PPL Corporation (NYSE: PPL) has successfully remarketed an aggregate liquidation amount of $257,200,750 of the PPL Capital Funding Trust I Preferred Trust Securities due 2006 (Trust Preferred Securities).

The Trust Preferred Securities were remarketed at a price of 107.284 percent of their aggregate stated liquidation amount, resulting in a yield to maturity of 3.912 percent based on the reset distribution rate of 7.29 percent annually, which is payable from Feb. 18, 2004 through, but excluding, the maturity date of May 18, 2006.

The Trust Preferred Securities (CUSIP No. 69352FAB1) were issued by PPL in May 2001 as a component of the $575 million aggregate liquidation amount of the 7-3/4 percent Premium Equity Participating Security Units (PEPS ^SM Units) (NYSE: PPLPrE). The other component of the PEPS Units is a purchase contract requiring holders to purchase shares of PPL's common stock on or prior to May 18, 2004.

Under the terms of the PEPS Units, holders were entitled to settle their purchase contract obligation by surrendering their Trust Preferred Securities for remarketing. In addition, prior to the remarketing, holders could elect to make a cash collateral substitution instead of having their Trust Preferred Securities remarketed. Holders of an aggregate liquidation amount of $218,420,250 of the Trust Preferred Securities elected to make the cash collateral substitution and not participate in the remarketing. The Trust Preferred Securities will be released to those holders upon the satisfaction of the remarketing conditions governing the PEPS Units, which will not occur prior to Feb. 18, 2004. Those holders will retain their Trust Preferred Securities at a distribution rate of 7.29 percent annually from Feb. 18, 2004 through, but excluding, the maturity date of May 18, 2006.

The holders of PEPS Units as of Feb. 12, 2004 whose Trust Preferred Securities were remarketed are entitled to excess proceeds from the remarketing of approximately $13,780,000, in the aggregate (or approximately $1.34 per remarketed Trust Preferred Security), which will be paid to the holders on or about Feb. 18, 2004. The holders of PEPS Units who made the cash collateral substitution and did not participate in the remarketing will not receive any excess proceeds from the remarketing.

The Premium Equity Participating Security Units (PEPS ^SM Units), Series B (NYSE: PPLPrF), which were issued by PPL on Jan. 21, 2004, are not affected in any way by this announcement. The fixed income component of those PEPS Units is scheduled to be remarketed in May 2004.

Morgan Stanley & Co. Incorporated served as the remarketing agent for the remarketing of the Trust Preferred Securities.

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.

This news release shall not constitute an offer to exchange or sell, or a solicitation of an offer to exchange or buy, the securities, nor shall there be any offer, exchange, solicitation or sale of any securities in any state in which such offer, exchange, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state or other jurisdiction.