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Exhibit 99.A
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CP&L FLORIDA
---- PROGRESS
Carolina Power & Light CORPORATION
MEDIA CONTACTS INVESTOR CONTACTS
KEITH POSTON, BOB DRENNAN,
CP&L Energy CP&L Energy
919/546-6189 919/546-7474
MELANIE FORBRICK, GREG BEURIS,
Florida Progress Corporation Florida Progress Corporation
727/820-5023 727/820-5734
CP&L SHAREHOLDERS APPROVE ACQUISITION OF FLORIDA PROGRESS
RALEIGH, N.C. (AUGUST 16, 2000) - CP&L Energy's (CP&L) [NYSE: CPL] shareholders
today approved the company's pending acquisition of Florida Progress
Corporation (FPC) [NYSE: FPC] at a Special Shareholders Meeting in Raleigh,
N.C. 98% of shareholders who cast ballots voted in favor of the acquisition,
which will create one of the nation's 10 largest energy companies based on a
generating capacity of more than 19,000 megawatts. The new company will have a
powerful presence in the Southeastern electric and natural gas markets with
more than 2.8 million customers.
"Once this acquisition closes, we will have size, capacity, assets and a
customer base to put CP&L in a position to effectively compete in any business
environment," said William Cavanaugh, chairman, president and CEO of CP&L
Energy. "We intend to strengthen those customer relationships and utilize our
generation assets to go after a larger share of the region's fast-growing
wholesale energy market."
"Today is another important step toward completing the combination of these two
outstanding companies on schedule this fall," said Richard Korpan, chairman,
president and CEO of Florida Progress. "We are creating a powerful new company
poised for success in the rapidly changing marketplace."
CP&L and Florida Progress announced a share exchange agreement on August 23,
1999; the agreement was amended March 6, 2000. The acquisition still must be
approved by FPC shareholders, the North Carolina Utilities Commission (NCUC)
and the Securities and Exchange Commission (SEC). FPC shareholders vote
tomorrow at a Special Shareholders Meeting in St. Petersburg, FL and the NCUC
is expected to issue an order approving the combination soon. The acquisition
is expected to close in the fall.
As previously announced, William Cavanaugh will lead the new company as its
chairman, president and chief executive officer. CP&L Energy will be organized
into five primary business units: Energy Supply, Energy Delivery, Florida
Power, Gas & Energy Services and Energy Ventures. In addition, a Service
Company has been formed to support the combined company. CP&L Energy, the
temporary name for the new holding company, will be re-named at closing.
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About Florida Progress
Florida Progress is a FORTUNE 500 diversified electric utility holding company
based in St. Petersburg, Florida. 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
rail services, marine operations, and coal mining and synthetic fuel
production. Additional information about Florida Progress can be found at
http://www.fpc.com.
About CP&L Energy
Headquartered in Raleigh, N.C., CP&L Energy, through its subsidiary Carolina
Power & Light, provides electricity and energy services to 1.2 million
customers in North Carolina and South Carolina and provides natural gas
distribution and service, through its wholly owned subsidiary North Carolina
Natural Gas (NCNG), to about 178,000 customers in eastern and southern North
Carolina. The company owns and operates a system of 18 power plants in the
Carolinas and Georgia. CP&L Energy's non-regulated operations include fiber
optic assets and statusgo.com, two Internet-related services businesses, and
Strategic Resource Solutions (SRS), an integrated facility and energy
management solutions company. Additional information on CP&L can be found at
http://www.cplc.com.
This press release contains forward-looking statements within the meaning of
the safe harbor provisions of the Securities Exchange Act of 1934. The
forward-looking statements are subject to various risks and uncertainties.
Discussion of factors that could cause actual results to differ materially from
management's projections, forecasts, estimates and expectations may include
factors that are beyond the company's ability to control or estimate precisely.
Factors include, but are not limited to, actions in the financial markets,
actions of regulatory agencies, weather conditions, economic conditions in the
company's service territories, fluctuations in energy-related commodity prices,
conversion activity, other marketing efforts and other uncertainties. Other
risk factors are detailed from time to time in the company's SEC reports.
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