News Release
May 18, 2000

DUKE ENERGY NAMES RICHARD J. OSBORNE CHIEF RISK OFFICER TO LEAD NEW STRATEGIC FUNCTION

CHARLOTTE, N.C. -- Duke Energy has named Richard J. Osborne its first chief risk officer (CRO), reflecting the increasing strategic importance of risk management in the rapidly changing energy marketplace.

In announcing creation of the position, Duke Energy Chairman, President and Chief Executive Officer Richard B. Priory noted that the company's rapid growth and globalization make effective risk management critical.

"With about half of our revenues now derived from commodity positions, we are seeing how integral effective risk management is to our company’s success," Priory said. "Over the past several years, we have worked hard to build our risk management acumen, discipline and skills, and we have successfully elevated corporate risk management to a source of competitive advantage."

Osborne has been executive vice president and chief financial officer (CFO) of Duke Energy since the company was formed in June 1997. His selection as executive vice president and CRO recognizes the leadership he has provided in developing Duke Energy’s risk management program and practices, Priory said. The CRO will join the seven other top leadership positions on Duke Energy's Policy Committee.

In addition to Corporate Risk Management, the CRO organization will include Strategic Planning & Development. Duke Energy's diversified Duke Ventures businesses will also report to Osborne. These include Duke Capital Partners, a newly formed finance company; Crescent Resources, a real estate and land development subsidiary; and DukeNet Communications, the company's telecommunications arm.

Osborne joined Duke Power Company in 1975 as a financial analyst. He was named vice president and chief financial officer of Duke Power in 1991.

Priory said the changes will become effective June 1. The executive search firm Heidrick & Struggles has been engaged, and a new CFO will be named as soon as possible. In the interim, Osborne will serve as both CFO and CRO.

Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of nearly $22 billion in 1999. 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: Paul Mason
Phone: 704-373-4512
24 Hour Phone: 704-382-8333
Email: pemason@duke-energy.com