In producing coke, = The Facts About The Coca-Cola Company in India = The Coca-Cola operation in India has been the subject of a variety of false allegations. We appreciate your interest in learning the facts about our business in India. Our Operations: The Coca-Cola system in India includes 24 company-owned bottling operations and another 25 franchisee-owned bottling operations. During the past decade, The Coca-Cola Company has invested more than U.S. $1 billion in India, making us one of India's top international investors. Almost all the goods and services required to produce and market Coca-Cola are made in India. The Coca-Cola Company employs approximately 6,000 local people in India; indirectly, our business in India creates employment for more than 150,000 people. Water Resources:Overview The beverage industry is responsible for less than one-half of one percent of total water usage in India, making it one of the most efficient users of water in the country. A typical Coca-Cola plant uses just two or three bore wells for its water needs and extracts that water with pumps of a similar capacity as those used by other industries and farmers in the same community. Some areas of India - a country that is home to 17 percent of the world's population but only 4 percent of its freshwater resources - have been experiencing drought conditions for several years. The Coca-Cola Company shares the concerns of local communities about groundwater reserves, and has initiated a number of specific programs to improve year-round access to clean water in communities across the nation. Rainwater Harvesting * We have installed 300 rainwater harvesting structures spread across 17 states, including locations at schools and farms. Community Reservoir Reclamation * Working at the local level we have helped to restore centuries-old bawaris - or community reservoirs - that had fallen into disrepair. The projects have included active community involvement to remove silt, rubble and algae, and to rebuild the bawari's traditional, sustainable infrastructure. The restored bawaris provide fresh water to thousands of families in surrounding communities, and have served as the focal point for community education campaigns around water conservation. Dam Reconstruction * In one of the driest parts of the State of Andrha Padesh, we have worked to reconstruct a dam and reclaim a water storage area that had been rendered useless by silt. Some 16,000 people live in the nearby village and had faced shortages of irrigation and drinking water. The new reservoir - built on a site that was scientifically selected based on its ability to gather and store water - can now hold enough water to irrigate 1000 acres of cropland. Restoring Access to Water The Coca-Cola Company has a special interest in water: we are a hydration company. Every product we sell contains water. Without water, we have no business and it is in the long-term interest of our company to be good stewards of our most critical ingredient. We are committed to helping protect and preserve this resource in all the communities where we operate throughout the world. In India, in one of the driest parts of the State of Andrha Padesh, we have worked to reconstruct a dam and reclaim a water storage area that had been rendered useless by silt. Some 16,000 people live in the nearby village and had faced shortages of irrigation and drinking water. Using updated, more reliable watershed mapping information gathered by The Coca-Cola Company, the reservoir that the dam feeds was moved. The new location was build on a site that was scientifically selected based on its ability to efficiently and effectively gather and store water. The storage area now holds 24,000 cubic meters of water, is a direct source of clean water for 80 families, has recharged several community borewells that serve thousands more, and provides irrigation for some 1000 acres of local cropland. We have also installed rainwater harvesting systems in 28 of our plants and in 10 communities. The collected water is used for plant functions, as well as for recharging aquifers. For example, in Kerala, we harvested 150,000 cubic meters of rain water in 2003, which is equivalent to approximately 50 percent of our annual water usage. Work is underway to equip every one of our India bottling plants with rooftop rainwater harvesting capabilities, which will recycle millions of additional gallons of water each year. The Coca-Cola Company in India has been recognized for its community programs and environmental practices by prominent global organizations such as the Red Cross and has won a number of prestigious Indian environmental awards. Scientific Analysis and Government Findings Coca-Cola India has complied and continues to comply with all Federal and State laws and regulations in India. In October 2002, Dr. R.N. Athvale, Emeritus scientist at the National Geophysical Research Institute in Hyderabad, India studied The Coca-Cola Company's bottling plant in Kerala and concluded: "There is no field evidence of overexploitation of the groundwater reserves in the plant area." He added that any aquifer depletion cannot be attributed to the water extraction in the plant area. A report from the local Palakkad District Environmental Protection Council and Guidance Society in June 2002 concluded: "We declare that there is no environment harassment to the public by the factory at any level." Within approximately five kilometers of the Kerala plant there are about 200 open shallow wells; Coca-Cola uses only two open shallow wells within the plant. In the same area there are nearly 150 bore wells. There are only six bore wells within our plant and the Coca-Cola plant uses no more than three bore wells at any one time. In Kerala, where groundwater levels have decreased, the rainfall has been well below average for several years. The Kerala State Groundwater Department has said that any depletion in groundwater was due to poor rainfall and not the plant. The Central Groundwater Authorities have also confirmed there were no abnormal changes in groundwater levels around the plant that can be attributed to the Coca-Cola operation. State Government figures have confirmed that in some areas (including Kaladera in Rajasthan), since a Coca-Cola plant has been built groundwater levels have shown lower levels of depletion than other areas, and in some areas (including Varanassi in UP) water levels have actually risen since the plants were built. We believe this is due, in part, to the rainwater harvesting technology employed at these plants. Bio-Solids: The use of 'sludge,' or bio-solids -- the end result of the waste water and water treatment processes that are part of producing our beverages -- as a soil amendment is a common practice around the world and within the Coca-Cola System, including in the U.S. (Soil amendments are matters that, when added to the land, will make the soil healthier by balancing and adding nutrients, balancing the pH or acidity, and encouraging the presence of microorganisms.) Worldwide, Coca-Cola requires all of our plants to monitor generation, composition and management of the bio-solids that are a byproduct of our manufacturing operations. A Company-wide bio-solids standard issued in 2003 governs the handling and disposal of bio-solids worldwide in order to ensure responsible environmental performance. We are also working with the Indian Central Government to ensure that the issue of a uniform and consistent national regulatory framework is given the full review it deserves. The Kerala State Pollution Control Board, which conducted a detailed study, inspecting samples of sludge, well water, treated water and soil, concluded that the concentration of cadmium and other heavy metals in the bio-solids are below prescribed limits and, therefore, are not considered hazardous. Pesticides: Testing for pesticides in finished soft drinks is complex and often produces unreliable and unrepeatable results. For this reason, The Coca-Cola Company thoroughly treats and tests each of the separate ingredients of its soft drinks before they are combined to make a finished soft drink. This is an accurate and reliable way to ensure our soft drinks remain safe. Technology to test finished soft drinks for pesticides is evolving, however, and The Coca-Cola Company is currently sponsoring research at one of the world's leading laboratories - Central Science Laboratories in the United Kingdom - to develop the appropriate technology and robust protocols with the objective that will enable finished soft drinks to be tested for pesticide content in the future. Product Quality: Throughout all of our operations in India, stringent quality monitoring takes place covering both the source water we use as well as our finished product. All of the water used for beverage manufacturing conforms to drinking water standards, making it safe and ensuring that it meets the highest international standards, including BIS and EU standards for drinking water. We also test for traces of pesticide in groundwater to the level of parts per billion. This is equivalent to one drop in a billion drops. The Coca-Cola Company takes great pride in the fact that we take every precaution to ensure that our products are world-class and safe for all our consumers.

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