FPL Group forms new telecom subsidiary to wholesale fiber optic network capacity

December 9, 1999

FPL Group, Inc. today announced it is launching a new telecommunications subsidiary to wholesale fiber optic network capacity to telephone, cable television, Internet and other telecommunications companies in Florida.

The new subsidiary will acquire an existing 1,600-mile inter-city fiber network from its sister subsidiary Florida Power & Light Company and begin independent operation Jan.1, 2000.

The existing network interconnects cities from Miami to Jacksonville on the east coast of Florida, Lake City in North Florida, and Tampa south to Naples on the west coast. FPL Group's new subsidiary plans to invest approximately $100 million in the near-term to expand the existing network within major cities throughout Florida. Expansion of the network in Miami already has been completed, and projects in Fort Lauderdale and West Palm Beach are in advanced stages of engineering.

FPL uses the fiber network primarily for intra-company telecommunications services. FPL will become a customer of the new subsidiary and enjoy the same reliable telecommunications services as in the past.

The company said it expects the new subsidiary to have revenues of between $30 million and $40 million in its first year of operation.

FPL Group (NYSE: FPL), with annual revenues of more than $6 billion, is one of the country's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light, serves 3.7 million customer accounts in Florida. FPL Energy, Inc., FPL Group's U.S. and international subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information about FPL Group and its subsidiaries is available on the Internet at www.fplgroup.com.