ASHEVILLE, N.C. (January 24, 2005) -- Progress Energy has sold more than 2,600 acres of land in Buncombe and Madison counties to the state of North Carolina, which will preserve the land for future generations.

The property, called Sandymush, is less than 20 miles from downtown Asheville on the Buncombe-Madison county line. Progress Energy sold the land for $10.2 million to the state, with the state's Ecosystem Enhancement Program (EEP) contributing more than $9 million. The Southern Appalachian Highlands Conservancy provided the remaining $1 million, which was donated by conservation philanthropists Fred and Alice Stanback.

Progress Energy owned the land for about 30 years and leased portions of the property to area farmers. "It is critical that North Carolinians work together to preserve the state's natural resources," said Robert Sipes, vice president of Progress Energy Carolinas' Western Region. "Selling the Sandymush property is a win-win for Progress Energy, the state of North Carolina and the environmental community, as well as the residents of western North Carolina."

Over the past five years, Progress Energy donated more than $2.6 million to support conservation and environmental organizations in North Carolina. In 2004, the company received the Corporate Conservation Partner of the Year Award from the North Carolina Land Trust Council, a coalition of 23 local and regional land trusts.

EEP was created in July 2003 by the N.C. Department of Environment and Natural Resources to fund the restoration of wetlands and streams and permanent preservation of high-quality streams and wetlands. The program, which combines an existing NCDENR initiative with ongoing efforts by the N.C. Department of Transportation, is funded with existing federal and state highway funds allocated to offset the loss of wetlands and damage to streams caused by highway construction projects. The U.S. Army Corps of Engineers is a sponsor in the agreement.

"NCDOT is pleased to be part of such an important endeavor," said N.C. Board of Transportation member Gordon Myers of Asheville. "Through the Sandymush preservation project we will be able to preserve the precious natural resources that make western North Carolina so special and uphold the department's commitment to improving quality of life and economic growth."

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 competitive 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 http://www.progress-energy.com.

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