News Release
June 22, 2001

DUKE ENERGY LAUNCHES AUSTRALIAN POWER PLANT

HOUSTON – Duke Energy International (DEI), a wholly-owned subsidiary of Duke Energy, this week opened the 40-megawatt Bairnsdale Power Station in Victoria on Australia’s southeast coast. Steve Backes, premier of the state of Victoria, officially inaugurated the state’s first new power station in 10 years.

DEI also announced plans to install an additional 40 megawatts of generation to double the size of the plant by early 2002, and the possible development of a 240-megawatt power station at Australian Paper’s Maryvale facilities in Victoria.

The Bairnsdale Power Station, a natural gas-fired plant supplied by the new Eastern Gas Pipeline, will strengthen the region’s electricity system, which is under pressure during periods of high demand.

DEI President and Chief Executive Officer Bruce Williamson said the Bairnsdale facility would help meet the growing needs of Victoria’s power market.

"The plant will assist the local transmission system and be available to provide additional power during periods of peak demand to Victoria’s electric grid," he said.

Williamson continued, "The possible development of a power station at Maryvale would supply the growing needs of the Australian Paper plant and generate more power for the grid. Australian Paper selected DEI as the preferred independent power producer for the site and feasibility studies are underway." Williamson noted that the Bairnsdale plant and the potential development of the Maryvale facility are illustrative of DEI’s strategy of building an integrated regional business that includes natural gas and power assets as well as energy trading and marketing.

DEI is one of the world’s leading international energy companies offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across Latin America, Europe and the Asia Pacific. DEI’s Asia Pacific operation has facilities in Australia, New Zealand and Indonesia and includes 824 gross megawatts of thermal power generation, energy trading and marketing, and 1,738 miles of natural gas pipelines. DEI will soon begin construction of a 463-mile extension of the Eastern Gas Pipeline from Victoria’s coast to the island of Tasmania.

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: Deborah Witmer
Phone: 713/627-5848
24 Hour Phone: 704/382-8333
Email: dfwitmer@duke-energy.com