News Release
July 10, 1998

DUKE ENERGY TRADING AND MARKETING SIGNS NATURAL GAS AGREEMENT WITH UNITED GAS MANAGEMENT

HOUSTON, -- Duke Energy Trading and Marketing, L.L.C. (DETM) has entered into an energy management and marketing agreement with United Gas Management of Pittsburgh to support United in aggregating residential natural gas customers in selected areas of the country.

DETM, which is 60 percent owned by Duke Energy Corporation and 40 percent owned by Mobil Corporation, will manage the supply, storage and transportation of natural gas on behalf of United in the United States. DETM markets natural gas and electric power and provides comprehensive related services, including risk management and total energy management throughout North America.

"This alliance is a strong entry into the residential gas market where DETM will be providing natural gas for homeowners through United’s direct marketing," said Kevin Howell, DETM senior vice president. "DETM has found that an energy management and marketing alliance is an effective approach in entering new, small end-user markets."

The agreement positions United for the anticipated deregulation of residential natural gas services across the United States and will allow it to immediately make further entry into areas where deregulation already exists.

"This alliance with DETM will be an important vehicle in enabling our companies to obtain and serve new customers in the United States," said Paul Woods, United president. "Not only will we have full access to buying long-term gas and managing our gas supply as efficiently as possible, but the alliance with Duke Energy and Mobil will be invaluable in attracting new residential accounts."

United Gas Management Inc. of Pittsburgh, Pa., is a privately-held natural gas retailer currently serving an estimated 50,000 customers in Ohio and Pennsylvania. Through United Energy Management Inc., its wholly-owned subsidiary based in Daly City, Calif., it also offers combined natural gas and electricity supply services to residential and small commercial customers in the western United States.

Duke Energy (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to approximately 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: Randy Wheeless
Phone: (704) 382-8379
24 Hour Phone: (704) 382-8333
Email: crwheele@duke-energy.com
Contact: Susannah Robinson
Phone: (416) 498-8044
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com