PPL Corporation Increases Common Stock Dividend by 10 Percent

ALLENTOWN, Pa., Feb. 22 /PRNewswire-FirstCall/ -- PPL Corporation NYSE: PPL on Friday (2/22) increased its common stock dividend by 10 percent. With this increase, the dividend will have risen 74 percent over the past five years.

The company has increased its quarterly dividend from $0.305 to $0.335 per share, or from $1.22 to $1.34 per share on an annualized basis. The increased dividend is payable April 1, 2008, to shareowners of record as of March 10, 2008.

This is the company's 249th consecutive quarterly dividend and the sixth consecutive year that PPL has increased the dividend. Based on the company's closing stock price Thursday of $47.18 per share, Friday's dividend increase would improve the current yield on PPL common stock to 2.8 percent.

Paul Farr, PPL's executive vice president and chief financial officer, said the new annualized dividend rate of $1.34 per share will bring the payout ratio to 56 percent. The ratio is based on the $2.40 per share midpoint of the company's current 2008 earnings forecast of $2.35 to $2.45 per share.

Farr said the 10 percent increase in the dividend rate shows that PPL remains focused on dividend growth as an important component of total shareowner return and for growing shareowner value. He said PPL expects to continue its recent trend of strong stock dividend increases and to maintain a dividend payout ratio above 50 percent in 2009 as well.

All future dividend decisions, Farr noted, are subject to quarterly dividend declarations based on the company's financial position and other relevant considerations at the time.

    PPL Electric Utilities Corporation, a PPL subsidiary, on Friday also
declared the following quarterly dividends on its preferred stock and
preference stock, payable April 1, 2008, to shareowners of record as of March
10, 2008.

    Preferred Stock
    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

    Preference Stock
    6.25% Series           $1.5625 ($0.390625 per depositary share)

Each depositary share represents a 1/4 interest in a share of the preference stock. Accordingly, holders of record of the depositary shares will receive a dividend equal to 1/4 of the dividend paid on the preference stock.

PPL Corporation, headquartered in Allentown, Pa., controls more than 11,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom. More information is available at http://www.pplweb.com.

Statements contained in this news release, including statements with respect to future earnings and dividends, 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; market prices for crude oil and the potential impact on synthetic fuel tax credits and our synthetic fuel operations; weather conditions affecting customer energy usage and operating costs; competition in 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 and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; asset acquisitions and dispositions; any impact of hurricanes or other severe weather on our business, including any impact on fuel prices; receipt of necessary government permits, approvals and rate relief; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual terrorism or war or other hostilities; foreign exchange rates; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.