News Release
May 13, 2004

DUKE ENERGY CEO SAYS COMPANY FOCUSED ON LONG-TERM INVESTOR

CHARLOTTE, N.C. – Duke Energy Chairman of the Board and Chief Executive Officer Paul Anderson today said that the company is committed to long-term investors, and his interests and those of the board and the management team are aligned with shareholders.

Anderson, who became Duke Energy CEO last November, made his comments before 300 shareholders at the company’s annual meeting in Charlotte. Duke Energy also celebrated its 100th anniversary during the meeting.

In addressing shareholders, Anderson pointed to the company’s January announcement that it would maintain its $1.10 annual dividend as an initial reflection on how Duke Energy would be managed going forward.

“We didn’t listen to the analysts and the hedge funds and the day traders – we listened to our long-term investors,” he said. “We decided to maintain the dividend at $1.10 per share and concentrate on producing reliable income for our shareholders.”

Anderson further illustrated his shareholder commitment by reminding shareholders that management incentives this year are triggered by earnings enough to support the dividend and that personally his entire compensation at Duke Energy is tied to stock. 

As for the future, Anderson pointed to Duke Energy’s recent strides to improve its financial picture and deliver on its plan. The company is on track to reduce debt by $3.5 billion to $4 billion in 2004, and is well ahead of its asset sales target of$1.5 billion.

“I can sum it up by saying we’ve turned the corner,” he said. “Momentum is working for us, instead of against us.”

President and Chief Operating Officer Fred Fowler echoed those thoughts as he briefly discussed each of Duke Energy’s business units – Duke Power, Duke Energy Gas Transmission, Field Services, Crescent Resources and Duke Energy Americas.

Fowler said that despite disappointing results from the merchant energy division, other Duke Energy’s business units are strong and primed to execute on their individual strategies.

“We have a 100-year record of operational excellence at Duke Energy,” he said. “This company and its employees have proven they can execute – whether it is building a power plant, constructing a pipeline or building an office complex.”

During the meeting, Duke Energy shareholders re-elected four board members:  Paul M. Anderson, Ann M. Gray, Michael E.J. Phelps and James T. Rhodes. Shareholders also ratified the appointment of Deloitte & Touche LLP as the company’s auditors for 2004.

A shareholder proposal calling for the annual election of board members passed as well. Anderson said he would act upon that result.

“We will abide by the will of the shareholders, and as chairman of the board of directors, I will work with the board to make sure those steps are taken,” he said.

DUKE ENERGY ANNUAL MEETING VOTING RESULTS

Proposal 1– Election of Directors
All nominees elected

Proposal 2– Approval of Auditors
FOR – 98 percent, AGAINST – 2 percent

Proposal 3– Approval for annual election of directors
FOR – 63 percent, AGAINST – 37 percent

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: 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 are discussed in Duke Energy’s filings with the Securities and Exchange Commission.

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