Metro News Release

For immediate release: February 26, 2004

Statement from Metro CEO Richard A. White

Re: Penn Parking Issue

" Earlier today we had a thorough, public discussion with our Board of Directors about the theft of money from Metro parking facilities by employees of Penn Parking, a contractor to WMATA, which occurred in part due to lapses in WMATA management and oversight of this contract. We are extremely concerned about these thefts, and the revenue this Authority has lost, particularly at a time when we are challenged by serious budget deficits. We want to stress that the estimates of the dollars lost as a result of this theft, which are contained in an internal audit we completed last year, are merely estimates and not actual documented losses. The $500,000-$1 million annual estimate mentioned in today’s news accounts was based on an extrapolation of data we received from just four Metro parking facilities, and was consistent with information we received from the International Parking Institute about the relative exposure of theft in the parking cash-handling business. We initiated the audit shortly after an allegation was made to an employee " hotline" that was created for just this purpose, and the audit was completed in May 2003. ’since that report was completed, we have taken aggressive measures to bring this problem under control. We have installed improved counting equipment, increased the number of parking facilities that accept SmarTrip-only payment, reduced the number of cash-only lanes, and increased Transit Police surveillance. As a result of those actions, 33 Penn Parking employees were separated from their jobs at Metro parking facilities, we sought criminal prosecution against two of those employees, an internal Metro personnel action was taken, and parking facilities at 28 percent of our stations now have the improved counting equipment. That number will increase to 63 percent by July 1 of this year. " Based on discussions today with our Board, we will be taking additional steps to further tighten our parking contract enforcement and the regulation of our parking facilities. We have been asked by our Board to report back to them by March 11 to further review contract management, performance, and oversight issues associated with this contract."

News release issued on February 26, 2004.