AES COMPLETES Acquisition Of CILCORP; Includes $475 million Debt Financing.

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 18, 1999--

The AES Corporation (NYSE: AES) announced today that a subsidiary has completed the acquisition of Peoria, Illinois-based CILCORP Inc. (NYSE: CER).

AES entered into a definitive agreement in November 1998 to acquire CILCORP for approximately $886 million in cash. CILCORP is the parent company of Central Illinois Light Company, an electric and gas utility that serves approximately 190,000 electric and 200,000 gas customers in central Illinois.

An AES subsidiary simultaneously completed the offering of $475 million of senior notes and bonds to make up part of the purchase price of CILCORP. The $225 million 10-year notes and $250 million 30-year bonds bear coupons of 8.70% and 9.375% respectively. The remaining cash required to complete the acquisition was provided by AES.

Paul Stinson, President, AES Great Plains, stated, "We are delighted to complete this acquisition. This would not have been possible without the important role that CILCORP people have played in advancing the Illinois electricity restructuring legislation and their recent efforts with us in securing regulatory approvals.

"Their low-cost operations and brand recognition will position us well as electric markets in Illinois are opened for competition."

Dennis W. Bakke, President and Chief Executive Officer, commented, "This transaction achieves one of our many dreams in a world that is shifting to competitive electric markets. The people of CILCORP are a wonderful addition to the AES family.

"We thank them for their hard work and cooperation over the last year as we have begun to separate an integrated utility into a collection of distinct electric and gas businesses. These businesses provide AES with a significant start in the important mid-west market and a major addition to our growing portfolio of businesses in the United States."

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 May, AES completed the financing of six power plants it purchased in New York from NGE Generation, Incorporated ("NGE") for approximately $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 (approximately $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 assumed management control of two regional electric distribution companies (REC's) in Kazakhstan.

-- In June, a subsidiary of AES has completed a $308.5 million non-recourse bond financing for the construction of a 705 MW natural gas-fired combined cycle plant to be located in South Lebanon Township, Pennsylvania.

-- In June, a subsidiary of AES has completed a $448 million financing for its 826 MW (net) natural gas-fired combined cycle power plant in San Nicolas, Province of Buenos Aires, Argentina.

-- In July, AES announced that it has completed its acquisition of NewEnergy by acquiring all of the outstanding shares of NewEnergy.

-- In August, AES announced that it has completed the acquisition of 50% of the Empresa Distribuidora de Electricidad del Este, S.A., the distribution company providing electricity to approximately 400,000 users in the eastern portion of the Dominican Republic.

-- In August, AES announced that it has won a bid to acquire a controlling 51% interest in Eletronet in Brazil.

-- In August, AES announced that a subsidiary has reached agreement with National Power for the acquisition of the Drax Power Station for (pound)1.875 billion (approximately $3 billion).

-- In August, AES formed a new subsidiary called Power Direct to compete for electricity and natural gas retail customers in the United States markets.

-- In August, AES was selected by the Government of Orissa State in India to acquire 95% of the equity in the holding company of the Central Electricity Supply Company of Orissa Limited (CESCO).

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.

The company's generating assets include interests in one hundred and eight facilities totaling over 35 gigawatts of capacity. AES' electricity distribution network has over 845,000 km of conductor and associated rights of way. In addition, through its various retail electricity supply businesses, the company sells over 112,000 gigawatt hours per year to over 14 million end-use customers.

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.