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Yum! Brands Reports Latest Global Sales Results

LOUISVILLE, Ky.--(BUSINESS WIRE)--March 2, 2006--Yum! Brands Inc. (NYSE: YUM) today reported Period 2, 2006, system sales for its International Division increased 4% prior to foreign currency conversion or flat after conversion to U.S. dollars; U.S. blended same-store sales at company restaurants increased 4%, and actual Period 2 (January) sales for the China Division grew +25%, better than our previously reported estimate of +22%.

First-quarter system-sales growth for the China Division is estimated at +14% on a local currency basis, versus +26% last year, better than the company's prior forecast released February 6, 2006. The first quarter for the China Division includes the months of January and February. The company also announced preliminary China Division system-sales growth of +4% on a local currency basis for the month of February. Timing of the Chinese New Year, which started January 29, 2006, versus February 13, 2005, negatively impacted February sales in 2006.

U.S. Company SAME-STORE-Sales Growth (Estimated)

                   Period 2, 2006    Period 2, 2005
                  ----------------  ----------------
U.S. BLENDED                   +4%               +4%
Taco Bell                      +7%               +7%
Pizza Hut                      +1%               +2%
KFC                            +5%               +3%

Yum! Restaurants International Division SYSTEM-Sales Growth

                                     2006                  2005
                                Local Currency        Local Currency
                              ------------------    ------------------
Period 2                                     +4%                   +6%
Quarter 1 to Date                            +5%                   +7%

Including the negative impact of foreign currency conversion, reported international system sales in U.S. dollars for Period 2 were flat and increased 2% for the first quarter to date.

2006 Period 2 End Dates
International Division      1/30/2006
China Division              1/31/2006
U.S. Business               2/25/2006

2006 Period 3 End Dates
International Division      2/27/2006
China Division              2/28/2006
U.S. Business               3/25/2006

Period 3 2006 Sales Release

Sales results for Period 3 (the four-week period ending March 25, 2006, for the U.S. businesses) are scheduled to be released after the market's close Thursday, March 30, 2006. Historical sales results for each of our divisions are available in spreadsheet format at

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. Accordingly, you are cautioned not to place undue reliance on forward-looking statements. Factors that can cause actual results to differ materially include, but are not limited to, 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 or perceptions concerning the products of the company and/or our competitors, spending patterns and demographic trends; the impact that any widespread illness or general health concern may have on our business and the economy of the countries in which we operate; the effectiveness of our operating initiatives and marketing, advertising and promotional efforts; new-product and concept development by Yum! Brands and other food-industry competitors; the success of our strategies for refranchising and international development and operations; the ongoing business viability of our franchise and license operators; our ability to secure distribution to our restaurants at competitive rates and to ensure adequate supplies of restaurant products and equipment in our stores; unexpected disruptions in our supply chain; publicity that may impact our business and/or industry; severe weather conditions; effects and outcomes of pending or future legal claims involving the company; changes in effective tax rates; our actuarially determined casualty loss estimates; new legislation and governmental regulations or changes in legislation and regulations and the consequent impact on our business; 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! Brands Inc., based in Louisville, Kentucky, is the world's largest restaurant company in terms of system restaurants with over 34,000 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 3,200 multibrand restaurants. Outside the United States in 2005, 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. For the past three years, the company has been recognized as one of Fortune Magazine's "Top 50 Employers for Minorities." It also has been recognized as one of the "Top 50 Employers for Women" by Fortune, one of the "Top 30 Best Companies for Diversity" by Black Enterprise Magazine, one of the "Corporate 100 Companies Providing Opportunities for Hispanics" by Hispanic Magazine and by BusinessWeek as one of the "Top 15 Companies for In-Kind Corporate Philanthropy."

CONTACT: Yum! Brands Inc., Louisville
Tim Jerzyk, VP Investor Relations, 888-298-6986
Amy Sherwood, VP Public Relations, 502-874-8200

SOURCE: Yum! Brands Inc.