Pathnet Attracts One of Most 'Influential Women of Wireless' as General Counsel; McDermott recognized as leader in telecommunications industry.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--March 16, 2000

Pathnet, the "Next Generation" carriers' carrier, today announced the appointment of Mary McDermott as Senior Vice President and General Counsel.

As a senior executive with the Personal Communications Industry Association, McDermott was named last year by Wireless Week as one of the top 25 "Influential Women of Wireless."

"Pathnet gains tremendous value with the addition of someone of Mary's stature to our team," said Richard A. Jalkut, president and chief executive officer of Pathnet. "She is highly regarded in our industry and has been on the front lines during significant, precedent-setting telecom battles including the implementation of the 1996 Telecom Act."

Prior to joining Pathnet, McDermott was senior vice president and chief of staff for government relations at the Personal Communications Industry Association (PCIA). She carried the Association's messages to the Federal Communications Commission (FCC), other federal agencies, the Congress and the Administration on a wide range of issues vital to the success of PCIA's wireless industry membership.

As strategic advisor, McDermott worked closely with members to formulate policy positions on issues impacting the diverse wireless community and was a sought-after speaker at numerous industry conferences and forums.

Her industry association experience began in 1994, at the United States Telephone Association where she served four years as vice president of legal and regulatory affairs. McDermott represented the Association and its membership of 1200 local telecommunications companies in all legal and regulatory matters before the FCC, other federal agencies and the courts.

She also spoke on the Association's views at various industry events.

McDermott learned the telecommunications industry from the inside as general attorney for NYNEX in White Plains, New York, where she was responsible for representing NYNEX at the FCC and was a key legal advisor to corporate principals on strategic planning, new business, marketing and technology.

Her first exposure to the industry was at New England Telephone in Boston, Massachusetts, in 1982, where she represented the company in all proceedings before the Maine Public Utilities Commission.

A Harvard Law School graduate and managing editor of the Harvard Civil Rights-Civil Liberties Law Review, she began practicing at the Miami law firm of Mershon, Sawyer focusing on commercial litigation and immigration law. She earned her undergraduate degree in political science from West Virginia University, graduating magna cum laude.

McDermott is serving as chair of the Board of Trustees of the Federal Communications Bar Association Foundation for 1999-2000. She is active in the Executive Council of the International Engineering Consortium, and is a member of the New York, Massachusetts and Florida Bars as well as the Federal Communications Bar and American Bar Associations.

Pathnet is a "Next Generation" carriers' carrier providing high capacity, digital transport and competitive local access services to under-served and second- and third-tier U.S. cities. It provides service to inter-exchange carriers, local exchange carriers, Internet service providers, Regional Bell Operating Companies, cellular operators and resellers.

Pathnet currently has 6,800 route miles of completed network and 700 route miles of network under construction. Additional information about Pathnet can be found on the company's web site at: www.pathnet.net

The statements made by Pathnet and Pathnet Telecom in this press release may be forward-looking in nature. No assurance can be given that future results will be achieved; actual results may differ materially from those projected in forward-looking statements.

Pathnet and Pathnet Telecom believe that their primary risk factors include, but are not limited to: signing additional agreements with private network operators and others; offering services to telecommunication service providers; entering into partnering arrangements; building a digital network; meeting market demand and customer service expectations; and obtaining additional financing.

Additional information concerning these and other potential important factors can be found within Pathnet Telecom's and Pathnet's periodic reports filed with the U.S. Securities and Exchange Commission under the federal securities laws. Statements in this release should be evaluated in light of these important factors.