Alabama Power Company has entered into an agreement with a group of underwriters led by Morgan Stanley & Co. Incorporated for the issuance of $200,000,000 of Senior Notes, 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 A 7-1/8% Senior Notes (Cusip #: 010392645) due December 1, 2047 ("Series A Senior Notes") currently outstanding in the aggregate principal amount of $193,800,000, and for other general corporate purposes.

Holders of the Series A Senior Notes to be redeemed will receive a notice of redemption at least 30 days prior to the redemption date. Redemption of Series A Senior Notes is contingent upon the closing of the sale of the new notes. The expected date for closing is on or about December 12, 2002.

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

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SOURCE: Alabama Power Company