CG&E Prices $500 Million of Senior Unsecured Debentures Due 2012

Business Wire, Sept 18, 2002

Business Editors

CINCINNATI--(BUSINESS WIRE)--Sept. 18, 2002

The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp. (NYSE:CIN), today priced an issuance of $500 million of senior unsecured debentures due in 2012 with a coupon of 5.7 percent.

"We are very pleased with the strong demand for these debentures and the fact that the offering was oversubscribed," said R. Foster Duncan, executive vice president and chief financial officer of Cinergy. "Investors continue to recognize the strengths of our balanced, integrated portfolio, focus on our core businesses and stable financial platform."

Proceeds from the sale of the debentures will be used to repay indebtedness, including short-term indebtedness, which was incurred in connection with general corporate purposes, including capital expenditures related to construction projects and environmental compliance programs, and the maturity of $100 million in first mortgage bonds.

The lead manager for the sale was JP Morgan with co-managers ABN AMRO, Salomon Smith Barney, McDonald Investments, Banc of America and Scotia Capital.

The Cincinnati Gas & Electric Co. is a wholly owned subsidiary of Cinergy Corp., and provides service to 780,000 electric customers and 500,000 gas customers in southwestern Ohio and Northern Kentucky. Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated operations and energy merchant. Cinergy owns regulated delivery operations in Ohio, Indiana, and Kentucky that serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated operations own 6,000 megawatts of generation. Cinergy's energy merchant business is a Midwest leader in low-cost generation owning 7,000 megawatts of capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. The "into Cinergy" power-trading hub is the most liquid trading hub in the nation.

The offering may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from J.P. Morgan Securities Inc., 8th Floor, 270 Park Avenue, New York, New York 10017, phone (212) 270-6000.

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.