AES Amends Sells Loans.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--July 23, 2002

The AES Corporation (NYSE: AES) announced today that two of its subsidiaries have amended loans that are collateralized by shares of AES common stock to eliminate any requirement that additional shares of AES common stock be delivered as collateral.

As part of the amendment, AES has capped the number of shares of common stock required to be pledged to secure the $350 million loan due in 2003 issued by AES EDC Funding II LLC and the $300 million loan due in 2004 issued by AES New York Funding LLC. The amendment also provides that the loans will be prepaid in part ($75 million in case of AES New York Funding loan and $87.5 million in case of AES EDC Funding loan) no later than Dec. 15, 2002 (or earlier to the extent that proceeds from the pending sale of AES NewEnergy become available).

Barry Sharp, chief financial officer, said, "The partial pay-down of these loans completes another step in our overall strategic initiative to strengthen our balance sheet and financial condition. Given that these are the only loans that AES has that are secured by or linked to AES common stock, prepaying them in exchange for eliminating the requirement to continue to top up the shares makes sense in current market conditions."

For more general information visit our Web site at www.aes.com or contact investor relations at [e-mail].