The Coca-Cola Company Reports Fourth Quarter and Full Year 2008 Results

Strong worldwide unit case volume with 4 percent growth in the quarter and 5 percent growth for the full year. International operations delivered 6 percent unit case volume growth for both the quarter and full year. Global volume and value share gains continued across key markets and categories. Solid cash generation continued, with full year cash flow from operations up 6 percent. Fourth quarter reported EPS was $0.43. Comparable EPS up 10 percent to $0.64, reflecting nine consecutive quarters of double-digit comparable EPS growth. Full year reported EPS was $2.49 and comparable EPS up 17 percent to $3.15. Operating income growth of 12 percent on a reported basis and 10 percent on a comparable basis in the quarter. Full year operating income grew 16 percent on a reported basis and 17 percent on a comparable basis. Productivity program initiatives accelerating and are on track to deliver $500 million in annualized savings by year-end 2011.

ATLANTA--(BUSINESS WIRE)-- The Coca-Cola Company today reported unit case volume growth of 4 percent in the fourth quarter and 5 percent for the full year, successfully cycling 5 percent and 6 percent growth in the prior year quarter and full year, respectively. Acquisitions contributed 1 point of unit case volume growth for the quarter and 2 points of growth for the full year.

The Company achieved broad-based growth across the globe. In key emerging markets, China increased unit case volume 29 percent, India increased 28 percent and Eastern Europe increased double digits in the quarter. Latin America delivered solid, balanced growth in unit case volume led by Mexico increasing 6 percent and Brazil increasing 7 percent in the quarter. Europe achieved unit case volume growth of 2 percent in the quarter successfully cycling 3 percent growth in the prior year. In other key markets, North America unit case volume declined 3 percent in the quarter and unit case volume in Japan was even.

Sparkling beverages increased unit case volume 2 percent in both the quarter and full year. Trademarks Coca-Cola, Fanta and Sprite contributed to the results, increasing unit case volume 2 percent, 3 percent and 6 percent, respectively, for the year. International sparkling beverage unit case volume increased 4 percent for both the quarter and full year.

Still beverage unit case volume increased 11 percent in the quarter and 13 percent for the full year, led by strong growth across the portfolio, including juice and juice drinks, teas, active lifestyle and water brands. International still beverage unit case volume increased 17 percent for both the quarter and full year.

Globally, the Company continued to gain volume and value share in nonalcoholic ready-to-drink beverages as well as in core sparkling and still beverages for both the quarter and full year.

Financial Highlights

Cash flow from operations was $7.6 billion for the year, compared with $7.1 billion in the prior year, an increase of 6 percent.

The Company reported fourth quarter earnings per share of $0.43. After considering items impacting comparability, earnings per share for the quarter were $0.64, an increase of 10 percent. Reported earnings per share for the quarter included a net charge of $0.21 per share primarily related to a non-cash impairment charge at Coca-Cola Enterprises Inc., an equity investee ("CCE"), restructuring charges and asset write-downs. Reported earnings per share for the fourth quarter of 2007 were $0.52 and included a net charge of $0.06 primarily related to restructuring charges and asset write-downs.

Earnings per share for the year were $2.49 on a reported basis. After considering items impacting comparability, earnings per share for the year were $3.15, an increase of 17 percent. Reported earnings per share for the year included a net charge of $0.66 per share primarily related to non-cash impairment charges at CCE, restructuring charges and asset write-downs. Full year 2007 reported earnings per share were $2.57 and included a net charge of $0.13 per share primarily related to restructuring charges and asset write-downs.

Operating income in the quarter increased 12 percent on a reported basis and increased 10 percent after considering items impacting comparability. Items impacting comparability reduced fourth quarter pre-tax operating income by $108 million in 2008 and by $126 million in 2007. Currency negatively impacted comparable operating income in the quarter by 9 percent. Full year operating income increased 16 percent on a reported basis and increased 17 percent after considering items impacting comparability. Currency benefited both full year reported and comparable operating income by 6 percent.

The Company is currently on track to deliver $500 million in annualized savings from productivity initiatives by year-end 2011. The continued acceleration of these efforts will enable cash flows to be redeployed to drive investments for growth.

"Our performance in the fourth quarter was very solid," said Muhtar Kent, president and chief executive officer, The Coca-Cola Company. "Our fourth quarter and full year 2008 results reflect both the universal appeal of our global brands and the unrivalled reach of one of the world's leading consumer products distribution systems. We delivered consistent, quality results for the quarter and for the full year. For the year, we again exceeded our long-term growth targets despite a very challenging economic environment. And importantly, we gained volume and value share in most of our leading markets through solid execution of our strategies."

"Our highly skilled management team is assertively addressing the challenges posed by the current global economic crisis. Working in close collaboration with our bottling partners, we successfully accelerated actions, refocused investments and intensified our disciplined execution to drive results. We also made significant gains in realigning our organizational structure to generate greater productivity and in rewiring our business for sustainable results.

While certainly not crisis proof, as no company is, I do believe our global business model is relatively resilient, as we bring simple moments of pleasure to our consumers, nearly 1.6 billion times a day, for cents at a time. We recognize that 2009 will bring many unique challenges to us and our consumers, customers, and bottling partners. Yet, I believe that our solid brand and business fundamentals - together with a fundamentally sound balance sheet, robust cash generating model and strong global bottling system - provide a sound foundation for our management team to continue driving long-term sustainable growth."

