CIN Cinergy Corp

PSI Energy, Inc., a subsidiary of Cinergy Corp. (NYSE:CIN), announced today that it will redeem on May 1, 2006, all shares of its 3-1/2 percent cumulative preferred stock at a price of $100 per share, its 4.32 percent cumulative preferred stock at a price of $25 per share and its 4.16 percent cumulative preferred stock at a price of $25 per share, and pay all accrued and unpaid dividends for each series up to the May 1 redemption date. Accrued and unpaid dividends will be paid through the redemption date at the rate of $.5833 per share for the 3-1/2% series, $.1800 per share for the 4.32% series and $.1733 per share for the 4.16% series. Payment of the redemption prices and accrued and unpaid dividends will be made to each tendering shareholder on or after the redemption date as soon as practicable after delivery and surrender of certificates. On and after the redemption date, all holders of cumulative preferred stock shall cease to be shareholders, all dividends on the shares of each series will cease to accrue and all rights with respect to such shares will cease, except the right to receive the redemption price and unpaid and accrued dividends up to the redemption date, upon surrender of the certificates for the shares. Amounts sufficient to redeem all outstanding shares of the preferred stocks, together with accrued and unpaid dividends, will be deposited with National City Bank, the redemption agent, on or before May 1, 2006, for payment to the holders upon delivery of the certificates. Delivery and surrender of the certificates for the three series of preferred stock may be made by "hand delivery" to National City Bank, Shareholder Service Operations, 4100 West 150th Street, Third Floor - North Annex, Cleveland, Ohio 44135-1385, or by mail to National City Bank, Shareholder Service Operations, P.O. Box 94720, Cleveland, Ohio 44101-4720. Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy's regulated public utilities in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its regulated operations own 8,100 megawatts of generation. Cinergy's competitive commercial businesses have 5,200 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy's integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.