News Release
Aug. 16, 2001

PRIORY: STRENGTH OF DUKE ENERGY PORTFOLIO PRODUCES GROWTH IN DYNAMIC ENERGY MARKETPLACE

CHARLOTTE, N.C. – Duke Energy Chairman, President and Chief Executive Officer Rick Priory told investors today that the company’s large, diverse energy portfolio and deep market knowledge will continue to fuel 10 percent to 15 percent annual earnings per share (EPS) growth from a year 2000 base EPS of $2.10 per share.

"Unlike pure-play generators or pure-play trading companies, Duke Energy is uniquely positioned to deliver sustained earnings growth even during periods of high volatility, and to thrive in a variety of supply, demand and pricing scenarios," Priory said in a conference call and webcast. "Duke Energy sees growth ahead, and we’re confident that we can deliver a higher level of value -- and more facets of value -- than any other company in our peer group."

Duke Energy’s success is enhanced by its risk management expertise and market knowledge gained through its integration of natural gas and power assets, storage and transportation positions, origination and financial and physical trading. Duke Energy owns and operates nearly 30,000 megawatts of generation worldwide and trades eight times as much power and five to six times as much natural gas as it owns, operates or controls. The company also transports 8 percent of the natural gas consumed in the United States, and 26 percent of the natural gas consumed in the eastern United States with 12,000 miles of pipeline in operation, 900 miles under construction and 450 miles in development.

"Combining our slate of power generation and gas pipeline assets with trading capabilities and structured origination allows us to prosper through the ups and downs of market cycles," Priory said. "We believe Duke Energy is uniquely positioned to sustain its growth trajectory by leveraging the volatility that so many others fear."

Last month Duke Energy announced second-quarter 2001 EPS growth of 23 percent and year-to-date growth in earnings before interest and taxes of 29 percent. Year-to-date revenue increased 76 percent to $32.1 billion.

Today’s "chat" is the third in a regular series of opportunities for Duke Energy’s senior leadership to discuss issues of topical importance with the investment community. Replays of the chat will be available through Aug. 31 by calling 888/203-1112, code 697527 or accessing the investors’ section of www.duke-energy.com. International replay is available at 719/457-0820, code 697527.

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.

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include regulatory developments, the timing and extent of changes in commodity prices for oil, gas, coal, electricity and interest rates, the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets, the performance of electric generation, pipeline and gas processing facilities, the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward-looking statements. 

Contact: Terry Francisco
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com