AES Announces Joint Venture with EHN to Develop Wind Energy Projects in New York State; AES to Expand Wind Footprint to 14 States.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) today announced it has entered into a joint venture with EHN, one of the world's largest renewable energy companies, to develop wind generation projects in New York state.

Through this joint venture, AES and EHN will focus their initial development efforts on advanced projects in Niagara County and Clinton County, where the companies have gathered over two years of meteorological data and have large real estate holdings. They also will pursue other new project and acquisition opportunities throughout the state. Through the joint venture, the companies expect to build more than 350 MW of new capacity in New York over the next few years. AES did not disclose the terms of its investment in the venture.

"We are pleased to partner with a renowned, world class renewable energy company like EHN as AES continues its expansion into wind energy," said Ned Hall, AES Vice President, Wind Generation. "We see a tremendous growth opportunity in wind generation, which is a natural extension of AES's power generation businesses. The joint venture with EHN rounds out AES's wind energy portfolio and gives the company a presence in 14 states in the US."

"We are looking forward to working with AES as we develop our portfolio of wind projects in New York," said Fernando Ferreras, President, EHN USA. "AES's extensive experience and strong presence in New York provide a tremendous advantage in our ability to successfully complete these projects."

This is AES's third expansion into wind generation in the past six months. Last week, AES completed its acquisition of SeaWest, which has wind facilities and development sites in the western US. In 2004, AES invested in US Wind Force, LLC, which is developing wind generation projects in the largely untapped renewable energy market in the mid-Atlantic US.

AES will begin construction in May on SeaWest's 120 megawatt Buffalo Gap wind generation project near Abilene, Texas and plans to have it on line by the end of 2005. Through the SeaWest acquisition, US Wind Force investment and the joint venture with EHN, AES has approximately 2,750 MW of projects in development.

AES expects to see strong opportunities for wind energy in New York State as a result of Governor George E. Pataki's announced goal to obtain 25 percent of the state's energy requirements from renewable resources by 2013, including wind, solar energy and other renewables. New York is one of 18 states in the US that have passed, or have pending, legislation on renewable portfolio standards. Global demand for wind generation is expected to grow by more than 15 percent a year, from 46,000 MW in 2004 to 112,000 MW by 2010.

AES operates four power plants in New York, which generate 1,268 MW. The company has had a presence in New York since 1999.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release regarding AES Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Cautionary Statements and Risk Factors" in the Company's 2004 Form 10-K.

About AES

AES is a leading global power company, with 2004 sales of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 120 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact media relations at [e-mail].

About EHN

EHN is the head company in the Energy Division of ACCIONA, a leader in sustainable energy development. It has installed 2,600 MW of renewable energy generating capacity, of which 1,200 MW are owned by the group. EHN has installed 2,480 MW in 89 wind farms, nearly all operated by the company. It has a biomass plant which uses straw for fuel and 59 MW in small hydro power plants. Its solar subsidiary AESOL has installed 8.4 MW of photovoltaic power -- including the largest plant in Spain -- and 13,000 m2 of thermal panels. Through its subsidiary INGETUR, it manufactures 1,500 kW wind turbines using in-house technology. The company also produces biodiesel in a plant with capacity of 35,000 tonnes per year. EHN's goal is to set the standard for technical and economic viability in renewable energy. To learn more about EHN, contact the company at www.ehn.es.