RALEIGH, N.C. (March 28, 2005) -- Progress Energy (NYSE: PGN) and subsidiaries of One Equity Partners LLC (OEP), a private equity affiliate of J.P. Morgan Chase & Co., have closed on the sale of Progress Rail Services Corp. Proceeds from the $405 million sale will be used to reduce overall corporate debt.

Established in 2001, OEP manages over $2 billion of investments and commitments for J.P. Morgan Chase & Co. OEP is typically a lead investor in management-led buyouts, growth capital financings and corporate divestitures. The firm has offices in New York, Chicago and Frankfurt.

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's nonregulated operations include competitive generation, energy marketing, natural gas production, fuel extraction and broadband capacity. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com.

Contacts:

Progress Energy Investor Relations, Bob Drennan, 919-546-7474

Progress Energy Media Relations, Garrick Francis, 919-546-6189

OEP and J.P. Morgan Chase & Co., Brooke Harlow, 212-270-7381 or brooke.d.harlow@jpmorgan.com