News Release June 01, 2001

CHARLOTTE, N.C. -- Duke Energy today announced that on July 2 the company will redeem seven issues of first and refunding mortgage bonds.

With the move, the company expects to take advantage of the general decline in interest rates. The bonds being redeemed are:

• The 5.875 percent Series C first and refunding mortgage bonds due March 1, 2003, with a face value of $75 million. Bondholders will receive $1,000.00 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 6.25 percent Series B first and refunding mortgage bonds, due May 1, 2004, with a face value of $100 million. Bondholders will receive $1,007.56 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 7.875 percent Series first and refunding mortgage bonds, due May 1, 2024, with a face value of $133 million. Bondholders will receive $1,031.13 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 8.27 percent Medium-Term Note Series first and refunding mortgage bonds, due April 1, 2025, with a face value of $50 million. Bondholders will receive $1,057.89 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 8.27 percent Medium-Term Note Series first and refunding mortgage bonds, due April 1, 2025, with a face value of $21 million. Bondholders will receive $1,057.89 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 8.28 percent Medium-Term Note Series first and refunding mortgage bonds, due April 1, 2025, with a face value of $2 million. Bondholders will receive $1,057.96 per $1,000 principal amount held, plus accrued interest to the redemption date.
• The 8.30 percent Medium-Term Note Series first and refunding mortgage bonds, due April 1, 2025, with a face value of $5 million. Bondholders will receive $1,058.10 per $1,000 principal amount held, plus accrued interest to the redemption date.

Call notices for these issues were mailed to bondholders today by The Chase Manhattan Bank, the bond trustee.

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 is available on the Internet at: www.duke-energy.com.