Con Ed Sells to RCN

NEW YORK -- Consolidated Edison, Inc. (Con Edison) announced today it has signed an agreement to sell 100 percent of its wholly owned subsidiary, Consolidated Edison Communications Holding Company, Inc., to RCN Corporation (Nasdaq: RCNI) for approximately $32 million in cash.

Con Edison Communications (CEC) builds and operates its own fiber optic network providing managed data transport services, custom networks, local and long-distance voice services and Internet services. The company services Fortune 500 corporations, local and long-distance carriers, small and medium businesses, and Internet, cable, wireless and video companies.

"RCN's well-earned reputation for excellence in customer service and network reliability makes this a smart combination for CEC customers," said Stephen B. Bram, Con Edison Group President, Energy and Communications. "In evaluating potential acquirers, we carefully considered bidders' ability to serve the commercial sector, to ensure seamless service continuity, and to strengthen the services suite over time. RCN fulfills all of these requirements through its adjacent robust fiber network, its growing business customer portfolio, and its proven capability of innovation through communications package development. CEC customers will now be able to take advantage of network presence in additional cities as well as new services such as voice and video. The combined entity should prove a stronger, more highly differentiated and better positioned competitor as it grows over time."

Following a comprehensive strategic review, Con Edison concluded that the business would have more value and serve its customers more effectively if it were further developed within a broader telecom business environment.

Peter Aquino, President and Chief Executive Officer of RCN stated, "The purchase of CEC more than doubles our network capacity in metro New York, North Jersey and Connecticut, cost-effectively expanding RCN's Residential business into a larger addressable market, and significantly deepening our reach into attractive, residential neighborhoods. CEC also provides our Business Solutions Group the ability to market a route diverse from ECS ducts, adds ten valuable river crossings, and enables us to serve a broader set of key customers. We are excited to serve CEC's valuable customers through RCN's commitment to the same seamless, high quality service they are used to with CEC, and to offer them access to our broad array of innovative products and services. We also welcome CEC's experienced management team and look forward to accelerating our unfolding growth strategy in both residential and commercial markets."

Con Edison Communications Inc.