For Immediate Release

ALAMEDA POWER & TELECOM
ANNOUNCES LAUNCH
FOR INTERNET SERVICE

ALAMEDA, Calif., Dec. 5, 2001 - Alameda Power & Telecom, the municipally owned utility serving the City of Alameda, has announced it will begin offering high-speed Internet service to residential customers in early 2002.

According to Marketing Manager Bill Garvine, "Right after the first of the year, the new service will be available to customers located in areas where our fiber-optic network has been completed." He added, "In January, that will total about 8,000 households, or one-fourth of our community."

In addition to Internet service, the new fiber-optic cable network is being used to carry the cable television service that Alameda Power & Telecom began offering to Alameda residents in July. Garvine said, "The schedule calls for the cable television and Internet services to become available as construction progresses throughout Alameda during 2002.

"Customers of Alameda Power & Telecom can be assured of dependable, high-value Internet access as the system is brought to more and more neighborhoods over the coming months," he said. "We've approached the introduction of this new service very carefully. Unlike the uncertainties that some Internet users have had to deal with, it is our intent to offer the same type of reliable service that our electric customers have enjoyed over the past 115 years."

In neighborhoods where the fiber-optic network is already operational, new residential cable subscribers will be able to buy AlamedaNET Internet service that is "bundled" with the cable television at a significant discount. Residential customers already subscribing to Alameda Power & Telecom's new cable television system can add AlamedaNET Internet to their service and get the same discount. Residential customers also may subscribe to Alameda Power & Telecom's AlamedaNET Internet access as a stand-alone service.

Garvine explains, "As our fiber-optic cable system is installed in additional neighborhoods around the city, residential customers will be able to select both the bundled service - cable television and the Internet - or the stand-alone Internet service."

Two additional levels of Internet access service will be offered in addition to AlamedaNET. AlamedaNET Plus is designed to meet the demands of the small- or home-business user. AlamedaNET Ultra is the solution designed for larger commercial customers.

Information regarding the service and the fiber-optic system build-out can be obtained by calling 748-3900.