PPL Corporation (NYSE: PPL) today (2/27) increased its common stock dividend by $0.10 per share, or 6.5 percent, to $1.64 per share, on an annualized basis. With this increase, the company now has improved its common stock dividend by more than 50 percent over the past three years.

PPL Corporation's quarterly dividend rate will increase from $0.385 per share to $0.41 per share, payable April 1, 2004, to shareowners of record March 10, 2004. This is the company's 233rd consecutive quarterly dividend.

"PPL's continuing strong financial performance has made this dividend increase possible – and appropriate," said William F. Hecht, PPL's chairman, president and chief executive officer. "In 2003, we continued to grow earnings while significantly improving PPL's cash position and capital structure. Looking ahead, we see a continuation of this trend."

Hecht said the principal focus of PPL's corporate business strategy is to pursue disciplined growth while minimizing the company's exposure to commodity price risk and supply risk by matching energy supply with load under long-term contracts with creditworthy counterparties.

"We owe our strong and stable financial position to the continued solid operational performance of our three business segments and to a comprehensive risk management program," Hecht said. "PPL's long-term energy supply strategy is continuing to grow value for shareowners. Matching low-cost energy supply with load, or customer demand, under fixed-price contracts has allowed us to provide value for PPL's shareowners despite ongoing, industry-wide pressure on energy margins."

Based on the company's closing stock price yesterday of $45.88 per share, the dividend increase will improve the current yield on PPL common stock to 3.57 percent.

For 2004, PPL has forecast earnings of $3.45 to $3.75 per share. Based on the midpoint of its 2004 forecast, the company would be paying shareowners 46 percent of its earnings in the form of a dividend, Hecht said.

"This new dividend level maintains a balance between near-term shareowner benefits and the company's efforts to grow value over the long term," said Hecht. He said the company forecasts earnings per share growth in the 3 to 5 percent range over the long term.

This is the third consecutive year that PPL has increased its dividend. Last February, the company also increased the dividend by $0.10 per share on an annualized basis, and in 2002 it increased the dividend by $0.38 per share on an annualized basis.

In addition, PPL Electric Utilities Corporation, a subsidiary of PPL Corporation, today declared the following quarterly dividends on its preferred stock, payable April 1, 2004, to shareowners of record March 10, 2004.

Preferred

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

3.35% Series.....$0.8375

4.40% Series.....$1.10

4.60% Series.....$1.15

6.75% Series.....$1.6875

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.

Certain statements contained in this news release, including statements with respect to future earnings, corporate strategy, cash and capital structure, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation 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 Corporation 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, markets and technologies; performance of new ventures; asset acquisitions and dispositions; political, regulatory or economic conditions in states, regions and countries where PPL Corporation or its subsidiaries conduct business; receipt of necessary governmental permits, approvals and rate relief; capital market conditions; stock price performance; foreign exchange rates; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.