(All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.)

(All references to unit case volume percentage changes in this section are computed based on average daily sales for the fourth quarter and computed on a reported basis for the full year. Group operational highlights are reported in line with the Company's operating structure as described in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008.)

              Q4 2008                          FY 2008

              Unit
                      Net Revenues  Operating  Unit Case  Net       Operating
              Case                  Income     Volume     Revenues  Income
              Volume

Total Company 4  %    (3  %)        12  %      5  %       11 %      16 %

Eurasia and   7  %    (12 %)        (16 %)     7  %       10 %      25 %
Africa

Europe        2  %    (3  %)        14  %      3  %       10 %      14 %

Latin America 6  %    3   %         2   %      8  %       18 %      20 %

North America (3 %)   5   %         2   %      (1 %)      6  %      (7 %)

Pacific       9  %    Even          (5  %)     8  %       7  %      9  %

Bottling      (1 %)   (13 %)        14  %      14 %       16 %      73 %
Investments



Eurasia and Africa

    --  The Eurasia and Africa Group's unit case volume increased 7 percent in
        the quarter and full year, cycling double-digit growth in both the prior
        year quarter and full year. Net revenues for the year increased 10
        percent, reflecting a 7 percent increase in concentrate sales with
        positive pricing and mix partially offset by a 4 percent negative impact
        from currency. Full year operating income increased 25 percent primarily
        reflecting the increase in net revenues and the continued investment in
        key marketing and business initiatives.
    --  Eurasia and Africa delivered solid growth, with sparkling beverages
        increasing 4 percent and still beverages increasing 21 percent for the
        year. Unit case volume expanded across most markets in the quarter and
        full year, with double-digit growth in key markets. India, South Africa
        and Nigeria increased 28 percent, 11 percent and 12 percent in the
        quarter, respectively. Russia's unit case volume declined 8 percent in
        the quarter and was even for the year, reflecting the impact of a more
        challenging economic environment and adverse weather conditions in the
        summer.
    --  Share gains continued for the Eurasia and Africa Group in the quarter
        and full year led by volume and value share gains in Russia and Turkey
        in nonalcoholic ready-to-drink beverages.

Europe

    --  Unit case volume in the Europe Group increased 2 percent in the quarter
        and 3 percent for the full year. Net revenues for the year increased 10
        percent, reflecting even concentrate sales, positive pricing and mix and
        a high single-digit currency benefit. Full year operating income
        increased 14 percent reflecting both higher net revenues and continuing
        investment to support key initiatives across the group.
    --  Europe delivered solid growth for the year with unit case volume for
        sparkling beverages increasing 1 percent, with Trademark Coca-Cola
        growth of 1 percent. Still beverages increased 11 percent for the year,
        led by solid performance across the portfolio. Unit case volume growth
        in Europe was driven by double-digit growth in Eastern Europe for the
        quarter and high single-digit growth for the full year.
    --  Key countries across the group including Germany, Great Britain and
        France gained volume and value share in nonalcoholic ready-to-drink
        beverages in the quarter.

Latin America

    --  The Latin America Group delivered strong unit case volume growth of 6
        percent in the quarter and 8 percent for the year, cycling 10 percent
        and 9 percent growth in the prior year quarter and full year,
        respectively. Net revenues for the year increased 18 percent, reflecting
        a 6 percent increase in concentrate sales, positive pricing and mix as
        well as a 4 percent currency benefit. Operating income for the year
        increased 20 percent reflecting the net revenue increase and continuing
        investment in key marketing initiatives.
    --  Latin America delivered growth across the portfolio with sparkling
        beverages increasing 4 percent and still beverages increasing 40 percent
        for the year. Unit case volume expanded across all key markets in the
        quarter and full year, with Mexico, Brazil and Argentina increasing 9
        percent, 7 percent and 5 percent for the full year, respectively.
        Acquisitions contributed 1 point of the overall unit case volume growth
        in the quarter and 3 points for the full year.
    --  For the quarter and full year, volume and value share gains continued
        for the Latin America Group in both sparkling and still beverages.

North America

    --  Unit case volume in the North America Group declined 3 percent in the
        quarter, driven by significant bottler price increases and poor
        macroeconomic conditions partially offset by strong consumer marketing,
        value creating customer programs and good bottler execution. Retail unit
        case volume declined 4 percent, while Foodservice and Hospitality
        increased 1 percent. For the year, unit case volume declined 1 percent,
        including a 1 percent benefit from acquisitions. Net revenues for the
        year increased 6 percent, reflecting a 2 percent decline in concentrate
        sales, offset by positive pricing and mix. Operating income decreased 7
        percent for the year with higher input costs and continued investment in
        strategic marketing initiatives offsetting increased net revenues.
    --  Sparkling beverage unit case volume declined 4 percent in the quarter
        and 3 percent for the year. Continued successful execution of the
        three-cola strategy helped the Coca-Cola, Diet Coke and Coca-Cola Zero
        portfolio gain volume and value share in the U.S. for the full year.
        Coca-Cola Zero continued its stellar performance, increasing unit case
        volume 29 percent in the quarter and 36 percent for the full year.
    --  Still beverage unit case volume increased 1 percent in the quarter and 5
        percent for the full year, and achieved volume and value share gains,
        due to the continued strong performance of glaceau, Fuze, Trademark
        Simply and Minute Maid Enhanced Juices.

