CP&L's SRS to Serve Facilities Management, Energy Services Markets.

CARY, N.C.--(BUSINESS WIRE)--July 21, 1997--Carolina Power & Light (NYSE: CPL), an electric utility company based in Raleigh, N.C., has announced that its wholly owned subsidiary, Strategic Resources Solutions Corp. (SRS), began commercial operation July 4.

CP&L had purchased a 40% share of SRS's predecessor, Knowledge Builders Inc. (KBI), in early 1996 and completed the purchase this spring.

Based in Cary, N.C., SRS provides facility-management and energy-management services to commercial, industrial and government clients located both in the CP&L service area and nationwide.

Among the services provided by SRS are software applications that help customers control their energy use; advanced building automation and control systems; and mechanical contracting products and services.

Lighting is an area being aggressively pursued as a source of energy savings and resource conservation. SRS also provides a full range of professional services, including energy performance audits and management consulting services.

Products and services provided by SRS result in the efficient management of energy for businesses -- with a strong emphasis on managing both energy consumption and energy utilization. The benefits for customers include lower energy costs and increased conservation of energy resources.

"We use a four step process to help our customers manage facilities and energy with greater precision, efficiency and economy," said Kent Hudson, president and CEO of SRS.

"First, we gather and provide information about assets, energy and facilities. Next, we interpret the data and manage their documentation. Then, we create a strategy by which facilities and energy management make a contribution to our customer's success. Finally, we assist in the implementation of cost-saving solutions that pay for themselves.

"SRS believes commercial, industrial and government customers, who are among the largest consumers of energy, will achieve the most dramatic results when using SRS products and services," Hudson said. "What homeowners do by turning off the lights when they leave a room, SRS customers will do, on a much larger scale, by using SRS products and services to manage their energy consumption."

SRS has demonstrated its commitment to conversation of energy and resources through active participation in the federal Green Lights Program.

SRS is actively pursuing customers in the Carolinas and in other, non-regulated national markets. The company is planning to provide its services internationally.

SRS employs approximately 200 people and will operate as an independent subsidiary of CP&L.

CP&L provides electricity and energy services to more than 1.1 million customers in the Carolinas.

CONTACT: SRS

Sharon Cooper, 888/575-7878

or

Carolina Power & Light

Mike Hughes, 919/546-6189