DUKE ENERGY INCREASES QUARTERLY DIVIDEND 12.7 PERCENT - Duke Energy

News Release
June 29, 2005

DUKE ENERGY INCREASES QUARTERLY DIVIDEND 12.7 PERCENT

CHARLOTTE, N.C. – Duke Energy today declared a quarterly cash dividend on its common stock of $0.31 per share – an increase of 3.5 cents from its previous level. The dividend is payable on Sept. 16, 2005, to shareholders of record on the close of business Aug. 12, 2005.

“In the investor proposition outlined a year and a half ago, I committed to run Duke Energy for the benefit of long-term investors,” said Duke Energy Chairman of the Board and Chief Executive Officer Paul Anderson. “Today’s board action to increase the dividend is another step that demonstrates that commitment.”

The board’s intent to raise the dividend 12.7 percent was announced on May 9 at the same time the company announced plans to merge with Cincinnati-based Cinergy. Duke Energy’s annual dividend will now be $1.24 per share.

This is the 79th consecutive year that Duke Energy has paid quarterly cash dividends on its common stock. It is the first dividend increase since 1997.

The company also announced that it would be paying quarterly dividends on its preferred stocks on Sept. 16, 2005, to shareholders of record on the close of business Aug. 12, 2005.

Duke Energy Canada Exchangeco Inc., a subsidiary of Duke Energy, today also announced a quarterly cash dividend on its exchangeable shares of Cdn $0.38 per exchangeable share. The dividend is payable on Sept. 16, 2005, to shareholders of record on the close of business Aug. 12, 2005.

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 the Americas. 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