AES Begins Full Commercial Operation of 1,200 MW Power Plant in Spain.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) today announced the start of full commercial operation of AES Cartagena, the company's first power plant in Spain. The 1,200 MW combined cycle gas turbine (CCGT) plant is located on Spain's southeastern coast and has the capacity to generate enough energy to power approximately 300,000 homes in the country. AES Cartagena buys gas from and sells power to GDF International (GDFI), a subsidiary of Gaz de France, under a 21-year energy agreement.

The $920 million project is the largest non-recourse financed power investment in Spain. AES owns 71% of the Cartagena project. AES's partners in the project include Gaz de France (GDF), which owns 26%, and Mitsubishi Heavy Industries, Ltd. (MHI), which owns 3%.

"Spain has one of the fastest growing economies in Europe, and demand for new power capacity in the country is expected to grow significantly during the next several years. AES Cartagena will be instrumental in fueling that expansion," said John McLaren, AES President of Europe, CIS and Africa. "The gas-fired facility also will help diversify Spain's power sector, providing a reliable source of energy for the country."

AES Cartagena was constructed under the terms of a turnkey contract with a consortium formed by Mitsubishi Corporation, MC Power Project Management, SL, and Initec Energia, S. A. (Initec).

"AES Cartagena demonstrated outstanding performance during testing prior to full commercial operation," said Mark Green, Managing Director of AES Cartagena. "We have drawn on the best AES talent worldwide to develop and operate the facility and we are implementing best practice systems to make AES Cartagena the safest and most reliable power plant in Spain."

Non-recourse financing for the project was provided by a syndicate of European banks including Societe Generale, Calyon and ABN AMRO BANK NV as lead arrangers, as well as a subordinated debt facility provided by Societe Generale and Calyon. The financing structure was recognized regionally by Euromoney as "European IPP of the Year 2003."

AES has had power facilities in Europe since 1992 when it acquired the AES Kilroot plant in Northern Ireland. Today, AES owns and operates more than 3,500 MW of power generation facilities in Europe, including power plants in the Czech Republic, Hungary, Netherlands, Spain and the United Kingdom. AES also is constructing the 670 MW AES Maritza East 1 project in Bulgaria and has more than 1,300 MW of wind projects in active development in Scotland, France and Bulgaria.

About AES

AES is one of the world's largest global power companies, with 2005 revenues of $11 billion. With operations in 26 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amassed 2005 annual sales of over 82,000 GWh and our 122 generation facilities have the capacity to generate over 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at [e-mail].

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES's 2005 Annual Report on Form 10-K. Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.