For Immediate Release
October 28, 1999

The Board of Directors of Potomac Electric Power Company (NYSE: POM) today declared a quarterly dividend on common stock of 41 ½ cents per share payable Dec. 31, 1999, to shareholders of record on Dec.10, 1999. Dividends on preferred stock were declared payable Dec.1, 1999, to shareholders of record on Nov. 8, 1999.

Pepco also announced the redemption on Dec. 1, 1999, of all one million outstanding shares of its Serial Preferred Stock, Auction Rate Series A, at $50 per share.