FOR IMMEDIATE RELEASE March 21, 2003

Contact:
Matt Hagan/Anne Kosmoski-Tower Co. (202-) 775-0200
M ichelle Dietz-Pepco Energy 202-466-7391 x1121

TOWER COMPANIES, PEPCO ENERGY SERVICES AND STERLING PLANET JOIN FORCES TO PROVIDE WASHINGTON’S FIRST RENEWABLE ENERGY FOR A COMMERCIAL DEVELOPER
2.5 million square feet will receive clean energy

Bethesda, MD – The Tower Companies, a family-owned commercial and residential developer known for building smart, green buildings, announced today its partnership with Pepco Energy Services (PES), a subsidiary of Pepco Holdings, Inc. (NYSE:POM) to supply renewable energy to all of its Washington, D.C. area buildings. All Tower buildings, representing some two and a half million square feet, will be supplied with over 24 million kilowatt hours of Green-e certified renewable “green” energy, which PES will supply through Sterling Planet’s “Renewable Energy Certificates” program. The Tower Companies is the first private developer in the D.C. area to purchase this type of energy.

Under the terms of the 18-month contract, PES will provide Tower’s Washington, DC Metropolitan Area buildings with 50% of their energy needs from green energy. Twenty–five percent (25%) green energy will be used in Tower-owned apartment communities. The World Resources Institute's (WRI) Green Power Market Development Group and Think Energy, Inc., an environmental consulting firm, were also instrumental in helping Tower initially identify and evaluate various green power options and providers. Together, WRI's Green Power Market Development Group and Tower suggested to PES, Inc. that they partner with Sterling Planet, a pivotal step in formulating the smart, green product now available to the public. The signed agreement reflects Tower’s ongoing commitment to reduce environmental impact and encourage other companies to do the same.

Tower's use of renewable energy helps to offset CO2, a key greenhouse gas, as well as SO2 emitted into the atmosphere in the production of electricity from fossil fuels. Tower’s purchase represents enough energy to power 2100 homes annually. Their commitment will prevent the emission of approximately 25 million pounds of CO2 into the atmosphere, which is equivalent to taking more than 2100 cars off the road annually. The purchase demonstrates Tower’s distinction as a leader in environmentally responsible development in the United States.

“Pepco Energy Services is pleased to partner with The Tower Companies to help make a cleaner America,” said Ed Mayberry, president and chief executive officer of Pepco Energy Services. According to Dr. Mayberry, this agreement with The Tower Companies demonstrates clean, green power can also be affordable power.

“We congratulate Pepco Energy Services, Sterling Planet and World Resources Institute for their vision in supporting The Tower Companies in our quest to promote a healthier environment and to contribute to the utilization of renewable, non-polluting energy in America,” says Jeffrey S. Abramson, a partner with the Tower Companies. “As the largest builder of healthy buildings in the Washington D.C. area, we hope to see others
promptly participate in programs such as this—programs which will eventually shepherd America into energy self-sufficiency and better health.”

Charles Segerman, Tower’s Director of Green Development, cites that forty percent of all energy used in the U.S. is consumed in buildings . “If the U.S. government would offer tax incentives to renovate older buildings and create new healthier buildings designed to green standards, this alone would dramatically improve the health of America. It would also spur the economy by creating a new industry which would advance clean air and water as a national priority alongside world peace, security and homeland defense issues.”

Sterling Planet, a nationwide developer and marketer of solar and other renewable energy, points out that the growing market for electricity generated from environmentally superior renewable energy sources is creating substantial benefits that extend beyond cleaner air. Renewable energy also slows consumption of limited, nonrenewable energy sources, reduces dependence on imported energy and benefits local economies in the vicinity of renewable energy generating facilities.

Recently, The Tower Companies completed construction of The Tower Building, the area’s first Green Super Class A office environment located in Rockville, MD (http://www.towerbuilding.com). The ten-story, 276,000 square foot building features environmentally sound, green, healthy materials, greatly enhanced air filtration and significantly reduced energy consumption. The Tower Building was the recipient of the Apartment and Office Building Association (AOBA) award for Green Office Building of the Year for 2002.

