SBS 2000 to SBS 2003

I’m looking into moving from SBS 2000 (with the Exchange option) to SBS 2003.

I’ve been reading about the multitude of options, from swinging it to doing an in-place upgrade, and just had a question about the in-place upgrade. When you perform the upgrade, does it handle the Exchange upgrade as well, or would it carry over Exchange 2000? Worse, yet, would I need to do the in-place upgrade from SBS 2000 to SBS 2003 then install Exchange and push the IS through back-ups, etc?

It would seem to me that Exchange would be updated to 2003 along with the primary O/S but I can not find anywhere that explicitly confirms nor denies this.

Thanks.