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January 18, 2002

FPL Group reports 2001 earnings

JUNO BEACH, Fla. -- FPL Group, Inc. (NYSE: FPL) today reported net income for 2001 of $792 million or $4.69 per share, compared with $745 million or $4.38 per share in 2000. For the fourth quarter of 2001, FPL Group's net income was $115 million or 68 cents per share compared to $106 million or 62 cents per share in 2000. The results exclude certain non-recurring expenses and the positive effects of FAS 133.

Including the non-recurring merger-related expenses and FAS 133, net income for 2001 was $781 million or $4.62 per share compared to $704 million or $4.14 per share in 2000, and for the fourth quarter, net income was $118 million or 70 cents per share compared to $65 million or 38 cents per share in 2000.

The impact of FAS 133 was an incremental $8 million of net income or four cents per share for 2001, which included $3 million or two cents per share in the fourth quarter. FAS 133 is a financial accounting standard related to derivative instruments.

"Despite a rather tumultuous year for the electric industry, FPL Group produced solid results largely driven by an increasing number of customers at Florida Power & Light and a growing power plant portfolio at FPL Energy," said Lew Hay, the chairman and chief executive officer of the company. "We remain one of the premier investor-owned electric companies in the nation, with a strong balance sheet and superior operating skills.

"The dedication of our nearly 11,000 employees to providing low-cost, reliable service in and outside of Florida continues to serve the interests of our customers as well as our shareholders."

Florida Power & Light Company

Net income for the full year of 2001 increased from $645 million or $3.79 per share to $695 million or $4.11 per share, excluding the non-recurring expenses. Fourth quarter net income for Florida Power & Light, FPL Group's principal subsidiary, grew from $92 million last year to $109 million, excluding the non-recurring expenses. The contribution to earnings per share for the fourth quarter increased from 54 cents to 65 cents. The increase was largely due to lower depreciation expense in the 2001-quarter and higher usage of electricity compared to the prior-year quarter in which there was unusually mild weather.

FPL added almost 87,000 new customers during the year, an increase of 2.3 percent from 2000. Usage per customer was essentially flat due to generally mild weather and economic pressures.

During the year, the company added 1,200 megawatts of new generation including 900 megawatts at its Fort Myers "repowering" project and 300 megawatts at its Martin County plant site. FPL's repowering projects involve the conversion of oil-fired units at the Fort Myers and Sanford plants to natural gas-fired combined cycle configuration. The Sanford repowering project will add approximately 1,100 megawatts in 2002. Repowering also reduces emissions at these sites.

Florida Power & Light announced earlier this week it will add another 1,900 megawatts of generating capacity by expanding at its existing Manatee and Martin county sites to meet future demand and reserve margin requirements. Construction is expected to begin in 2003 and be completed in 2005.

FPL Energy

FPL Energy, the independent power producer subsidiary of FPL Group, reported 2001 net income was up 27 percent, growing from $83 million or 49 cents per share contribution in 2000 to $105 million or 62 cents per share, excluding the non-recurring expenses and the positive effects of FAS 133. Net income for the fourth quarter was $10 million or six cents per share contribution compared to $9 million or five cents per share in the prior-year quarter, excluding the same items. FAS 133 added $8 million or four cents per share in 2001, including $3 million or two cents per share in the fourth quarter.

Growth in earnings for 2001 was approximately in line with growth in capacity, which expanded from 4,110 to 5,063 during the year. The additions included a 171-megawatt gas-fired peaking unit in Virginia and more than 840 megawatts in new wind energy assets in Texas, Kansas, Wisconsin, Washington and Oregon. A 495-megawatt gas-fired unit in Texas, which became fully operational in late 2000, also contributed to the earnings growth.

Projects currently under construction will add nearly 1,400 megawatts in mid- to late- 2002 and more than 2,300 megawatts in 2003. In addition, if Congress renews the production tax credit for wind energy projects in early 2002, the company expects to add 500 to 1,000 megawatts of additional wind-powered generation this year. The company has delayed two previously announced gas-fired projects totaling approximately 1,250 megawatts and currently expects to complete them in 2004 rather than 2003.

