For Immediate Release
April 26, 2001

Potomac Electric Power Company (NYSE: POM) today announced the election of two new members to its Board of Directors: Lawrence C. Nussdorf, President and Chief Operating Officer of Clark Enterprises, Inc., and Vice President and Treasurer of The Clark Construction Group, Inc.; and Pauline A. Schneider, partner in the law firm of Hunton & Williams.

Mr. Nussdorf, 54, has been elected to fill the unexpired term of David O. Maxwell, a director of the Company for the past eight years, who has reached the mandatory retirement age of 70 for directors. Ms. Schneider has been elected to fill the unexpired term of Roger R. Blunt Sr., a director of the Company for the past 17 years, who also has reached the mandatory retirement age for directors. Mr. Maxwell and Mr. Blunt continue as advisory directors.

As president of Clark Enterprises, Mr. Nussdorf leads the holding company that is the ownership, investment and asset management arm of the various Clark entities. Clark is one of the largest privately held companies in the Washington, D.C., metropolitan area with particular interests in construction, technology development, real estate and private equities. The Clark Construction Group is the nation`s largest privately owned building contractor. In this position, Mr. Nussdorf also acts as a Director of Clark Enterprises, Inc., The Clark Construction Group, Inc., Clark Realty Capital, LLC and other Clark subsidiaries.

Ms. Schneider, 57, serves on the Corporate & Finance Team at the Washington, D.C., office of the law firm of Hunton & Williams. In that capacity, she represents governments, financial service institutions and corporations. Ms. Schneider directed the District of Columbia Office of Intergovernmental Relations and served on the staff of the White House Office of Intergovernmental Affairs, handling legislative and policy matters for the Mayor of the District of Columbia and the President of the United States. She is a member of the District of Columbia Bar, the American Bar Association and the National Bar Association. She also is Chair of the Board of MedStar Health, Inc., a community-based healthcare organization that includes seven major hospitals in the Washington, D.C./Baltimore area, and Chair of the Board of the Access Group, Inc., a not-for-profit student loan provider headquartered in Wilmington, Del.

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