The Tower Companies is also constructing the first LEED certified multi-family rental housing community in the United States. Named, “The Blair Towns,” these apartments are scheduled to open in May 2003 at the Silver Spring Metro Station in Silver Spring, Maryland. The Tower Companies is constructing their newest office building, Tower II, in Rockville, Maryland, in September of this year. Tower II will be America’s first speculative, smart, environmentally correct, LEED “silver” rated building, utilizing Green-e certified energy.

Sterling Planet and PES are providing customers with Green-e certified renewable energy. The Green-e program certifies that the green power customers receive meets strict environmental and consumer protection standards. Green-e is a voluntary certification program established by the Center for Resource Solutions, a national nonprofit organization that encourages sustainable growth and promotes the use of renewable energy.

About The Tower Companies
The family-owned Tower Companies (http://www.towercompanies.com) has created socially responsible and environmentally conscious buildings and communities for the Greater Washington, D.C. area since 1947. Tower is working to create environmentally sensible developments, preserve wilderness and arable land, promote pollution-free travel and control urban sprawl. The company is also co-chairing the national exhibit on “Big and Green, Building Sustainable Architecture in the 21st Century" presently at the National Building Museum (http://www.nbm.org) in Washington, D.C.

About Pepco Energy Services Inc.
Pepco Energy Services, Inc., a wholly owned subsidiary of Pepco Holdings, Inc., (NYSE: POM), provides residential, commercial, institutional, government and industrial customers comprehensive energy management solutions including the supply of electricity and natural gas; energy efficiency projects; fuel management services; heating, ventilation and air conditioning systems; lighting; onsite generation; project financing; and energy operations and maintenance services. In 2002, Pepco Energy Services generated revenues of more than $800 million from energy and energy-related services and has completed energy efficiency projects from North Carolina to Massachusetts. Visit www.pepcoenergy.com for more information.

Pepco Energy Services, Inc. is not the same company as Potomac Electric Power Company and prices and services of Pepco Energy Services, Inc. are not set by the Public Service Commission.

Information contained in this news release may include forward-looking statements, which should be considered in light of the risks inherent in the business of Pepco Holdings, Inc., and its subsidiaries, as discussed in public documents filed with the Securities and Exchange Commission.

About Sterling Planet
With offices in Atlanta, Tulsa, San Diego and New York, Sterling Planet is the first company to offer 100% renewable energy nationwide. Sterling Planet has emerged as a national leader in bringing environmentally friendly energy solutions to U.S. consumers and businesses through direct business-to-consumer sales and utility/ESCO partnerships. With green energy sales in 45 states, the environmental energy company is committed to creating a sustainable renewable energy market nationwide through the offering of 100% renewable Green-e certified renewable energy as well as the development, operation, co-ownership and maintenance of new electric generation facilities powered by solar and other environmentally superior renewable energy sources. In December, Sterling Planet acquired the 175 employee Tulsa-based Engineering Design Group and EDG Power Group, a leader in distributed generation to significantly augment its renewable energy development capabilities. Learn more at www.SterlingPlanet.com.

About World Resources Institute
The World Resources Institute (WRI) (http://www.wri.org/wri) is an environmental research and policy organization that creates solutions to protect the Earth and improve people's lives. The Green Power Market Development Group (http://www.thegreenpowergroup.org) is a unique partnership between WRI and 12 major U.S. corporations dedicated to building corporate markets for green power.

About Green-e
Green-e is the nation’s first voluntary certification and verification program for renewable electricity products. Since 1997, Green-e has been a nationally recognized, voluntary certification program to help consumers identify superior renewable energy products sold in competitive retail electricity markets, regulated markets, and nationwide through Renewable Energy Certificates (RECs). Certified products may display the Green-e logo, which helps customers easily identify environmentally preferable, renewable-based energy products. Learn more at www.green-e.org.
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