For the third time this year, PPL Corp. (NYSE: PPL) Wednesday (10/25) reported record quarterly earnings. This marks the seventh consecutive quarter in which PPL has met or exceeded the consensus earnings estimate of financial analysts.

When adjusted to exclude the benefit of nonrecurring items, the company’s third quarter 2000 earnings were $0.81 per share, 47 percent higher than similarly adjusted earnings of $0.55 per share reported a year ago.

PPL also announced its 2002 earnings forecast of between $3.55 and $3.65 per share, a range that reflects an approximate 11 percent increase over its 2001 forecast of $3.20 to $3.30 per share. William F. Hecht, PPL’s chairman, president and chief executive officer, said these earnings forecasts are based on conservative assumptions about future business conditions. Hecht also confirmed the company’s previously announced 2000 forecast of $3.00 per share, which also excludes the benefits of nonrecurring items.

Hecht said the record-setting earnings performance in recent quarters can be directly attributed to the company’s success, over the last several years, in capitalizing on opportunities offered by the competitive energy marketplace.

“The most dramatic example of our success is in the electricity generation and marketing businesses,” said Hecht. “Our company achieved excellent operating performance at our generation facilities throughout 2000, and we optimized the value of this performance through our wholesale trading and marketing activities in energy and related commodities. Through September 30, our trading and marketing organization is conservatively estimated to have added about $30 million of net income over and above the earnings from PPL’s generating assets.”

Also contributing to PPL’s earnings growth during the third quarter and the first nine months of 2000 were positive results from the company’s regulated energy delivery business in Pennsylvania and from the company’s international operations.

Actual earnings for the third quarter of 2000 were $0.94 per share, including a nonrecurring benefit of 13 cents per share from a settlement with various insurers for environmental and other liabilities. Actual earnings for the third quarter of 1999 were $0.68 per share, including a nonrecurring benefit of 13 cents per share resulting from a series of transactions related to the securitization of PPL’s transition costs.

Actual earnings per share for the first nine months of 2000 were $2.57, compared to actual earnings per share of $1.85 reported for the same period of last year. Excluding nonrecurring items during these periods, earnings per share of $2.41 for the first nine months of 2000 reflect an increase of 40 per cent over adjusted earnings per share of $1.72 for the same period of 1999.

Actual earnings per share for the 12 months ended September 30, 2000, were $3.59, compared to actual earnings per share of $2.41 reported in the same period last year. Excluding nonrecurring items during these periods, earnings per share of $3.04 for the 12 months ended Sept. 30, 2000, reflect an increase of 43 percent over adjusted earnings per share of $2.13 for the same period last year. This growth underscores the company’s success from continuing operations.

“Our achievements of the past year and our expectation of sustained earnings improvement over the next two years are the result of a solid set of business fundamentals and a time-proven dedication on the part of our employees to continually improve our operations,” said Hecht.

Hecht said PPL’s corporate strategy of concentrating on the generation and sale of competitively priced energy in key U.S. markets while operating high-quality energy delivery businesses in selected regions around the world has led to record-breaking, sustainable growth.

The major drivers of PPL’s 2002 earnings forecast are:

• Increased margins on energy transactions;

• Increased supply of electricity to sell in the competitive wholesale markets in the West;

• New natural gas-powered plants in Arizona, Connecticut and Pennsylvania;

• Strong growth in the electricity delivery business in Pennsylvania;

• Higher earnings from the company’s international businesses; and

• Success in continuing to reduce costs.

PPL invites interested parties to listen to the live Internet webcast of management’s third quarter earnings teleconference with financial analysts at 9 a.m. today. The teleconference is available online live, in audio format, on PPL’s main Internet web site: www.pplweb.com. Interested individuals also can access the live conference call via telephone at 913-981-4900.

Consolidated Financial Information (unaudited)

Certain statements contained in this news release, including statements with respect to future earnings, energy supply, sales, margins and deliveries, operating costs, subsidiary performance and generating capacity, 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; development of new projects; performance of new ventures; political, regulatory or economic conditions in countries where PPL Corp. or its subsidiaries conduct business; capital market conditions; 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 Form 10-K and other reports on file with the Securities and Exchange Commission.