Gale Klappa – Executive Vice President and Chief Financial Officer First, investors should know that we are in compliance with the stricter federal reporting guidelines that took effect last year. More important, if you look at the com- pany’s history, you’ll see that Southern Company has made every effort to ensure that our accounting prac- tices and disclosures reflect the form and substance  of our business. Another fact to consider is our track record of paying dividends every quarter since 1948. Real cash dividends speak volumes about the sound- ness of a company’s numbers. Over time, you can’t fake a dividend. Either you have the cash or you don’t.  Our earnings guidance is $1.84 per share. This is consis- tent with our belief that we can grow our earnings from normal operations at about 5 percent per year. Underlying that target is an assumption that we will see no mean- ingful pickup in industrial demand for electricity this year and that we will continue to have customer growth along the lines of what we’ve seen in recent years.  We’re looking for our products and services business  to earn $35 million a year by 2004. We previously announced a goal of $50 million a year, which was truly a stretch goal, to focus management attention on the importance of this segment. But our financial plans have always assumed a $35 million contribution to earnings in 2004. When you look at our full range of products and services – such as retail natural gas, outdoor lighting in Georgia, appliance sales in Alabama, and wireless communications – we believe we’re on the right track.  Part of management’s job is to continually look at opportunities to grow the business, so we regularly assess a range of possibilities, including entire compa- nies as well as individual assets. We have had, and will continue to follow, very strict guidelines concerning mergers and acquisitions. We are only interested in assets or companies that would add to earnings quickly, would fit our stated strategy, and would add to our long-term earnings growth rate. There are a number of reasons why we were able to beat expectations in 2002 despite continued economic weakness in the industrial sector of the Southeast. One is the underlying growth in the region. We continue to see people and businesses moving here and expanding our customer base. Favorable weather was also a posi- tive factor. In addition, our earnings benefited from a strong balance sheet and a solid “A” credit rating. This credit rating allows us to take advantage of interest rates that have been at 40-year lows. Another factor  is the success of our competitive generation business, which is producing earnings ahead of target. This gives the company a healthy growth component and a boost to our overall earnings.  We strongly believe dividends are an essential com- ponent of the total return package that we offer to investors. That’s why we were pleased to increase the dividend last year by an annual rate of 3 cents per share, or 2.2 percent. Our goal for the foreseeable future is to raise the dividend, if possible, each year at about half the rate of our earnings-per-share growth. We are com- mitted to delivering earnings and dividend growth.  A Conversation With Gale Klappa What were the main factors affecting Southern Company’s strong financial performance in 2002?  Will there be another increase in the dividend? Can investors have confidence in Southern Company’s financial reporting?  What is the company’s earnings target for 2003?  Can you evaluate the financial performance of the  products and services business?  Are mergers or acquisitions planned?  10 SO 2OO2 total return. “WE BELIEVE THAT OVER TIME OUR CONSERVATIVE APPROACH REWARDS INVESTORS. OVER THE PAST  10 YEARS, OUR TOTAL SHAREHOLDER RETURN, INCLUDING REINVESTED DIVIDENDS, HAS AVERAGED MORE THAN 15 PERCENT A YEAR. THAT’S AN OUTSTANDING PERFORMANCE, IN BOTH GOOD MARKETS AND BAD.” 