ST. PETERSBURG, Fla. (May 4, 2006) -- Progress Energy and the city of St. Petersburg today announced a 20-year partnership to rename the Bayfront Center the Progress Energy Center for the Arts, effective immediately.

The Progress Energy Center for the Arts will feature visual and performing arts -- including the newly renovated Mahaffey Theater, the offices of the Florida Orchestra, the Grand Ballroom, the atrium, the Center Plaza, Waterfront Park and the proposed new home of the Salvador Dali Museum.

"This is an investment in the future of St. Petersburg, Progress Energy Florida's hometown," said Jeff Lyash, incoming president and CEO of Progress Energy Florida. "The Progress Energy Center for the Arts is a key component to enhancing the reputation and economy of this region. We are delighted to add our name to this outstanding complex."

In making the announcement, St. Petersburg Mayor Rick Baker described Progress Energy as a good neighbor and an outstanding corporate citizen, investing in economic development, education and the environment, in St. Petersburg and across Florida.

"Progress Energy again has set a standard for corporate leadership in our community by providing funds needed to ensure programming at the center well into the future," Baker said. "This beautiful setting, with unparalleled options for arts events and outdoor festivities, will instantly become a major gathering spot for downtown."

Progress Energy is committed to supporting economic development and growth in the communities it serves. In addition to its efforts in downtown St. Petersburg, the company works closely to help recruit business to Florida. Progress Energy's support of the arts helps to improve the quality of life that is so important to new and existing businesses.

Progress Energy's commitment to downtown St. Petersburg goes far beyond the arts. Construction of Progress Energy Florida's new headquarters building, called Progress Energy Place, is under way and scheduled to be complete in November. When the mixed-use development is complete, it will house company employees, retail tenants, a hotel and condominiums. Progress Energy will have about 500 employees in downtown St. Petersburg.

Since 2001, Progress Energy has invested almost $800,000 in the Florida Orchestra, Mahaffey Theater and the Salvador Dali Museum, some of the organizations that will be located in the Progress Energy Center for the Arts.

Progress Energy's investment in the arts complex will be about $250,000 per year. The company will contribute $6 million to the city of St. Petersburg over the 20 years for naming rights to the arts complex.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.5 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy is the 2005 recipient of 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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