Cinergy Declares Stock Dividends

CINCINNATI, January 16, 2006 – The executive committee of the board of directors of Cinergy Corp. (NYSE:CIN), the parent company of The Cincinnati Gas & Electric Company and PSI Energy Inc., today declared a quarterly dividend of 48 cents per share on the outstanding shares of common stock, payable February 15, 2006, to shareholders of record at the close of business on February 1, 2006.

Also, regular quarterly dividends have been declared on the outstanding shares of CG&E cumulative preferred stocks of $1.00 per share on the 4 percent series and $1.1875 per share on the 4-3/4 percent series, payable April 1, 2006 to shareholders of record on March 1, 2006.

In addition, regular quarterly dividends have been declared on the outstanding shares of PSI Energy cumulative preferred stocks of $0.875 per share on the 3- 1/2 percent series; $0.27 per share on the 4.32 percent series; and $0.26 per share on the 4.16 percent series, payable March 1, 2006 to shareholders of record on February 9, 2006.

Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy’s regulated public utilities in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its regulated operations own 8,100 megawatts of generation. Cinergy’s competitive commercial businesses have 5,200 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy’s integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.