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FPL Group Reports Third Quarter Earnings; Earnings Per Share Up Eight Percent From Prior Year Quarter

PRNewswire
JUNO BEACH, Fla.
Oct 23, 2001

FPL Group, Inc. today reported third quarter net income of $334 million compared to $314 million in the third quarter of 2000. Earnings per share rose eight percent to $1.98 a share from $1.84 in the prior year.

(Photo: http://www.newscom.com/cgi-bin/prnh/20010621/FPLLOGO )

For the nine months ended Sept. 30, FPL Group's net income was $678 million, or $4.02 a share, excluding a non-recurring merger-related charge in the first quarter as well as the positive effects of FAS 133, which is a financial accounting standard related to derivative instruments. Net income for the same period in 2000 was $639 million or $3.75 a share.

"FPL Group had a strong third quarter, and we are on track for meeting our 2001 target. Overall we are confident we can achieve seven percent growth in earnings per share this year," said Lew Hay, president and chief executive officer.

Net income for FPL Group's principal subsidiary, Florida Power & Light Company, grew to $290 million from $275 million in the third quarter. The utility's contribution to earnings per share increased seven percent to $1.72 from $1.61. For the first nine months, the contribution to earnings per share rose seven percent to $3.47 a share from $3.24, excluding merger-related expenses.

FPL added 1,200 megawatts of new generation this summer by beginning operation of a 300-megawatt peaking unit at the Martin plant and adding 900 megawatts as part of the repowering project at Fort Myers. The additions helped FPL meet a new peak demand of 18,754 megawatts earlier this summer and achieve a 20 percent reserve margin.

FPL Energy, LLC, the independent power production subsidiary of FPL Group, contributed 26 cents a share to earnings in the third quarter, up from 19 cents a share last year, a 37 percent increase. The contribution to earnings rose to 57 cents a share from 43 cents in the first nine months of the year, excluding a non-recurring merger-related charge as well as the effects of FAS 133.

The main driver of FPL Energy's earnings growth was capacity additions. In this year's third quarter, 856 more megawatts were in service compared with the same period last year. Project additions include a 495-net-megawatt gas- fired unit at the Lamar facility in Texas, a 171-megawatt peaking unit at the Doswell facility in Virginia and new wind projects that became fully operational in the third quarter, including 160 megawatts at Woodward Mountain in Texas and 30 megawatts at Montfort, Wisconsin. FPL Energy is the nation's largest wind-powered generator of electricity.

Corporate and other expenses were up compared to the prior-year quarter largely due to higher interest expense. These higher expenses were partially offset by increased earnings from FPL FiberNet.

(A webcast of FPL Group's third quarter earnings conference call, scheduled at 9 a.m. ET on Tuesday, October 23, 2001, is available on FPL Group's Web site, http://www.fplgroup.com/, by following the link provided.)

FPL Group, with annual revenues of more than $8 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company, serves approximately 3.9 million customer accounts in Florida. FPL Energy, LLC, a FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at http://www.fplgroup.com/, http://www.fpl.com/ and http://www.fplenergy.com/.

                               FPL Group, Inc.
                              Financial Summary
                   (in millions, except per share amounts)

                                           Three Months Ended September 30,
                                                   2001              2000

  Operating Revenues                              $2,529            $2,087

  Operating Expenses
       Fuel, purchased power and
        interchange                                1,242               845
       Other operations and maintenance              306               314
       Depreciation and amortization                 246               237
       Taxes other than income taxes                 195               180
              Total operating expenses             1,989             1,576

  Other Income (Deductions)
       Interest charges and preferred
        stock dividends                              (87)              (78)
       Other - net                                    46                46
               Total other (deductions)
                - net                                (41)              (32)

  Income Taxes                                       165               165

  Net Income excluding after-tax effect
   of FAS 133                                       $334              $314

       FAS 133                                       ---               ---

  Net Income                                        $334              $314

  Earnings Per Share excluding FAS 133
   (assuming dilution)                             $1.98             $1.84
  Earnings per share (assuming
   dilution)                                       $1.98             $1.84
  Weighted-average shares outstanding
   (assuming dilution)                               169               171



