AES Assumes Control of Two Regional Electric Distribution Companies in Kazakhstan.

ARLINGTON, Va.--(BUSINESS WIRE)--June 23, 1999--

The AES Corporation (NYSE:AES) announced today that it has assumed management control of two regional electric distribution companies (REC's) in Kazakhstan.

Under the agreement reached with the Government of Kazakhstan it is proposed that AES will also acquire, among other things, long-term transmission access to Russia at a discounted tariff for the output of the Ekibastuz generating plant and tax relief arrangements.

The two distribution companies (Eastern Kazakhstan REC and Semipalatensk REC) are located in northeastern Kazakhstan. The two electric distribution businesses serve approximately 1.8 million people. The total transmission network of the two RECs covers an area approximately the size of France.

The steps announced today significantly consolidate AES's existing businesses in Kazakhstan, which include the 4000 MW Ekibastuz (GRES-1) power plant, two hydroelectric stations and 4 combined heating and power stations.

Garry Levesley, Managing Director, AES Silk Road, stated, "We are delighted to have direct access to electric customers in Kazakhstan. We have learned a lot about the electric generating and heat distribution business in Kazakhstan over the last three years and are pleased that we can now relate our electric generating businesses to our new distribution business."

Dennis W. Bakke, President and Chief Executive Officer, commented, "This expansion of our business in Kazakhstan is another significant step for AES in the former Soviet Union. Our businesses in Kazakhstan and more recently in the Republic of Georgia have been both challenging and rewarding for AES people. We believe we are making a difference in these communities which we serve."

Business development milestones in 1999 include the following:

-- In February, a subsidiary of AES executed a Power Purchase

Agreement ("PPA") with Williams Energy Marketing and Trading

Company, a subsidiary of The Williams Company, Inc., for the

entire output of the planned 700 MW AES Ironwood power generating

facility.

-- In February, a subsidiary of AES was selected by the Hungarian

utility, the MVM, to build, own and operate a 190 MW gas-fired

combined cycle power plant, AES Phoenix, in eastern Hungary.

-- In April, AES Thames reached agreement to a partial prepayment of

future electricity sales with Connecticut Light & Power Company

(CL&P).

-- In April, a subsidiary of AES won a bid to acquire 50 percent of

the shares of Empresa Distribudora Electrica Este (EDE Este), an

electric distribution company in the Dominican Republic.

-- In May, AES completed the financing of six power plants it

purchased in New York from NGE Generation, Incorporated ("NGE")

for $953 million.

-- In May, a subsidiary of AES completed the financing for a 393 MW

coal-fired plant, AES Fifoots Point, in South Wales, United

Kingdom.

-- In May, a subsidiary of AES completed the purchase of two Ecogen

Energy power plants from the government of Victoria, Australia

for approximately $227 million.

-- In May, a subsidiary of AES agreed to acquire subscription rights

from Eletrobas Centrais Eletricas Brasileiras, S.A., which will

allow it to purchase additional shares in Light Servicos de

Eletricidade S.A. ("Light") and Eletropaulo S.A.

-- In May, a subsidiary of AES has completed a (pound)122 million

($195 million) non-recourse project refinancing for its 230 MW

gas-fired combined cycle power plant in Barry, South Wales,

United Kingdom.

-- In June, AES announced that it has entered into a definitive

agreement to acquire New Energy Ventures in a transaction valued

at approximately $90 million.

AES is a leading global power company that currently owns or has an interest in one hundred and four power facilities totaling over 31,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Panama, Mexico, Pakistan, India, Bangladesh the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

AES also distributes electricity to nearly 14 million customers. In addition to having assets in excess of $10 billion, the Company has more than $5 billion of projects in construction or late stages of development. AES is dedicated to providing electricity worldwide in a socially responsible way.

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.