Cinergy agrees to sell 6.1 million shares of common stock

CINCINNATI, Dec. 10, 2004 (BUSINESS WIRE) — Cinergy Corp. announced that it has agreed to sell 6.1 million shares of common stock. Net proceeds from the transaction of approximately $247 million will be used to reduce short-term debt. The sale will be made under Cinergy’s effective shelf registration statement previously filed with the Securities and Exchange Commission.

“Our need for additional equity is being driven primarily by our recently announced environmental construction program,” said James E. Rogers, chairman, president and chief executive officer of Cinergy. The company had previously announced that its operating companies, The Cincinnati Gas & Electric Co. and PSI Energy Inc., were beginning a construction program that will reduce their power plant emissions in response to pending new federal environmental rules to improve air quality.

“We remain committed to a strong balance sheet,” said James L. Turner, executive vice president and chief financial officer. “By undertaking the transaction at this time, we will have added flexibility in the timing of our environmental capital program over the next few years.”

The sole manager for the offering was Lehman Brothers Inc.

Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy’s regulated public utilities in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated company owns 7,000 megawatts of generation. Cinergy’s competitive commercial businesses have 6,300 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy’s integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.

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