News Release
July 28, 2004

DUKE ENERGY TO REDEEM TRUST PREFERRED SECURITIES ISSUE

CHARLOTTE, N.C. – Duke Energy today announced that on Aug. 31 the company will redeem a series of preferred securities issued by a financing trust owned by its subsidiary Duke Capital LLC.

The redemption covers the entire issue of Duke Capital Financing Trust III 8 3/8 percent Trust Preferred Securities due Aug. 31, 2029, (NYSE: DUK pr W), with a face value of $250 million. As the securities are being redeemed at par, security holders will receive $25 per preferred security held, plus accrued and unpaid distributions to the redemption date, which will be paid in the usual manner. The record date for the final distribution will be Aug. 16, payable on Aug. 31 in the amount of $0.523438 per preferred security.

Call notices for this issue are being mailed today by JPMorgan Chase Bank, as trustee.

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