Exhibit 99.1
                                                                    ------------

FOR IMMEDIATE RELEASE                                  Contact:Becky Haight
                                                       Investor Relations
                                                       Pathnet
                                                       877 227-5600
                                                       investor@pathnet.net

                                                       Kye Presley-Dowd
                                                       Media Relations
                                                       Pathnet
                                                       202 295-3286
                                                       kpresleydowd@pathnet.net

                     PATHNET REPORTS FIRST QUARTER RESULTS

WASHINGTON, DC, MAY 14, 1999-- Pathnet, Inc., a privately-held carrier's carrier
of  digital   telecommunications   capacity  to  under-served  and  second-  and
third-tier  markets,  today announced  revenue of $826,000 for the quarter ended
March 31, 1999, an eight-fold  increase from revenue of $100,000 reported in the
first quarter of 1998. The majority of the company's revenue for the quarter was
derived  from  telecommunication   services,  with  the  remainder  coming  from
construction  management  services  for  strategic  partners.   Earnings  before
interest,  taxes,  depreciation and amortization  (EBITDA) for the quarter was a
loss of $4.6  million,  up as  expected,  from a loss  of  $2.7  million  in the
year-ago quarter.

"We are very pleased with Pathnet's progress in the quarter," said president and
chief executive officer Richard A. Jalkut. " We've already made some significant
advances  since  broadening our network  strategy to include fiber.  We recently
announced a strategic  agreement with Worldwide Fiber USA to co-develop an 1,100
mile fiber-optic  network between Chicago and Denver.  This  high-profile  route
will connect important  under-served markets like Des Moines,  Lincoln and Omaha
that we  feel  have  been  overlooked  by  other  carriers.  We  expect  to sign
additional  partnering agreements in the months ahead as we continue to focus on
network construction and accelerating revenue growth," he added.

In recent  executive  announcements,  Pathnet  named James M. Craig as executive
vice  president and chief  financial  officer,  and Robert A. Rouse as executive
vice  president and  president of network  services.  Craig joined  Pathnet from
Omnipoint while Rouse joined the company from Intermedia.

Pathnet has evolved to its current position as a leading  wholesale  provider of
high quality,  low-cost digital  telecommunications  capacity by partnering with
utility,  pipeline and  railroad  companies  to upgrade and  aggregate  existing
wireless  infrastructure to a state-of-the-art  SONET network. In February,  the
company announced an expansion of its business strategy to include  construction
and  deployment of digital  networks  utilizing  both  fiber-optic  and wireless
technologies.  Going  forward,  Pathnet  plans to  construct  and  deploy  fiber
facilities on selected  routes and integrate  those routes with its existing and
future wireless facilities.

As of March 31, 1999,  the company had over $209 million in cash and  marketable
securities  available  for its use.  That amount does not include  approximately
$62.7  million  remaining in pledged  securities  set aside to service  interest
payments to bondholders through April 2000. Pathnet continues to use its capital
to  construct  and deploy  network  resulting  in an increase in gross plant and
equipment  for the first  quarter of $21.6  million,  bringing  total  plant and
equipment acquired to $70.4 million.

<PAGE>

First Quarter Highlights and Recent Developments

*        Signed strategic  agreement with Worldwide Fiber USA to jointly develop
         an 1,100 mile fiber-optic network from Chicago to Denver.

*        Named James M. Craig to position of Chief  Financial  Officer. 

*        Named Robert A. Rouse to position of President, Network Services.

*        Increased total network route miles completed to 2,100.

Pathnet is a carriers'  carrier  providing  high  capacity,  fiber and  wireless
bandwidth to under-served and second- and third-tier U.S.  markets.  It provides
service to inter-exchange  carriers,  local exchange carriers,  Internet service
providers,  Regional Bell Operating Companies, cellular operators and resellers.
Pathnet's  strategy is to build  low-cost  telecommunications  networks  through
partnering arrangements.  As of March 31, 1999, Pathnet had 2,100 route miles of
completed  network,  4,600 route miles of network under  construction  and 7,800
route miles of network under commitment.  The company's headquarters are located
in Washington,  D.C., at 1015 31st Street,  NW,  Washington,  D.C.,  20007.  For
additional   information   about   Pathnet,   visit  the  company  Web  site  at
www.pathnet.net.
---------------