Pacific

    --  The Pacific Group increased unit case volume 9 percent in the quarter
        and 8 percent for the year, successfully cycling 3 percent and 7 percent
        growth in the prior year quarter and full year, respectively. Net
        revenues for the year increased 7 percent, reflecting an 8 percent
        increase in concentrate sales and a high single-digit currency benefit
        partially offset by the impact of structural changes and unfavorable
        product mix. Operating income for the year increased 9 percent
        reflecting the net revenue increase and continued investments in key
        business initiatives.
    --  Pacific delivered growth across the portfolio with sparkling beverages
        increasing 8 percent and still beverages increasing 7 percent for the
        year led by solid performance in key markets.
    --  China unit case volume increased 29 percent in the quarter and 19
        percent for the year. The results were led by double-digit unit case
        volume growth in Trademark Coca-Cola, Trademark Sprite and Minute Maid
        along with the successful launch of Yuan Ye, an original green leaf tea,
        each of which contributed to volume and value share gains in
        nonalcoholic ready-to-drink beverages as well as in sparkling and still
        beverages for the year.
    --  Japan unit case volume was even in the quarter and full year. Sparkling
        beverages delivered unit case volume growth of 8 percent in the quarter
        led by Trademark Coca-Cola and Trademark Fanta, which grew unit case
        volume 8 percent and 16 percent, respectively. Strong performance by
        Coca-Cola Zero and Fanta FuruFuru supported this growth. Unit case
        volume declines in Sokenbicha and Aquarius offset strong growth in
        sparkling beverages. Japan gained volume and value share in nonalcoholic
        ready-to-drink beverages for the quarter and full year.
    --  In the Philippines, unit case volume increased 1 percent in the quarter,
        returning to growth after two quarters of sequential decline, and
        increased 3 percent for the year. The Philippines gained volume and
        value share in nonalcoholic ready-to-drink beverages for the year
        despite operating in a more challenging economic environment.
    --  Volume and value share gains continued for the Pacific Group in both
        sparkling and still beverages for the year.

Bottling Investments

    --  The Bottling Investments Group's unit case volume decreased 1 percent in
        the quarter, reflecting bottling divestitures partially offset by
        organic growth across most operations. For the full year, unit case
        volume increased 14 percent, reflecting both organic growth and a
        benefit from acquisitions partially offset by bottling divestitures. Net
        revenues increased 16 percent for the year due to the unit case volume
        increase, a mid single-digit currency benefit and the impact of
        structural changes. Operating income increased 73 percent for the year
        reflecting the net revenue increase and the benefits of supply chain
        efficiencies and controlled operating expenses, partially offset by
        higher commodity input costs and continued investments to enhance market
        execution capabilities.

Financial Review

Operating Results

Net operating revenues for the fourth quarter decreased 3 percent, with a 4 percent increase in concentrate sales and a 4 percent favorable impact from pricing and mix, offset by a 4 percent decrease from structural changes primarily related to bottling divestitures and a 7 percent negative currency impact. For the year, net operating revenues increased 11 percent, reflecting a 4 percent increase in concentrate sales, a 4 percent benefit from currency and a 3 percent favorable impact from pricing and mix.

Cost of goods sold decreased 3 percent for the quarter. This reflects a 4 percent increase in concentrate sales as well as increases in commodity-based input and freight costs offset by a 6 percent decrease from currency and a 7 percent decrease from structural changes primarily related to bottling divestitures. For the year, cost of goods sold increased 9 percent. This reflects a 4 percent increase in concentrate sales, a 4 percent increase from currency and increases in commodity-based input and freight costs, partially offset by a 2 percent decrease from structural changes primarily related to bottling acquisitions and divestitures.

Selling, general and administrative expenses decreased 10 percent for the quarter and increased 8 percent for the year reflecting a 6 percent decrease and a 4 percent increase from currency in the quarter and full year, respectively. The Company continued to realize expense leverage by investing in marketing strategies to drive brand growth and by more effectively managing general and administrative expenses.

The Company had other operating charges in the fourth quarter and full year totaling $108 million and $350 million pre-tax, respectively, primarily related to restructuring costs, productivity initiatives, asset impairments and contract termination fees.

Operating income increased 12 percent for the quarter and 16 percent for the year. After considering items impacting comparability, operating income grew 10 percent for the quarter and 17 percent for the year. Currency negatively impacted comparable operating income by 9 percent in the quarter, but benefited it 6 percent for the year. Based on the anticipated benefits of hedging coverage in place, the Company currently expects currencies to have an estimated 10 to 12 percent negative impact on operating income in the first quarter of 2009.

Effective Tax Rate

The reported effective tax rates for the quarter and the year were 13.5 percent and 21.9 percent, respectively. The underlying effective tax rate on operations for the quarter and year was 22.0 percent. The variance between the reported rate and the underlying rate was due to the tax impact of various separately disclosed items impacting comparability.

