Cinergy Corp. reports increase in earnings.

CINCINNATI--(BUSINESS WIRE)--Jan. 25, 1996--Cinergy Corp. (NYSE:CIN), the parent company of The Cincinnati Gas & Electric Company and PSI Energy, Inc., today announced consolidated annual 1995 earnings of $2.22 per share compared with $1.30 per share in 1994. For the fourth quarter, earnings per share were $.49 compared with $(.11) for the same period in 1994.

For the quarter and the year, net income was up $91 million and $156 million, respectively, when compared with the same periods in 1994. Continued emphasis on achieving merger savings and other cost reductions and rate relief received earlier this year by PSI Energy contributed to the increases. Strong economic growth, combined with extreme weather conditions in the third and fourth quarters also were factors in the years performance. Earnings for 1995 included net losses associated with disposing of and winding down certain non-regulated activities of $4.0 million and a $7.5 million write-off of obsolete inventory.

The 1994 earnings reflected write-offs totaling $61 million, net of taxes, or $.41 per share, primarily for merger-related costs which cannot be recovered under merger savings sharing mechanisms authorized by regulators. Of the 1994 write-offs, $46 million, or $.31 per share, was taken in the fourth quarter.

"For our new company, 1995 was a great year. In our first full year, we have exceeded our earnings and merger savings goals, which has been beneficial to our customers and shareholders," James E. Rogers, vice chairman, president and chief executive officer of Cinergy, said. "Through the hard work and creativity of our employees, as recognized by our selection as Utility of the Year by Electric Light and Power magazine, we have been able to reduce costs while continuing to prepare ourselves for the more competitive business environment ahead.

Electric kwh sales were up 11.4% in the fourth quarter reflecting extreme weather conditions and the strong regional economy. Mcf gas sales and transportation volumes for the quarter ended December 31, 1995, increased 31.9% when compared to the same period in 1994. For 1995, electric kwh sales were up 4.1% and gas mcf sales and transportation volumes were up 8.6% when compared with 1994, as a result of economic growth and extreme weather conditions in the third and fourth quarters.

Industrial electric kwh sales increased 4.6% in 1995 demonstrating continued economic growth in the company's service area. Gas transportation volumes were up 24.4% for the year, reflecting the strength of the economy and a transportation program for large volume firm service customers, which began in late 1994.

Operating revenues for 1995 increased 4.6% to $3.03 billion from $2.90 billion in 1994. Fourth quarter 1995 operating revenues were $786 million compared with $693 million in the fourth quarter 1994.

Following are summaries of Cinergy's unaudited consolidated financial information for the fourth quarter and 12-month period ended December 31. The figures assume the companies were combined during the entire period. -0-

                            Cinergy Corp.
          (Rounded to thousands, except per share amounts)

Fourth Quarter                  1995              1994

Revenues                      $785,971          $692,698
Net Income (Loss)            $  76,629         $ (14,664)
Earnings Per Share                $.49             $(.11)
Av. Shares Outstanding         157,498           150,264

12 Mo. ended 12/31              1995              1994

Revenues                    $3,031,433        $2,897,935
Net Income                    $347,182          $191,142
Earnings Per Share               $2.22             $1.30
Av. Shares Outstanding         156,620           147,426

4th Quarter kwh Sales           1995              1994    % Increase
                                                           (Decrease)

Residential                  3,507,838         3,015,956     16.3
Commercial                   2,787,570         2,592,252      7.5
Industrial                   4,129,038         3,923,922      5.2
All Other                    2,505,614         2,074,748     20.8
Total                       12,930,060        11,606,878     11.4

4th Quarter mcf Sales            1995              1994

Residential                     17,416            11,386     53.0
Commercial                       6,453             4,840     33.3
Industrial                       2,068             1,979      4.5
All other                        1,286             1,143     12.5
Total sales                     27,223            19,348     40.7
Gas transported                 10,624             9,348     13.6
Total gas sales                 37,847            28,696     31.9
  & gas transported

CONTACT: Cinergy Corp., Cincinnati

Media Contact: Steve Brash, 513/287-2226 (w)

513/231-6895 (h)

Angeline Protogere, 317/838-1338 (w)

317/298-3090 (h)

Investor Contact: Julie Janson, 513/287-3025