Vestar, Cincinnati Metropolitan Housing Authority Begin Major Energy System Improvement Program

CINCINNATI, February 22, 2001— VESTAR, Inc., an affiliate of Cinergy Corp. (NYSE:CIN), and the Cincinnati Metropolitan Housing Authority today announced a major infrastructure renewal program designed to save the Authority more than $875,000 in energy costs annually.

The program will address the energy infrastructure in more than 4,600 housing units at 33 developments and 900 scattered sites at a total project cost of $7.2 million. Included in the program will be boiler replacements, water conservation efforts, chiller replacements, comprehensive lighting retrofits and replacements, and energy conservation training and awareness. The estimated construction time is eight to ten months with work scheduled to begin in February.

A unique aspect of the program is that VESTAR will provide an opportunity for residents, including children, to learn about the changes to be made to their units and ways that they can save energy in their daily lives. Workshops and other informational initiatives will be developed with CMHA staff.

“CMHA is excited about the benefits of this program. We actively pursue partnerships like this to reduce costs and to continually improve the quality of housing for Hamilton County residents,” said Donald Troendle, executive director of CMHA. “This partnership will bring CMHA tremendous savings in energy expenses which will enable the organization to make comprehensive improvements to its properties four to five years earlier than would otherwise be possible. We look forward to a strong partnership with VESTAR.”

“With the rising costs of energy, reducing energy consumption is more important than ever,” said Leland Smith, president of VESTAR. “Our alliance with CMHA extends the value of the investment made in the infrastructure improvements by working with the residents through information and education to get them involved in energy conservation. By empowering people, we can increase the benefits of the project over the long term.”

CMHA’s energy and maintenance costs will be reduced by up to 20 percent with new lighting fixtures and bulbs, plumbing fixtures, mechanical systems, boilers, furnaces and chillers. New monitoring systems and automation controls will improve air quality, temperature and humidity. Housing developments will also be made safer with improved emergency lighting and common area lighting, such as hallways, walkways and parking lots.

Major CMHA facilities involved in the project include Winton Terrace, Millvale, Findlater Gardens, Stanley Row, Pinecrest, Beechwood, Park Eden, The Evanston, Maple Towers and Setty Kuhn.

Established in 1933, CMHA provides quality, affordable housing for low-income residents of Hamilton County and currently owns 6,800 rental units.

VESTAR, Inc. is a professional service firm specializing in facility and infrastructure solutions. VESTAR works to understand customer goals and apply ingenuity to develop and deliver facility infrastructure solutions that conserve resources and improve building performance. VESTAR is an affiliate of Cinergy Corp., one of the largest diversified energy companies in the U.S.