The Company anticipates that its underlying effective tax rate on operations for the full year 2009 will be approximately 23.0 to 24.0 percent. The Company's estimated underlying effective tax rate does not reflect the impact of discrete events, which, if and when they occur, are separately recognized in the appropriate period.

New Operating Structure

As previously communicated, effective July 1, 2008, the Company made certain changes to its operating structure to realign geographic responsibility. The European Union Group was reconfigured to include the Adriatic and Balkans Region and was renamed the Europe Group; and the remaining Eurasia Group was combined with the Africa Group into the new Eurasia and Africa Group. The changes in operating structure did not impact the other existing geographic operating segments, Bottling Investments or Corporate. Reporting on the new structure began in the third quarter. Reclassified operating segment information can be found in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008.

Items Impacting Prior Year Results

In 2007, the fourth quarter results included a net charge of $0.06 primarily related to restructuring charges and asset write-downs. Third quarter 2007 results included a $0.03 per share charge primarily related to restructuring charges which was offset by a $0.03 per share gain primarily related to the sale of a portion of the Company's investment in Coca-Cola Amatil Limited. Second quarter 2007 results included a net charge of $0.05 per share primarily related to restructuring charges and a non-cash impairment charge at an equity investee. First quarter 2007 results included a net charge of $0.02 per share primarily related to an asset write-off in the Philippines bottler, partially offset by gains on the sales of the equity interest in a Brazilian bottler and real estate in Spain.

Conference Call

The Company will host a conference call with investors and analysts to discuss the fourth quarter and full year 2008 results today at 9:30 a.m. (EST). The Company invites investors to listen to the live audiocast of the conference call at the Company's website, www.thecoca-colacompany.com in the "Investors" section. A replay in downloadable MP3 format will also be available within 24 hours after the audiocast on the Company's website. Further, the "Investors" section of the Company's website includes a reconciliation of non-GAAP financial measures that may be used periodically by management when discussing the Company's financial results with investors and analysts to our results as reported under GAAP.

THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(UNAUDITED)

(In millions except per share data)

                              Three Months Ended

                               December 31, 2008  December 31, 2007  % Change

Net Operating Revenues         $ 7,126            $ 7,331            (3       )

Cost of goods sold               2,568              2,641            (3       )

Gross Profit                     4,558              4,690            (3       )

Selling, general and             2,744              3,039            (10      )
administrative expenses

Other operating charges          108                125              --

Operating Income                 1,706              1,526            12

Interest income                  94                 86               9

Interest expense                 121                156              (22      )

Equity income (loss) - net       (440  )            171              --

Other income (loss) - net        (89   )            (4    )          --

Income Before Income Taxes       1,150              1,623            (29      )

Income taxes                     155                409              (62      )

Net Income                     $ 995              $ 1,214            (18      )

Diluted Net Income Per Share*  $ 0.43             $ 0.52             (17      )

Average Shares Outstanding -     2,321              2,347
Diluted*

* For the three months ended December 31, "Basic Net Income Per Share" was
$0.43 for 2008 and $0.52 for 2007 based on "Average Shares Outstanding - Basic"
of 2,312 for 2008 and 2,314 for 2007.



THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(UNAUDITED)

(In millions except per share data)

                              Year Ended

                               December 31, 2008  December 31, 2007  % Change

Net Operating Revenues         $ 31,944           $ 28,857           11

Cost of goods sold               11,374             10,406           9

Gross Profit                     20,570             18,451           11

Selling, general and             11,774             10,945           8
administrative expenses

Other operating charges          350                254              --

Operating Income                 8,446              7,252            16

Interest income                  333                236              41

Interest expense                 438                456              (4       )

Equity income (loss) - net       (874   )           668              --

Other income (loss) - net        (28    )           173              --

Income Before Income Taxes       7,439              7,873            (6       )

Income taxes                     1,632              1,892            (14      )

Net Income                     $ 5,807            $ 5,981            (3       )

Diluted Net Income Per Share*  $ 2.49             $ 2.57             (3       )

Average Shares Outstanding -     2,336              2,331
Diluted*

* For the year ended December 31, "Basic Net Income Per Share" was $2.51 for
2008 and $2.59 for 2007 based on "Average Shares Outstanding - Basic" of 2,315
for 2008 and 2,313 for 2007.



THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(UNAUDITED)

(In millions except par value)

                                            December 31, 2008  December 31, 2007

Assets

Current Assets

 Cash and cash equivalents                   $ 4,701            $ 4,093

 Marketable securities                         278                215

 Trade accounts receivable, less allowances    3,090              3,317
 of $51 and $56, respectively

 Inventories                                   2,187              2,220

 Prepaid expenses and other assets             1,920              2,260

Total Current Assets                           12,176             12,105

Investments

 Equity method investments                     5,316              7,289

 Other investments, principally bottling       463                488
 companies

Total Investments                              5,779              7,777

Other Assets                                   1,733              2,675

Property, Plant and Equipment - net            8,326              8,493

Trademarks With Indefinite Lives               6,059              5,153

Goodwill                                       4,029              4,256

Other Intangible Assets                        2,417              2,810

Total Assets                                 $ 40,519           $ 43,269

Liabilities and Shareowners' Equity

Current Liabilities

 Accounts payable and accrued expenses       $ 6,205            $ 6,915

 Loans and notes payable                       6,066              5,919

 Current maturities of long-term debt          465                133

 Accrued income taxes                          252                258

Total Current Liabilities                      12,988             13,225

Long-Term Debt                                 2,781              3,277

Other Liabilities                              3,401              3,133

Deferred Income Taxes                          877                1,890

Shareowners' Equity

 Common stock, $0.25 par value; Authorized
 - 5,600 shares; Issued - 3,519 shares and     880                880
 3,519 shares, respectively

