For Immediate Release
December 11, 2000

PepMarket.Com, the Washington-Baltimore area`s first regionally focused, business-to-business electronic marketplace, opened for business today to facilitate the buying and selling of goods and services across industry lines.

PepMarket`s Internet-based electronic procurement system is designed to reduce costs by enabling buyers and sellers to automate their supply chain processes and link with their respective trading partner`s requisition and order processes. Ordering on-line through PepMarket also will save time, reduce errors and further trim costs with less waste and spoilage.

"A B2B e-marketplace brings organizations together through the Internet and enables them to buy, sell, interact, and plan together in a centralized, seamless manner," said Jay Demarest, president and chief operating officer of PepMarket, a new affiliate of Potomac Electric Power Company (NYSE: POM).

Companies and institutions, both large and small and in virtually any type of business or service, can use PepMarket to buy or sell everything from office supplies and maintenance equipment to computer hardware, temporary labor and office space. PepMarket will earn a percentage from every transaction conducted through its site. Also, advertising and auction services will generate revenue.

Demarest said PepMarket leverages Pepco`s experience in Web-based technology and communication as well as the company`s internal procurement procedures. "We view the new e-marketplace as a part of Pepco`s continuing commitment to the community. Through this new B2B exchange we will be providing a service that enables companies in the Washington-Baltimore area to access broader marketplaces more effectively," he said.

PepMarket enables any business with a Web browser to obtain all the materials, parts and services they need online. Because the procurement functions are located in one Web site, which also serves as a repository for key data, the user can enjoy a secure, one-stop shopping buying or selling experience.

Additionally, PepMarket users will in the near future have access to international markets and the ability to trade in a barrier-free environment through PepMarket`s partnership with Commerce One, the leader in global e-commerce solutions for business.

For additional information, contact PepMarket at its new offices in Jessup, Md., telephone 1-866-PEP-MRKT, or online at info@pepmarket.com.

Pepco (www.pepco.com) is an investor-owned utility that provides electricity in Washington, D.C. and the Maryland suburbs, serving more than 700,000 customers. Through its family of subsidiaries, Pepco also operates in the competitive arenas of telecommunications and energy products and services in the Mid-Atlantic Region.

Information contained in this press release may include forward-looking statements, which should be considered in light of the risks inherent in the company`s business, as discussed in the company`s public documents filed with the Securities and Exchange Commission.