News Release
Aug. 12, 1998

DUKESOLUTIONS AND PILLOWTEX ANNOUNCE ENERGY ALLIANCE

CHARLOTTE, N.C. — DukeSolutions, a subsidiary of Duke Energy Corporation, and Pillowtex Corporation today announced an energy alliance designed to enhance Pillowtex’s financial position and build its energy infrastructure.

DukeSolutions’ first project in this long-term agreement is creation and execution of a $16-million comprehensive energy services plan for Pillowtex’s 26 Fieldcrest Cannon facilities in the Southeast. Pillowtex should begin to benefit from the improvements before the end of this quarter.

"This is a tremendous opportunity to deliver integrated energy solutions — and bottom-line benefits -- to one of the country’s most acclaimed textile companies," said Charlie Watkins, DukeSolutions president. "Our agreement with Pillowtex exemplifies our commitment to provide superior service and cutting-edge energy solutions to certain vertical markets, including the textile industry."

DukeSolutions and Pillowtex plan to expand the scope of energy management services in a continued effort to improve the competitive and financial position of Pillowtex Corporation.

"We’re pleased to have this new relationship in place with DukeSolutions to enhance the efficiency of our facilities," said Jeff Cordes, Pillowtex president and chief operating officer. "This partnership demonstrates the commitment by Pillowtex to modernize capital infrastructure to realize maximum benefit from our operations."

Pillowtex Corporation’s (NYSE:PTX) annual sales are more than $1.6 billion. The company manufactures bed and bath textile home furnishings. Based in Dallas, the company has a network of manufacturing, purchasing and distribution facilities throughout North America. The company employs about 13,000 workers.

DukeSolutions, a wholly owned subsidiary of Duke Energy, provides integrated energy solutions that reduce costs, improve efficiency and optimize energy assets for industrial, commercial, governmental, institutional and wholesale entities. DukeSolutions offers customers a full range of energy services including efficiency and productivity, financing, information management and various related energy services.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to about 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Contact: Mary Alice Rogers
Phone: (704) 373-6574
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Suzanne B. McCabe
Phone: (214) 333-3225 ext.539
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com