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For Immediate Release


Starpower Enters Northern Virginia Market

For Immediate Release
August 10,  1999

Long Term Agreement With Falls Church Will Allow Competitive Provider Of Phone, Cable And High-Speed Internet Services To Begin Network Construction Immediately

Washington, D.C., August 10, 1999 - Starpower Communications today signed a long-term agreement with the City of Falls Church, Va., enabling the rapidly growing provider of bundled communications services to extend its reach into the Northern Virginia suburbs for the first time. The Falls Church City Council approved Starpower's bid to build an advanced fiber-optic network capable of providing competitive phone, cable and high-speed Internet services throughout the city.

The Falls Church franchise followed last week's approval by officials in Montgomery County, Md., allowing Starpower to compete for subscribers among more than 240,000 county households that include the towns of Chevy Chase, Silver Spring and Rockville.

"The Falls Church franchise will enable us to bring our advanced fiber-optic network into the heart of the Virginia suburbs as we continue to expand throughout the metropolitan Washington area," said John McCallum, Starpower co-chairman and president of Pepco Communications, L.L.C. "The Council, the City Manager, and their staffs are to be commended for an agreement that will benefit all the citizens in the city."

With earlier agreements in the District of Columbia and Gaithersburg, Md., Starpower has approval to serve more than 500,000 households in the Washington metropolitan area through its expanding state-of-the-art fiber-optic network. Since October, 1998, Starpower has activated the network to offer service to 26,000 households in the District and Gaithersburg. In addition, Starpower has achieved an initial consumer penetration rate for cable service of more than 30 percent and a penetration for local phone service in the mid-20 percent range of households passed by its network.

Starpower intends to begin construction to Falls Church immediately and expects to start offering services next year. Starpower will bring its advanced fiber network closer to the consumer than any other telecommunications provider, enabling consumers to receive the clearest signal and highest bandwidth available.

Falls Church subscribers will be able to choose from a bundle of advanced communication services, including digital cable television, local and long distance telephone service and high-speed Internet service.

"Starpower will offer consumers more channels, superior service and a better value for consumers," said Starpower General Manager Anthony Peduto. "Starpower will offer consumers more than 140 channels to choose from and 39 channels of digital music with CD quality sound." In addition, the company will offer unlimited, two-way, super high-speed Internet services through the use of cable modems.

Starpower is a joint venture of Pepco Communications, LLC, a non-regulated, wholly owned affiliate of Potomac Electric Power Company (NYSE: POM) and RCN Corporation of Princeton, N.J. RCN is the nation`s first and largest facilities-based provider of telecommunications services to the residential market.

About the Network

Starpower`s True Local Network is a unique broadband fiber optic platform capable of offering the full suite of telecommunications services - including fully featured voice, video and high-speed Internet access. The network employs SONET ring backbone architecture and localized nodes built to ensure its state-of-the-art fiber optics travel to within 900 feet of Starpower customers, with fewer electronics and lower maintenance costs than existing local networks.

Additional information about Starpower may be found on the company`s web site at "" or by calling toll-free to 1-877-STARPOWER.

Point of Contact:
Robert Dobkin

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