News Release
Oct. 17, 2000

DUKESOLUTIONS AWARDED ENERGY MANAGEMENT PROJECT BY EASTMAN CHEMICAL FOR TENNESSEE FACILITY

Charlotte, N.C. – DukeSolutions and Eastman Chemical Company’s Tennessee Operations announced today the completion and commissioning of a compressed air project and plans for a new raw water pumping project both at Eastman’s Kingsport, Tenn., facility. The projects are part of an ongoing DukeSolutions/Eastman energy services effort.

The compressed air project increases the compressed air capacity at the complex and is self-funded from energy savings. The new raw water-pumping project will improve reliability and firm capacity for river water used in process cooling and fire protection. The pumping project is self-funded from reduced operational and maintenance costs and is expected to be completed next summer.

"We have in place what we believe will be a long and mutually beneficial relationship for both companies," said Keith G. Butler, chief operating officer, DukeSolutions. "We estimate these two projects will save Eastman more than $40 million over their term. Our goal is to help bring about substantial savings throughout Eastman’s facilities through multiple, targeted energy and utility projects."

"Tennessee's Eastman Operations has a longstanding commitment to energy management as a way to control costs, enhance productivity and protect the environment," said Jerry Repass, vice president and general manager. "These projects with DukeSolutions allow us to draw upon DukeSolutions’ energy management expertise and financial resources in order to broaden and accelerate our energy initiatives in coming years."

Headquartered in Kingsport, Tenn., Eastman manufacturers and markets plastics, chemicals and fibers. The company employs 15,000 people in more than 30 countries and had 1999 sales of US $4.6 billion. Additional information about the company is available at http://www.eastman.com or by contacting Wanda Valentine at wandav@eastman.com or by phone at 423/229-4406.

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, one of North America’s premier global energy companies. Additional information about the company is available on the Internet at http://www.dukesolutions.com.

Duke Energy, a diversified multinational 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 (Duke Solutions)
Phone: 704/373-6611
24 Hour Phone: 704/382-8333
Email: rfwrith@duke-energy.com
Contact: Wanda Valentine (Eastman)
Phone: 423/229-4406
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com