DUKE ENERGY CONTRIBUTES $500,000 IN SC INDUSTRY PARTNERSHIP FUND

SC Launch! to Invest Tax Credit Funds to Fuel Knowledge Economy in South Carolina

COLUMBIA, SC, January 17, 2007 – SC Launch!® announced today Duke Energy has contributed $500,000 to the South Carolina Industry Partnership Fund to help energize the state’s Knowledge Economy through strategic investments in technology start-ups in the state.

Duke Energy’s support is among the largest received by the Industry Partnership Fund, created in 2006 by an act of the state legislature. SC Launch! garnered a total of $2.0 million in contributions to the fund, the maximum total contributions allowed by the act, which went into effect June 1. Businesses and individuals who contributed to the fund received tax credits toward South Carolina income tax for 100 percent of the donated amount.

“Duke Energy views the SC Industry Partnership Fund as a strategic investment in the well-being of all South Carolina citizens, and this is in line with our corporate philosophy and actions,” Ellen T. Ruff, president of Duke Energy Carolinas. “This very special investment will go far in advancing South Carolina’s Knowledge Economy through SC Launch! and its aggressive role in building technology start-ups.”

A 29-year Duke veteran, Ruff leads Duke Energy’s utility business in North Carolina and South Carolina, providing electricity and value-added products and services to more than 2.2 million customers in a 22,000-square-mile service area. Former group vice president of planning and external relations for Duke Power, she is active in bolstering regional economic development.

SC Launch!, an SCRA® collaboration, will use the funds to accelerate entrepreneurial growth of technology start-ups that are creating high-paying jobs and building equity in the future for all South Carolina. SC Launch! supplies high-potential entrepreneurs and researchers with key tools for success by supporting their high-potential companies with a mix of management counsel, facilities, seed money of up to $200,000 in loans or equity investments, and mentoring.

“Duke Energy’s contribution symbolizes the commitment of prescient legislators, businesses and individuals in South Carolina to drive growth in the Knowledge Economy,” SCRA Senior Vice President and SC Launch! Director Dave McNamara said. “They are committed to the understanding among key business, economic and political leaders that a competitive, dynamic Knowledge Economy will invigorate South Carolina’s economy. These contributions to SC Launch!’s support of and investments in technology start-ups are the foundations for South Carolina’s future achievement.”

SC Launch!, a private nonprofit corporation, has committed seed capital to 14 companies and provided counsel and support to more than 40 other start-ups. More than 100 individuals and companies have applied for financing and other support services from the recently established program.

Funds contributed to the Industry Partnership Fund will be combined with the $12.0 million from SCRA’s strategic cash reserves already committed to SC Launch! to execute the Innovation Centers Act. Under this legislation, SCRA collaborates with Clemson University, the Medical University of South Carolina, and the University of South Carolina to advance the commercialization of research and technology through SC Launch!.

In calendar year 2007, the tax creditable individual contribution limit for the Industry Partnership Fund is $1.3 million, and the maximum tax creditable total is $4.0 million. In 2008, and for calendar years thereafter, the individual limit is $2.0 million, and the maximum limit is $6.0 million. Inquiries concerning 2007 contributions are already being received, according to McNamara.
“SC Launch! has already begun receiving the $4.0 million in Industry Partnership Funds allowed for 2007,” McNamara said. “Contributions eligible for tax credits are again being accepted on a first-come, first-accepted basis, so we encourage early commitments by individuals and corporations during the first quarter. These contributions are important investments for all South Carolinians because they create new, high-potential technology businesses, higher paying jobs and a stronger Knowledge Economy, increasing the well-being of all citizens.”

About Duke Energy Carolinas
Duke Energy Corp., one of the largest electric power companies in the United States, supplies and delivers energy to approximately 3.9 million U.S. customers. The company has nearly 37,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.

Duke Energy's Carolinas operations include nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides nearly 21,000 megawatts of safe, reliable and competitively priced electricity to more than 2.2 million electric customers in a 22,000-square-mile service area of North Carolina and South Carolina.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

About SC Launch!
SC Launch!, an SCRA collaboration, accelerates entrepreneurial growth of technology start-ups by delivering key tools for success, creating high-paying jobs and building equity in the future for all South Carolina. For more information, please visit www.sclaunch.org/.

About SCRA
SCRA fosters growth of the Knowledge Economy as a global and regional leader by collaborating to advance technology with research universities like Clemson, USC and MUSC, industry consortia, government, and private enterprise. For more information, please visit: www.scra.org.

SC Launch! and SCRA are registered trademarks ® of SCRA.

SC Launch! Fact Sheet

Background:

SC Launch!, an SCRA collaboration, accelerates entrepreneurial growth of technology startups by delivering key tools for success, creating high-paying jobs and building equity in the future for all of South Carolina. SC Launch!, leveraging SCRA’s dynamic resources, drives development of high-growth technology companies to build equity in the future by generating Knowledge Economy jobs, by enhancing the state's quality of life, and by providing strong prospects for all South Carolinians in the new economy.

What SC Launch! Does for South Carolina’s New Knowledge Economy

Primary to SC Launch! is the understanding among state key economic and political leaders for the need to build a competitive, dynamic Knowledge Economy that will invigorate S.C. business :

• SC Launch! will attract entities ranging from entrepreneurial startups, industry and university collaboratives to corporate “landing parties.”
• SC Launch! will supply entrepreneurs and researchers with key tools for success by supplying high-potential companies with a mix of management counsel, facilities, seed money of up to $200,000 in loans or equity investments, and mentoring.

How to Receive Information and Apply for Resources and Support

SC Launch’s Home Page, www.sclaunch.org, contains more information about the programs and an application for support and resources.

SC Launch!

SC Launch!, an SCRA collaboration, accelerates entrepreneurial growth of technology startups by delivering key tools for success, creating high-paying jobs and building equity in the future for all South Carolina. For more information, please visit www.sclaunch.org/.

SCRA

SCRA, a nonprofit corporation that has never received an annual state appropriation, funds and manages SC Launch! SCRA catalyzes growth of the Knowledge Economy as a global and regional leader by collaborating to advance technology with research universities, like Clemson, USC and MUSC, industry consortia and private enterprise. Since 1983, SCRA has generated about $7 billion in economic impact on South Carolina and more than 15,000 technology-related jobs.

Who Leads the Program

Key executives include:

• Dave McNamara, Vice President/SCRA and Director/SC Launch! <mcnamara@scra.org>
• Russell Cook, Launch Portfolio Director <russell.cook@scra.org>
• Warren Weeks, Technology Director <warren.weeks@scra.org>

For more information, please visit www.scra.org or www.sclaunch.org.