News Release
June 30, 1998

DUKE ENERGY AND CRESCENT RESOURCES ANNOUNCE CLOSING ON SALE OF WILDERNESS PROPERTY TO SOUTH CAROLINA

CHARLOTTE – Duke Energy today announced closure on the sale of 24,000 acres of the company’s South Carolina property in the Jocassee Gorges area to the state of South Carolina for $16 million.

The sale represents three-quarters of the 32,000 acres offered to the state of South Carolina. The remaining 8,000 acres will be transferred to the state in late 1999.

The overall value of the property was set at $54.8 million and Duke Energy and Crescent Resources, Inc., are contributing $33.8 million in property towards the purchase.

"We have proven that good business and environmental stewardship are not mutually exclusive," said Richard B. Priory – Duke Energy chairman and chief executive officer. "We are pleased to have come to an agreement that meets everyone’s needs as well as preserving this wonderful wilderness for generations to come."

In 1995, Duke, Crescent Resources and the state of South Carolina entered into an agreement that would result in the ultimate long-term preservation of the area. A three-year window for the sale was agreed upon and in 1996, the state of South Carolina announced the purchase of the first 1,000 acres.

In November of 1997, a cooperative acquisition was signed by Duke, Crescent Resources and the state of South Carolina, finalizing the agreement to purchase approximately 32,000 acres for $54.8 million. Duke Energy and Crescent Resources committed a gift of property valued at $33.8 million to compliment the $10 million raised by the state, $1 million committed by the S.C. Department of Natural Resources and $10 million from the Richard King Mellon Foundation assisted by the Conservation Fund.

The majority of the property was acquired by Duke in the 1940s as it purchased land with the potential for use in generating electricity. Crescent Resources has managed the land since the 1960s.

The Jocassee Gorges are located between the Sumter National Forest and the Mountain Bridge Wilderness Area. It is home to rare plants, black bears, peregrine falcons and some of the highest waterfalls in the Southeast.

"We are proud of the responsibility shown by Crescent in managing this valuable resource over the years," Priory continued. "We are happy that it will continue to be made available for public enjoyment for years to come."

"We’ve worked hard to manage this land well," said Richard C. Ranson -- Crescent Resources chairman. "Our efforts, combined with solid partnerships with environmental organizations and resource agencies, have preserved this unique land so that it can be enjoyed by many generations to come."

Duke Energy (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: at: www.duke-energy.com

Contact: Joe Maher
Phone: (704) 382-8323
24 Hour Phone: (704) 382-8333
Email: jmaher@duke-energy.com