                                             Nine Months Ended September 30,
                                                   2001              2000

  Operating Revenues                              $6,636            $5,225

  Operating Expenses
       Fuel, purchased power and
        interchange                                3,247             1,992
       Other operations and maintenance              929               907
       Depreciation and amortization                 732               763
       Taxes other than income taxes                 538               469
              Total operating expenses             5,446             4,131

  Other Income (Deductions)
       Interest charges and preferred
        stock dividends                             (261)             (212)
       Other - net                                    89                80
               Total other (deductions)
                - net                               (172)             (132)

  Income Taxes                                       340               323

  Net Income excluding after-tax effect
   of FAS 133 and nonrecurring items                $678              $639

           FAS 133                                     4               ---
           Merger-related expenses                   (19)              ---

  Net Income                                        $663              $639

  Earnings Per Share excluding FAS 133
   And nonrecurring items (assuming
    dilution)                                      $4.02             $3.75
  Earnings per share (assuming
   dilution)                                       $3.93             $3.75
  Weighted-average shares outstanding
   (assuming dilution)                               169               171

                             FPL Group, Inc.
                            Financial Summary
                      (in millions, except per share
                                 amounts)

                                           Twelve Months Ended September 30,
                                                   2001              2000

  Operating Revenues                              $8,493            $6,744

  Operating Expenses
       Fuel, purchased power and
        interchange                                4,124             2,569
       Other operations and maintenance            1,278             1,250
       Depreciation and amortization               1,001             1,034
       Taxes other than income taxes                 687               621
              Total operating expenses             7,090             5,474

  Other Income (Deductions)
       Interest charges and preferred
        stock dividends                             (342)             (275)
       Other - net                                   101                81
              Total other (deductions)
               - net                                (241)             (194)

  Income Taxes                                       378               340

  Net Income excluding after-tax effect
   of FAS 133 and nonrecurring items                $784              $736

           FAS 133                                     4               ---
           Merger-related expenses                   (60)              ---
           Redemption of interest in
            cable limited partnership                ---                66
           Litigation settlement                     ---               (42)

  Net Income                                        $728              $760

  Earnings Per Share excluding FAS 133
   And nonrecurring items
    (assuming dilution)                            $4.64             $4.31
  Earnings per share (assuming
   dilution)                                       $4.31             $4.45
  Weighted-average shares outstanding
   (assuming dilution)                               169               171

                             FPL Group, Inc.
                        Earnings Per Share Summary
                           (assuming dilution)


                                            Three Months Ended September 30,
                                                    2001              2000

  Florida Power & Light Company                    $1.72             $1.61
  FPL Energy, LLC                                   0.26              0.19
  Corporate and other                                ---              0.04

  Earnings Per Share excluding FAS 133             $1.98             $1.84

     FAS 133                                         ---               ---

  Earnings Per Share                               $1.98             $1.84



                                             Nine Months Ended September 30,
                                                    2001              2000

  Florida Power & Light Company                    $3.47             $3.24
  FPL Energy, LLC                                   0.57              0.43
  Corporate and other                              (0.02)             0.08

  Earnings Per Share excluding FAS 133
   And nonrecurring items                          $4.02             $3.75

     FAS 133 - FPL Energy                           0.02               ---
     Merger-related expenses                       (0.11)              ---
                                                   (0.09)              ---

  Earnings Per Share                               $3.93             $3.75



                                           Twelve Months Ended September 30,
                                                    2001              2000

  Florida Power & Light Company                    $4.01             $3.75
  FPL Energy, LLC                                   0.62              0.46
  Corporate and other                               0.01              0.10

  Earnings Per Share excluding FAS 133
   And nonrecurring items                          $4.64             $4.31

     FAS 133 - FPL Energy                           0.02               ---
     Merger-related expenses                       (0.35)              ---
     Redemption of interest in cable
      limited partnership - Corporate and
       Other                                         ---              0.39
     Litigation settlement - FPL                     ---             (0.25)
                                                   (0.33)             0.14

  Earnings Per Share                               $4.31             $4.45

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SOURCE: FPL Group, Inc.

Contact: Corporate Communications Media Line of FPL, +1-305-552-3888



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