News Release
Aug. 06, 2001

DUKENET COMMUNICATIONS EXPANDS FIBER NETWORK

CHARLOTTE, N.C. -- DukeNet Communications, Duke Energy's telecommunications subsidiary, announced plans today to expand its fiber network with an acquisition of more than 500 route-miles.

The acquisition extends DukeNet's "owned, monitored and managed" broadband fiber optic network through Raleigh, Fayetteville and Wilmington in North Carolina; to Myrtle Beach and Charleston in South Carolina; and into Savannah, Ga.

DukeNet provides reliable connectivity to large and small cities in the Southeast over its fiber- based broadband network. This 500-mile acquisition will position DukeNet to offer "on network" connectivity to cities most often requested by its regional customer base and by nationwide carriers seeking connections in second- and third-tier southeastern cities. It also extends DukeNet's "owned, monitored and managed" network to about 1,200 miles.

"This expansion is exciting since it means we can offer a highly reliable broadband service to customers in a greater number of cities in the Southeast," said Richard Deason, DukeNet vice president of business development.

The operational dates for the cities on the new route are: Wilmington, N.C. (currently operational); Fayetteville, N.C. (operational third quarter 2001); Myrtle Beach and Charleston, S.C.; and Savannah, Ga. (fourth quarter 2001).

Headquartered in Charlotte, N.C., DukeNet is one of the largest wholesale fiber-based carriers in the Southeast. In operation since 1994, DukeNet offers a wide variety of services including point-to-point local and long-haul connectivity, incumbent local exchange carrier (ILEC), central office access and collocation services. More information about the company is available on the Internet at: www.dukenet.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 more than $49 billion in 2000. 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: Randy Wheeless
Phone: 704/382-8379
24 Hour Phone: 704/382-8333
Email: crwheele@duke-energy.com