 Capital surplus                               7,966              7,378

 Reinvested earnings                           38,513             36,235

 Accumulated other comprehensive income        (2,674  )          626
 (loss)

 Treasury stock, at cost - 1,207 and 1,201     (24,213 )          (23,375 )
 shares, respectively

Total Shareowners' Equity                      20,472             21,744

Total Liabilities and Shareowners' Equity    $ 40,519           $ 43,269



THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(UNAUDITED)

(In millions)

                                            Year Ended

                                            December 31, 2008  December 31, 2007

Operating Activities

 Net income                                 $ 5,807            $ 5,981

 Depreciation and                             1,228              1,163
 amortization

 Stock-based compensation expense             266                313

 Deferred income                              (360   )           109
 taxes

 Equity income or loss, net of dividends      1,128              (452   )

 Foreign currency                             (42    )           9
 adjustments

 Gains on sales of assets, including          (130   )           (244   )
 bottling interests

 Other operating                              209                166
 charges

 Other items                                  153                99

 Net change in operating assets and           (688   )           6
 liabilities

 Net cash provided by operating activities    7,571              7,150

Investing Activities

 Acquisitions and investments, principally
 beverage and bottling companies and          (759   )           (5,653 )
 trademarks

 Purchases of other                           (240   )           (99    )
 investments

 Proceeds from disposals of other             479                448
 investments

 Purchases of property, plant and             (1,968 )           (1,648 )
 equipment

 Proceeds from disposals of property,         129                239
 plant and equipment

 Other investing                              (4     )           (6     )
 activities

 Net cash used in investing activities        (2,363 )           (6,719 )

Financing Activities

 Issuances of debt                            4,337              9,979

 Payments of debt                             (4,308 )           (5,638 )

 Issuances of stock                           586                1,619

 Purchases of stock                           (1,079 )           (1,838 )
 for treasury

 Dividends                                    (3,521 )           (3,149 )

 Net cash (used in) provided by financing     (3,985 )           973
 activities

Effect of Exchange
Rate Changes on

 Cash and Cash                                (615   )           249
 Equivalents

Cash and Cash
Equivalents

 Net increase during                          608                1,653
 the year

 Balance at beginning                         4,093              2,440
 of year

 Balance at end of                          $ 4,701            $ 4,093
 year





THE COCA-COLA COMPANY AND SUBSIDIARIES

Operating Segments

(UNAUDITED)

(In millions)

Three Months Ended

             Net Operating Revenues       Operating Income (Loss)      Income (Loss) Before Income
                                                                       Taxes

             December  December           December  December           December  December
             31, 2008  31, 2007  % Fav. / 31, 2008  31, 2007  % Fav. / 31, 2008  31, 2007  % Fav. /
                                 (Unfav.)                     (Unfav.)                     (Unfav.)
             (1)       (5)                (2)       (6)                (2), (3), (6), (7),
                                                                       (4)       (8)

Eurasia &    $ 507     $ 579     (12 )    $ 158     $ 188     (16 )    $ 151     $ 196     (23 )
Africa

Europe         1,175     1,214   (3  )      628       549     14         602       545     10

Latin          941       911     3          503       491     2          491       495     (1  )
America

North          1,974     1,886   5          411       402     2          404       402     0
America

Pacific        1,091     1,091   0          375       393     (5  )      370       377     (2  )

Bottling       1,832     2,104   (13 )      25        22      14         (388  )   199     --
Investments

Corporate      16        23      (30 )      (394  )   (519  ) 24         (480  )   (591  ) 19

Eliminations   (410  )   (477  ) --         --        --      --         --        --      --

Consolidated $ 7,126   $ 7,331   (3  )    $ 1,706   $ 1,526   12       $ 1,150   $ 1,623   (29 )



Note: Refer to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008 for more information on the changes to the Company's operating structure.

(1) Intersegment revenues for the three months ended December 31, 2008 were approximately $33 million for Eurasia and Africa, $206 million for Europe, $48 million for Latin America, $28 million for North America, $65 million for Pacific and $30 million for Bottling Investments.

(2) Operating income (loss) and income (loss) before income taxes for the three months ended December 31, 2008 were reduced by approximately $1 million for Eurasia and Africa, $44 million for North America, $21 million for Bottling Investments and $42 million for Corporate, primarily as a result of restructuring costs, productivity initiatives, asset impairments and contract termination fees.

(3) Income (loss) before income taxes for the three months ended December 31, 2008 was reduced by approximately $19 million for Europe, $8 million for North America and $529 million for Bottling Investments, primarily attributable to our proportionate share of asset impairment charges recorded by equity method investees.

(4) Income (loss) before income taxes for the three months ended December 31, 2008 was reduced by approximately $2 million for North America, $30 million for Bottling Investments and $52 million for Corporate, primarily due to other-than-temporary impairments of available-for-sale securities.

