News Release
June 17, 1998

DUKE ENERGY CORP. ANNOUNCES DIVIDEND ACTIONS

CHARLOTTE, N.C. -- Duke Energy Corporation’s board of directors today approved a quarterly cash dividend on the company’s common stock of 55 cents a share -- unchanged from its previous level. The dividend is payable on Sept. 16, 1998, to shareholders of record on Aug. 14, 1998.

This is the 72nd consecutive year that Duke Energy has paid quarterly cash dividends on its common stock. Also, the company will be paying quarterly dividends on its preferred stocks on Sept. 16 to shareholders of record on Aug. 14.

The Duke Energy board also adopted a dividend policy that will target 50 percent of earnings paid out in dividends. Currently, about 65 percent of earnings are paid out in dividends. The company expects to maintain dividends at the quarterly rate until the target payout ratio is reached.

"We are continuing with our strategy to build an integrated energy company by seizing new growth opportunities in our changing industry," said Richard B. Priory, Duke Energy chairman and chief executive officer. "This dividend policy will enable us to take advantage of these capital investment opportunities to position our company for solid growth in a restructuring energy industry."

Since Duke Energy was formed one year ago by the merger of Duke Power Co. and PanEnergy Corp. the company has invested about $1.5 billion in energy projects around the world. The stock price has risen by more than 30 percent in the same period.

"Duke Energy’s indicated annual dividend of $2.20 represents an attractive yield on the company’s common stock. The decision to invest more of our earnings in strategic energy projects is one that will benefit our shareholders as our growth is reflected in an appreciated stock price," said Priory.

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