NEWS RELEASE

PINEVILLE, LA., July 28, 1998 -- Cleco Corporation (NYSE-CNL), formerly Central Louisiana Electric Company, Inc., today reported operating results for the second quarter and 12 months ended June 30, 1998, announced Gregory L. Nesbitt, president and chi ef executive officer.

During the second quarter of 1998, net income applicable to common stock was $14,491,000, a 34.9% increase compared with the $10,744,000 reported in the second quarter of 1997. Basic earnings per average common share for the second quarter of 1998 were $0.64, up 33.3% compared with the $0.48 per share earned in the second quarter of 1997.

The increase in net income for the second quarter was primarily due to extremely hot weather. As measured by cooling degree days, the weather in Cleco's service area was 25% warmer than normal and 43% warmer than second quarter last year. As a result, kilowatt-hour sales to residential customers rose significantly during the second quarter, increasing by 22.6% compared with the same period last year. During second quarter this year compared with the same period last year, kilowatt-hour sales to commerc ial and industrial customers rose 13.6% and 3.9%, respectively. Total kilowatt-hour sales to regular customers increased 14.0% during the second quarter 1998 compared with the second quarter 1997.

Also, the increase in net income is partially due to wholesale power marketing successes. Extreme weather and periodic capacity constraints outside of Cleco's traditional service area allowed the company's power marketing group to sell power and energy into the wholesale market. Growth in wholesale marketing ability and experience is allowing Cleco to take advantage of new opportunities in the wholesale marketplace.

Cleco's reported second quarter earnings reflect a $4 million accrual for estimated customer credits which may be required under terms of an earnings review settlement reached with the Louisiana Public Service Commission (LPSC) in 1996. The settlement set the company's rates for a period of five years, and also provided for annual base rate tariff reductions of $3 million in 1997 and an additional $2 million in 1998. As part of the settlement, Cleco is allowed to retain all earnings up to a 12.25% retu rn on equity, and to share equally with customers as credits on their bills all earnings between 12.25% and 13% return on equity. All earnings above a 13% return on equity are credited to customers. The amount of credits due customers, if any, is determin ed by the LPSC annually based on 12-month-ending results as of September 30 of each year. The settlement provides for such credits to be made on customers' bills the following summer.

For the 12 months ended June 30, 1998, net income applicable to common stock was $53,616,000, an increase of 21.1% compared with the $44,265,000 reported for the 12 months ended June 30, 1997. Basic earnings per average common share for the 12 months e nded June 30, 1998, were $2.39, a 21.3% increase compared with the $1.97 per share earned in the 12 months ended June 30, 1997.

Cleco Corporation provides electric services to approximately 238,000 customers in about one-third of Louisiana's parishes (counties). Through subsidiaries, the Company also markets unregulated energy and energy management services and engages in energ y asset development opportunities in the southeast region of the United States.

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