RALEIGH, N.C. (December 10, 2003) -- 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 16 straight years. The quarterly dividend, raised to 57.5 cents per share from 56 cents per share, is payable on February 2, 2004, to shareholders of record as of January 12, 2004. This represents a total annual dividend of $2.30 per share, an increase of $0.06 over the 2003 dividend.

The board of Carolina Power and Light Company (doing business as 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, 2004, to shareholders of record as of March 17, 2004.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,000 megawatts of generation capacity and $8 billion in annual revenues. The company's holdings include two electric utilities serving 2.8 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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