Duke Energy Purchases Wind Company for $240M

Duke Energy (NYSE: DUK) has significantly increased its wind energy operations by acquiring Catamount Energy Corporation for approximately $240 million, plus assumed debt.

Catamount, formed in 1992, has approximately 300 megawatts (MW) of
renewable energy in operation, including its interests in the
Sweetwater project in Nolan County, Texas, which is one of the largest
wind projects in the world. Additionally, Catamount has approximately
1,750 MW of development interests in several states and the U.K.

"Bringing in the experience and proven track record of Catamount provides Duke Energy with an opportunity to broaden its investment in renewable energy, and continue its efforts to reduce carbon emissions," said David Marks, Duke Energy Generation Services (DEGS) senior vice president of wind energy.

In May 2007, Duke purchased Tierra Energy, a leading wind developer in Austin, Texas. Duke now has more than 5,000 MW of wind energy under development in 12 states and will have approximately 500 MW of operating assets by the end of 2008.

Duke purchased Catamount with funds affiliated with Diamond Castle Holdings, LLC, a private equity firm with over $1.85 billion of committed capital under management. Founded in 2004, Diamond Castle specializes in leveraged buyouts, growth capital and equity-like investments in both public and private companies. Diamond Castle targets investments in the following industry sectors: media and communications, energy and power, financial services, healthcare and diversified industries.

About Duke Energy

Duke Energy, one of the largest electric power companies in the United States, supplies and delivers electricity to approximately 4 million U.S. customers in its regulated jurisdictions. The company has approximately 35,000 MW of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 MW of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.