Corporate and Other

During 2001, FPL FiberNet, LLC, a subsidiary of FPL Group, continued to increase its contribution to FPL Group's earnings. It completed metropolitan fiber-optic networks in Orlando, Tampa, St. Petersburg and Jacksonville to add to its networks in Miami, Fort Lauderdale, Boca Raton and West Palm Beach. The company now has approximately 2,500 route miles of fiber. FPL FiberNet crosses the service territories of the three major local exchange carriers in Florida and can ultimately reach 2.2 million business lines. The company is connected to the NAP of the Americas and the BellSouth MIX, where Internet service providers interconnect to ease the exchange of Internet traffic.

The increase in net income and contribution to earnings per share from FPL FiberNet was more than offset by corporate expenses.

Profile

FPL Group, with annual revenues of more than $8 billion, is nationally known as a high quality, efficient, and customer-driven organization focused on energy-related products and services. With a growing presence in more than 15 states, it is widely recognized as one of the country's premier power companies. Its principal subsidiary, Florida Power & Light Company, serves approximately 3.9 million customer accounts in Florida. FPL Energy, LLC, an FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. FPL FiberNet, LLC is a leading provider of fiber-optic networks in Florida. Additional information is available on the Internet at www.fplgroup.com, www.fpl.com, www.fplenergy.com and www.fplfibernet.com.

NOTE: A Webcast of FPL Group's fourth quarter earnings conference call, scheduled at 9 a.m. ET on Friday, January 18, 2002, is available on FPL Group's Web site, www.fplgroup.com, by following the link provided.

Safe Harbor Statement: Any statements made herein about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ substantially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in FPL Group's 2000 SEC Form 10-K/A.

FPL Group, Inc. Financial Summary (in millions, except per share amounts)
	Three Months Ended December 31,
	2001	2000
Operating Revenues	$1,839	$1,857
Operating Expenses
Fuel, purchased power and interchange	783	877
Other operations and maintenance	396	349
Depreciation and amortization	252	269
Taxes other than income taxes	171	150
Total operating expenses	1,602	1,645
Other Income (Deductions)
Interest charges and preferred stock dividends	(78)	(81)
Other - net	3	13
Total other (deductions) - net	(75)	(68)
Income Taxes	47	38
Net Income excluding after-tax effect of FAS 133 and nonrecurring item	$115	$106
FAS 133	3	--
Merger-related expenses	--	(41)
Net Income	$118	$65
Earnings Per Share excluding FAS 133 and nonrecurring item (assuming dilution)	$0.68	$0.62
Earnings per share (assuming dilution)	$0.70	$0.38
Weighted-average shares outstanding (assuming dilution)	169	169
	Twelve Months Ended December 31,
	2001	2000
Operating Revenues	$8,475	$7,082
Operating Expenses
Fuel, purchased power and interchange	4,030	2,868
Other operations and maintenance	1,325	1,257
Depreciation and amortization	983	1,032
Taxes other than income taxes	710	618
Total operating expenses	7,048	5,775
Other Income (Deductions)
Interest charges and preferred stock dividends	(339)	(293)
Other - net	90	93
Total other (deductions) - net	(249)	(200)
Income Taxes	386	362
Net Income excluding after-tax effect of FAS 133 and nonrecurring item	$792	$745
FAS 133	8	--
Merger-related expenses	(19)	(41)
Net Income	$781	$704
Earnings Per Share excluding FAS 133 and nonrecurring item (assuming dilution)	$4.69	$4.38
Earnings per share (assuming dilution)	$4.62	$4.14
Weighted-average shares outstanding (assuming dilution)	169	170
FPL Group, Inc. Earnings Per Share Summary (assuming dilution)
	Three Months Ended December 31,
	2001	2000
Florida Power & Light Company	$0.65	$0.54
FPL Energy, LLC	0.06	0.05
Corporate and other	(0.03)	0.03
Earnings Per Share excluding FAS 133 and nonrecurring item	$0.68	$0.62
FAS 133	0.02	--
Merger-related expenses	--	(0.24)
	0.02	(0.24)
Earnings Per Share	$0.70	$0.38
	Twelve Months Ended December 31,
	2001	2000
Florida Power & Light Company	$4.11	$3.79
FPL Energy, LLC	0.62	0.49
Corporate and other	(0.04)	0.10
Earnings Per Share excluding FAS 133 and nonrecurring item	$4.69	$4.38
FAS 133 - FPL Energy	0.04	--
Merger-related expenses	(0.11)	(0.24)
	(0.07)	(0.24)
Earnings Per Share	$4.62	$4.14