Jan. 20, 2003

CHARLOTTE, N.C. - ACC Properties, the marketing arm of the Atlantic Coast Conference (ACC), and Progress Energy have announced an exclusive marketing agreement that will make Progress Energy an Official Corporate Partner of the ACC. The new multi-year agreement gives Progress Energy the status of exclusive energy provider of the ACC.

As an "Official Corporate Partner" of the ACC, Progress Energy will receive comprehensive benefits that include extensive television and marketing tie-ins with ACC basketball and the Conference's 25 championship events. Benefits also include special event/on-site marketing, sideline exposure, promotional and product opportunities, merchandising, tickets and hospitality, and sponsorship rights for the ACC Outreach program.

"It is a great opportunity for Progress Energy to become partners with the ACC," said Bill Johnson, President and CEO of Progress Energy Service Company. "ACC member institutions are part of the fabric of the communities we serve. They represent excellence in athletics and academics. We are very proud to have this partnership with the ACC."

"We are excited about a long-term partnership between Progress Energy and the Atlantic Coast Conference," said ACC Commissioner John Swofford. "As an Official Corporate Partner, their association extends across ACC championships, special events, and outreach activities, as well as our men's and women's basketball television packages. Progress Energy's commitment to excellence makes for a perfect fit for the ACC and our existing corporate partners."

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 21,800 megawatts of generation capacity and $8 billion in annual revenues. The company's holdings include two electric utilities serving more than 2.7 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes non-regulated operations covering merchant generation, energy marketing, natural gas exploration, 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.

ACC Properties is a unique marketing venture between the ACC and its television partners Raycom Sports and Jefferson-Pilot Sports. ACC Properties manages all aspects of Conference marketing, including the Corporate Partner program, licensing, merchandising, championship publications and special events.

The Atlantic Coast Conference (www.theacc.com) was formed in 1953 and consists of nine member institutions: Clemson, Duke, Florida State, Georgia Tech, Maryland, North Carolina, North Carolina State, Virginia and Wake Forest. Headquartered in Greensboro, N.C., the ACC conducts championship competition in 25 sports.