News Release
May 27, 1998

DUKE ENERGY AND CRESCENT RESOURCES ANNOUNCE AGREEMENT ON SALE OF WILDERNESS PROPERTY TO NORTH CAROLINA

CHARLOTTE, N.C. -- Duke Energy Corporation today announced an agreement to sell approximately 9,600 acres of the company’s North Carolina property in the Jocassee Gorges area to the State of North Carolina for $8,435,875.

The overall value of the property was set at $21 million. Duke Energy and Crescent Resources, Inc. are contributing $12,564,125 towards the purchase.

The company and the state have been negotiating the sale of the property since early 1997. Duke acquired the property in the 1940s as it purchased land with the potential for use in generating electricity. Crescent Resources has managed the land since the 1960s.

"Good business and environmental stewardship go hand-in-hand," 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."

The property is located between the Toxaway and Horsepasture rivers in the southwestern part of the state. It is home to rare plants, wild trout populations, eagles, black bears and wild turkeys.

"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 for many generations to come.

The announcement follows the 1997 sale of approximately 32,000 acres of Duke’s South Carolina property in the Jocassee Gorges area to the State of South Carolina.

Duke Energy Corporation (NYSE:DUK) is a global energy company with $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.duke-energy.com.

Contact: Guynn Savage
Phone: (704) 382-8350
24 Hour Phone: (704) 382-8333
Email: ghsavage@duke-energy.com