News Release
July 09, 2003

DUKE ENERGY AND FLUOR CORPORATION TO DISSOLVE DUKE/FLUOR DANIEL JOINT VENTURE

CHARLOTTE, N.C. and ALISO VIEJO, Calif. – Duke Energy and Fluor Corporation announced today that Duke/Fluor Daniel, a partnership between affiliates of the two companies, will be dissolved. Fluor requested the dissolution of the venture following the continued dramatic decline in demand for construction of new power generation. The partners of D/FD are working to develop a plan for the orderly wind-down of the D/FD business over the next two years. This action is not expected to have a material impact on either corporation.

“Duke Energy and Fluor Corporation have enjoyed tremendous success through our 14-year partnership as Duke/Fluor Daniel,” said Richard B. Priory, chairman and chief executive officer of Duke Energy. “Through the combination of talents, experience and leadership, Duke/Fluor Daniel grew into one of the largest power contractors in the world."

“While the combined capabilities and expertise of Duke Energy and Fluor created a leader within the power industry, this action is necessary given the state of the market in the United States. It will eliminate the unnecessary costs of a stand-alone organization,” said Fluor Corporation Chairman and Chief Executive Officer Alan Boeckmann. “As a global contractor, Fluor will continue to identify and pursue power-generation opportunities, in the United States and abroad, which meet our profitability and risk requirements.”

Many details of the dissolution of the partnership remain to be developed; however, D/FD will take steps to ensure that existing D/FD customer commitments are met. As projects are completed, Duke Energy and Fluor Corporation will work to transition Duke/Fluor Daniel employees back into their separate businesses where possible.

Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Aliso Viejo, Calif., Fluor is a Fortune 500 company with revenues of $10 billion in 2002.  For more information, visit www.fluor.com.

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 500 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: Terry Francisco -- DE Media Relations
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com
Contact: Greg Ebel -- DE Investor Relations
Phone: 704/382-8118
24 Hour Phone: n/a
Email: glebel@duke-energy.com
Contact: Jerry Holloway -- Fluor Media Relations
Phone: 949/349-7411
24 Hour Phone: n/a
Email: n/a
Contact: Lila Churney -- Fluor Investor Relations
Phone: 949/349-3909
24 Hour Phone: n/a
Email: n/a