Cinergy Increases Common Stock Dividend.

CINCINNATI -- The executive committee of the board of directors of Cinergy Corp. (NYSE:CIN), the parent company of The Cincinnati Gas & Electric Company and PSI Energy, Inc., today approved a 2.1 percent increase in the common stock dividend to an annual rate of $1.92 per share from the current rate of $1.88 per share.

"This is the third consecutive year that we have raised the dividend demonstrating the strong fundamentals of our business," said James E. Rogers, chairman, president and chief executive officer. "Our board recognizes that dividends are an important part of the total value that we provide our shareholders. The board plans to continue to review the dividend policy periodically and will determine future dividends based upon earnings, cash flows, industry payout ratios and other factors."

The quarterly dividend of 48 cents per share on the outstanding shares of common stock will be payable February 15, 2005 to shareholders of record at the close of business on February 1, 2005.

Also, regular quarterly dividends have been declared on the outstanding shares of CG&E cumulative preferred stocks of $1.00 per share on the 4 percent series and $1.1875 per share on the 4-3/4 percent series, payable April 1, 2005 to shareholders of record on March 1, 2005.

In addition, regular quarterly dividends have been declared on the outstanding shares of PSI Energy cumulative preferred stocks of $0.875 per share on the 3-1/2 percent series; $0.27 per share on the 4.32 percent series; $0.26 per share on the 4.16 percent series; and $1.71875 on the 6-7/8 percent series, payable March 1, 2005 to shareholders of record on February 9, 2005.

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.