For Immediate Release

Pepco broke ground today for a 10-story headquarters at the corner of Ninth and G streets, NW, in the heart of Washington's traditional downtown now experiencing a rebirth in development. The company has been headquartered in the Thomas Edison Building at 1900 Pennsylvania Avenue since 1972.

Participating in groundbreaking ceremonies with Pepco's Chairman and Chief Executive Officer John M. Derrick were District of Columbia Del. Eleanor Holmes Norton, City Council Chairman Linda Cropp and Ward 2 Councilman Jack Evans.

Derrick said he was hopeful that Pepco's decision to relocate in "the new, dynamic downtown will encourage additional corporations and associations to call Washington home." He credited Mayor Anthony Williams with bringing a resurgence to the local economy, saying his election was "a popular validation of his commitment to make Washington a city that works for the people."

Pepco's new address will be 701 Ninth Street, NW, and will be known as Edison Place. The 48,000 square-foot site is across from the national Portrait Gallery and one block west of the MCI Arena. Several additional office buildings, retail spaces and entertainment complexes either are under construction or planned for the area.

The company's new headquarters marks a homecoming of sorts for Pepco, whose first two headquarters were in the East End before the 103-year-old company moved to its current address. The East End was Washington's "old downtown," serving as the city's government, financial and retail hub before development shifted westward of Connecticut Avenue in the Sixties.

Pepco's lease of the Thomas Edison Building at 1900 Pennsylvania Avenues expires in 2002 and the International Monetary Fund, which purchased the building a few years ago, plans to occupy the facility after Pepco moves.

Pepco will lease all nine-office floors of the new building through its wholly owned subsidiary, Potomac Capital Investment Corp., which is constructing and financing the facility at a cost of $92 million.

Derrick acknowledged the architectural firm of Deverouax & Purnell for its innovative and contemporary design, which features an expansive curved glass curtain wall, illuminated tower and spire flanking the main entrance. The architects are the first minority-owned firm to design a major downtown Washington office building.

Edison Place will include 329,000 square feet of office space, 20,000 square feet of street-level lobby, retail and restaurant space, four underground parking levels, a ground-floor landscaped plaza and rooftop terrace. Its location is across from the Gallery Place Metro stop.

The design incorporates state-of-the-art, energy efficient heating and cooling, electrical, security and telecommunications systems.

Pepco will occupy all the office space, relocating 1,200 employees from its current headquarters when the new building is completed in mid-2001.