Cinergy 2004 Annual Report Asks: Can We Find Common Ground on Global Warming?

CINCINNATI -- In its 2004 Annual Report, Cinergy Corp. (NYSE:CIN) has taken the unique approach of asking key stakeholders -- from U.S. senators to former EPA administrators -- how common ground can be found in shaping a response to global warming.

The report includes excerpts from interviews with 23 individuals representing eight of the company's major stakeholder groups giving their views on various aspects of the global warming issue. The company also provided the full text of the stakeholder interviews on its Web site, www.cinergy.com.

"As a major coal-burning utility, some might expect us to duck this issue. But avoiding the debate over global climate change and failing to understand its consequences are not options for us," said James E. Rogers, chairman, president and chief executive officer of Cinergy. "And simply giving our opinion as the fifth-largest consumer of coal in the nation is not enough, either. That's why we confronted the issue by asking people to talk with us openly and candidly about virtually every aspect of global warming."

Among those commenting in the report are: U.S. Senators Joe Lieberman (D-CT) and Richard Lugar (R-IN); former U.S. EPA Administrators William Reilly and William Ruckelshaus; energy industry executives Irl Engelhart and John Rice; investment managers Rev. William Somplatsky-Jarman and Joan Bavaria; environmentalist David Hawkins; and scientists, customers and employees of Cinergy. They were interviewed by L.J. Rittenhouse, financial strategist and author of the book, Do Business with People You Can Tru$t.

Cinergy began taking steps to address its greenhouse gas emissions several years ago and adopted a voluntary pledge in 2003 to reduce its GHG emissions by 5 percent below 2000 levels by 2010-2012. The company has participated in carbon sequestration projects, diversified its fuel mix by adding natural gas generation, and converted an older coal-fired plant to natural gas. Cinergy also launched a feasibility study with GE Energy and Bechtel Corporation to build an integrated gasification combined cycle generating station. The company is also funding $21 million in other projects to develop better methods of reducing carbon emissions.

Late last year, the company issued a detailed report on the impact of proposed greenhouse gas regulations, called the Air Issues Report to Stakeholders, which is available on Cinergy.com. The report was developed collaboratively with representatives of the Presbyterian Church's Mission Responsibility through Investment organization and Ceres, a coalition that works with investors on climate change issues.

In 2004 Cinergy was named for the second time to the Dow Jones Sustainability Indexes recognizing the company for its balanced stakeholder approach to business. The company will issue its annual sustainability report this spring, which will further expand on its environmental stewardship.

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.

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.