AES Acquires KMR Power Corporation; Business Includes 404MW of Gas-fired Generating Capacity in Northern Colombia.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 1, 2000

The AES Corporation (NYSE:AES) announced today that it has acquired 100% of KMR Power Corporation ("KMR") in a stock-for-stock transaction valued at approximately $53 million.

KMR is a privately owned electric power plant developer and operator that has a controlling interest in three natural gas-fired power plants in Colombia, which have total capacity of roughly 600MW.

AES acquired in this transaction controlling interest in two gas-fired power plants located in Cartagena:

-- 100% interest in the 314MW TermoCandelaria power plant; and

-- 62% interest in the 90MW Mamonal plant.

The 62% interest in the Mamonal project includes the 28% interest formerly held by a subsidiary of the FPL Group Inc. (NYSE:FPL).

KMR also has an interest in the 205MW TermoValle plant located in Cali. KMR's interest in TermoValle will be retained by KMR's former shareholders.

Mr. Paul Hanrahan, Senior Vice President of AES, said, "We feel now is the right time to enter the Colombian generation market as the economy is showing strong signs of recovery. The thermal generating assets we have purchased from KMR will increasingly be relied upon to meet electric demand growth."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We are delighted to make this investment in Colombia. Despite the difficult socio-political situation in Colombia, we believe that this is a country were AES can make a positive difference. The acquisition of the KMR businesses will give us an excellent start in serving these people."

Business development milestones in 2000 include the following:

-- In November, a subsidiary of AES was awarded the Barka Power

and Desalination Project - Phase I in the Sultanate of Oman.

The natural gas-fired, combined-cycle, $425 million facility

is expected to supply 427 MW (net) of electricity and 20

million gallons per day (mgd) of water.

-- In November, AES made an offer to acquire all outstanding

Gener S.A. ADSs in exchange for AES common stock having a

value of US$16 per ADS and that it had commenced in Chile an

offer to acquire 3,466,600,000 Gener shares at the Chilean

Peso equivalent of US$0.235294118 per share in cash.

-- In September, AES entered the Bolivian telecom market with the

purchase of 100% of Redibol, a Competitive Access Provider

based in La Paz, for $2.5 million.

-- In September, AES and EDF International S.A. announced they

have entered into an agreement to jointly acquire the 11.68%

interest in Light Servicos de Eletricidade S.A. owned by two

subsidiaries of Reliant Energy for $430 million.

-- In September, AES began construction on a $340 million

electric power plant and liquefied natural gas importing

facility located in the Dominican Republic.

-- In August, AES completed the acquisition of a 59% stake in the

1,000 MW hydroelectric facility of Hidroelectrica Alicura S.A.

in Argentina from Southern Energy, Inc. and its partners.

-- In August, AES and REI announced that they have entered into

an agreement whereby a subsidiary of AES will acquire Reliant

Energy International's interest in El Salvador Energy

Holdings, S.A. which owns three distribution companies in El

Salvador.

-- In August, subsidiaries of AES issued approximately $1 billion

of non-recourse project bonds to refinance outstanding debt at

the Drax Power Station, located in North Yorkshire, England.

-- In August, a subsidiary of AES entered into an agreement

whereby AES will acquire the 49% interest held by TransCanada

PipeLines Limited in the Songo Songo Gas-to-Electricity

Project in Tanzania.

-- In July, AES and IPALCO Enterprises Inc. announced that they

entered an agreement whereby AES will acquire IPALCO

Enterprises, Inc.

-- In June, AES acquired approximately 87% of the stock of C.A.

La Electricidad de Caracas, an integrated electricity company

serving Caracas, Venezuela.

-- In June, a subsidiary of AES completed an $815 million

non-recourse financing for a circulating fluidized bed

coal-fired facility currently being built on the south coast

of Puerto Rico.

-- In May, a subsidiary of AES acquired 100% of Tractebel Power

Ltd., from Tractebel S.A. With this transaction, AES owns

approximately 92% of NIGEN's common stock.

-- In May, AES announced that it won a bid to purchase a 70%

interest in the 1,580 MW Mohave Generating Station in

Laughlin, Nevada for approximately $667 million.

-- In April, AES announced it intends to launch a tender offer to

acquire all outstanding common and preference shares of

Brazilian generation company Compania de Geracao de Energia

Eletrica Tiete.

-- In March, a subsidiary of AES acquired for $8 million,

GeoUtilities Inc., an internet-based superstore for energy,

telecom and other vital services.

-- In March, a subsidiary of AES completed a financing associated

with 823 MW of generating facilities in the Republic of

Georgia. The financing included the acquisition of the 600 MW

Gardabani thermal plant and the establishment of 25-year

concessions for the Khrami I and II hydro stations, which have

a combined capacity of 223 MW.

-- In March, a subsidiary of AES completed a $440 million

non-recourse project financing for AES Red Oak, an 832 MW

natural gas-fired combined cycle plant in Sayerville, New

Jersey.

-- In February, AES announced that a subsidiary had reached an

agreement with the Bulgarian state-owned electric utility NEK,

that will allow AES to build, own, operate and transfer a $750

million lignite-fired power plant.

-- In January, a subsidiary of AES agreed to acquire 59% of the

outstanding preferred (non-voting) shares of Eletropaulo S.A.

-- In January, a subsidiary of AES and Caterpillar Inc. reached a

service agreement for multiple energy products that will

result in the construction of a 45 MW cogeneration plant in

Mossville, Illinois.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, China, 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 seven 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 [e-mail]. 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.