Cinergy/ULH&P Proposes Economic Redevelopment Programs.

COVINGTON, Ky. -- The Union Light, Heat and Power Co., an affiliate of Cinergy Corp. (NYSE:CIN), is seeking approval from Kentucky utility regulators for three programs that will encourage economic development through reductions in electric rates for use of unoccupied buildings, brownfield sites, major expansions and new businesses.

"Cinergy/ULH&P has a strong commitment to its customers and to the communities that it serves and has traditionally played an important role in economic development and job creation in Northern Kentucky," said ULH&P President Greg Ficke. "This will give our communities another tool for attracting and retaining businesses as well as revitalizing areas that have declined economically."

ULH&P is seeking the approval of the Kentucky Public Service Commission for these programs that will be included in the company's tariffs, but will not increase rates for electric service:

--Urban Redevelopment - Would apply to customers locating in an existing building that has been unoccupied for at least two years

--Brownfield Redevelopment - Would apply to customers locating in a brownfield redevelopment area as designated by Indiana or federal law

--Economic Development - Would apply to significant new establishments or significant expansions.

The Urban Redevelopment Program is designed to help revitalize areas with abandoned buildings and would apply to customers with a minimum electric load of 500 kilowatts. This program provides for a 50 percent reduction in base bill electric charges for one year.

The Brownfield Redevelopment Program encourages development of areas defined by Indiana or federal law as a property site whose use may be compromised by the presence of a hazardous substance or contaminant. For qualifying customers, ULH&P proposes to reduce electric demand charges by 50 percent in the first year declining by 10 ten percent per year through the fifth year.

The Economic Development Program would apply to customers with a minimum electric usage of 1,000 kilowatts and would require that the new or expanding customer create at least 25 new full-time jobs with a minimum capital investment of $1 million. For qualifying customers under this program, Cinergy/ULH&P would reduce base electric rates by 50 percent for the first year.

ULH&P serves more than 128,000 electric customers in six Northern Kentucky counties. It is an affiliate of Cinergy Corp., one of the nation's leading diversified energy companies.

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as "anticipate", "believe", "intend", "estimate", "expect", "continue", "should", "could", "may", "plan", "project", "predict", "will", and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to, unanticipated weather conditions; unscheduled generation outages; unusual maintenance or repairs; unanticipated changes in costs; environmental incidents, including costs of compliance with existing and future environmental requirements; electric transmission or gas pipeline system constraints; legislative and regulatory initiatives; additional competition in electric or gas markets and continued industry consolidation; financial or regulatory accounting principles; political, legal, and economic conditions and developments in the countries in which we have a presence; changing market conditions and other factors related to physical energy and financial trading activities; the performance of projects undertaken by our non-regulated businesses and the success of efforts to invest in and develop new opportunities; availability of, or cost of, capital; employee workforce factors; delays and other obstacles associated with mergers, acquisitions, and investments in joint ventures; and costs and effects of legal and administrative proceedings, settlements, investigations, and claims. Please refer to the company's SEC filings for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to update the information contained herein.