AES And EDF Announce Light and Eletropaulo Share Swap Agreement; AES To Obtain Control of Eletropaulo.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--July 23, 2001

The AES Corporation (NYSE:AES) announced today that, through three of its subsidiaries, AES Coral Reef, LLC, AES Treasure Cove, LLC and AES Cemig Empreendimentos, Ltda., (collectively, the AES Group), has signed an agreement with Electricite de France (EdF) that provide for the effective separation of Light Servicos de Eletricidade, S.A. (Light) and Eletropaulo Metropolitana Eletricidade de Sao Paulo, S.A. (Eletropaulo) into two separate independent companies.

The two companies, Light and Lightgas will be controlled by EDF and AES respectively. Lightgas will retain the Eletropaulo shares (30% of total capital) and 100% of Light Telecom. The remaining assets will continue to be owned by Light. After the separation of Light from Lightgas, AES and EdF will exchange their shares on these companies, such that Eletropaulo and Light Telecom (Lightgas) will be solely controlled by AES and Light by EdF.

Final approval of the share-swap shall be obtained by Brazilian regulatory authorities prior to final consummation of the agreement. The share-swap agreement allows AES and EdF to control and operate these companies separately.

Luiz David Travesso, Vice President of AES, stated, "AES is delighted to be able to announce this major step to a direct control of Eletropaulo. Along with the telecom business in Rio de Janeiro, we are looking forward to the challenge of transforming these companies into AES businesses and providing valuable services to the people of Sao Paulo and Rio de Janeiro."

Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We have had a valuable and prosperous partnership with EdF these last 5 years in Brazil. We feel, however, that this decision will allow both controlling shareholders the right to maximize the value of their respective distribution companies. AES is looking forward to meeting the commitments and needs of the city of Sao Paulo now and in the future."

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

The company's generating assets include interests in one hundred and seventy three facilities totaling over 59 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 18 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.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

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.