(LOUISVILLE, Ky. - June 18, 2004) Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), both members of the E.ON AG (NYSE: EON; Frankfurt: EOA) family of companies, today announced regular dividends on several series of the companies' preferred stock.

The LG&E dividends are payable July 15, 2004, to shareholders of record on June 30, 2004, are as follows:

• 31.25 cents per share on the 5 percent cumulative preferred stock, $25 par value
• $1.46875 per share on the $5.875 cumulative preferred stock (without par value)
• $.4375 per share ($437.50 per unit) on the preferred stock, Auction Series A (without par value)

The KU dividends are payable Sept. 1, 2004, to shareholders of record on Aug. 13, 2004, are as follows:

• $1.1875 per share on the 4.75 percent preferred stock, (stated value $100 per share)
• $1.6325 per share on the 6.53 percent preferred stock, (stated value $100 per share)

Members of the E.ON family of companies, LG&E serves 312,000 natural gas and 384,000 electric customers in Louisville, Ky., and 16 surrounding counties, while Lexington, Ky.-based KU serves 512,000 customers in 77 Kentucky counties and five counties in Virginia.