Alabama Power Company Announces Planned Sale of Preferred Securities
PRNewswire
BIRMINGHAM, Ala.

Alabama Power Company has entered into agreements with a group of underwriters led by Lehman Brothers for the issuance of preferred securities of Alabama Power Capital Trusts IV and V, according to William B. Hutchins, III, Chief Financial Officer and Treasurer. The securities will be issued as follows:

                                                     Initial
                                  Initial Fixed   Distribution    Maturity
  Trust                Amount      Rate Period       Rate           Date
  Alabama Power
  Capital Trust IV   $100,000,000    5 years         4.75%        10/01/2042

  Alabama Power
  Capital Trust V    $200,000,000    7 years         5.50%        10/01/2042

The proceeds from the sale of the securities will be applied to the full redemption of the following outstanding securities at par plus accrued distributions:

                                    Distribution    Maturity
  Trust                   Amount       Rate           Date
  Alabama Power
  Capital Trust I      $97,000,000    7.375%      03/31/2026

  Alabama Power
  Capital Trust II    $200,000,000    7.60%       12/31/2036

Holders of the preferred securities to be redeemed will receive a notice of redemption at least 30 days prior to the redemption date. Redemption of the 7.375% and 7.60% preferred securities is contingent upon the closing of the sale of the new preferred securities. The expected date for closing is on or about October 2, 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

CONTACT: Sandi G. Robinson of Alabama Power Company, +1-205-257-4155