Hydroelectric, Renewables

AES acquires additional 39% interest in Hydroelectrica Alicura

ARLINGTON, Va., Jan. 3, 2001 (BUSINESS WIRE)—The AES Corporation (NYSE:AES) announced today the purchase of an additional 39% ownership interest in Hydroelectrica Alicura, a 1000 MW hydro plant in Argentina, on December 27, 2000.

In August 2000, AES purchased 59% of Alicura from Southern Energy. In the recent action, AES purchased the additional 19.5% ownership interests each from the Federal Government of Argentina and the Province of Neuquen, for a total amount of $9 million. Accordingly, AES currently holds 98% of the business. The employees of Alicura own the remaining 2%.

Alicura is a hydroelectric plant with four 250 MW turbines on the Limay River near Bariloche, Argentina.

Naveed Ismail, Group Manager of AES Andes, said, “We are very excited about consolidating our ownership position in Alicura at a very attractive price. Our expanded participation in Alicura will make it possible for us to make it a true AES business in every sense. This addition of hydroelectric capacity provides AES with a better hydro/thermal balance in Argentina.”

Dennis W. Bakke, President and Chief Executive Officer of AES, stated, “We are pleased to add another business development accomplishment to another very successful year of expanding our global business. We are grateful to have this ownership stake in this extraordinary hydroelectric facility.”

Recent business development milestones include the following:

� In January, AES announced that it had successfully completed its offer to exchange all American Depositary Shares of Gener S.A. for AES common stock.

� In December, AES announced that it had purchased 3,466,600,000 shares of common stock of Gener S.A. pursuant to its Chilean offer.

� In December, a subsidiary of AES concluded an agreement with RAO UES of Russia to sell 300MW of electric power (or 210m kWh per month) from the AES Ekibastuz 4,000 MW coal-fired plant in the Republic of Kazakhstan to the Russian Federation.

� In December, AES and EDF announced they have entered into an agreement to acquire a 9.2% interest in Light Servicos de Eletricidade S.A. from a subsidiary of Companhia Siderurgica Nacional for $362 million.

� In December, AES announced today that it has acquired 100% of KMR Power Corporation in a stock-for-stock transaction valued at approximately $53 million.

� In November, a subsidiary of AES was awarded the Barka Power and Desalination Project – Phase I (427 MW of electricity and 20 million gallons per day (mgd) of water) in the Sultanate of Oman.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company’s generating assets include interests in one hundred and thirty nine facilities totaling over 49 gigawatts of capacity. AES’s electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

For more general information visit our web site at www.aesc.com or contact investor relations at [email protected] The list aes-pr-announce is an automated mailing list and can be found on the investing page of our web site. Those who subscribe to this list will receive updates when AES issues a press release.