FPL Group, Inc. today announced that Lewis Hay III has been elected president, chief executive officer and a director of the $7 billion electricity-related services company. He succeeds James L. Broadhead, who will remain as chairman through the end of the year.

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Since March 2000, Mr. Hay had been serving as president of FPL Energy, the company's independent power production company and its fastest growing business. He joined FPL Group in August 1999 as chief financial officer.

"Lew Hay has a strong and consistent record of accomplishment, and over the past two years has demonstrated the leadership and drive necessary to take our company into the future," said Mr. Broadhead. "He is fortunate to be supported by exceptional employees who, time and again, have shown their willingness and ability to improve continually. I am very confident about the future of FPL Group."

Reporting to Mr. Hay will be Paul Evanson, president of Florida Power & Light Company, FPL Group's principal subsidiary; Tony Rodriguez, senior vice president of fossil-fired power generation; and Art Stall, senior vice president of nuclear operations. Mr. Hay will continue to serve as president of FPL Energy until a replacement is named.

Profile of Mr. Hay's Career

Before joining FPL Group, Mr. Hay served as CFO of U.S. Foodservice, then a $6 billion broad-line food service distribution company. He was instrumental in significantly enhancing the performance of that company after it had spun off from Sara Lee in a leveraged buyout in 1989. Mr. Hay helped build the company through internal growth, improved operational performance and more than 20 acquisitions, and he led the process to take the company public in 1994.

Prior to joining U.S. Foodservice, Mr. Hay was a partner and senior vice president in Mercer Management Consulting, where he led the firm's strategic practice.

Mr. Hay holds a Bachelor of Science degree in electrical engineering from Lehigh University and a master's degree in business administration from Carnegie Mellon University. He is a member of the board of directors of Utilities, Inc., a Chicago-based water utility holding company.

Profile of Mr. Broadhead's Career

Mr. Broadhead was named CEO of FPL Group in 1989. Since taking the helm, he has successfully focused the company's efforts on strengthening its core business, Florida Power & Light, and expanding its energy-related operations outside of Florida through FPL Energy. In addition to divesting non-core businesses such as insurance, citrus production and real estate, Mr. Broadhead emphasized lower costs, improved quality and customer focus, and increased speed and flexibility throughout the company's operations. As a result, FPL has reduced real unit operating costs by 55 percent since 1990. The performance of its nuclear and fossil power plants now rank among the top 10 percent in the country, and its service reliability is ranked in the top 20 percent.

Since 1990, FPL Group revenues have grown from $5 billion to more than $7 billion, even as non-core businesses were divested. Both customers and shareholders have benefited from the streamlined operations and improved performance. Today, FPL customers enjoy base rates for electricity that are nearly 10 percent lower than in 1989, and FPL Group shareholders have realized total shareholder returns that are 24 percent better than the industry average over that same period.

Prior to joining FPL Group, Mr. Broadhead was president of GTE Telephone Operations and a member of GTE's board of directors. Before his association with GTE, Mr. Broadhead was president of St. Joe Minerals Corporation. He is a director of Delta Air Lines, Inc., the Pittston Company, and New York Life Insurance Company, and a Trustee Emeritus of Cornell University. He also is past president of the Foundation for the Malcolm Baldrige National Quality Award.

Company Profile

FPL Group, with annual revenues of more than $7 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, FPL Group's U.S. 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/.

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SOURCE: FPL Group, Inc.