For Immediate Release
June 16, 2004

Pepco has won the "Outstanding Corporate Leadership Award" from the Maryland Recycling Coalition for its waste reduction and recycling programs.  The award is given annually to any industry, business or corporation in the state that has demonstrated leadership in recycling and reducing waste products.

In May, the company received a similar award from Montgomery County. The U.S. Environmental Protection Agency's "Waste Wise" program honored Pepco in 2003 for recycling initiatives in the categories of "climate change" and "large business."  The climate change award was for using biodiesel fuel in all of Pepco's diesel-powered vehicles and the large business award was for refurbishing electric transformers.

"Pepco employees take great pride in the recognition given our recycling program," said James Potts, vice president, safety and environment.  "Protecting the environment is a core value at Pepco and our employees are dedicated to minimizing the effect of our operations on our air and water resources."

Last year, Pepco recycled about 3,600 tons of paper products, batteries, lamps, transformers, scrap metals and tires, and more than 100,000 gallons of used oil and antifreeze.  The company also used about 300,000 gallons of biodiesel fuel, which is produced from domestic renewable resources, consisting of soy bean oil and low-sulfur diesel fuel.

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About Pepco: Pepco, a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), provides electricity transmission and distribution services to 725,000 customers in the District of Columbia and major portions of Prince George`s and Montgomery County in Maryland.