AES Announces Redemption of AES Trust II Convertible Trust Preferred Securities.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 7, 2000

The AES Corporation (NYSE:AES) announced today that all of the $2.75 Term Convertible Securities, Series B ("TECONS") issued by AES Trust II have been called for redemption on December 15, 2000.

The redemption price is 103.438% (or $51.719 per $50 TECONS) plus accrued and unpaid distributions thereon to the redemption date ($0.573 per $50 TECONS). The redemption agent is Banc One, National Association, 1 Bank One Plaza, Suite IL1-0126, Chicago, IL 60670-0126.

The TECONS are convertible into AES common stock at any time prior to the close of business on December 14, 2000 (the business day prior to the redemption date) at a conversion rate (which has been adjusted to give effect to the 2-for-1 stock split effected by means of a stock dividend paid on June 1, 2000) of 1.7828 shares of AES common stock for each TECONS (equal to a conversion price of $28.045 per share of AES common stock).

Holders may convert their TECONS prior to such time by delivering them together with an irrevocable conversion notice to the conversion agent, Banc One, National Association, through The Depository Trust Company's ("DTC") Conversion Program ("RCNV"). The DTC contact is Robert Giordano at 212/855-5251.

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, the United Kingdom and the United States.

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.