News Release
July 24, 1998

DUKE CREATES SUBSIDIARY TO MARKET TO WIRELESS INDUSTRY

CHARLOTTE, N.C. — Duke Energy announced today that it has created the subsidiary Duke Communication Services to market more than 34,000 existing towers and property holdings in 33 states to the wireless communication industry to help meet the growing need for antenna sites.

Since 1996, Duke has been working with wireless providers and local city and county planners in North Carolina and South Carolina to install antennas on top of electric transmission towers. This has enabled wireless providers to market their services faster, less expensively and with much less hassle than if they had to construct their own free-standing towers and antenna structures. In virtually every case, the existing tower sites have been enthusiastically received by planners and local communities as excellent alternatives to free-standing towers with single attachments.

"The creation of Duke Communication Services will take this effort a step further by leveraging Duke’s existing communications tower network across the eastern United States to offer the wireless industry thousands of very desirable co-location tower sites," said Jim Miller, general manager of Duke Communication Services. "These additional sites will help the wireless industry develop their systems, so they can offer customers the reliability they demand."

Duke Communication Services is an unregulated division of Duke Energy Transmission and offers the following services to the wireless industry:

· Co-location sites on more than 320 existing communications towers ranging in height from 50 to 600 feet along Duke Energy’s 31-state natural gas transmission system and Duke Power’s 20,000 square-mile service territory in North Carolina and South Carolina.

· Complete turnkey services to design, construct, install, own and manage co-location antenna sites throughout the eastern United States.

· Thousands of potential co-location antenna sites within or near the rights of way on Duke Energy’s 12,700-mile electric transmission system and 22,000-mile natural gas transmission system.

· More than 30,000 antenna sites on existing electric transmission towers ranging from 75 to 200 feet in North Carolina and South Carolina.

· A user-friendly computer application to identify existing antenna sites available on the World Wide Web at http://www.dukecomsvcs.com (available after 7/30/98).

The new subsidiary will work closely with Duke Engineering & Services, another Duke subsidiary, in the areas of land acquisition, design engineering, project management and construction. It also will work closely with Duke Power and Duke Energy’s natural gas pipeline telecommunications groups.

Wireless providers can reach Duke Communication Services at 1-877-DUKECOM (385-3266).

Duke Energy Corporation (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: Tom Williams
Phone: (704) 382-3747
24 Hour Phone: (704) 382-8333
Email: tcwillia@duke-energy.com