AES Announces Offer to Purchase for Any and All Outstanding US$340 Million Senior Loan Participation Certificates of Empresa Electrica Del Norte Grande S.A. -Edelnor-.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Aug. 6, 2001

The AES Corporation (NYSE:AES) announced today that Luna III, Ltd., a Cayman Islands limited liability exempted company ("Luna") and wholly owned indirect subsidiary of The AES Corporation has commenced a tender offer (the "Offer") for cash to purchase all of the outstanding (i) 10-1/2% Senior Loan Participation Certificates due 2005 (the "2005 Certificates") and (ii) 7-3/4% Senior Loan Participation Certificates due 2006 (the "2006 Certificates" and, together with the 2005 Certificates, the "Certificates") of Empresa Electrica del Norte Grande S.A., a Chilean corporation ("Edelnor"). The 2005 Certificates and the 2006 Certificates were issued in an aggregate principal amount of US$90,000,000 and US$250,000,000, respectively. The Certificates represent pro rata participation interests in all payments of principal and interest made in respect of loans of Edelnor. The purchase price to be paid for each US$1,000 principal amount of Certificates tendered pursuant to the Offer will be $375.00 plus accrued and unpaid interest up to, but excluding, the date of payment.

The Offer will expire at 11:59 p.m. New York City time, on August 31, 2001, unless extended or earlier terminated.

The Offer is conditioned upon, among other things (1) there being validly tendered and not withdrawn 100% of the outstanding Certificates, (2) the acquisition (the "Acquisition") by Luna or an affiliate of Luna not less than 82.3403% of all the outstanding shares of Edelnor on a fully diluted basis currently owned, directly or indirectly, by Mirant Corporation, a Delaware corporation ("Mirant"), for a purchase price not exceeding $1,000 and the acquisition of the shares of Energia del Pacifico Ltda., a Chilean corporation owned by Mirant that are not held through Edelnor, and (3) receipt of financing for the Offer on terms satisfactory to Luna. Luna has not entered into any agreements providing for the Acquisition.

Information regarding the pricing, tender and delivery procedures and conditions of the Offer is contained in the Offer to Purchase dated August 6, 2001 and related documents. Copies of these documents can be obtained by contacting Mellon Investor Services, at 917/320-6286. Banc of America Securities LLC is the exclusive dealer manager for the Offer. Additional information concerning the terms and conditions of the Offer may be obtained by contacting Banc of America Securities LLC at 888/292-0070 (toll free) or 704/388-4807 (collect).

Edelnor is a partially integrated electric utility engaged in the generation, transmission, and sale of electric power in northern Chile.

This announcement is not an offer with respect to any securities. The Offer is made solely by the Offer to Purchase dated August 6, as the same may be amended from time to time.

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 eighty one facilities totaling over 60 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.