News Release
June 24, 1998

DUKE ENERGY CORP. TO ACQUIRE AUSTRALIAN ASSETS FROM PG&E CORP.

CHARLOTTE, N.C. -- Duke Energy International, LLC (DEI), a subsidiary of Duke Energy Corporation (NYSE:DUK) today announced that it had purchased the Australian energy holdings of PG&E Corporation (NYSE: PGE).

DEI submitted the winning bid for the assets, which are located in the southeast corner of the Australian State of Queensland. They include a 627-kilometer Queensland State Gas Pipeline, pipeline operations, and trading and marketing operations. The Queensland Pipeline was completed in 1989 by the Queensland Government. In 1996, the pipeline was bought by PG&E Corp.

"This is a major step for Duke Energy International in Australia," said Bruce Williamson, president of DEI. "The Queensland State Gas Pipeline allows us to establish an initial asset position in the country and places us in an ideal position to establish electric generation opportunities and ultimately energy trading and marketing."

"We are pleased that a company with the size and experience of Duke Energy International will be acquiring these assets," said PG&E Corporation-Australia Managing Director Michael McDanold. "This sale confirms our success in enhancing the value of the Queensland pipeline over the past two years."

PG&E Corporation announced that it was evaluating its Australian holdings earlier this year.

Subject to government approval, DEI will take immediate ownership of the assets. The pipeline will continue to be operated out of Brisbane.

"Clearly, we are targeting Australia as a major growth area for DEI," added Williamson. "This is the second Australian initiative for DEI since relocating our regional headquarters to Melbourne. In May, DEI was selected by the Australian State of Tasmania to bring offshore natural gas to the island state to spur industrial growth."

DEI develops, owns and operates energy projects worldwide. Its capabilities include natural gas exploration, production, processing, transportation and supply, and generation, delivery and marketing of electric power and thermal energy. DEI is a subsidiary of Duke Energy Corporation, a global energy company based in Charlotte, N.C., 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.

With 1997 revenues of more than $15 billion, San Francisco-based PG&E Corp., through its unregulated affiliates, markets energy products and services throughout North America. Its businesses include regulated utility Pacific Gas and Electric Company and unregulated subsidiaries PG&E Energy Services, PG&E Energy Trading, PG&E Gas Transmission, and U.S. Generating Company.

Contact: Randy Wheeless
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