DUKE ENERGY ANNOUNCES INFORMATION REGARDING THE REMARKETING OF THE DUKE CAPITAL LLC 4.32 PERCENT SENIOR NOTES DUE 2006

CHARLOTTE, N.C. -- Duke Energy announced today on behalf of its subsidiary, Duke Capital LLC, the basis for resetting the interest rate on the Duke Capital 4.32 percent Senior Notes due 2006 (“Senior Notes”) underlying Duke Energy Corporate Units.

The new interest rate is to be effective on and after Aug. 16, 2004 (upon a successful remarketing), in connection with the proposed remarketing of the Senior Notes. This rate resetting is pursuant to the contractual requirements of the Senior Notes.

The securities affected by this announcement are:

• Duke Capital 4.32 percent Senior Notes due 2006 (CUSIP No. 26439R304)
• Corporate Units issued by Duke Energy (CUSIP No. 264399544).

The reset rate on the Senior Notes, effective on and after Aug. 16, 2004 (upon a successful remarketing), will be equal to the sum of (x) the reset spread and (y) the rate of interest on the selected benchmark U.S. Treasury security (CUSIP No. 912828CQ1; maturity July 31, 2006), each to be determined on Aug. 11, 2004. The reset spread will be the appropriate spread so that the reset rate will be the interest rate that the Senior Notes should bear in order for the Senior Notes to have an approximate aggregate market value of 100.5 percent (and no less than 100.0 percent) of the purchase price of a specified portfolio of U.S. Treasury securities.

As of the date hereof, it is estimated that the reset spread will be approximately 100 basis points (1.00 percent). As of the date hereof, at 10 a.m. ET, the rate of interest on the benchmark U.S. Treasury security was 2.636 percent, so the hypothetical reset rate as of today would be 3.636 percent.

The actual reset spread, rate of interest on the benchmark U.S. Treasury security and reset rate will be determined on Aug. 11, 2004, and could be higher or lower than the amounts estimated herein. Investors should not rely on this estimated reset spread, the indicative rate of interest on the benchmark U.S. Treasury security or the hypothetical reset rate as of today, which are included for illustrative purposes.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in North America and selected international markets. In 2004, the company celebrates a century of service with the 100th anniversary of its electric utility Duke Power. Headquartered in Charlotte, N.C., Duke Energy 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: http://www.duke-energy.com.

Contact:	Randy Wheeless
Phone:	704/382-8379
24-Hour Phone:	704/382-8333
e-mail:	crwheele@duke-energy.com