- Worldwide unit case volume grew 4 percent in the fourth quarter and for the full year, which is at the top end of the Company's long-term growth targets. The Company surpassed 20 billion in annual unit case sales for the first time in its history.

- Earnings per share were $0.36 for the quarter and $2.04 for the full year, but were $0.46 for the quarter and $2.17 for the full year after considering items impacting comparability.

ATLANTA, Feb. 7 /PRNewswire-FirstCall/ -- The Coca-Cola Company today reported fourth quarter earnings per share of $0.36, which included a net charge of $0.10 per share due to an accrual for taxes of $0.08 per share related to the repatriation of foreign earnings and $0.02 per share for charges incurred by an equity investee. For the full year, earnings per share were $2.04, which included a net charge of $0.13 per share. 2004 earnings per share for the quarter and full year were $0.50 and $2.00, respectively, which included a net benefit of $0.04 per share in the quarter and a net charge of $0.06 per share for the full year. A reconciliation is provided later in this release.

Neville Isdell, chairman and chief executive officer, said, "This quarter we made further progress toward achieving consistent top-line growth in our business. It completes a transition year in which the Company delivered solid unit case volume growth that was well balanced between carbonated soft drinks and noncarbonated beverages. Given our performance in 2005, including progress in key markets, and a well-developed pipeline of innovation and marketing, we will assess ourselves against our long-term growth targets beginning in 2006 and beyond."

Net operating revenues for the fourth quarter increased 7 percent to $5.6 billion, reflecting 4 percent increase in gallon sales, 3 percent benefit from pricing and mix and 1 percent benefit from structural changes, partially offset by 1 percent negative currency impact. For the full year, net operating revenues increased 6 percent to $23.1 billion, reflecting 3 percent increase in gallon sales, 2 percent currency benefit and 1 percent favorable impact from pricing and mix.

Cost of goods sold increased 10 percent for the quarter, reflecting 4 percent increase in gallon sales, increases in commodity-based input and freight costs and mix increases resulting from the growth in finished goods businesses, particularly in North America, partially offset by a decrease from currency. For the full year, cost of goods sold increased 7 percent, reflecting 3 percent increase in gallon sales, 1 percent increase from currency and increased commodity-based input and freight costs.

Selling, general and administrative expenses for the quarter increased 12 percent, reflecting the planned increase in marketing and innovation expenses and 1 percent decline from currency movements. For the full year, selling, general and administrative expenses increased 11 percent primarily as a result of the planned increase in marketing and innovation expenses as well as 1 percent increase from currency.

Operating income for the quarter decreased 6 percent, as the increase in net revenues was offset by the increases in cost of goods sold and marketing and innovation expenses. For the full year, operating income increased 7 percent, benefiting from the increase in net revenues, the cycling of certain charges in the prior year and positive currency, partially offset by the planned increase in marketing and innovation expenses. The currency benefit to operating income in the fourth quarter and full year was 1 percent and 4 percent, respectively. The Company currently expects currencies to have a negative impact during 2006. Based on current spot rates and the anticipated benefits of hedging coverage in place, the negative impact would be approximately 4 percent. It is expected that the majority of the negative impact will occur in the first half of 2006.

Equity income for the quarter increased 2 percent reflecting solid results from the bottling system throughout the world and the joint acquisition of Multon, offset by charges at an equity investee. For the full year, equity income increased 10 percent, reflecting solid results from the bottling system, and the joint acquisition of Multon, partially offset by charges at equity investees.

The reported effective tax rate for the quarter was 37.1 percent. The rate was primarily impacted by a $188 million accrual for taxes related to the repatriation of foreign earnings, partially offset by a $10 million tax benefit from the resolution of tax matters, and an underlying effective tax rate on operations of 23.5 percent. For the full year, the reported effective tax rate was 27.2 percent. The rate was impacted by several items, including a cumulative $315 million accrual for taxes related to the repatriation of foreign earnings, the tax expense on the issuance of stock by equity investees recorded at a 37 percent tax rate, partially offset by $101 million in tax benefits from the resolution of tax matters, and an underlying effective tax rate on operations of 23.5 percent.

