• Reported earnings per share of $0.52 for the second quarter, which included a negative impact of $0.02 per share from foreign currencies.
  
  
• The Company generated $2.2 billion cash flow from operations on a year-to-date basis.
  
  
• Worldwide unit case volume grew 5 percent in the second quarter and 5 percent for the first six months of the year.
  

ATLANTA, July 17, 2002 - The Coca-Cola Company today reported second quarter earnings per share of $0.52, which included a negative impact of $0.02 per share from foreign currencies. Prior year second quarter earnings per share were $0.45 on a reported basis and $0.46 when adjusted for SFAS No. 142. In addition, the prior year second quarter earnings per share included $0.02 per share of incremental marketing.

Worldwide unit case volume increased 5 percent in the quarter and 5 percent for the first six months. Year-to-date unit case growth reflects an increase of 5 percent in International operations and 4 percent in North America. The carbonated soft drink category contributed the most growth to the Company on a year-to-date basis, growing at over 2 percent. The Company also strengthened its position as the leading marketer of non-carbonated beverages in the world, with 25 percent growth during the first six months.

The Company stated that while it expects the difficult economic environment to continue in many regions, it remains comfortable with the range of analysts' earnings estimates for the full year and its outlook for full year volume remains unchanged.

Doug Daft, chairman and chief executive officer, said, "These results are satisfactory, especially in light of the current economic climate. We will continue working to achieve superior value for our shareowners by delivering strong brands to consumers worldwide.

"Our results include solid growth in our core brands, new brands and the volume contributions of strategic acquisitions, validating our ongoing approach of adding brands to our business that have attractive and profitable growth potential."

Financial Highlights

Second Quarter -

• Second quarter earnings per share of $0.52 on a reported basis.
  
• Earnings per share for the second quarter included a negative impact of $0.02 per share from foreign currencies.
  
• No non-recurring items occurred in the second quarter of this year.
  

• Six month earnings per share of $0.47 on a reported basis.
  
• Before non-recurring items and the impact of currencies, earnings per share were $0.94 (includes $0.05 per share of negative currency).
  
• Cash from operations of $2.2 billion on a year-to-date basis.
  
• Return on Capital of 26 percent for the first six months of the year.
  
• The Company repurchased 5.9 million shares of common stock during the first six months under its existing share repurchase program.
  
• Year-to-date results included several non-recurring items previously reported in the first quarter. These items 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 on the year-to-date results is summarized as follows:

Operational Highlights

North America

• Growth of 4 percent for the quarter and 4 percent on a year-to-date basis, led by strong growth in both carbonated and non-carbonated beverages.
  
• The first six months reflected a gain in share of sales within all major beverage categories:
  • Carbonated soft drink share gains were led by 2 percent growth in Trademark Coca-Cola during the quarter and 2 percent on a year-to-date basis.
    
  • Share gains in the water category continued with Dasani growth of 40 percent in the quarter and 47 percent in the first six months.
    
  • Share gains in the sports drink category continued with PowerAde growth of 9 percent in the quarter and 13 percent in the first six months.
    
  • Share gains in the juice/juice drink category led by the continued success of Minute Maid Lemonade, Simply Orange and the Disney juice products. The Minute Maid Company's volume grew at double digit rates in the quarter and on a year-to-date basis.
• The Company recently completed several strategic transactions involving Seagram's Mixers and water brands in the United States. The Seagram's transaction closed in June and had a minimal impact on the Company's volume and earnings in the second quarter. The transactions related to Evian and the Danone water brands are expected to begin contributing to results in the third quarter.

• Unit case volume increased 1 percent in the quarter and slightly in the first six months versus the prior year, reflecting strong performance in Northern Latin America offset by the challenging economic conditions, primarily in Argentina and Venezuela.
  
• Mexico continued to demonstrate strong growth of 5 percent in the quarter and 5 percent for the first six months, driven by Trademark Coca-Cola, Ciel (water), and PowerAde.
  
• Volume in Brazil increased 4 percent in the second quarter and 1 percent for the first six months. Trademark Coca-Cola, Fanta and Kuat led growth in the second quarter.
  
• In Argentina, the Company continues to be impacted by the weak and volatile economic conditions with double-digit declines in volume.

Europe, Eurasia and Middle East

• Unit case volume increased 3 percent in the quarter and 6 percent for the first six months, driven by solid performance across the region, including Western Europe, Spain, Turkey and Russia.
  
• Trademark Coca-Cola, Fanta and the Company's local water brands drove double-digit growth in both Russia and Turkey in the quarter and on a year-to-date basis.
  
