WASHINGTON, Jan 27, 2005 /PRNewswire-FirstCall via COMTEX/ -- Pepco Holdings, Inc.'s (NYSE: POM) Board of Directors today declared a dividend on common stock of 25 cents per share payable March 31, 2005, to shareholders of record on March 10, 2005.

In other action, the board set 10 a.m., May 20 for the 2005 Annual Meeting of Shareholders to be held at PHI's headquarters, 701 Ninth Street, NW, Washington, D.C., in the second floor conference center.

About PHI: Pepco Holdings, Inc. is a diversified energy company with headquarters in Washington, D.C. Its principal operations consist of PHI Power Delivery, which delivers 50,000 gigawatt-hours of power to more than 1.8 million customers in Washington, D.C., Delaware, Maryland, New Jersey and Virginia. PHI engages in regulated utility operations by delivering electricity and natural gas, and provides competitive energy and energy products and services to residential and commercial customers.

Forward-Looking Statements: Except for historical statements and discussions, the statements in this news release constitute "forward-looking statements" within the meaning of federal securities law. These statements contain management's beliefs based on information currently available to management and on various assumptions concerning future events. Forward- looking statements are not a guarantee of future performance or events. They are subject to a number of uncertainties and other factors, many of which are outside the company's control. Factors that could cause actual results to differ materially from those in the forward-looking statements herein include general economic, business and financing conditions; availability and cost of capital; changes in laws, regulations or regulatory policies; weather conditions; competition; governmental actions; and other presently unknown or unforeseen factors. These uncertainties and factors could cause actual results to differ materially from such statements. PHI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results and prospects of PHI

SOURCE Pepco Holdings, Inc.

Media:
Robert Dobkin
+1-202-872-2680
or
Investors:
Donna Kinzel
+1-302-429-3004
both of Pepco Holdings, Inc.
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