(5) Intersegment revenues for the three months ended December 31, 2007 were approximately $34 million for Eurasia and Africa, $230 million for Europe, $71 million for Latin America, $12 million for North America, $112 million for Pacific and $18 million for Bottling Investments.

(6) Operating income (loss) and income (loss) before income taxes for the three months ended December 31, 2007 were reduced by approximately $2 million for Eurasia and Africa, $21 million for Europe, $1 million for Latin America, $10 million for North America, $2 million for Pacific, $4 million for Bottling Investments and $86 million for Corporate, primarily as a result of asset impairments and restructuring costs.

(7) Income (loss) before income taxes for the three months ended December 31, 2007 was increased by approximately $18 million for Corporate due to the sale of real estate in the United States.

(8) Income (loss) before income taxes for the three months ended December 31, 2007 was reduced by approximately $9 million for Bottling Investments. The reduction was primarily due to our proportionate share of asset impairments and restructuring charges recorded by equity method investees, partially offset by our proportionate share of tax benefits recorded by CCE.



THE COCA-COLA COMPANY AND SUBSIDIARIES

Operating Segments

(UNAUDITED)

(In millions)

Year Ended

             Net Operating Revenues         Operating Income (Loss)        Income (Loss) Before Income
                                                                           Taxes

             December   December            December   December            December   December
             31, 2008   31, 2007   % Fav. / 31, 2008   31, 2007   % Fav. / 31, 2008   31, 2007   % Fav. /
                                   (Unfav.)                       (Unfav.)                       (Unfav.)
             (1)        (6)                 (2)        (7)                 (2), (3),  (7), (8),
                                                                           (4), (5)   (9)

Eurasia &    $ 2,327    $ 2,109    10       $ 834      $ 667      25       $ 811      $ 696      17
Africa

Europe         5,801      5,292    10         3,175      2,775    14         3,182      2,796    14

Latin          3,835      3,244    18         2,099      1,749    20         2,082      1,752    19
America

North          8,280      7,836    6          1,584      1,696    (7 )       1,587      1,700    (7 )
America

Pacific        4,695      4,406    7          1,858      1,699    9          1,836      1,665    10

Bottling       8,931      7,695    16         264        153      73         (625   )   761      --
Investments

Corporate      107        72       49         (1,368 )   (1,487 ) 8          (1,434 )   (1,497 ) 4

Eliminations   (2,032 )   (1,797 ) --         --         --       --         --         --       --

Consolidated $ 31,944   $ 28,857   11       $ 8,446    $ 7,252    16       $ 7,439    $ 7,873    (6 )



Note: Refer to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008 for more information on the changes to the Company's operating structure.

(1) Intersegment revenues for the year ended December 31, 2008 were approximately $192 million for Eurasia and Africa, $1,016 million for Europe, $212 million for Latin America, $75 million for North America, $337 million for Pacific and $200 million for Bottling Investments.

(2) Operating income (loss) and income (loss) before income taxes for the year ended December 31, 2008 were reduced by approximately $1 million for Eurasia and Africa, $1 million for Latin America, $56 million for North America, $46 million for Bottling Investments and $246 million for Corporate, primarily as a result of restructuring costs, contract termination fees, productivity initiatives and asset impairments.

(3) Income (loss) before income taxes for the year ended December 31, 2008 was reduced by approximately $19 million for Europe, $8 million for North America and $1,659 million for Bottling Investments, primarily attributable to our proportionate share of asset impairment charges recorded by equity method investees.

(4) Income (loss) before income taxes for the year ended December 31, 2008 was increased by approximately $119 million for Bottling Investments and Corporate, primarily due to the gain on the sale of Refrigerantes Minas Gerais Ltda. ("Remil"), a bottler in Brazil, to

Coca-Cola FEMSA, S.A.B. de C.V. and the sale of 49 percent of our interest in Coca-Cola Beverages Pakistan Ltd. to Coca-Cola Icecek A.S.

(5) Income (loss) before income taxes for the year ended December 31, 2008 was reduced by approximately $2 million for North America, $30 million for Bottling Investments and $52 million for Corporate, primarily due to other-than-temporary impairments of available-for-sale securities.

(6) Intersegment revenues for the year ended December 31, 2007 were $168 million for Eurasia and Africa, $845 million for Europe, $175 million for Latin America, $75 million for North America, $409 million for Pacific and $125 million for Bottling Investments.

(7) Operating income (loss) and income (loss) before income taxes for the year ended December 31, 2007 were reduced by approximately $37 million for Eurasia and Africa, $33 million for Europe, $4 million for Latin America, $23 million for North America, $3 million for Pacific, $47 million for Bottling Investments and $121 million for Corporate, primarily as a result of asset impairments and restructuring costs.

(8) Income (loss) before income taxes for the year ended December 31, 2007 was reduced by approximately $150 million for Bottling Investments, primarily due to our proportionate share of asset impairments charges and restructuring expenses recorded by equity method investees.

(9) Income (loss) before income taxes for the year ended December 31, 2007 was increased by approximately $227 million for Corporate, primarily due to the sale of real estate in Spain, the sale of our equity ownership in Vonpar Refrescos S.A. and the sale of Coca-Cola Amatil Limited shares.



THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

               Three Months Ended December 31, 2008

                         Items Impacting Comparability
                                                                                       After
                                                                                       Considering       % Change -
               Reported  Asset                                                         Item% Change      After
               (GAAP)    Impairments/  Productivity Equity     Transaction Certain Tax     -             Considering
                                       Initiatives  Investees  Gains       Matters (1) (NonReported      Items
                         Restructuring                                                     (GAAP)
                                                                                                         (Non-GAAP)

Net Operating  $ 7,126                                                                 $   7,126     (3  ) (2        ) (3  )
Revenues

Cost of goods    2,568                                                                     2,568     (3  )             (3  )
sold

Gross Profit     4,558                                                                     4,558     (3  )             (3  )

Selling,
general and      2,744                                                                     2,744     (10 )             (10 )
administrative
expenses

Other
operating        108       ($77  )       ($31  )                                           -         --                --
charges

Operating        1,706     77            31                                                1,814     12                10    (3 )
Income

Interest         94                                                                        94        9                 9
income

Interest         121                                                                       121       (22 )             (22 )
expense

Equity income    (440  )                            $ 556                                  116       --                (36 )
(loss) - net

Other income     (89   )   84                                    ($1   )                   (6    )   --                --
(loss) - net

Income Before    1,150     161           31           556        (1    )                   1,897     (29 )             9
Income Taxes

Income taxes     155       23            12           197        -         $ 31            418       (62 )             9

Net Income     $ 995     $ 138         $ 19         $ 359        ($1   )     ($31   )  $   1,479     (18 )             9

Diluted Net
Income Per     $ 0.43    $ 0.06        $ 0.01       $ 0.15     $ 0.00        ($0.01 )  $   0.64      (17 )             10
Share

Average Shares
Outstanding -    2,321     2,321         2,321        2,321      2,321       2,321         2,321
Diluted

Gross Margin     64.0  %                                                                   64.0  %

Operating        23.9  %                                                                   25.5  %
Margin

Effective Tax    13.5  %                                                                   22.0  %
Rate

               Three Months Ended December 31, 2007

                         Items Impacting Comparability
                                                                           After
               Reported  Asset                                             Considering
               (GAAP)    Impairments/  Equity       Gains on   Certain Tax Items
                                       Investees    Sales of   Matters (1)
                         Restructuring              Assets                 (Non-GAAP)


Net Operating  $ 7,331                                                     $ 7,331
Revenues

Cost of goods    2,641     ($1   )                                           2,640
sold

Gross Profit     4,690     1                                                 4,691

Selling,
general and      3,039                                                       3,039
administrative
expenses

Other
operating        125       (125  )                                           -
charges

Operating        1,526     126                                               1,652
Income

Interest         86                                                          86
income

Interest         156                                                         156
expense

Equity income    171                   $ 9                                   180
- net

Other income     (4    )                              ($18   )               (22    )
(loss) - net

Income Before    1,623     126           9            (18    )               1,740
Income Taxes

Income taxes     409       19            2            (7     )   ($40  )     383

Net Income     $ 1,214   $ 107         $ 7            ($11   ) $ 40        $ 1,357

Diluted Net
Income Per     $ 0.52    $ 0.05        $ 0.00       $ 0.00     $ 0.02      $ 0.58      (4)
Share

Average Shares
Outstanding -    2,347     2,347         2,347        2,347      2,347       2,347
Diluted

Gross Margin     64.0  %                                                     64.0   %

Operating        20.8  %                                                     22.5   %
Margin

Effective Tax    25.2  %                                                     22.0   %
Rate

Note:Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes
negatively impacting net income are reflected as increases to reported net income. Gains and accounting changes positively
impacting net income are reflected as deductions to reported net income.

(1)Primarily related to changes in reserves related to certain tax matters.

(2) Net operating revenues excluding structural changes:

                           2008          2007         %
                                                      Change

Reported net
operating                $ 7,126       $ 7,331        (3     )
revenues

Structural                 -             (262  )      --
changes

Net operating
revenues
excluding                $ 7,126       $ 7,069        1
structural
changes

(3) Operating income after considering items impacting comparability for the three months ended December 31, 2008 includes a
negative currency impact of approximately 9%.

Currency neutral operating income growth after considering items impacting comparability is 19%.

(4) Per share amounts do not add due to rounding.



The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended December 31, 2008 and December 31, 2007. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.



THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(In millions except per share data)

               Year Ended December 31, 2008
                                                                                                                       % Change -
                          Items Impacting Comparability                                                  % Change      After
                                                                                        After            -             Considering
               Reported   Asset                                                         Considering      Reported      Items
               (GAAP)     Impairments/  Productivity Equity     Transaction Certain Tax Items            (GAAP)
                                        Initiatives  Investees  Gains       Matters (1)                                (Non-GAAP)
                          Restructuring                                                 (Non-GAAP)


Net Operating  $ 31,944                                                                 $ 31,944         11       (2 ) 11
Revenues

Cost of goods    11,374                                                                   11,374         9             9
sold

Gross Profit     20,570                                                                   20,570         11            11

Selling,
general and      11,774                                                                   11,774         8             8
administrative
expenses

