Siemens and SmartSynch Take PEPCO Wireless

Raleigh, NC — February 5, 2001

Three-quarters of Potomac Electric Power Company (PEPCO) recently ordered nearly 800 Spectrum Integrated Meter Systems (SIMS) from Siemens Power Transmission & Distribution, Inc. PEPCO intends to use the meters, which feature SmartSynch's wireless data technology, for wireless meter reading and data communication in commercial and industrial accounts.

"We chose the meters based on their competitive price and the functionality of the advanced meters to support our future needs," said Ken Farrell, Manager for Metering Services at PEPCO. "The meters' unique 'under the glass' feature is very attractive, since it eliminates the need for a 'black box' installation and makes the most efficient use of space, a pressing issue for our large customers in the Washington, DC, area."

SIMS electronic modules and SmartSynch's patent-pending intelligent interface effectively transform Siemens S4 meters into wireless Internet Protocol (IP) enabled communications devices with secure end-to-end monitoring and data acquisition engines. Using existing public networks, the meters provide wireless online Internet AMR applications. To the contrary, other meter reading solutions require installing communications black boxes and developing of a costly private communications network to perform these functions.

The utility saves capital costs normally spent on building the private networks and on installing the black box modem. Furthermore, by integrating with existing computer systems, such as billing, customer relationship management, and field force automation, the system offers the possibility of enhancing and extending such features as data-mart/data warehousing, transaction validation, account totalization and other value-added functionality.

By combining the wireless technology with Internet connectivity and encapsulating the communications module entirely 'under the glass,' together, Siemens and SmartSynch are changing the way utilities do business.

About Siemens and SmartSynch
Siemens Power Transmission & Distribution, headquartered near Raleigh, N.C., manufactures and markets equipment and energy service solutions for electric utilities, independent power producers, co-generators and other energy-intensive industries. SmartSynch, headquartered in Jackson, Miss., delivers wireless data solutions to the energy and utility market that enable two-way communication among corporate assets: people, devices and systems. In March, 2000, the companies formed a partnership to offer energy companies around the globe a full scope of wireless meter and data communication capabilities.

About PEPCO
PEPCO 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 competitive arenas of telecommunications and energy products and services in the mid-Atlantic region. For more information visit www.pepco.com.

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