RALEIGH, N.C. (Feb. 28, 2007) -- Progress Energy [NYSE: PGN] donated more than $12 million in 2006 to enhance education, promote economic development and protect the environment in the communities it serves, and to support initiatives and institutions important to the company's 10,000-plus employees.

"Progress Energy is an energy provider serving millions of people, but we're also a local company, and, more importantly, a neighbor in every community where we live and work," said Bob McGehee, chairman and chief executive officer of Progress Energy. "Our corporate giving supports education and business development, a healthy environment and involved employees -- promoting programs that will produce valuable returns, both today and far into the future."

The company continued its long-standing support for K-12 education with grants awarded to Teach for America and to education foundations throughout the company's service area. The company also continued its strong support of the arts in the Carolinas and Florida.

In addition, Progress Energy provided financial support for a number of environmental grants, including the University of Florida Water Institute and the Sustainable Energy, Environment and Economic Development (SEEED) initiative through the Carolina Environmental Program at the University of North Carolina at Chapel Hill. Investments in sustainable energy and state-of-the-art environmental technology are part of Progress Energy's balanced approach to meeting the future energy needs of its fast-growing service areas.

Employee giving was once again a key component of the company's philanthropic efforts. Employees pledged more than $2 million through the company's E-Giving campaign, which provides a broad range of community-based organizations and agencies to which employees can contribute. Progress Energy provided $1 million in matching funds to increase the impact of employee giving throughout its service territories.

"I am especially proud of the generous spirit of our Progress Energy employees," McGehee said. "In addition to the funds they donate, our employees give their time as volunteers at schools, community organizations and special events that help improve the quality of life for others in the communities we serve."

Recognizing the difficulties customers are experiencing with the sharp increases in fuel costs, Progress Energy also contributed $400,000 to match contributions from customers and employees to the Energy Neighbor Fund. The program was established in 1982 in the Carolinas and in 1988 in Florida, and over the years has provided more than $27 million to families in crisis in our service territories. The company-sponsored program provides assistance to families in Florida, North Carolina and South Carolina who struggle to pay their energy costs.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 23,000 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 Carolinaand Florida. Progress Energy also includes energy marketing and other nonregulated operations. 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. Progress Energy was 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 http://www.progress-energy.com.

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