News Release
May 31, 2000

DUKESOLUTIONS ANNOUNCES ENERGY SERVICES AGREEMENT WITH BOEING

CHARLOTTE, NC –DukeSolutions announced today a 20-year, multimillion-dollar contract with The Boeing Company, to provide energy services at the Boeing Space & Communications facility in Huntington Beach, Calif.

Under the terms of the agreement, DukeSolutions will own, operate and maintain centralized plant assets and provide high-temperature hot water, steam and chilled water services to the facility. DukeSolutions will complete a full modernization of the existing plant over the next 18 months.

DukeSolutions’ modernization plan will include upgrading the existing plant with new technology while maintaining full delivery capabilities throughout the modernization period. This new, fully automated energy infrastructure will improve efficiency, reliability and environmental stewardship at the Huntington Beach campus. In addition, the plant and operating structure will gain flexibility for future operational needs.

"The Boeing Company is globally recognized as a corporate visionary that embraces some of today’s most forward-thinking business concepts," said Keith Butler, chief operating officer of DukeSolutions. "We look forward to a long relationship with Boeing offering us the opportunity to successfully demonstrate the capabilities of DukeSolutions that are pivotal in continuing to serve the needs of the industrial marketplace."

The Boeing Company is the largest aerospace company in the world, with its heritage mirroring the history of aviation. It is the world's largest manufacturer of commercial jetliners, military aircraft and the nation's largest NASA contractor. In terms of sales, Boeing is the largest U.S. exporter. Total company revenues for 1999 were $58 billion. The global reach of the company includes customers in 145 countries, employees in more than 60 countries and operations in 27 states. Worldwide, Boeing and its subsidiaries employ more than 190,000 people – with major operations in the Seattle-Puget Sound area of Washington state; Southern California; Wichita, Kan.; and St. Louis. Boeing is organized into four major units: Commercial Airplanes, Space and Communications, Military Aircraft and Missiles, and Shared Services.

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 by providing integrated energy solutions that reduce costs and improve energy efficiency. Serving industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including 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, a premier global energy company. Additional information about the company is available on the Internet at http://www.dukesolutions.com.

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: Rick Wirth
Phone: 704-373-6611
24 Hour Phone: 704-594-0681
Email: media_relations@duke-energy.com
Contact: Danny P. Gibbs
Phone: 704-373-6680
24 Hour Phone: 704-594-0681
Email: dpgibbs@duke-energy.com