Electricity Provider Pepco Renews Agreement with DST Output for Online Statement Viewing and Payment Services

Online Adoption Rates Grow 17.8%; Call Center Resolution Rates Also Improve

EL DORADO HILLS , CA , MAY 18, 2005 — Impressive online bill payment adoption rates and improved call center efficiencies are two reasons why electricity provider Pepco has renewed its multi-year contract with DST Output for online statement viewing and payment services . Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers power to more than 725,000 customers in the District of Columbia and Montgomery County and Prince George’s County, Maryland.

“Our customers have responded very well to the convenience and cost savings associated with viewing and paying their monthly statements online,” said Kristi Bleakley, Pepco's manager of Customer Care Systems. “In addition, the ability of our call center representatives to quickly retrieve and view the same statements to address caller inquiries in a timely manner has improved our customer issue resolution rates.”

Pepco's residential and commercial customers are able to both view and pay their electric bills online . A key component of the DST Output application is a “ready-access” feature that enables the customer’s statement to be viewable immediately upon registering for the service.

These same customer statements are available for viewing by Pepco’s call center representatives when addressing customer inquiries. Integral to this capability is a reporting component that bolsters the call center’s success in resolving customer inquiries. Over the past three years, call center resolution has improved significantly.

DST Output also enables Pepco to offer an automatic bill payment service that deducts monthly bill payments from an enrolled customer’s bank or credit union account.

“DST Output is committed to making electronic billing easy for our customers,” said Mike Gianoni, senior vice president of DST Output eSolutions. “This agreement is particularly significant because it demonstrates DST Output’s success in the utilities marketplace, where our world-class statement processing technologies meet a vital need — competitive differentiation.”

Pepco renewed its contract with DST Output based on the company's 35 years of experience in statement and billing output, and the scope of its electronic billing solution. DST Output has applied its statement design, data management, quality, and technology expertise to allow billers such as Pepco to efficiently and cost-effectively offer consumers true choice in statement delivery channels.

About DST Output
DST Output, a wholly owned subsidiary of DST Systems, Inc., provides integrated print and electronic communications for the banking, br okerage, communications, healthcare, insurance, and mutual fund industries. As the largest third-party First Class mailer in the United States , DST Output produces more than 1.9 billion customer communications a year from its state-of-the-art facilities in North America .

IndustryWeek magazine included the El Dorado Hills operation center in its list of “Top Ten Best Plants in North America ” in 2002. In November, the same facility received certification for Mail Preparation Total Quality Management (MPTQM) from the U.S. Postal Service (USPS) and is designated as a distinguished Quality Mailing Partner of the USPS.

For more information visit www.dstoutput.com and www.dstoutput.com/industries/utilities/index.html.