AES Completes $215 MM Financing Associated With AES Puerto Rico; Transaction Raises Additional Funds to Further Strengthen Liquidity.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--May 28, 2002

The AES Corporation (NYSE:AES) announced today that it has closed the financing for a $215 million facility at AES Guayama Holdings, BV, the AES subsidiary that indirectly owns the 454 MW clean coal-fired AES Puerto Rico power plant in Guayama, Puerto Rico.

The financing is a 15-year facility carrying a fixed rate of approximately 9.50%. The proceeds will be used to further strengthen liquidity.

John R. Ruggirello, Chief Operating Officer, stated, "This closing is another key milestone in the AES plan to improve liquidity and strengthen the balance sheet of the parent company. The additional funds raised through this financing continue to build the liquidity cushion we have discussed with investors. Initially, we sought to raise $100 million, but with the strong demand this contract generation business attracted, we decided to increase the size of the transaction to $215 million."

Sarah Slusser, Senior Vice President, said, "The construction of the AES Puerto Rico facility is over 90% complete and we expect to commence commercial operation in the summer of 2002. AES remains committed to providing clean, low cost, reliable electricity to the people of Puerto Rico. The power supply from this coal-fired plant offers fuel diversity to an electrical system, which is now mainly oil-fired. This financing does not in any way alter the electric price in the long-term contract we have with the Puerto Rico Electric Power Authority or our ability to reliably deliver electricity to the grid. This financing confirms the solid investment climate of Puerto Rico."

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, Qatar, South Africa, Sri Lanka, Tanzania, Uganda, Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in 177 facilities totaling over 59 gigawatts of capacity. AES's electricity distribution network has over 727,000 km of conductor and associated rights of way and sells over 108,000 gigawatt hours per year to over 16 million 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.aes.com or contact investor relations at [e-mail].