RCN Closes Acquisition of Consolidated Edison Communications Integration Well Underway; Regulatory Approvals Received.

HERNDON, Va. -- RCN Corporation (NASDAQ: RCNI), a leading provider of total communications service, today announced it has closed its acquisition of Consolidated Edison Communications Holding Company, Inc. (CEC), the telecommunications subsidiary of Consolidated Edison, Inc. (NYSE: ED). The acquired company will do business under the name RCN Business Solutions. RCN has secured all the necessary regulatory approvals; the transaction was previously approved by RCN's and Con Edison's boards of directors and RCN's required lenders.

The purchase price paid for CEC was $32 million plus approximately $7 million in working capital and capital expenditure adjustments at closing. Integration costs are currently estimated to total approximately $2-3 million, below RCN's original estimate of approximately $5 million.

"This strategic acquisition strengthens our residential and commercial presence in the New York metro market, and increases our competitiveness and long-term growth and profit potential," said Peter Aquino, President and Chief Executive Officer of RCN. "The combination of CEC and RCN creates one of the premier state-of-the-art alternative fiber networks in the number one business district in the country, and accelerates our strategic residential and commercial expansion opportunities. The combined management team is very experienced in the carrier and enterprise space, and highly motivated to grow our business."

Joe Sorresso, RCN's Integration Officer stated, "The integration process is a team effort, and our colleagues at ConEd have been extremely cooperative and knowledgeable. With this close, we will move to the next level of integration and build one consolidated plan, from network synergies to cross-selling opportunities."

RCN Business Solutions is a leading provider of high-capacity transport, Internet, bulk video, and voice services to business customers in the Boston, New York, Eastern Pennsylvania, Chicago, and Washington, DC metropolitan markets. As a result of today's closing, RCN Business Solutions gains:

--560 route miles of fiber optics throughout Manhattan, passing through the Bronx, Brooklyn, Queens, Staten Island, Westchester County, Southern Connecticut and New Jersey

--10 river crossings, including 5 across the Hudson River, and a disaster recovery network that bypasses Manhattan

--193 on-net buildings, including enterprise locations, carrier hotels, and central offices, bringing the combined total of buildings entered in the Washington, DC - Boston corridor to 750

--Experienced sales and engineering resources with proven large enterprise and carrier capabilities

--State-of-the-art operational processes and back office systems

--Superior positioning for disaster recovery networks and applications through the use of the electrical conduit system to deliver service

--A fiber network diverse from the Verizon and ECS (Empire City Subway) ducts used by most other telecommunications companies

About RCN Corporation

RCN Corporation, http://www.rcn.com, is one of the largest facilities-based competitive providers of bundled cable, high-speed internet and phone services delivered over its own fiber-optic local network to residential and small business customers in some of the most densely populated markets in the U.S. RCN Business Solutions also provides bulk video, high-capacity data and voice services to a growing number of business customers. RCN provides service in the Boston, New York, Eastern Pennsylvania, Washington, D.C., Chicago, San Francisco and Los Angeles metropolitan markets. RCN recently announced the pending sale of its 49% interests in Megacable, one of the largest cable companies in Mexico, and MCM, a provider of local voice and high-speed data services in Mexico City. (RCNI-G)

RCN Forward-Looking Statements

This press release contains forward-looking statements regarding future events and future performance of RCN that involve risks and uncertainties that could materially affect actual results. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of RCN's Securities and Exchange Commission filings. For a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release, refer to documents that RCN files from time to time with the Securities and Exchange Commission.