Southern Company completes tender offer for Capital Securities

ATLANTA – Southern Company and its indirect wholly-owned subsidiary, Southern Company Capital Funding, Inc. (“Capital Funding”), today announced the expiration of Capital Funding’s cash tender offer for certain of the outstanding 8.19 percent Exchange Capital Securities of Southern Company Capital Trust I and 8.14 percent Exchange Capital Securities of Southern Company Capital Trust II (collectively, the “Capital Securities”). A total of $67,457,000 of aggregate liquidation amount of Capital Securities were tendered prior to midnight EST, on Jan. 11, 2006, the expiration date, and such Capital Securities were accepted for purchase by Capital Funding. The settlement of the tender offer was completed today. Accrued and unpaid interest was paid to, but not including, today’s date for all of the Capital Securities accepted for purchase by Capital Funding.

The table below shows, among other things, the classes of Capital Securities subject to the tender offer, the liquidation amount of Capital Securities outstanding prior to the tender offer, the liquidation amount of Capital Securities tendered prior to the expiration of the tender offer, the liquidation amount of Capital Securities accepted for purchase by Capital Funding and the liquidation amount remaining outstanding following the tender offer:

Title of Security Liquidation Amount Outstanding Prior to Tender Offer1 Liquidation Amount Tendered Prior to Expiration Liquidation Amount Accepted for Purchase Liquidation Amount Remaining Outstanding 8.19% Exchange Capital Securities of Southern Company Capital Trust I

$282,486,000

$60,093,000

$60,093,000

$222,393,000 8.14% Exchange Capital Securities of Southern Company Capital Trust II

$73,500,000

$7,364,000

$7,364,000

$66,136,000 1. Aggregate liquidation amount outstanding at December 12, 2005.

Citigroup Corporate and Investment Banking acted as Dealer Manager for the tender offer and Global Bondholder Services Corporation acted as Depositary and Information Agent for the tender offer.

With more than 4 million customers and more than 40,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier super-regional energy company in the Southeast and a leading U.S. producer of electricity. Southern Company owns electric utilities in four states, a growing competitive generation company and a competitive retail natural gas business, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are 15 percent below the national average. Southern Company has been ranked the nation`s top energy utility in the American Customer Satisfaction Index six years in a row. Southern Company has more than 500,000 shareholders, making its common stock one of the most widely held in the United States. Visit the Southern Company Web site at www.southerncompany.com.