Dominion Prices $600 Million Debt Offering

Dec 10, 2002

December 10, 2002

RICHMOND, Va. -- Dominion (NYSE: D) announced today the pricing on December 9, 2002 of $600 million of senior unsecured notes, consisting of $300 million of 5.125% 7-year notes and $300 million of 6.75% 30-year notes. The company plans to place $500 million of the proceeds in escrow to partially refinance a $1 billion debt maturity scheduled for January 31, 2003. The company will use the remaining proceeds to pay down commercial paper issued in connection with the Cove Point acquisition, which was closed in September. The transactions are being jointly managed by JPMorgan and Wachovia Securities and are expected to settle on Monday, December 16, 2002.

Thomas N. Chewning, chief financial officer of Dominion, said: "With this issuance we have pre-funded half of the January 2003 debt maturity, and we have the flexibility to refinance the remainder through either term financing or commercial paper. This strengthens our financial position heading into 2003."

A copy of the final written prospectus relating to these offerings may be obtained from the JPMorgan Securities Inc. Fixed Income Syndicate Desk, phone 212-834-4533, or the Wachovia Securities Prospectus Department, phone 704-593-7454.

Dominion is one of the nation's largest producers of energy, with a diversified and integrated energy portfolio consisting of 24,000-megawatts of generation, 5.7 trillion cubic feet equivalent of natural gas reserves, 7,700 miles of natural gas transmission pipeline and more than 960 billion cubic feet of storage capacity. Dominion also serves 3.8 million franchise natural gas and electric customers in five states. In addition, Dominion owns a managing equity interest in Dominion Fiber Ventures LLC, owner of Dominion Telecom. For more information about Dominion, visit the company's web site at www.dom.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. Discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations may include factors that are beyond the company's ability to control or estimate precisely, such as estimates of future market conditions, estimates of proved and unproved reserves and the behavior of other market participants. Other factors include, but are not limited to, weather conditions, economic conditions in the company's service area, fluctuations in energy-related commodity prices, changes to rating agency requirements, changing financial accounting standards, trading counterparty credit risks, risks related to energy trading and marketing, risks associated with successfully executing the telecommunications business plan and other uncertainties. Other risk factors are detailed from time to time in the company's Securities & Exchange Commission filings.
 

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CONTACTS:    
Media: Mark Lazenby, (804) 819-2042  
     
Analysts: Tom Wohlfarth, (804) 819-2150  
  Joe O'Hare, (804) 819-2156


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