News Release
Oct. 07, 1999

DUKE ENERGY INTERNATIONAL WINS BID TO PURCHASE ADDITIONAL 30 PERCENT OF EGENOR S.A.A. IN PERU

HOUSTON — Duke Energy International (DEI), a subsidiary of Duke Energy (NYSE: DUK), announced today that it is the successful bidder for 30 percent of EGENOR S.A.A.’s hydroelectric and thermal generation business in Peru. The $60 million purchase brings Duke Energy’s interest to 90 percent in the company, pending the close of initial acquisition interests totaling 60 percent from Gener S.A. and affiliates of Dominion Resources Inc.

"We are very pleased with this latest acquisition because it will allow us to build EGENOR into a strategic energy business for us on the Pacific Coast of Latin America," said Bruce Williamson, president and chief executive officer of DEI. "Coupled with the announcement yesterday of our purchase of Gener’s interest in EGENOR, today’s winning bid is another indication of our commitment to growing a leadership position in the Latin American energy market and the country of Peru."

The assets of EGENOR will represent 520 megawatts of electric generation capacity after an expansion program is completed later this year. All are located in Peru’s northern region and participate in the Interconnected Central North System.

The sale of this portion of EGENOR by the Peruvian government is part of its ongoing effort to divest itself of utility assets and privatize the electric generation business. The sale is expected to close on October 12, 1999.

Duke Energy International (DEL), a subsidiary of Duke Energy, is a leading owner, operator and developer of integrated energy projects in Asia Pacific and Latin America. 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 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: media-relations@duke-energy.com