News Release
Aug. 25, 1999

DUKESOLUTIONS WINS ASHRAE AWARD FOR PROJECT WITH FIRST UNION

CHARLOTTE, NC – The American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) announced that DukeSolutions, the energy services subsidiary of Duke Energy, has won the Technology Award for Existing Buildings in New York and New England (ASHRAE’s Region 1), based on an energy efficiency project with First Union National Bank, the nation’s sixth largest bank.

The award recognizes innovation, efficiency and cost-effectiveness in a chiller plant replacement and new boiler installation that DukeSolutions implemented for two of First Union’s Philadelphia office buildings: the 33-story building at 123 Broad Street and the 11-story Witherspoon Building, totaling 1.2 million square feet. The two companies have been working together since 1996 on a comprehensive energy management program that includes facility upgrades, electric and gas supply management and utility information services for more than 2000 bank locations along the East Coast.

"First Union pursues best practices in all aspects of energy management as part of our commitment to continuous improvement in financial performance," says Robert Pennington, senior vice president of corporate real estate for First Union. "The projects in Philadelphia are fine examples of the excellent work DukeSolutions has done for us."

"Excellence in execution is one of the cornerstones of DukeSolutions value proposition. We are proud that ASHRAE has recognized the quality of our work," says Joe DeManche, vice president of engineering and operations for DukeSolutions. "The project provided First Union with new central plant equipment, more efficient pumping systems, better controls and greatly enhanced building services. By optimizing efficiency in every aspect of design, DukeSolutions was able to finance the entire project from the energy savings generated."

First Union Corporation, with headquarters in Charlotte, N.C., is the nation's sixth largest banking company based on assets of $229 billion and sixth largest based on market capitalization of $58 billion at June 30, 1998. The company has the largest domestic deposit share from Florida to Connecticut. First Union has a nationwide presence as the 9th largest securities brokerage company, 16th largest mutual fund manager, 2nd largest home equity lender, and 11th largest mortgage servicing company. The company complements its traditional banking products with a completely integrated selection of investment banking products offered in its Capital Markets Group and a lifetime array of asset management offerings in the Capital Management Group. First Union serves 16 million customers. For more information visit http://www.firstunion.com.

DukeSolutions is one of the fastest growing energy services companies in North America. The company helps customers make the most of their assets and increase cash flow and earnings through integrated energy solutions. Serving more than 2,000 industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including industrial generation, energy supply and logistics, reliability and risk management, on-site utility, information management and efficiency and productivity services. DukeSolutions is a wholly owned subsidiary of Duke Energy. For more information visit http://www.dukesolutions.com.

Duke Energy (NYSE:DUK) is a global energy company with more than $29 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

Contact: Joe Maher
Phone: (704) 382-8323
24 Hour Phone: (704) 382-8333
Email: jmaher@duke-energy.com
Contact: Rick Wirth
Phone: (704) 373-6611
24 Hour Phone: (704) 382-8333
Email: rfwirth@duke-energy.com