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

FOR IMMEDIATE RELEASE

Contact:
Becky Haight
Investor Relations
Pathnet
(877) 227-5600
INVESTOR@PATHNET.NET

Patti Kelly
Media Relations
Pathnet
(703) 390-2868
PKELLY@PATHNET.NET


                 PATHNET CLOSES STRATEGIC INVESTMENT TRANSACTION

Washington,  D.C.  (April 6,2000) -- Pathnet,  Inc., and its new parent company,
Pathnet  Telecommunications,  Inc.,  today  announced  closure of its  strategic
investment  transaction with Colonial Pipeline Company,  The Burlington Northern
and  Santa  Fe   Railway   Company   and  CSX   Transportation,   Inc.   Pathnet
Telecommunications,  henceforth  "Pathnet",  received  the right to develop over
12,000  miles  of  these  investors'  rights-of-way  holdings.  In  addition  to
providing a portion of the rights-of-way  access,  Colonial Pipeline also made a
first tranche cash investment of $43 million in Pathnet with a second tranche of
$25 million  expected upon the  completion of Pathnet's  Chicago to Denver fiber
build.  The new  investors  received an  approximate  one-third  equity stake in
Pathnet  as  well  as  proportionate  representation  on the  Pathnet  Board  of
Directors.

"We are thrilled to close this  transaction  and welcome  industry  leaders like
Colonial  Pipeline,  BNSF and CSX into our company,"  said Dick Jalkut,  Pathnet
president  and  chief  executive  officer.  "The  right to  select  from our new
partners' extensive  rights-of-way  facilitates our strategy of reaching second-
and third- tier markets by bridging the "Digital  Divide"  through our VPOP Plus
service.  This cutting-edge service combines local access with transport service
enabling competitive telephony service in these areas."

Pathnet  is a "next  generation"  carriers'  carrier  providing  high  capacity,
digital  transport and competitive  local access  services to  under-served  and
second-  and  third-tier  U.S.  cities.  It provides  service to  inter-exchange
carriers,  local exchange carriers,  Internet service  providers,  Regional Bell
Operating  Companies,  cellular  operators and resellers.  Pathnet currently has
6,800 route  miles of  completed  network  and 700 route miles of network  under
construction. Additional information about Pathnet can be found on the company's
web site at: WWW.PATHNET.NET.

THE STATEMENTS  MADE BY PATHNET AND PATHNET TELECOM IN THIS PRESS RELEASE MAY BE
FORWARD-LOOKING IN NATURE. NO ASSURANCE CAN BE GIVEN THAT FUTURE RESULTS WILL BE
ACHIEVED;   ACTUAL  RESULTS  MAY  DIFFER  MATERIALLY  FROM  THOSE  PROJECTED  IN
FORWARD-LOOKING  STATEMENTS.  PATHNET AND  PATHNET  TELECOM  BELIEVE  THAT THEIR
PRIMARY  RISK  FACTORS  INCLUDE,  BUT ARE NOT  LIMITED  TO:  SIGNING  ADDITIONAL
AGREEMENTS  WITH PRIVATE  NETWORK  OPERATORS  AND OTHERS;  OFFERING  SERVICES TO
TELECOMMUNICATION  SERVICE  PROVIDERS;  ENTERING INTO  PARTNERING  ARRANGEMENTS;
BUILDING  A  DIGITAL  NETWORK;   MEETING  MARKET  DEMAND  AND  CUSTOMER  SERVICE
EXPECTATIONS;   AND  OBTAINING  ADDITIONAL  FINANCING.   ADDITIONAL  INFORMATION
CONCERNING  THESE AND OTHER  POTENTIAL  IMPORTANT  FACTORS  CAN BE FOUND  WITHIN
PATHNET TELECOM'S AND PATHNET'S PERIODIC REPORTS FILED WITH THE U.S.  SECURITIES
AND EXCHANGE  COMMISSION UNDER THE FEDERAL  SECURITIES LAWS.  STATEMENTS IN THIS
RELEASE SHOULD BE EVALUATED IN LIGHT OF THESE IMPORTANT FACTORS.