News Release
Sept. 27, 2001

DUKE ENERGY REAFFIRMS GUIDANCE OF 10-15 PERCENT ANNUAL EPS GROWTH WITH UPSIDE POTENTIAL

CHARLOTTE, N.C. – Duke Energy today reaffirmed its guidance of 10–15 percent compound growth in earnings per share from an earnings base of the $2.10 per share earned in 2000. Robert Brace, executive vice president and chief financial officer for Duke Energy, said that for 2001 the company expects earnings to be at the high end of the range with upside potential.

"Much attention has been focused this week on the earnings outlook of various companies in the energy sector," said Brace. "As we have stated in several public forums recently, not only do we expect to deliver on our promises for 2001, we have a good outlook for earnings in 2002 as well.

"Our confidence extends from our continued execution on a diversified energy portfolio strategy that has enabled us to extract value from strong positions in merchant generation, trading and marketing and an expanding natural gas pipeline business," Brace continued. "Duke Energy is uniquely positioned to capture value in volatile markets that so many others fear."

Duke Energy will release its third-quarter financial results on October 16 following the market close.

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. Such statements include those concerning the contemplated transaction, strategic plans, expectations and objectives. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals and expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include completion of the proposed transaction, integration of the two companies, regulatory approvals and developments, realization of expected synergies from the transaction, 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