PPL Corporation (NYSE: PPL) announced today the basis for resetting the distribution rate on the PPL Capital Funding Trust I Preferred Trust Securities due 2006 (the "Preferred Securities") underlying its Premium Equity Participating Security Units (PEPS ^SM Units).

The new distribution rate will be effective on and after Feb. 18, 2004, in connection with the proposed remarketing of the Preferred Securities. This rate resetting is pursuant to the contractual requirements of the PEPS Units and the Preferred Securities.

The securities affected by this announcement are as follows:

• PPL Capital Funding Trust I Preferred Trust Securities due 2006 (CUSIP No. 69352F402).

• PEPS Units issued by PPL Corporation (CUSIP No. 69352F204), listed on the New York Stock Exchange (NYSE: PPLPrE).

• Treasury PEPS Units (PEPS Units for which U.S. Treasury securities have been substituted for the related Preferred Securities in accordance with the terms of the PEPS Units) (CUSIP No. 69352F303).

The Premium Equity Participating Security Units (PEPS ^SM Units), Series B, which were issued by PPL on Jan. 21, 2004, are not affected in any way by this announcement.

The distribution rate on the Preferred Securities, effective Feb. 18, 2004, upon a successful remarketing, will be equal to the sum of the reset spread and the interest rate on the selected benchmark Treasury Security (CUSIP No. 912828BX7, maturity Jan. 31, 2006) in effect on Feb. 12, 2004, but cannot be less than the initial distribution rate payable for the Preferred Securities because of the contractual requirements of the Preferred Securities. Due to current market conditions, PPL Corporation believes that, upon a successful remarketing on Feb. 12, 2004, the distribution rate will be reset to equal the floor rate of 7.29 percent effective on Feb. 18, 2004.

In accordance with the "Election of Collateral Substitution Instructions" included in the notice of initial remarketing of the Preferred Securities on Jan. 28, 2004, holders of the Preferred Securities who elect to effect a collateral substitution by requesting that the remarketing agent purchase U.S. treasury securities on their behalf must pay cash in an amount equal to the purchase price of the treasury portfolio (which on Feb. 2, 2004, would have been approximately $25.40 per each $25.00 liquidation amount Preferred Security, if Feb. 2, 2004, had been the Initial Remarketing Date) and any fees and expenses of the remarketing agent per each Preferred Security times the number of $25 liquidation amount Preferred Securities being withdrawn by certified or cashier's check in immediately available funds to Morgan Stanley & Co. Incorporated as the Remarketing Agent. The check, along with a copy of the "Instruction to Purchase Contract Agent" sent in accordance with the "Election of Collateral Substitution Instructions," should be sent to:

Morgan Stanley & Co. Incorporated

1633 Broadway

26th Floor

New York, NY 10019

Attention: Mike Torregrossa

Holders desiring to obtain the amount that must be paid for the remarketing agent to purchase U.S. treasury securities on their behalf should contact Nathan McMurtray of Morgan Stanley & Co. Incorporated at 212-761-5409.

PPL Corporation, headquartered in Allentown, Pa., controls about 11,500 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to customers in Pennsylvania, the United Kingdom and Latin America.