Progress Energy subsidiary closes generation portfolio financing

RALEIGH, N.C., March 21, 2002 — Progress Ventures Inc., a wholly owned subsidiary of Progress Energy announced Thursday that it closed on a $440 million generation project portfolio financing.

The projects announced represent approximately 2,500 megawatts of natural gas- fired generation in Georgia, Florida and the Carolinas.

“This was an outstanding accomplishment in a very tentative market,” said Tom Kilgore, president, Progress Ventures. “Our ability to raise capital is indicative of the confidence the market has in our growth plans for Progress Ventures.”

J.P. Morgan Chase was the lead institution in the financing, which consisted of eleven other lenders.

Progress Energy is a Fortune 250 diversified holding company headquartered in Raleigh, N.C., with more than 20,000 megawatts of generation capacity and $8 billion in annual revenues.

The company’s diverse portfolio includes two major electric utility companies, CP&L and Florida Power, as well as NCNG, Progress Rail, Progress Telecom and Progress Ventures, which manages fuel extraction, manufacturing and delivery; merchant generation; and energy marketing and trading.

These companies serve 2.9 million customers across the Southeast, providing electricity, natural gas, energy services and broadband capacity. For more information about Progress Energy, visit the company’s Web site at http://www.progress-energy.com/.