News Release Oct. 05, 2001

CHARLOTTE, N.C. -- Duke Energy today announced that on Nov. 5 the company will redeem one of its bond issues.

The issue being redeemed is:

• The 6 3/8 percent Series due March 1, 2008, with a face value of $125 million. Bondholders will receive $1,006.60 per $1,000 principal amount held, plus accrued interest to the redemption date.

Call notices for this issue 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 about the company is available on the Internet at: www.duke-energy.com.