Exhibit 99.2
PRESS RELEASE


                                             Contacts:
                                             Becky Haight, Investor Relations
                                             1-202-295-3292

                                             Kye Presley-Dowd, Media
                                             1-202-625-7284

                      PATHNET REPORTS THIRD QUARTER RESULTS

WASHINGTON,  DC, NOVEMBER 10,  1998--Pathnet,  Inc., a privately-held  wholesale
provider of high-quality,  low-cost  telecommunications  capacity to second- and
third-tier markets,  today announced its results for the quarter ended September
30, 1998. The company  reported  revenue of $475,000,  earnings before interest,
taxes,  depreciation and amortization (EBITDA) losses of $3.8 million, and a net
loss of $11.9  million  for the  quarter.  As a  development  stage  enterprise,
year-over-year comparisons of Pathnet's financials may not serve as a meaningful
indication of the company's progress or future financial performance.

Pathnet is executing its operating plan to build a digital network by upgrading,
integrating and leveraging existing  telecommunications assets, sites and rights
of way, including those utilized by railroads,  utility and pipeline  companies,
and state and local governments  (stategic  partners).  Substantially all of the
company's  revenue for the three and nine month periods ended September 30, 1998
is derived from construction  management services for strategic  partners.  With
the recent  activation of Pathnet's first customers and the imminent  completion
of several  additional  network  routes,  the company expects to begin reporting
revenue from the sale of telecommunications services in the fourth quarter.

In addition to third quarter  operating  expenses of $4.5  million,  the company
recorded a one-time  charge of $1.4  million in costs  related to the  company's
postponed  initial  public  offering.  As a result of  general  weakness  in the
capital  markets,  Pathnet  elected to postpone  its planned IPO in August 1998.
Operating   expenses  for  the  third  quarter  resulted  primarily  from  costs
associated  with  Pathnet's  priority  focus on sales and marketing  efforts and
network construction management.

During the quarter,  Pathnet  announced a contract with the Burlington  Northern
Santa Fe  Railroad  (BNSF) to initiate  construction  to  overbuild  its private
microwave system from Chicago, Illinois to St. Paul, Minnesota. BNSF owns one of
the largest private networks in the United States.

Commenting  on the company's  results,  Pathnet  president  and chief  executive
officer,  Dick Jalkut  said,  "We're  extremely  pleased  with our  progress and
development  through  all three  quarters  of this year.  Despite  our  start-up
status,  we've  succeeded in greatly  enhancing  our  credibility  with both our
strategic  partners  and  our  targeted  carrier  market.  In  addition,   we've
solidified   our   management   team,   built  out  our  sales  and   operations
infrastructure,  and delivered on our first contract with a major  carrier.  The
Burlington  Northern contract is another significant step along the way and each
of these  successes has a measurable  impact on our momentum going  forward." he
added.

As of  September  30,  1998,  the  company  had over  $250  million  in cash and
marketable  securities  available  for its use.  That  amount  does not  include
approximately  $81 million in pledged  securities set aside to service  interest
payments to bondholders through April, 2000. Capital  expenditures for the third
quarter were $18.4 million, bringing total plant and equipment deployed to $33.5
million.  Capital  expenditures  are expected to continue to increase as Pathnet
progresses with the build-out of its network.

Company Highlights for the Third Quarter

    o     Contract with  Burlington  Northern  Santa Fe to over-build its
          private network from Chicago, Illinois to St. Paul, Minnesota.
    o     First order with a major carrier.
    o     Completed  400 route miles of  network,  bringing  total route
          miles completed to 1,200.
    o     Added 1,400  additional  route miles to construction  schedule,
          bringing total route miles under construction to 5,500.

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; 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>

                                           For the three months   For the nine months 
                                                  ended                  ended 
                                               September 30,           September 30,
                                               -------------           -------------
                                              1998     1997         1998        1997
                                              ----     ----         ----        ----
<S>                                       <C>         <C>         <C>         <C>     
Revenue                                   $    475    $   --      $  1,050    $     63
                                          --------    --------    --------    --------
Expenses:
    Cost of revenue                          1,621        --         5,386        --
    Selling, general and administrative      2,695       1,188       6,722       2,538
    Depreciation expense                       204          11         315          27
                                          --------    --------    --------    --------
      Total expenses                         4,520       1,199      12,423       2,565
                                          --------    --------    --------    --------
Net operating loss                          (4,045)     (1,199)    (11,373)     (2,502)
Interest expense                           (11,151)       --       (21,862)       --
Interest income                              4,729          23       9,574          60
Initial public offering costs               (1,355)       --        (1,355)       --
Other income, net                                2        --             1        --
                                          --------    --------    --------    --------
      Net loss                            $(11,820)   $ (1,176)   $(25,015    $ (2,442)
                                          ========    ========    ========    ======== 
Basic and diluted loss per
    Common share                          $  (4.07)   $  (0.41)   $  (8.62)   $  (0.84)
                                          ========    ========    ========    ======== 
Weighted average number of
    Common shares outstanding                2,902       2,900       2,902       2,900
                                             =====       =====       =====       =====
Other Data:
    EBITDA                                  (3,841)     (1,188)    (11,058)     (2,475)
                                            ======      ======     =======      ====== 
</TABLE>





<PAGE>



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

                                                                          September 30,        December 31,
                                                                              1998                 1997
                                                                              ----                 ----
                                                                           (Unaudited)
                                ASSETS
<S>                                                                     <C>                  <C>          
Cash and cash equivalents                                               $      59,559        $       7,831
Marketable securities available for sale, at market                           122,658                  --
Other current assets                                                            4,105                   49
                                                                        -------------        -------------
     Total current assets                                                     186,322                7,880
Property and equipment, net                                                    33,136                7,207
Deferred financing costs, net                                                  10,792                  251
Restricted cash                                                                10,647                  760
Marketable securities available for sale, at market                            69,011                  --
Pledged marketable securities held to maturity                                 83,224                  --
                                                                        -------------        -------------
      Total assets                                                      $     393,132        $      16,098
                                                                        =============        =============
                  LIABILITIES, MANDATORILY REDEEMABLE
               PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Accounts payable                                                        $      14,159        $       5,593
Accrued interest                                                               20,485                  -
Other current liabilities                                                       2,158                  300
                                                                        -------------        -------------
    Total current liabilities                                                  36,802                5,893
Bonds payable, net of unamortized bond discount of $3,890,250                 346,110                  -

Total mandatorily redeemable preferred stock                                   35,970               15,970
Total stockholders' deficit                                                   (25,750)              (5,765)
                                                                        -------------        -------------
      Total liabilities, mandatorily redeemable preferred stock and     $     393,132        $      16,098
                                                                        =============        =============
      stockholders' deficit
</TABLE>


Selected statistical data:
      Route miles under construction                                       5,500
      Route miles complete                                                 1,200