transparency, we attempted to provide you with an overview of the many areas in which we are practicing social responsibility and Serving the World.

I recognize that our accomplishments will exceed some people's expectations, while at the same time, may fall short of others. We are proud of the CR progress we have made in our first eleven years as a public company. By anyone's measure, our impact on world hunger, through our partnership with the United Nations World Food Programme and other hunger relief agencies, is something we believe is both a privilege, and a responsibility. We plan to expand our movement year over year to help wipe out hunger in impoverished parts of the world where they've never even heard of our restaurant brands. We have a longstanding commitment to give back to the communities in which we operate, too, and believe strongly in nourishing the minds, bodies and spirits of those less fortunate.

We believe our community support, with hunger relief as our primary cause, is and will increasingly become a hallmark of our great company. At the same time, we fully recognize our responsibility to be stewards of the environment, through energy savings, use of recycled materials and innovative ways to preserve our planet.

Equally important is our commitment to health and nutrition. In early 2007, both KFC and Taco Bell in the U.S. were pioneers in switching to cooking oils with zero grams trans fat per serving. Each of the company's brands around the globe already offer "Better For You" options, and are looking at ways to reduce sodium and make continuous improvements to the nutritional profile of their products. This year, we were proud to announce that we will be the first in the U.S. to voluntarily place calories on the menu boards of our company-owned restaurants, and will encourage our franchisees to do the same. This will be completed by January 1, 2011. At the same time, we will continue to make full nutritional information about our products available on our websites and in restaurant brochures.

Additionally in the United States, the Company will launch on-line exercise programs to help educate consumers about maintaining a balanced lifestyle, and voluntarily agreed to eliminate advertising on television programs specifically aimed at children under 12 years old. In China, our team has created the world's largest 3-on-3 basketball tournament, with 24,000 teams participating in 400 plus cities. We are exploring similar exercise program opportunities in other countries.

All food can be part of a healthy diet, if eaten sensibly and balanced with exercise. It's all about energy in – energy out, and a matter of personal accountability and common sense. We are committed to continue to offer "Better For You" options, educate consumers about the foods they eat, and promote exercise so they can maintain a balanced lifestyle.

We expect to publish a Corporate Responsibility Report every other year so you can measure the progress we are making on a number of fronts. While we may not be perfect in all that we do, we have set our sights on nothing short of excellence. We have a long way to go, but we're proud of all the work we've accomplished thus far and hope you will feel free to share your ideas, thoughts and perspectives with us so that we may continue to get better and better at corporate responsibility.

Thank you again for your interest in our Corporate Social Responsibility.

Best regards,

Jonathan Blum
Senior Vice President,
Chief Public Affairs Officer