News Release
Jan. 26, 2000

DUKE ENERGY ACQUIRES ADDITIONAL 51 PERCENT OF PARANAPANEMA BRINGING TOTAL OWNERSHIP TO 95 PERCENT

HOUSTON AND SÃO PAULO – Duke Energy International (DEI) today announced that Duke Energy had acquired an additional 51 percent of Companhia de Geração de Energia Elétrica Paranapanema (Paranapanema) through a tender offer held today at the Bolsa de Valores de São Paulo (BOVESPA). The successful results of the tender consolidate Duke Energy’s ownership of Paranapanema at approximately 95 percent.

"The success of today’s auction consolidates Duke Energy’s control of Paranapanema and further enhances our position in Brazil," said Bruce Williamson, president and chief executive officer of Duke Energy International. "Duke Energy will aggressively grow its position in Brazil and throughout Latin America to capture the returns this liberalizing and integrating market presents for our shareholders. Paranapanema provides a solid Brazilian platform from which we can add Duke Energy’s world class energy trading and marketing expertise and other gas and power assets to serve the region’s growing demand for energy."

Duke Energy purchased through an affiliate, Paranapanema preferred shares for R$ 11.31 per block of 1000 shares and common shares for R$ 8.89 per block of 1000 shares. Duke Energy previously owned approximately 44 percent of the total share capital of Paranapanema, acquiring its initial interest through a government auction in July 1999.

With a total installed capacity of approximately 2,300 megawatts, Paranapanema is among the largest privately held power generation systems in Brazil. With eight hydro-electric plants located on the Paranapanema River in the southwestern portion of the State of São Paulo, Paranapanema anchors the Brazilian component of DEI’s Latin American energy portfolio.

Duke Energy International (DEI), a wholly owned subsidiary of Duke Energy, is one of the world’s leading international energy companies offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across Latin America, Asia-Pacific and Europe. Within Latin America, DEI’s energy portfolio includes nearly 3,460 gross megawatts of hydro and thermal power generation, 125 miles of natural gas pipeline, 245 miles of electric transmission and energy trading and marketing located in Argentina, Belize, Brazil, Ecuador, El Salvador and Peru.

Duke Energy, a premier global energy services company, serves customers and creates shareholder value through an integrated network of energy assets and energy experts. As market leaders in their respective fields, Duke Energy businesses manage a multi-national portfolio of energy supply, delivery and trading assets valued at approximately $30 billion. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

Contact: Jennifer Pierce (Houston)
Phone: 713-627-5719
24 Hour Phone: 704-382-8333
Email: jmpierce@duke-energy.com
Contact: Ingrid Bittar (Sao Paulo)
Phone: 5511-9273-3398
24 Hour Phone: 704-382-8333
Email: media_relations@duke-energy.com