Progress Energy closes on sale of remaining merchant business; clearly focused on regulated utilities

RALEIGH, N.C. (June 13, 2007) – Progress Energy (NYSE: PGN) announced today that its subsidiaries closed on the previously announced sale of their nonregulated power plants, hedges and contracts. Net proceeds from the transactions totaled approximately $480 million, including income tax benefits, and are expected to be used for corporate purposes.

“We have successfully exited from our Progress Ventures’ nonregulated businesses, including the sales of the merchant plants and the natural gas E&P business, and have done so in a manner that has allowed us to earn a modest positive return on our capital,” said Peter Scott, chief financial officer of Progress Energy. “Our risk profile has been reduced and we continue to focus our efforts and our capital on our growing regulated utilities. We are well on our way to transforming the company into the largest pure-play regulated integrated electric utility in the nation.”

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy company with more than 21,000 megawatts of generation capacity and $10 billion in annual revenues. The company’s holdings include two electric utilities serving approximately 3.1 million customers in North Carolina, South Carolina and Florida. Progress Energy is the 2006 recipient of the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence. The company also is the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company’s Web site at www.progress-energy.com.

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This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve estimates, projections, goals, forecasts, assumptions, risk and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Any forward-looking statement is based on information current as of the date of the report and speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made.

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