News Release
Oct. 06, 1999

DUKE ENERGY INTERNATIONAL TO PURCHASE 29.4 PERCENT OF EGENOR S.A.A. FROM GENER S.A.

HOUSTON Duke Energy International (DEI), a subsidiary of Duke Energy (NYSE: DUK), announced today that it has reached an agreement to purchase 29.4 percent of EGENOR S.A.A.’s thermal and hydroelectric generation business in Peru from Gener S.A. for $91.5 million. The purchase brings DEI’s interest to 60 percent in the company, pending the close of the initial acquisition of 30.6 percent interest from Dominion Resources Inc.

In addition to the cash payment, Gener will have the right to acquire DEI’s 9.76 percent net interest in Hidroelectrica Piedra del Aguila S.A. in Argentina and 24 percent net interest in Sociedad Electrica Santiago S.A. in Chile. Under the agreement, Gener’s acquisition of these assets would occur after certain terms and conditions are met.

"These assets are a critical component of our growing Latin American platform," said Bruce Williamson, president and chief executive officer DEI "The acquisition of this portion of Egenor is consistent with DEI’s strategy to consolidate the operational control of future DEI acquisitions by securing a majority interest."

The assets of EGENOR will represent 520 megawatts of electric generation capacity when an expansion program is completed later this year. All are located in Peru’s northern region and participate in the Interconnected Center—North System. The sale is expected to close by mid-October.

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

Duke Energy 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 is available on the Internet at: www.duke-energy.com

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