News Release
Sept. 17, 1998

DUKE ENERGY BUSINESS UNIT TO ACQUIRE CANADIAN ENERGY SERVICES FIRM

CHARLOTTE, N.C. – DukeSolutions, a subsidiary of Duke Energy Corporation, today announced that it has acquired privately held Engineering Interface Limited of Toronto, Canada, and its main subsidiary, Tescor Energy Services, Inc.

Terms of the acquisition were not disclosed. The new company will become the Canadian operations for DukeSolutions, legally named DukeSolutions Canada, Inc.

DukeSolutions provides integrated energy solutions to help industrial, commercial, institutional and government customers purchase, use and optimize energy resources. With the acquisition, DukeSolutions continues to grow its operations to include a strong presence in Canada.

"Tescor Energy Services is the premier energy services company in Canada. The combination of Tescor’s strong history and DukeSolutions’ growth strategy should make us a clear North American leader," said Charlie Watkins, DukeSolutions president. "I think this combination will create enormous opportunity for Duke Energy in North America. This also allows us to optimally serve our U.S.-based customers that have facilities in Canada."

Founded 25 years ago, Tescor employs more than 60 people in offices in Toronto, Ottawa, Calgary, Edmonton, Regina, Fredericton and Vancouver. The energy services company has completed about 40 projects, including such facilities as schools, hospitals, and other private and public institutions. Tescor has generated more than $120 million in energy and operating cost savings for more than 3,000 buildings across Canada. On three occasions, Tescor was named one of Canada’s best-managed private companies by the country’s business newspaper the Financial Post.

"We looked for a partner with energy supply expertise, one that shared our commitment to technical and execution excellence. We clearly found this in DukeSolutions," said Tom Tamblyn, president of Tescor.

DukeSolutions is one of the fastest growing energy services companies in the United States, with more than 20 offices nationwide. The company, a wholly owned subsidiary of Duke Energy, provides integrated energy solutions that reduce costs, improve energy efficiency and optimize energy resources for industrial, commercial, institutional and governmental customers. DukeSolutions offers organizations a full range of energy services including efficiency and productivity, supply, financial, information management and outsourced utility services.

Duke Energy Corporation (NYSE:DUK) is a global energy company 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.

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