News Release
Aug. 02, 1999

DUKE ENERGY INTERNATIONAL TO PURCHASE DOMINION RESOURCES’ LATIN AMERICAN PORTFOLIO

Third Latin American Purchase By Duke Energy’s International Unit Within One Week

HOUSTON -- Duke Energy International announced today it will purchase Dominion Resources Inc.’s portfolio of hydroelectric, natural gas and diesel power generation businesses in Argentina, Belize, Bolivia and Peru for $405 million. The businesses being purchased total approximately 1,200 megawatts of gross generation capacity. The stock purchase brings Duke Energy International’s total Latin American asset purchases in the past week to approximately 3,800 megawatts.

The transaction is expected to be completed before the end of the year after receiving appropriate government consents and approvals and financial closing.

"This purchase, along with our recent successes in Brazil and El Salvador, positions Duke Energy International to become Latin America’s first truly regional power generation and energy trading and marketing company," said Duke Energy International President and Chief Executive Officer Bruce A. Williamson. "These assets will provide tremendous synergies with our existing portfolio along with the Brazilian and El Salvadorian companies we acquired last week.

"Duke Energy’s shareholders will be rewarded with immediate improvements in earnings per share when we complete these transactions and emerge as one of Latin America’s premier energy companies. Duke Energy will be as strong a company in Latin America as it is in North America," Williamson said. "We look forward to continuing to build upon the very positive relationship with Dominion Resources that we developed throughout this transaction as they too become a gas and electric convergence company."

In the last week, Duke Energy International acquired generating companies in Brazil (Paranapanema) and El Salvador (Generadora Acajutla and Generadora Salvadoreña). Once all three transactions close, Duke Energy International’s diverse portfolio of Latin American and Asia-Pacific assets will include operations and ownership interests in approximately 6,700 megawatts of power generation, approximately 1,800 miles of natural gas pipeline and 245 miles of electric transmission, located throughout Argentina, Australia, Belize, Bolivia, Brazil, Chile, Ecuador, El Salvador, Indonesia, New Zealand and Peru.

Duke Energy International also has operating energy marketing and trading businesses and development offices in Sydney, Australia; Buenos Aires, Argentina; London, England; and Manila, the Philippines. And has ownership interests in methanol and MTBE manufacturing facilities in Saudi Arabia.

Duke Energy International (DEI), a subsidiary of Duke Energy, is a leading owner, operator and developer of integrated energy projects in Asia Pacific and Latin America. DEI’s diverse investment and asset portfolio spans the entire energy value chain from exploration, production, gathering, processing and transportation of natural gas through to generation, electric transmission and energy trading and marketing.

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: www.duke-energy.com

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include regulatory developments, the timing and extent of changes in commodity prices for oil, gas, coal, electricity and interest rates, the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets, the performance of electric generation, pipeline and gas processing facilities, the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward-looking statements.

Contact: Jennifer Pierce
Phone: (713) 627-5719
24 Hour Phone: (704) 382-8333
Email: jmpierce@duke-energy.com
Contact: Bryant Kinney
Phone: (704) 382-2208
24 Hour Phone: (704) 382-8333
Email: jbkinney@duke-energy.com