<PAGE> 1
[GRAPHIC OMITTED]
FLORIDA
PROGRESS
CORPORATION INVESTOR NEWS - FIRST QUARTER EARNINGS
FLORIDA PUBLIC SERVICE COMMISSION OPENS DOCKET ON FLORIDA POWER
ST. PETERSBURG, FLORIDA, JULY 11, 2000 - On Friday, July 7, 2000, the Florida
Public Service Commission (FPSC) established Docket #000824-EI to review
Florida Power Corporation's earnings, including the effects of the business
combination between Florida Progress Corporation and CP&L Energy.
"Working constructively with our regulators has always been our practice at
Florida Power. I see this as just another step in the process of completing our
combination with CP&L Energy, which will benefit both shareholders and Florida
Power customers," said Joseph H. Richardson, President and Chief Executive
Officer of Florida Power Corporation.
Since the August 1999 announcement of the combination, Florida Power has been
providing updates on the progress of the combination to the FPSC as well as
responding to numerous FPSC staff inquiries. Florida Power intends to continue
working with the FPSC as it has with other regulators involved in the business
combination between Florida Progress and CP&L Energy.
The review by the FPSC is not expected to delay the closing of the combination,
which is targeted for the fall of 2000.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains a forward-looking statement regarding the
projected closing of the combination between Florida Progress and CP&L Energy.
This statement involves risks and uncertainties that could cause actual results
or outcomes to differ materially from expectations. Key factors that could have
a direct bearing on the company's ability to meet this projection include the
actions of various regulatory bodies in approving the combination and other
factors described in the company's periodic reports filed with the Securities
and Exchange Commission.
Terms regarding Florida Progress' share exchange with CP&L Energy are included
in proxy materials that are being mailed to shareholders this week. A copy of
the definitive proxy statement (which shareholders should read because it
contains important information) is available, without charge, at the Securities
and Exchange Commission's web site at http://www.sec.gov.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding
company with assets of $6.5 billion. Its principal subsidiary is Florida Power,
one of the nation's leading electric utilities committed to serving its 1.4
million customers in Florida with competitively priced energy, excellent
reliability, and outstanding customer service. Diversified operations include
energy operations, marine operations and rail services.
###
