Progress Energy [NYSE: PGN] today announced that it has closed on the agreements to sell Powell Mountain Coal Company, Dulcimer Land Company and Kanawha River Terminals to an investor group for $94 million in cash. The deal was previously announced in December 2007.

The Investor Group consists of affiliates of Traxys North America, LLC, Pegasus Capital Advisors, L.P., and Kelso & Company. This is the final divestiture of Progress Energy's restructuring plan related to the non-regulated investments in Progress Ventures. Proceeds from the transactions will be used for general corporate purposes.

INFO SOURCES

Progress Energy [NYSE: PGN]

FIRMS

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy company with more than 21,000 megawatts of generation capacity and $9 billion in annual revenues. The company will observe its 100^th anniversary in 2008. Progress Energy includes two major utilities that serve more than 3.1 million customers in the Carolinas and Florida. The company is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. The company also is the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. Progress Energy serves two fast-growing areas of the country, and the company is pursuing a balanced strategy for a secure energy future. That balance includes aggressive energy efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system.

Kelso is a private equity firm headquartered in New York.

Pegasus Capital Advisors is a private equity fund manager that provides creative capital solutions to middle market companies across a wide variety of industries. Established in 1995, Pegasus manages over $1.8 billion in assets through several private equity funds and has made close to 70 investments since its inception. It is currently pursuing initiatives in several key sectors, including renewable and conventional energy, all-natural human and pet foods, alternative building materials, LED lighting, homeland security, niche consumer products and business services, as well as investments associated with sustainable business solutions for companies in other industries. The firm employs over 50 investment and advisory professionals working out of main offices in Cos Cob, CT and New York City.

Traxys North America is an international physical metals and minerals marketing, distribution and trading company headquartered in New York.

ASSETS

Powell Mountain Coal Company and Dulcimer Land consist of approximately 30,000 acres of land in Lee County, Va., and Harlan County, Ky. There are approximately 40 million tons of coal reserves on the property. Kanawha River Terminals operates five river terminals located on the Ohio River and its tributaries. The facilities have annual capacity in excess of 40 million tons for transloading, blending and storage of coal and other commodities.

PEOPLE

Bill Johnson, chairman, president and CEO of Progress Energy