News Release
July 24, 2003

DUKE ENERGY SELLS OWNERSHIP INTEREST IN INDONESIAN FACILITY

$300 Million Deal Enables Company to Surpass 2003 Goal of $1.5 billion in Gross Proceeds from Asset Sales

CHARLOTTE, N.C.  --  Duke Energy announced today that its wholly owned subsidiary, Duke Energy International (DEI), completed the sale of its 85.7 percent majority interest in P.T. Puncakjaya Power (PJP) in Indonesia for US $300 million, including US $222 million in project debt, to Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX). 

PJP supplies electricity to the P.T. Freeport Indonesia (PTFI) copper and gold mining operations in Papua, Indonesia.  Duke Energy sold its majority stake to Freeport-McMoRan Copper & Gold Inc., the parent company of PTFI.

The US $222 million project debt included in the transaction represents Duke Energy's share of total project debt of US $259 million, which remains with PJP. The sale will result in a reduction to Duke Energy's consolidated indebtedness of US $259 million.

“This transaction helps further DEI's efforts to strengthen Duke Energy’s financial position,” said Richard K. McGee, president of DEI. “We will continue to focus on increasing the returns from our remaining international gas and power assets and businesses.”

“The sale of this Indonesian generation asset is consistent with our global portfolio management strategy,” said Richard B. Priory, chairman and chief executive officer of Duke Energy. “This transaction, along with our previously announced asset sales, has enabled us to surpass our goal of US $1.5 billion in gross proceeds from asset sales for 2003." 

DEI, a subsidiary of Duke Energy, operates regional energy businesses that include natural gas and power facilities and energy marketing operations in Latin America, the Asia Pacific region and Europe. DEI's energy portfolio includes 4,500 net operating megawatts of hydroelectric and thermal generation facilities, and nearly 1,500 miles (2,400 km) of natural gas pipelines.

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.

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 legislative and regulatory developments; the outcomes of litigation and regulatory proceedings or inquiries; general economic conditions, including any potential effects arising from terrorist attacks and any consequential hostilities or other hostilities; the effectiveness of the company's risk management and internal controls systems; the timing and extent of changes in commodity prices for oil, natural 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 natural gas and electric markets; the performance of electric generation, pipeline and natural gas processing facilities; the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and   other factors discussed in Duke Energy's filings with the Securities and Exchange Commission.

Contact: Terry Francisco, Corporate Media Contact
Phone: 704/373-6680
24-Hour Phone: 704/382-8333
e-mail: thfrancisco@duke-energy.com
Contact: Greg Ebel, Analyst Contact
Phone: 704/382-8118
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e-mail: glebel@duke-energy.com