Cinergy Announces Reorganization to More Autonomous Business Unit Structure.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Feb. 5, 2001

Cinergy Corp (NYSE:CIN) announced today a new organization structure that increases the autonomy of its business units and capitalizes on the growing importance of non-regulated markets.

"Today, about 50 percent of our earnings come from non-regulated markets, a dramatic change from five years ago when nearly all of our earnings came from our regulated business," said James E. Rogers, chairman, president and chief executive officer of Cinergy. "Our new organization more clearly defines the regulated and unregulated businesses, while providing platforms for future growth."

The new structure contains three business units - Energy Merchant, Regulated Businesses, and Power Technology and Infrastructure Services. Each business unit will have a CEO with the responsibility to develop vision, strategic direction and all high level initiatives and a president who will focus on superior execution of the business plan.

Michael J. Cyrus has been named CEO of the Energy Merchant business unit, which will operate the company's power plants and cogeneration units, both domestically and abroad, and conduct all wholesale energy marketing, trading, origination and risk management. He is currently the president of the Energy Commodities business unit.

William J. Grealis has been named CEO of the Regulated Businesses unit, which will operate all gas and electric transmission and distribution services, both domestically and abroad, and will be responsible for all regulatory planning over the regulated businesses of PSI Energy, Inc., The Cincinnati Gas & Electric Co. and The Union Light, Heat and Power Co. His is currently executive vice president and chief of staff.

Larry E. Thomas has been named CEO of Power Technology and Infrastructure Services, which will originate, incubate and manage a portfolio of emerging energy businesses. He is currently group president of power technology and energy delivery.

James L. Turner has been named president of the Regulated Businesses unit. He is currently president of the energy delivery business unit.

Donald B. Ingle, Jr., has been named president of the Power Technology and Infrastructure Services unit. He is currently president of the Cinergy Investments business unit.

Cinergy Solutions, Inc., under its president, Stephen M. Harkness, will move to the Energy Merchant unit. It specializes in cogeneration and energy outsourcing for large industrial customers and has been part of Cinergy Investments.

John Bryant will be president of the international group, which will continue to originate and operate international holdings. He will have matrixed reporting responsibilities to Energy Merchant and Regulated Businesses, while continuing to report to Rogers for overall strategic direction.

Joe Hale will assume his previous role as head of corporate communications for Cinergy, while retaining his positions as president of CG&E and the Cinergy Foundation.

Cinergy Corp. is one of the nation's leading diversified energy companies, with a total enterprise value of approximately $9 billion and assets of $12 billion. Cinergy owns or operates nearly 21,000 megawatts of electric and combined heat plant generation that is either operational or under development domestically and internationally. Cinergy also has 55,000 miles of electric and gas transmission lines in the United States and abroad and approximately 9,000 employees in nine countries. Its largest operating companies, The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve about 1.5 million electric customers and about 500,000 gas customers in Indiana, Ohio and Kentucky.

Cinergy is active in U.S. power and natural gas markets and maintains a 24-hour-a-day, seven-day-a-week trading operation. The interconnections of Cinergy's Midwestern transmission assets give it access to 37 percent of the total U.S. energy consumption. The "Into Cinergy" power trading hub for Midwest electricity trading is one of the most liquid trading hubs in the United States and is also the delivery hub for New York Mercantile Exchange futures.

In addition to its U.S. operations, Cinergy owns and operates power generation, transmission and distribution assets in the United Kingdom, Spain, the Czech Republic, Estonia, South Africa, Zambia and Kenya. Cinergy is also active in European gas and electricity markets.

Statements made in this release that convey the company's or management's intentions, expectations or predictions of the future are forward-looking statements. The company's actual results could differ materially from those projected in the forward-looking statements, and there can be no assurance that estimates of future results will be achieved. 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.