ALLENTOWN, Pa.---PPL Corporation (NYSE: PPL) Friday (2/25) increased the indicated annual dividend level on its common stock by 6 percent - from $1.00 per share to $1.06 per share, effective with the dividend payable April 1, 2000.

On a quarterly basis, the PPL Corp. dividend will increase from 25 cents per share to 26.5 cents per share, first payable April 1, 2000, to shareowners of record March 10, 2000.

This dividend increase reflects PPL's record high earnings achieved in 1999 and the success of our integrated corporate strategy," said William F. Hecht, PPL's chairman, president and chief executive officer. "The success of our strategy to generate and sell competitively priced energy in key U.S. markets and to operate high-quality delivery businesses around the world is proven in the numbers." For 1999, PPL Corp. had earnings of $2.35 per share after excluding one-time items, an all-time record for the company.

Hecht said the last dividend change by PPL Corp. in 1998 was a reduction in the annual dividend level from $1.67 per share to $1.00 per share. That action immediately followed PPL Electric Utilities' restructuring settlement in connection with the Pennsylvania Customer Choice Act. He said the purpose of that dividend change was to permit the company to retain more of its earnings for investment in business expansion, both in the United States and overseas.

According to Hecht, PPL's growth strategy already has shown clear signs of success. "After the first full year of electric industry competition in Pennsylvania, the company has a sound strategy in place, which is proving to be successful, and we are delivering on our promise to grow earnings and build value for our shareowners."

PPL last month told financial analysts that it expects earnings per share for 2001 of $2.95 to $3.00. The forecast for 2001 earnings represents an increase of about 27 percent over 1999 adjusted earnings of $2.35 per share and about a 13 percent increase over forecasted 2000 earnings per share of $2.60 to $2.65.

"When we reduced the dividend in 1998, we made it clear that we were responding to the changing energy markets," Hecht reflected. "Our most recent earnings performance and our forecasts for continued earnings improvement provide us the opportunity to grow the dividend," said Hecht. "We believe we can increase the dividend level at this time because of the continued success of our business expansion strategy. In so doing we can provide a higher current yield to investors while also retaining sufficient funds in the business to meet our long-term growth objectives. We will consider dividend increases in the future as earnings continue to grow."

In addition, PPL Electric Utilities, a subsidiary of PPL Corp., declared the following quarterly dividends on its preferred stock, payable April 1, 2000, to shareowners of record March 10, 2000.

Preferred

4 1/2%...............$1.125

3.35% Series....$0.8375

4.40% Series....$1.10

4.60% Series....$1.15

5.95% Series....$1.4875

6.125% Series..$1.53125

6.15% Series....$1.5375

6.33% Series....$1.5825

6.75% Series....$1.6875

Certain statements contained in this news release, including statements with respect to future earnings, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corp. believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; weather variations affecting customer energy usage; competition in retail and wholesale power markets; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corp. and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of plants and other facilities; environmental conditions and requirements; system conditions and operating costs; performance of new ventures; political, regulatory or economic conditions in countries where PPL Corp. or its subsidiaries conduct business; foreign exchange rates; and the commitments and liabilities of PPL Corp. and its subsidiaries. Any such forward-looking statements should be considered in light of such factors and in conjunction with PPL Corp.'s 1998 Form 10-K and interim reports on file with the SEC.