Coca-Cola Bottling Co. Consolidated (Nasdaq-NM: COKE) today announced results for the third quarter and first nine months of 2000. Net income was $6.4 million for the third quarter and $10.8 million for the first nine months. On a per share basis, earnings were $.73 for the third quarter, up 9% versus prior year and $1.23 for the first half, up 40% versus prior year. The results include a gain on the sale of bottling territories in Ohio and Kentucky, which represented approximately 3% of the Company's annual volume.

The results for the third quarter and first nine months reflect lower volume and higher net selling prices, the effect of a labor strike and lower marketing funding from The Coca-Cola Company. On a constant territory basis, volume is down 9% in the third quarter and 8% in the first nine months. Net selling prices were up 6% in the third quarter and 8% on a year to date basis. Sales and operating expenses were impacted by a labor strike, which ended in August. The strike impacted portions of the Company's territory in West Virginia, Ohio and Kentucky, representing approximately 7% of total volume. Although management personnel worked to deliver product and stock shelves in our larger accounts, sales were negatively impacted and the Company incurred additional expenses. Marketing funding was down more than 30% in the third quarter and on a year to date basis. For the third quarter, the higher pricing was not sufficient to offset the volume declines and extra expenses related to the labor strike and reductions in funding, therefore operating cash flow was down 6.7%. On a year to date basis, operating cash flow was up 7.8%.

J. Frank Harrison, III, Chairman and CEO, said that he was disappointed in the Company's volume, net sales and earnings performance in the third quarter. However, Mr. Harrison said he is very encouraged by the strong cash flow reflected in the $40 million reduction in debt through the first nine months of 2000. Mr. Harrison said that the debt reduction would provide earnings momentum through lower interest expense as well as improving the Company's financial flexibility.

Jim Moore, President and COO, said that the Company's debt reduction in 2000 reflects improved operating cash flow and lower capital spending. He mentioned that the proceeds from the sale of the Ohio and Kentucky territories would be used to further reduce debt during the fourth quarter. Mr. Moore said that although volume for the Company's core brands has been temporarily dampened by industry-wide increases in selling prices, Dasani water continues to exhibit solid growth.

Forward looking statements.

Included in this news release are several forward-looking management comments and other statements that reflect management's current outlook for future periods. These expectations are based on currently available competitive, financial and economic data along with the Company's operating plans, and are subject to future events and uncertainties. Among the events or uncertainties which could adversely affect future periods are: lower-than- expected net pricing resulting from increased marketplace competition, an inability to meet performance requirements for expected levels of marketing support payments from The Coca-Cola Company, material changes from expectations in the cost of raw materials and ingredients, higher than expected fuel prices, an inability to meet projections for performance in newly acquired territories and unfavorable interest rate fluctuations. The forward-looking statements in this news release should be read in conjunction with the detailed cautionary statements found on page 19 of the Company's 1999 Annual Report to stockholders.

Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)


Third Quarter Nine Months
2000 1999 2000 1999

Net sales $258,565 $ 260,284 $757,682 $ 741,584
Cost of sales 137,559 142,928 402,804 416,430
Gross margin 121,006 117,356 354,878 325,154
Selling, general and
administrative
expenses 81,772 75,299 239,829 218,382
Depreciation expense 16,271 15,521 48,585 44,435
Amortization of goodwill
and intangibles 3,641 3,519 10,971 10,127
Income from operations 19,322 23,017 55,493 52,210

Interest expense 13,570 12,971 41,124 37,116
Other income (expense),
net 4,245 (1,082) 2,440 (3,536)
Income before income
taxes 9,997 8,964 16,809 11,558
Federal and state income
taxes 3,599 3,137 6,051 4,045
Net income $ 6,398 $ 5,827 $10,758 $ 7,513

Basic net income per
share $ .73 $ .67 $ 1.23 $ .88

Diluted net income per
share $ .73 $ .66 $ 1.22 $ .87

Weighted average number
of common shares
outstanding 8,733 8,733 8,733 8,539

Weighted average number
of common shares
outstanding - assuming
dilution 8,811 8,860 8,830 8,662

Income from
operations $ 19,322 $ 23,017 $ 55,493 $ 52,210
Amortization of
goodwill and
intangibles 3,641 3,519 10,971 10,127
Depreciation expense 16,271 15,521 48,585 44,435

Operating cash flow $ 39,234 $ 42,057 $115,049 $106,772