News Release
May 14, 1998

DUKE ENERGY SELECTED FOR MAJOR NATURAL GAS PROJECT IN AUSTRALIAN STATE OF TASMANIA

CHARLOTTE, N.C. -- Duke Energy International, LLC (DEI), a subsidiary of Duke Energy Corporation, today announced that it has been selected to bring offshore natural gas to the Australian State of Tasmania.

The Tasmanian government has selected DEI to provide offshore natural gas to the island to spur industrial growth in the state by using clean-burning natural gas. Currently, there is no natural gas available in Tasmania.

"Duke Energy International’s expertise perfectly matches Tasmania’s needs," said David Hauser, chairman of DEI. "From natural gas production and transportation to power generation. Duke Energy International can bring a comprehensive portfolio of services to the development of this new energy resource for the region. In my visit to the area, I was impressed with the natural beauty of the region and also the progressive attitude of the government in regards to this project."

The Government of Tasmania and DEI are negotiating details of the agreement and expect to sign a final agreement later this month. However, for an agreed period, Tasmania will not actively deal with any other party in relation to downstream development of natural gas in the state.

With a population of about 500,000, the 26,000-square-mile island of Tasmania lies about 150 miles (240 kilometers) south of the Australian State of Victoria. Electricity for the island is generated almost entirely by hydroelectric stations.

Hydroelectric generation can no longer be developed in Tasmania, so the ability to introduce a new energy source is critical," said Bruce Williamson, president of DEI. "The economic and environmental advantages of natural gas are recognized around the world. We are pleased to be building this new energy capability from the ground up."

Although most of DEI’s projects are currently in Latin America, Williamson said that this first project in Australia will lead to more activity by Duke Energy in the region.

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 (NYSE:DUK), a global energy company based in Charlotte, N.C., with more than $20 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.dukeenergy.com.

Contact: Randy Wheeless
Phone: (704) 382-8379
24 Hour Phone: (704) 382-8333
Email: crwheele@duke-energy.com