Other
operating        350        ($295  )      ($55   )                                        -              --            --
charges

Operating        8,446      295           55                                              8,796          16            17          (3 )
Income

Interest         333                                                                      333            41            41
income

Interest         438                                                                      438            (4  )         (4 )
expense

Equity income    (874   )                            $ 1,686                              812            --            (1 )
(loss) - net

Other income     (28    )   84                                    ($119  )                (63    )       --            --
(loss) - net

Income Before    7,439      379           55           1,686      (119   )                9,440          (6  )         17
Income Taxes

Income taxes     1,632      66            21           392        (29    )    ($5    )    2,077          (14 )         17

Net Income     $ 5,807    $ 313         $ 34         $ 1,294      ($90   )  $ 5         $ 7,363          (3  )         17

Diluted Net
Income Per     $ 2.49     $ 0.13        $ 0.01       $ 0.55       ($0.04 )  $ 0.00      $ 3.15      (4 ) (3  )         17
Share

Average Shares
Outstanding -    2,336      2,336         2,336        2,336      2,336       2,336       2,336
Diluted

Gross Margin     64.4   %                                                                 64.4   %

Operating        26.4   %                                                                 27.5   %
Margin

Effective Tax    21.9   %                                                                 22.0   %
Rate

               Year Ended December 31, 2007

                          Items Impacting Comparability
                                                                            After
               Reported   Asset                                             Considering
               (GAAP)     Impairments/  Equity       Gains on   Certain Tax Items
                                        Investees    Sales of   Matters (1)
                          Restructuring              Assets                 (Non-GAAP)


Net Operating  $ 28,857                                                     $ 28,857
Revenues

Cost of goods    10,406     ($14   )                                          10,392
sold

Gross Profit     18,451     14                                                18,465

Selling,
general and      10,945                                                       10,945
administrative
expenses

Other
operating        254        (254   )                                          -
charges

Operating        7,252      268                                               7,520
Income

Interest         236                                                          236
income

Interest         456                                                          456
expense

Equity income    668                    $ 150                                 818
- net

Other income     173                                   ($227  )               (54    )
(loss) - net

Income Before    7,873      268           150          (227   )               8,064
Income Taxes

Income taxes     1,892      49            21           (111   )   ($77   )    1,774

Net Income     $ 5,981    $ 219         $ 129          ($116  ) $ 77        $ 6,290

Diluted Net
Income Per     $ 2.57     $ 0.09        $ 0.06         ($0.05 ) $ 0.03      $ 2.70
Share

Average Shares
Outstanding -    2,331      2,331         2,331        2,331      2,331       2,331
Diluted

Gross Margin     63.9   %                                                     64.0   %

Operating        25.1   %                                                     26.1   %
Margin

Effective Tax    24.0   %                                                     22.0   %
Rate

Note:Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes
negatively impacting net income are reflected as increases to reported net income. Gains and accounting changes positively impacting
net income are reflected as deductions to reported net income.

(1)Primarily related to changes in reserves related to certain tax matters.

(2) Net operating revenues excluding structural changes:

                            2008          2007         %
                                                       Change

Reported net
operating                 $ 31,944      $ 28,857       11
revenues

Structural                  (912   )      (816   )     --
changes

Net operating
revenues
excluding                 $ 31,032      $ 28,041       11
structural
changes

(3) Operating income after considering items impacting comparability for the year ended December 31, 2008 includes a positive currency
impact of approximately 6%.

Currency neutral operating income growth after considering items impacting comparability is 11%.

(4) Per share amounts do not add due to rounding.



The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the twelve months ended December 31, 2008 and December 31, 2007. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

The Coca-Cola Company

The Coca-Cola Company is the world's largest beverage company, refreshing consumers with nearly 500 sparkling and still brands. Along with Coca-Cola, recognized as the world's most valuable brand, the Company's portfolio includes 12 other billion dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, POWERADE, Minute Maid and Georgia Coffee. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where we operate. For more information about our Company, please visit our website at www.thecoca-colacompany.com.

Forward-Looking Statements

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, obesity and other health concerns; scarcity and quality of water; changes in the nonalcoholic beverages business environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes and needs, changes in lifestyles and increased consumer information; increased competition; our ability to expand our operations in emerging markets; foreign currency and interest rate fluctuations; our ability to maintain good relationships with our bottling partners; the financial condition of our bottling partners; our ability and the ability of our bottling partners to maintain good labor relations, including the ability to renew collective bargaining agreements on satisfactory terms and avoid strikes or work stoppages; increase in the cost of energy; increase in cost, disruption of supply or shortage of raw and packaging materials; changes in laws and regulations relating to beverage containers and packaging, including mandatory deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; unfavorable general economic conditions in the United States; unfavorable economic and political conditions in international markets, including civil unrest and product boycotts; changes in commercial or market practices and business model within the European Union; litigation uncertainties; adverse weather conditions; our ability to maintain brand image and product quality as well as other product issues such as product recalls; changes in legal and regulatory environments; changes in accounting standards and taxation requirements; our ability to achieve overall long-term goals; our ability to protect our information systems; additional impairment charges; our ability to successfully manage Company-owned bottling operations; global or regional catastrophic events; 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.

    Source: The Coca-Cola Company