April 5, 2004 -- Delmarva Power & Light Company, a wholly owned indirect subsidiary of Pepco Holdings, Inc. (NYSE: POM), today announced that Delmarva Power Financing I has called for redemption all of its 2,800,000 issued and outstanding shares of 8.125 percent Trust Preferred Securities. The date fixed for redemption is May 17, 2004. The redemption price per share, which is payable in cash, is equal to the $25 par value per share of the securities, plus accrued dividends for the period April 1, 2004, through and including May 16, 2004, in the amount of $0.259548 per share.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  Delmarva Power Financing I, 8.125% Cumulative Trust Preferred Capital Securities, liquidation amount $25 per share, guaranteed by Delmarva Power & Light Co., now a part of Pepco Holdings Inc. (NYSE: POM), redeemable at the issuer's option on or after 9/30/2001 at $25 per share plus accrued and upaid dividends, maturing 9/30/2036, distributions of 8.125% ($2.03125) per annum are paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record one business day prior to the payment date while the securities remain in book-entry form. The company has the right, at any time, to defer dividend payments for up to 20 consecutive quarters (but not beyond the maturity date). The trust's assets consist of the 8.125% Junior Subordinated Deferrable Interest Debentures, Series I due 9/30/2036 which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Distribution Dates	15% Tax Rate
NYSE Chart	8.13% $2.03125	$25.00 $25.00	Called for 5/17/2004 9/30/2036	Baa2 BBB 2/25/2004	3/31, 6/30, 9/30 & 12/31 Click for MW ExDiv Date Click for Yahoo ExDiv Date	No

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Address:   1900 Pennsylvania Avenue N.W., Washington, DC 20068
Main Phone Number	202-872-2000
Fax Number	202-331-6874
Investor Relations   Ernie Bourscheid	202-872-2797
Toll Free Phone Number	800-527-3726

CEO - John M. Derrick, Jr.

COO - Dennis R. Wrasse

CFO - Andrew.W. Williams