• Earnings per share on a currency neutral basis of $0.40 before non-recurring items; previously announced accounting change (SFAS No. 142) contributed to a reported loss of $0.05 per share.
  
• Worldwide volume increased more than 5 percent.
  
• Cash flow from operations of over $950 million and free cash flow of over $800 million in the quarter.
  

ATLANTA, April 16, 2002 - The Coca-Cola Company today reported currency neutral earnings per share before non-recurring items of $0.40, compared with year-ago earnings per share of $0.36 (adjusted for SFAS No. 142). However, as a result of the previously announced application of a new accounting standard, as well as other non-recurring items, the Company reported a net loss per share for the first quarter of $0.05.

Worldwide unit case volume increased more than 5 percent in the quarter, driven by growth of over 5 percent in International operations and 5 percent growth in North America. Key markets of Japan, Mexico, Germany and the United States all delivered 5 percent or greater volume growth. The macroeconomic conditions within Latin America affected important markets in the region, but the Company continues to work to minimize the adverse impact on its business.

Doug Daft, chairman and chief executive officer, said, "We are encouraged by this good, solid quarter of performance in the face of a continuing challenging global economic environment. The execution of our strategic priorities is driving healthy growth from both our carbonated and non-carbonated brands."

Innovation drove volume across all key beverage categories. Carbonated soft drinks contributed the most growth to the Company throughout the quarter, growing at 3 percent. The Company also strengthened its position as the leading marketer of non-carbonated beverages in the world, with 22 percent growth during the quarter.

Outlook

The Company stated that while it expects the difficult economic environment to continue in many regions, its outlook for full year volume remains unchanged and it remains comfortable with the range of analysts' earnings estimates for the full year. The Company also expects an additional benefit of approximately $0.01 per share related to a slightly lower tax rate resulting from the reduced amortization expense from the implementation of SFAS No. 142.

Because of the importance of focusing on all key performance metrics, the Company will include balance sheet and cash flow statements as part of the Company's earnings release beginning in the second quarter. Therefore, the Company will also discontinue the practice of regularly issuing a "volume update" in advance of final quarterly results.

Financial Highlights

Non-recurring items in the quarter included a non-cash charge primarily related to investments in Latin America caused by the economic crisis in Argentina, a gain from the sale of Kaiser in Brazil, and the implementation of a new accounting standard. The effect of these items and currency is summarized as follows:

The Company continued to generate healthy cash from operations of over $950 million in the quarter, an increase of nearly 35 percent compared with the year-ago quarter. Reflecting the strong cash flow trends and return characteristics, the Company repurchased $175 million of common stock during the quarter under its existing share repurchase program.

Operational Highlights

North America

• Growth of 5 percent was led by 6 percent growth in the North America bottle/can business, benefiting from strong growth in both carbonated and non-carbonated beverages.
  
• Gained market share within all major beverage categories:
  • Carbonated soft drink share gains were led by 3 percent growth in Trademark Coca-Cola, benefiting from strong performance by both Coca-Cola Classic and diet Coke.
    
  • Share gains in the water category continued with nearly 60 percent growth from Dasani.
    
  • Share gains in the sports drink category continued with 20 percent growth from Powerade.
    
  • Share gains in the juice/juice drink category led by the success of Minute Maid Lemonade, Simply Orange and the Disney juice products.

• Unit case volume was similar to the prior year, reflecting strong performance in Northern Latin America offset by the challenging economic conditions, primarily in Argentina and Venezuela.
  
• Mexico demonstrated strong growth of 5 percent, driven by Trademark Coca-Cola brands, Senzao (guarana), and Ciel (water).
  
• Volume in Brazil declined 3 percent compared to the prior year quarter, as a result of increased pricing in the market, aimed at benefiting the economics of the entire system.
  
• In Argentina, the Company was impacted by the significantly weaker economic conditions with double digit declines in volume.

Europe, Eurasia and Middle East

• Unit case volume increased 8 percent in the quarter, reflecting solid performance in all key countries in the region.
  
• Trademark Coca-Cola brands, Sprite and Fanta drove strong results in Spain and in CCE Europe Territories.
  
• Strong performance in Russia and Central and Eastern Europe.
  
• In Germany, the Company's business strategies have stabilized the operations, resulting in 6 percent growth in the first quarter.

Asia

• Unit case growth of 9 percent for the quarter driven by strong performance of the Company's business in key markets including Japan, China and India.
  
• Growth of 6 percent in Japan, led by growth in Trademark Coca-Cola brands, Marocha Green Tea and Georgia Coffee.
  
• Double-digit growth in China and India was driven by growth in carbonated soft drinks and the Company's strong local non-carbonated brands.
  
• The Philippines contributed growth in line with the rest of the Group; however, volume was impacted by a number of restructuring initiatives that will optimize long-term value for the Company and its bottling partner.

Africa

• Strong volume growth of 11 percent for the quarter.
  
