RALEIGH, N.C. (December 8, 2004) -- Progress Energy's [NYSE: PGN] board of directors today voted to increase the dividend on the company's common stock. Progress Energy has increased the dividend 17 straight years. The quarterly dividend, raised to 59 cents per share from 57.5 cents per share, is payable on February 1, 2005, to shareholders of record as of January 10, 2005. This represents a total annual dividend of $2.36 per share, an increase of $0.06 over the 2004 dividend.

The board of Progress Energy Carolinas, Inc. also declared dividends on the company's preferred stock. Dividends at the prescribed rate for preferred stock are $1.25 per share on the $5 series; $1.05 per share on the $4.20 series; and $1.36 per share on the $5.44 series. The preferred stock dividends are payable April 1, 2005 to shareholders of record as of March 16, 2005.

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,000 megawatts of generation capacity and $9 billion in annual revenues. The company's holdings include two electric utilities serving approximately 2.9 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering generation, energy marketing, natural gas production, fuel extraction, rail services and broadband capacity. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com.

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