News Release

TECO Energy declares quarterly dividend

TAMPA, July 28, 2004

At its meeting today, the Board of Directors of TECO Energy, Inc. declared a quarterly dividend of 19 cents per share on the company's common stock. The dividend is payable August 15 to shareholders of record as of August 5.

TECO Energy, Inc. (NYSE: TE) is an integrated energy-related holding company with core businesses in the utility sector, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and independent power.