AKRON, Ohio, June 2 /PRNewswire-FirstCall/ -- FirstEnergy Corp. (NYSE: FE) announced today that it has reached an agreement to sell its 50-percent interest in Great Lakes Energy Partners LLC for cash proceeds of $200 million and the expected cancellation of approximately $22 million of oil and gas commodity hedges. As part of the agreement, FirstEnergy also has retained the right to participate for up to a 40-percent interest in future wells in Ohio drilled below the Clinton-Medina formation. The transaction is expected to close by the end of the month, contingent upon the buyer's securing appropriate financing by June 21.

The sale will generate net after-tax cash proceeds of approximately $160 million, which will be used to accelerate the company's debt reduction. This transaction will produce a one-time reduction to second quarter 2004 earnings of $0.02 per share, including the benefits of prior tax capital losses, which will offset the capital gain from the sale.

Great Lakes Energy Partners LLC was established in 1999 as a 50-50 joint venture between FirstEnergy and another party, and holds oil and gas properties in the Appalachian Basin.

Great Lakes Energy Partners has proved reserves of 500 billion cubic feet equivalent of natural gas and oil -- about 90 percent natural gas -- and approximately 5,000 miles of pipelines, as well as drilling rights to more than one million acres in portions of Ohio, Pennsylvania, West Virginia, Kentucky and Tennessee.

"This transaction is consistent with our strategy to focus on our core electric business, which is based on serving 4.4 million customers through our seven electric utility operating companies in Ohio, Pennsylvania and New Jersey," said President and Chief Executive Officer Anthony J. Alexander.

FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio. Its subsidiaries and affiliates currently are involved in the generation, transmission and distribution of electricity; exploration and production of oil and natural gas; transmission and marketing of natural gas; and energy management and other energy-related services.

Forward Looking Statements: This press release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms "anticipate", "potential", "expect", "believe", "estimate" and similar words. Actual results may differ materially due to the speed and nature of increased competition and deregulation in the electric utility industry, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, maintenance costs being higher than anticipated, legislative and regulatory changes (including revised environmental requirements), adverse regulatory or legal decisions and the outcome of governmental investigations (including revocation of necessary licenses or operating permits), availability and cost of capital, the continuing availability and operation of generating units, the inability to accomplish or realize anticipated benefits of strategic goals, the ability to improve electric commodity margins and to experience growth in the distribution business, the ability to access the public securities markets, further investigation into the causes of the August 14, 2003, regional power outage and the outcome, cost and other effects of present and potential legal and administrative proceedings and claims related to that outage, a denial of or material change to FirstEnergy's Application related to its Rate Stabilization Plan, the risks and other factors discussed from time to time in FirstEnergy's Securities and Exchange Commission filings, including its Form 10-K for the year ended December 31, 2003, its Form 10-Q for the quarter ended March 31, 2004, and other similar factors. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained in this press release as a result of new information, future events, or otherwise.

SOURCE  FirstEnergy Corp.
    -0-                             06/02/2004
    /CONTACT: Media, Ellen Raines, +1-330-384-5808, or Investors, Kurt
Turosky, +1-330-384-5500, both of FirstEnergy Corp./
    /Web site:  http://www.firstenergycorp.com /
    (FE)

CO:  FirstEnergy Corp.; Great Lakes Energy Partners LLC
ST:  Ohio, Pennsylvania, New Jersey
IN:  UTI OIL
SU:  TNM

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5318 06/02/2004 17:25 EDT http://www.prnewswire.com