News Release
March 19, 2001


CHARLOTTE, N.C. – Duke Energy today announced that it has closed its concurrent public offerings of 25 million shares of common stock and $775 million of Equity Units.

"We were extremely pleased with the offerings. Our ability to successfully conclude this transaction in a difficult market indicates the investors’ confidence in our compelling growth story," said David Hauser, senior vice president and corporate treasurer. "We believe these offerings will strengthen our balance sheet and help us achieve the 10 percent to 15 percent annual earnings growth we stated publicly in January. This is the largest combined equity and equity-linked transaction of all time by a U.S. energy company in the secondary market."

Duke Energy had originally announced an offering of $500 million in Equity Units, which was increased to $775 million due to investor demand.

On Tuesday, March 13, Duke Energy priced the new shares of common stock at $38.98 – the closing price that day of the company’s common stock on the New York Stock Exchange.

Each Equity Unit, which will trade on the N.Y. Stock Exchange under the symbol "DKE," will initially consist of a purchase contract for Duke Energy common stock and $25 in principal amount of senior notes of Duke Energy’s wholly owned subsidiary, Duke Capital Corporation.

The units will mature on May 18, 2004, and will have a yield of 8.25 percent and a conversion premium of 22 percent.

The joint book-running managers for the offering were Morgan Stanley Dean Witter and Merrill Lynch & Co.

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:

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: Randy Wheeless
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