News Release
May 18, 2004

DUKE ENERGY TO ISSUE SHARES IN EQUITY UNIT CONVERSION

CHARLOTTE, N.C. -- Duke Energy announced that it will issue today 22,449,000 shares of its common stock in settlement of the forward purchase contract component of its Equity Units, which are listed on the New York Stock Exchange under the symbol DKE.

Duke Energy issued 35,000,000 Equity Units in March 2001 at $25 per unit. Under the terms of the contracts, the Equity Units will be converted today to common stock at the rate of .6414 shares of stock per Equity Unit. Duke Energy will receive $875 million in proceeds as a result of the settlement.

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.

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