• Carbonated soft drink brands led the growth, while non-carbonated brands experienced rapid growth as a foundation is being established for this portion of the business.
  
• Growth was led by Nigeria with a focus on core brands and new packaging initiatives.
  
• Growth in Southern and East Africa resulted from local marketing initiatives and new product launches.

Financial Review

Operating Results -

Revenues for the quarter increased 3 percent, reflecting 1 percent increase in gallon shipments, structural change (primarily the consolidation of the German bottler beginning February 2002) and pricing in selected countries, offset by the negative impact of currencies. On a full year basis, gallons shipments are expected to grow similar with unit case growth.

Operating income declined 2 percent in the quarter primarily as a result of the timing of concentrate shipments and the negative impact from the stronger U.S. dollar, which reduced operating income by approximately 4 percent during the quarter. The weakening of the Japanese Yen, the Argentine Peso, the Venezuelan Bolivar and the South African Rand over the prior year drove the negative currency impact.

Selling, Administrative and General Expenses increased 7 percent during the quarter on a reported basis due to structural changes related to consolidated bottling operations. Excluding these changes, Selling, Administrative and General Expenses declined slightly from the prior year.

Non-Operating Items -

First quarter results included a non-recurring cash gain of approximately $0.01 per share after tax, resulting from the sale of the Company's ownership interest in Kaiser in Brazil. Approximately half the gain was recorded in "Other Income (Loss) - Net," with the remaining portion recorded in equity income.

Equity income also improved during the year because of the reduced amortization expense resulting from the implementation of SFAS No. 142, structural change, and due to the overall improving health of the Coca-Cola bottling system around the world.

During the quarter, the Company recorded a non-cash charge of $157 million before taxes primarily related to investments in Latin America caused by the currency devaluation and economic crisis in Argentina. The Company expects to realize a minimal tax benefit from this asset write-down; therefore, the impact on diluted earnings per share is approximately $0.06 per share after tax.

The reported tax rate in the quarter was 30.4 percent as it was impacted by several of the non-recurring items referred to above. Excluding the impact of the Kaiser gain and the write down of investments referred to above, the effective tax rate on operations was 27 percent for the first quarter. Based on the final adoption of SFAS No. 142, the Company now expects its future effective tax rate on operations to be approximately 27 percent, instead of 27.5 percent discussed earlier in the year. This slight reduction in the tax rate is a non-cash benefit related solely to the adoption of the new accounting method, and will benefit the current year by approximately $0.01 per share.

After excluding the benefit of the Kaiser gain and the write down of investments referred to above, the "Other Income (Loss) - Net" line of the income statement reflects a $41 million loss for the quarter. This amount primarily relates to "Exchange Losses" resulting from the balance sheet re-measurement of receivables and other assets, primarily in Argentina and Venezuela, resulting from the recent devaluations and economic crisis.

Accounting Pronouncements

EITF No. 01-09 "Accounting for Consideration Given By a Vendor to a Customer or Reseller of the Vendor's Products" was effective for the Company beginning January 1, 2002, and it requires certain selling expenses incurred by the Company to be reclassified as deductions from revenue. In the first quarter, $520 million of payments made in 2001 to bottlers and customers which were previously classified as Selling, Administrative and General Expenses were reclassified to a reduction in net revenues in accordance with this EITF consensus. The full amount of the reclassification for the year is expected to be approximately $2.5 billion.

In June 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible Assets." Under the new rules, goodwill and indefinite lived intangible assets are no longer amortized but are reviewed annually for impairment. Separable intangible assets that do not have an indefinite life will continue to be amortized over their useful lives. The amortization provisions of SFAS No. 142 apply to goodwill and intangible assets acquired after June 30, 2001. With respect to goodwill and intangible assets acquired prior to July 1, 2001, the Company began applying the new accounting rules beginning January 1, 2002.

The required adoption of SFAS No. 142 is considered a change in accounting principle and the cumulative effect of adopting this standard resulted in a non-cash after-tax charge in the first quarter 2002 of $926 million. This amount does not affect the Company's on-going operations and represents intangible assets for both the Company and its equity affiliates. The adoption of the new accounting standard will result in a reduction in annual amortization expense of approximately $60 million, and an increase in equity income of approximately $150 million annually.

Prior Year Results

During the prior year first quarter, the Company implemented SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," and the cumulative effect of the accounting change was a one-time, non-cash charge of $10 million. The application of this new accounting standard in the first quarter 2001 decreased earnings by $16 million on a pre-tax basis.

Conference Call

The Company will host a conference call to discuss the first quarter 2002 earnings release with financial analysts on April 16, 2002 at 10:00 a.m. (EDT). The Company invites investors to listen to the live audiocast of the conference call at the Company's website, www.coca-cola.com.

The Coca-Cola Company

The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite. Through the world's largest distribution system, consumers in nearly 200 countries enjoy The Coca-Cola Company's products at a rate of more than 1 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.coca-cola.com.