At a meeting held on July 26, 2002, the Board of Directors of Alabama Power Company declared the regular quarterly dividends on the company's outstanding preferred stock as follows:

                             Preferred Stock
                             ($100 Par Value)
                         4.20% - $1.05 per share
                         4.52% - $1.13 per share
                         4.60% - $1.15 per share
                         4.64% - $1.16 per share
                         4.72% - $1.18 per share
                         4.92% - $1.23 per share


                         Class A Preferred Stock
                           ($25 Capital Value)
                         5.20% - $.325 per share
                         5.83% - $.3644 per share

These dividends are for the quarter ending September 30, 2002, payable October 1, 2002, to stockholders of record on September 16, 2002.

               Auction Class A Preferred Stock, 1988 Series
                           ($100 Capital Value)

In addition, the Board of Directors declared dividends for the Auction Class A preferred stock (1988 Series) at an annual rate to be determined in accordance with the Auction procedures as set forth in the amendment to the Charter dated November 18, 1988, as further amended on November 21, 2001, for the dividend period beginning June 18, 2002, which is payable on August 6, 2002, to stockholders of record on August 5, 2002; and for the dividend period beginning August 6, 2002, that is payable on September 24, 2002, to stockholders of record on September 23, 2002.

               Auction Class A Preferred Stock, 1993 Series
                           ($100 Capital Value)

In addition, the Board of Directors declared dividends for the Auction Class A preferred stock (1993 Series) at an annual rate to be determined in accordance with the Auction procedures as set forth in the amendment to the Charter dated October 27, 1993, as further amended on November 21, 2001, for the dividend period beginning June 12, 2002, which is payable on July 31, 2002, to stockholders of record on July 30, 2002; and for the dividend period beginning July 31, 2002, that is payable on September 18, 2002, to stockholders of record on September 17, 2002.

Alabama Power, a subsidiary of Atlanta based Southern Company , is an investor-owned electric utility serving more than 1.3 million customers in the southern two-thirds of Alabama.

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SOURCE: Alabama Power Company