THIS PRESS RELEASE  CONTAINS SOME MATTERS THAT ARE  FORWARD-LOOKING  STATEMENTS.
THE READER IS CAUTIONED THAT THESE FORWARD-LOOKING  STATEMENTS, SUCH AS PLANS TO
SIGN ADDITIONAL  AGREEMENTS WITH PRIVATE  NETWORK  OPERATORS;  OFFER SERVICES TO
TELECOM SERVICE PROVIDERS;  ENTER INTO PARTNERING ARRANGEMENTS;  BUILD A DIGITAL
NETWORK;  AND STATEMENTS  REGARDING THE DEVELOPMENT OF PATHNET'S  BUSINESS,  AND
OTHER  STATEMENTS  CONTAINED  HEREIN  REGARDING  MATTERS THAT ARE NOT HISTORICAL
FACTS, ARE ONLY  PREDICTIONS.  NO ASSURANCE CAN BE GIVEN THAT THE FUTURE RESULTS
WILL BE  ACHIEVED;  ACTUAL  EVENTS  MAY DIFFER  MATERIALLY  AS A RESULT OF RISKS
FACING   PATHNET.   FOR  A   DISCUSSION   OF  FACTORS   THAT  COULD  AFFECT  THE
FORWARD-LOOKING  STATEMENTS,  SEE  PATHNET'S  PUBLIC  FILINGS  ON FILE  WITH THE
SECURITIES AND EXCHANGE COMMISSION.


<PAGE>



                                  PATHNET, INC.
                        (A Development Stage Enterprise)
                CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                      (In thousands except per share data)
<TABLE>
<CAPTION>

                                                                                    For the period
                                                                                    August 25, 1995
                                                     For the three months ended   (date of inception)
                                                             March 31,                 March 31,
                                                        1999            1998              1999
                                                  --------------   --------------  -----------------
<S>                                               <C>              <C>             <C>              
Revenue                                           $          826   $          100  $           2,573
                                                  --------------   --------------  -----------------
Expenses:
    Cost of revenue                                        2,651              715             10,199
    Selling, general and administrative                    2,795            2,111             18,421
    Depreciation                                             538               37              1,326
                                                  --------------   --------------  -----------------
      Total expenses                                       5,984            2,863             29,946
                                                  --------------   --------------  -----------------
Net operating loss                                        (5,158)          (2,763)           (27,373)
Interest expense                                         (10,271)               -            (43,258)
Interest income                                            3,815               81             17,930
Initial public offering costs                                  -                -             (1,355)
Other income, net                                             88               (3)                86
                                                  --------------   --------------  -----------------
      Net loss                                    $      (11,526)  $       (2,685) $         (53,970)
                                                  ==============   ==============  =================
Basic and diluted loss per
    Common share                                  $        (3.97)  $        (0.93) $          (18.61)
                                                  ==============   ==============  =================
Weighted average number of
    Common shares outstanding                              2,903            2,901              2,901
                                                  ==============   ==============  =================

Other Data:
    EBITDA (1)                                    $      (4,620)   $       (2,726) $         (26,047)
                                                  ==============   =============== =================
</TABLE>

(1)      EBITDA  comprises  earnings before  interest,  taxes,  depreciation and
         amortization






<PAGE>


                                  PATHNET, INC.
                        (A Development Stage Enterprise)
                           CONSOLIDATED BALANCE SHEETS
                       (In thousands, except route miles)
<TABLE>
<CAPTION>

                                                                           March 31,           December 31,
                                                                             1999                 1998
                                                                        --------------       --------------
                                                                         (Unaudited)
<S>                                                                             <C>          <C>   
                                     ASSETS
Cash and cash equivalents                                               $       98,333       $       57,322
Interest receivable                                                              2,511                3,849
Marketable securities available for sale, at market                             61,094               97,896
Other current assets                                                             4,375                3,412
                                                                        --------------       --------------
     Total current assets                                                      166,313              162,479
Property and equipment, net                                                     69,038               47,971
Deferred financing costs, net                                                   10,224               10,508
Restricted cash                                                                 10,846               10,731
Marketable securities available for sale, at market                             50,075               71,900
Pledged marketable securities held to maturity                                  62,656               61,825
Other Assets                                                                       109                    -
                                                                        --------------       --------------
       Total assets                                                     $      369,261       $      365,414
                                                                        ==============       ==============
                       LIABILITIES, MANDATORILY REDEEMABLE
               PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable                                                        $       14,284       $       10,708
Accrued interest                                                                19,651                8,932
Other current liabilities                                                        1,511                  640
                                                                        --------------       --------------
    Total current liabilities                                                   35,446               20,280
Bonds payable, net of unamortized bond discount of $3,685                      346,315              346,212
Other non-current liabilities                                                      103
Total mandatorily redeemable preferred stock                                    35,970               35,970
Total stockholders' equity (deficit)                                           (48,573)             (37,048)
                                                                        --------------       --------------
       Total liabilities, mandatorily redeemable preferred stock and
       stockholders' equity (deficit)                                   $      369,261       $      365,414
                                                                        ==============       ==============
</TABLE>


Selected statistical data:
       Route miles under construction                                     4,600
       Route miles complete                                               2,100