Alabama Power Company Announces Planned Sale of Senior Notes

Alabama Power Company has entered into an agreement with a group of underwriters led by Morgan Stanley and Wachovia Securities for the issuance of $200,000,000 aggregate principal amount of Series V 5.60% Senior Notes due March 15, 2033, according to William B. Hutchins, III, chief financial officer and treasurer.

The proceeds from the sale of the notes will be used for the full redemption of the company’s Series C 7% Senior Notes (Cusip #: 010392629, NYSE Symbol: ABJ) due March 31, 2048 (“Series C Senior Notes”) currently outstanding in the aggregate principal amount of $190,000,000 and for other general corporate purposes.

Holders of the Series C Senior Notes to be redeemed will receive a notice of redemption at least 30 days prior to the redemption date. Redemption of Series C Senior Notes is contingent upon the closing of the sale of the Series V 5.60% Senior Notes. The expected date for closing is on or about March 14, 2003.

Alabama Power, a subsidiary of Atlanta-based Southern Company , provides reliable, affordable electricity to more than 1.3 million customers across the state.

SOURCE: Alabama Power Company