October 23, 2001

FPL Group reports third quarter earnings; Earnings per share up eight percent from prior year quarter

JUNO BEACH, Fla. -- FPL Group, Inc. (NYSE: FPL) 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.

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, 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 www.fplgroup.com, www.fpl.com and www.fplenergy.com.

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