Alabama Power Company has entered into an agreement with a group of underwriters led by Lehman Brothers for the issuance of $125,000,000 of Flexible Money Market Class A Preferred Stock (2003A Series), according to William B. Hutchins, III, chief financial officer and treasurer. The dividend rate on the new Stock will be 4.95% until the end of the initial dividend period on December 31, 2007.

The proceeds from the sale of the new Stock will be used by the Company to repay a portion of its outstanding short-term indebtedness and for other general corporate purposes, including the Company's continuous construction program. The expected date for closing is on or about February 12, 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