NEWS INFORMATION

ALAMEDA POWER & TELECOM SIGNS ITS 10,000TH SUBSCRIBER

ALAMEDA, Calif., March 12, 2004 - Alameda Power & Telecom, the municipal power and telecommunications provider to the City of Alameda, California, has announced that it now has over 10,000 subscribers to its cable television and Internet services.

"We're very happy to be able to report achievement of this milestone," said Bill Garvine, Marketing and Customer Services Manager. "It's especially significant when you consider that Alameda Power & Telecom has offered these two services for less than 3 years."

A department of the City of Alameda, Alameda Power & Telecom has provided electric service to the community for 117 years. In July 1991, it began offering cable television service in a few neighborhoods using a fiber-optic backbone initially installed for command and control of its electric system. Its Internet access service, AlamedaNET, followed in January 1992.

"We're continuing to hook up neighborhoods every few weeks, and our entire telecommunications system is roughly 60 to 70% complete," Garvine continued. "And we're working as fast as we can to bring our telecommunications services to all of Alameda." He estimated that most of the City should be serviceable within 12 months.

Garvine explained that, while service has been available in some neighborhoods for well over 2 years, other neighborhoods have been online for only a few weeks. "In some neighborhoods where we've been around a while, 40 to 50% of homes now take service from us, many more than our 30% target. Of course, these numbers could go even higher as word spreads about what great values our cable television and Internet services are."

"Our biggest remaining challenge is on Bay Farm Island, specifically in the Community of Harbor Bay. That's one of our two highest priorities. The other is gaining access to those multiple-dwelling units, apartments and condominiums, so that we can design facilities to best serve these future customers. The demand is strong, and we don't want to make our customers wait any longer than absolutely necessary for service.

"Of course, every customer is important. We want their business."

In closing, Garvine added, "The continued high reliability and cost-competitiveness of our telecommunications services attest to the fact that we're carefully managing the growth of these two relatively new business lines."