The Company decided in the first quarter of 2005 to repatriate accumulated income earned outside the United States of approximately $2.5 billion under the provisions of the American Jobs Creation Act (the "Act") and recorded a related tax provision in prior quarters. The maximum amount that the Company could repatriate under the Act was $6.1 billion. During the fourth quarter, the Company repatriated the remaining $3.6 billion. Therefore, the Company recorded a tax provision of $188 million in the fourth quarter related to the additional repatriation.

In determining the quarterly provision for income taxes, the Company uses an annual estimated effective tax rate based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. The impact of significant or unusual items and discrete events is separately recognized in the quarter in which it occurs. The Company currently estimates its underlying effective tax rate on operations for 2006 to be approximately 24 percent, which does not reflect the impact of significant or unusual items and discrete events, which, if and when they occur, are separately recognized in the appropriate period.

In 2004, the fourth quarter results included a net benefit of $0.04 per share related to a benefit from the resolution of tax matters, new tax legislation and an insurance settlement, partially offset by a charge due to issuance of stock by an equity investee and a donation to The Coca-Cola Foundation. In the third quarter of 2004, results included a reduction of $0.11 per share for other operating charges related primarily to the impairment of intangible assets in Germany and the net impact of certain tax adjustments primarily related to the impairment. During the second quarter of 2004, the Company recorded a net benefit of $0.01 per share related to favorable tax settlements and a gain on the issuance of stock by an equity investee, partially offset by write-downs of various manufacturing investments.

As previously announced, effective May 1, 2005, the Company made certain changes to its operating structure impacting its former Europe, Eurasia and Middle East operating group and Asia operating group. The Company replaced these operating groups with three new operating groups, the European Union operating group, the North Asia, Eurasia and Middle East operating group, and the East, South Asia and Pacific Rim operating group. The European Union operating group includes the Company's operations in all of the current member states of the European Union as well as the European Free Trade Association countries. The North Asia, Eurasia and Middle East operating group includes the Company's China, Japan, Eurasia and Middle East, and Russia, Ukraine and Belarus Divisions, and other European countries not in the European Union operating group. The East, South Asia and Pacific Rim operating group includes the Company's India, Philippines, Southeast and West Asia, and South Pacific and Korea Divisions.

In January of 2006, the Company made certain changes to its operating structure to establish a new, separate internal organization for its consolidated bottling operations and its unconsolidated bottling investments. This new structure will result in the reporting of a separate bottling operating segment, along with the six existing geographic operating segments and corporate, beginning with the first quarter of 2006.

The Company will host a conference call with investors and analysts to discuss the fourth quarter and full year 2005 results today at 8:30 a.m. (EST). The Company invites investors to listen to the live audiocast of the conference call at the Company's website, www.coca-cola.com in the "Investors" section. Further, the "Investors" section of the Company's website includes a disclosure and reconciliation of non-GAAP financial measures that may be used periodically by management when discussing the Company's financial results with investors and analysts.

The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day. For more information about The Coca- Cola Company, please visit our website at www.coca-cola.com .

This press release may contain statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company's historical experience and our present expectations or projections. These risks include, but are not limited to, changes in economic and political conditions, including civil unrest and product boycotts; changes in the nonalcoholic beverages business environment, including actions of competitors and changes in consumer preferences, including changes based on health and nutrition considerations and obesity concerns; foreign currency and interest rate fluctuations and other capital and financial market conditions; adoption of mandatory deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; changes in commercial or market practices and business models within the European Union; litigation uncertainties; adverse weather conditions; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials or necessary services; our ability to avoid production output disruptions; our ability to effectively align ourselves with our bottling system; our ability to maintain brand image and product quality as well as other product issues such as product recalls; regulatory and legal changes; our ability to penetrate developing and emerging markets; the availability and quality of water; our ability to achieve earnings forecasts; and other risks discussed in our Company's filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.

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