• In Germany, the Company's business strategies have stabilized the operations. Unit case volume in Germany increased 3 percent in the quarter and 5 percent for the first six months benefiting from solid performance from Trademark Coca-Cola, the introduction of PowerAde and the acquisition of several regional water brands.

Asia

• Unit case growth of 14 percent for the quarter and 12 percent for the first six months, driven by strong performance of the Company's business in key markets including Japan, China, India and the Philippines.
  
• Second quarter growth of 3 percent and year-to-date growth of 4 percent in Japan, led by Georgia Coffee, Aquarius, and Disney juices.
  
• Double-digit growth in China and India was driven by growth in all key carbonated soft drink brands and the Company's strong local non-carbonated brands.
  
• Unit case volume in the Philippines benefited from the inclusion of brands acquired as part of the Cosmos transaction and from improving trends in the Company's core business. Volumes have been negatively impacted by the previously announced restructuring initiatives to optimize long-term value for the Company and its bottling partner in the Philippines.

Africa

• Volume growth of 7 percent for the quarter and 9 percent for the first six months.
  
• 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 in Africa resulted from local marketing initiatives, new product launches and new packaging initiatives.
  
• The Southern and East Africa Division had growth of 15 percent in the quarter and 16 percent year-to-date driven by strong performance in Angola, Zimbabwe and South Africa.

Financial Review

Operating Results -

Revenues for the quarter increased 15 percent, reflecting a 6 percent increase in gallon shipments, structural change (primarily the consolidation of the bottling operations in Germany and Norway/Sweden) and pricing in selected countries, offset by the negative impact of currencies. The increase in cost of goods sold at a rate greater than revenues resulted from the consolidation of lower margin bottling operations (primarily Germany and Norway/Sweden).

Selling, administrative and general expenses increased 15 percent during the quarter on a reported basis due primarily to structural changes related to consolidated bottling operations. In addition, the prior year second quarter included $0.02 per share of incremental marketing.

Operating income was negatively impacted by approximately 3 percent during the quarter and 3 percent for the first six months because of the relative strength of the U.S. dollar when compared to the prior year. Year-over-year weakening of the Japanese Yen, the Argentine Peso, the Venezuelan Bolivar, the Mexican Peso and the Brazilian Real drove the negative currency impact, partially offset by a strengthening Euro.

Cash flow characteristics remain strong as net cash from operating activities was $2.2 billion in the first six months of the year. After business reinvestment, the Company has generated over $1.8 billion of free cash flow on a year-to-date basis, and expects strong cash flows to continue. Reflecting the improving cash flow trends, the Company has repurchased 5.9 million shares of common stock during the first six months of the year.

Non-Operating Items -

Equity income has 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.

The results for the first six months included a first quarter 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".

During the first quarter, the Company also 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 for the first six months was 28.3 percent as it was impacted by several first quarter 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 six months.

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 $55 million loss for the second quarter and a $96 million loss for the first six months. The majority of these amounts relate to exchange losses resulting from the balance sheet re-measurement of receivables and other assets, primarily in Latin America and Africa, resulting from the currency devaluation and economic crisis.

Balance Sheet -

The Condensed Consolidated Balance Sheet as of June 30, 2002, as compared to the Condensed Consolidated Balance Sheet as of December 31, 2001, was significantly impacted as a result of the Company's consolidation of its German bottling operation, Coca-Cola Erfrischungsgetraenke AG (CCEAG), as of February 2002. Prior to the consolidation, the Company's investment in CCEAG was recorded as an equity method investment. Upon consolidation of CCEAG, the individual balances were included in the Company's respective balance sheet line items.

The consolidation of CCEAG was the main component of the following changes in the Company's balance sheet from December 31, 2001 to June 30, 2002: (1) $720 million decrease in "Equity method investments - other, principally bottling companies"; (2) $1,243 million increase in property, plant and equipment; (3) $850 million increase in "Trademarks and other intangible assets"; and (4) a $798 million increase in "Other liabilities". Another item impacting the Company's balance sheet was the implementation of SFAS No. 142, "Goodwill and Other Intangible Assets", effective January 1, 2002.

The $1,555 million increase in the Company's long-term debt was due to both the consolidation of CCEAG, which had the effect of increasing debt by approximately $800 million, of which approximately $750 million is classified as long-term, and the issuance of $750 million of U.S. dollar notes.

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 second quarter of 2001, $640 million ($1,160 million in the first six months of 2001) of payments made 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 year amount of the reclassification for 2001 is 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.

During the prior year, 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.

Conference Call

The Company will host a conference call with financial analysts to discuss the second quarter 2002 results on July 17, 2002 at 9:00 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.

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(UNAUDITED)
(In millions)

Six Months Ended June 30,