News Release
May 12, 1998

DUKESOLUTIONS WINS KRAFT FOODS INC. ACCOUNT

CHARLOTTE, N.C. — DukeSolutions, a subsidiary of Duke Energy, has been awarded an integrated energy services contract with Kraft Foods Inc.

Under the agreement, DukeSolutions will provide comprehensive energy services to Kraft’s facilities throughout North America. The agreement covers all facets of Kraft’s energy needs including natural gas management, transitional electric, efficiency and administrative services.

"We’re pleased to have been selected to develop and execute an energy cost reduction plan for one of the world’s leading packaged food companies," said Charlie Watkins, DukeSolutions president. "As Kraft’s integrated energy services partner, our goal is to take the burden of managing utility costs and improving energy systems off the facilities so they can devote more money, time and effort to production."

"Kraft went through an extensive process to identify the energy product they could benefit from most," Watkins said. "They then applied their knowledge of the integrated energy solutions approach to selecting an energy company that would view the relationship as a long term partnership, driven by an unequivocal commitment to innovative solutions, bottom-line results and integrity throughout the process. This is a good fit with DukeSolutions."

DukeSolutions, a wholly owned subsidiary of Duke Energy, provides integrated energy solutions that reduce costs and improve energy efficiency for industrial, commercial, governmental, institutional and wholesale entities. DukeSolutions offers customers a full range of energy services including efficiency and productivity, supply, financing, information management, and various related energy services.

Duke Energy Corp. (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to about 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: Mary Alice Rogers
Phone: (704) 382-8333
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Kathy Knuth (Kraft Foods Inc.)
Phone: 847/646-2666
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com