News Release
May 24, 2004

DUKE ENERGY ANNOUNCES SALE OF INTEREST IN MEXICAN ASSET

CHARLOTTE, N.C. -- Duke Energy announced today an agreement with The BOC Group to purchase Duke Energy’s 30 percent equity interest in Compañia de Nitrógeno de Cantarell, S.A. de C.V., for $59.7 million. Cantarell operates a nitrogen production and delivery facility in the Bay of Campeche, Gulf of Mexico. Duke Energy recorded a non-cash charge of $13 million in its first quarter earnings in anticipation of this sale. 

The sale was approved by the Mexican Federal Competition Commission and, subject to certain additional approvals, is expected to close within the next few weeks.

“As previously announced, Duke Energy is sharpening the focus of its international investments around our core products of power and gas in the Americas,” said Fred Fowler, president and chief operating officer of Duke Energy. “We obtained our interest in Cantarell through our acquisition of Westcoast Energy and have since determined that a sale at this time is more in line with our long-term strategy.”  

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: Kate Perez
Phone: 713/627-6527, cell: 713/822-8418
24-Hour Phone: 704/382-8333
e-mail: kcperez@duke-energy.com