Duke Energy will exit proprietary trading at its North American merchant energy business

CHARLOTTE, N.C., April 11, 2003 — Duke Energy announced that it will discontinue proprietary trading at its North American merchant energy businesses, Duke Energy North America (DENA) and Duke Energy Merchants (DEM).

“As we continue to focus our resources on the most profitable segments of our enterprise, we have decided to discontinue participation in the proprietary trading operation at DENA and DEM,” said Fred Fowler, president and chief operating officer of Duke Energy. “The closure of these proprietary trading groups will reduce our risk profile and collateral needs and is consistent with our strategy of sizing our business to market realities.”

The company had pursued interests in crude oil, natural gas and power proprietary trading in the United States as well as the proprietary trading of crude oil in Europe. Gross margin from proprietary trading has historically represented less than 10 percent of the overall merchant energy gross margin.

“Our proprietary trading operations had already been scaled back in recent months,” said Robert T. Ladd, president of DENA. “By exiting proprietary trading, we can further align our trading and marketing efforts more closely around our contractual and physical assets, which include generation, gas transportation and storage.”

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., 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.

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