CINERGY, TRIGEN ENERGY FORM JOINT VENTURE.

CINCINNATI, Ohio--(BUSINESS WIRE)--Dec. 10, 1996--Cinergy Corp. (NYSE:CIN) and Trigen Energy Corporation (NYSE:TGN) of White Plains, NY announced today that they have entered into an agreement to form a joint venture company that will offer significantly reduced energy operating costs and capital requirements for large energy users.

Cinergy and Trigen will each own 50% of the new entity, Trigen-Cinergy Solutions LLC. Each company is prepared to invest up to $100 million in developing joint projects. With project financing debt, the $200 million in equity can finance as much as $1 billion in projects.

The move combines Cinergy's power marketing and commodity purchasing strengths with Trigen's expertise in thermal science to provide economic and efficient heating, cooling and electric power. Both parties have aggressively lobbied for deregulation of electricity and support widespread development of local, on-site energy production that will reduce costs, fuel use and pollution.

The joint venture company will build, own and operate cogeneration facilities and trigeneration facilities for industrial plants, office buildings, shopping centers, hospitals, universities and other major energy users that can benefit from combined heat and power production economies. It will also provide energy and asset management services, including fuel procurement, ancillary to the joint venture company's activities. Combining the production of thermal and electric energy can cut fuel use up to 50%, cut pollution by 90%, and save users 10 to 20% on their energy costs.

For Cinergy, the joint venture provides several benefits:

-- Ability to compete in the cogeneration market with an established

partner

-- Access to Trigen's innovative technology and proven expertise in

applied thermal sciences

-- Accelerated development of an entrepreneurial approach in

competitive markets.

Trigen also gains numerous advantages from the alliance:

-- A competitive electric utility partner at a time of transition in

the utility industry

-- Cinergy's electric generation, power and gas marketing services

and regulatory expertise

-- Access to greater financial resources.

James E. Rogers, Cinergy vice chairman, president and chief executive officer, said, "With this agreement, we are creating a new era of energy services that will shape the development of the industry. This alliance creates a more effective competitor in the industry by capitalizing on each other's strengths to bring significant benefits to customers."

Thomas R. Casten, Trigen president and chief executive officer, said, "We intend to revolutionize the way power is produced. Our thermal science expertise recovers and uses waste heat from electric generation thereby greatly increasing energy efficiency. Producing power this way will result in significant reductions in energy costs and pollution. We expect Trigen-Cinergy to be the supplier of choice for countless industries and institutions."

Outsourcing Trend

Trigen last year took over responsibility for the production of steam and electricity for the Coors brewery in Golden, Colorado, the world's largest single site brewery. Since then, several major industrial companies have become interested in outsourcing their total energy production so they can concentrate full attention on their core businesses. Projects being developed by the proposed joint venture include a major Midwest food processor, a large state university and a casino/hotel complex. The Trigen-Cinergy joint venture will focus on the U.S., Canada, the United Kingdom and Ireland, subject to certain exclusions resulting from pre-existing agreements that both companies have with other entities.

Cincinnati Chilling First Joint Project

Construction is already underway on the development of a chilled water system to provide air conditioning for the central business district in Cincinnati. Initial service is expected to commence in April. Cinergy's customer focus will be complemented by Trigen's engineering and operating experience in district cooling. Trigen-Cinergy anticipates providing more than 20,000 tons of chilling when the project is completed. Plans call for storing chilled water, made at night, using off peak electricity, to lower costs for customers who need it to cool office buildings the following day.

Cinergy, the 13th largest investor owned electric company in the U.S. in terms of owned generating capability with 1995 revenues of $3.03 billion and assets of $8.2 billion, serves 1.4 million electric customers and 440,000 gas customers. It has a generating capacity of about 11,000 megawatts. In July, Cinergy and GPU, Inc. completed a major overseas transaction with their acquisition of Midlands Electricity plc, a regional electric company in the United Kingdom. Cinergy has applied to the Securities and Exchange Commission for approval to create Cinergy Solutions, Inc., as a subsidiary of Cinergy Investments, Inc. Cinergy Solutions will hold Cinergy's share of Trigen-Cinergy Solutions.

Trigen's mission is to cut fuel use and pollution in half by combining heat and power production. Trigen is the leading owner and operator of district energy systems in North America with 23 energy facilities in 13 locations totaling 4,500 megawatts in thermal energy equivalents. The company's cogeneration and proprietary trigeneration processes convert fuel to various forms of thermal energy at more efficient conversion rates than conventional processes.

Trigen combines heat and power generation, producing electricity as a by-product, for use in its facilities and for sale to customers. The company responds to the energy needs of more than 1,500 customers, including commercial and office buildings, government buildings, industrial plants, electric utilities, colleges and universities, hospitals, residential complexes and hotels. Its 1995 assets were $460 million with sales of $200 million.

The joint venture firm will be a Delaware limited liability company. Separate companies will be formed to own and operate all projects developed under the joint venture.

Trigen-Cinergy Solutions will have joint headquarters in Cincinnati and White Plains, and will have a six member board with three members appointed by each participating company. Cinergy's Rogers will serve as chairman. The chief executive officer will be Trigen's Gran Mrnhed. M. Stephen Harkness, general manager of corporate development and financial services for Cinergy, will be chief operating officer.

CONTACT: FOR CINERGY:

News contact: Steve Brash

513-287-2226(w)

513-231-6895 (h)

OR

Angeline Protogere

317-838-1338(w)

317-298-3090 (h)

OR

Investor contact:

Felicia Ramstein 513-287-4348

OR

FOR TRIGEN ENERGY:

Susan Odiseos, Director, Corporate Communications

914-286-6628