For Immediate Release
July 26, 2001

Potomac Electric Power Company's (Pepco) Board of Directors today declared a quarterly dividend on common stock of 25 cents per share payable Sept. 28, 2001, to shareholders of record on Sept. 10, 2001. Dividends on preferred stock were declared payable Sept. 1, 2001, to shareholders of record on Aug. 6, 2001.