Alabama Power Company today closed the sale of $250,000,000 principal amount of its Series T 5.70% Senior Notes due February 15, 2033, and $170,000,000 principal amount of its Series U 2.65% Senior Notes due February 15, 2006, 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 B 7% Senior Quarterly Interest Notes (Cusip #: 010392637) due December 31, 2047 currently outstanding in the aggregate principal amount of $200,000,000 on or about March 21, 2003 at a redemption price of 100% of the principal amount thereof plus accrued interest, and for the full repayment at maturity of the Company's Series O Floating Rate Senior Notes (Cusip #: 010392DU9) due March 3, 2003 currently outstanding in aggregate principal amount of $167,000,000 and for other general corporate purpose, including the Company's continuous construction program.

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