AES Completes Acquisition of Argentine Distribution Business.

ARLINGTON, Va.--(BUSINESS WIRE)--June 30, 1998--

AES Also Wins Puerto Rico Court Challenge

The AES Corporation (NYSE: AES) announced today that it completed the $350 million acquisition of Edelap, an electric distribution company in the province of Buenos Aires, Argentina.

A $193 million non-recourse loan was provided by Citibank. AES has acquired 90% of the shares of Edelap from a joint venture of Houston Industries Energy, Inc. (HIE) and a subsidiary of Techint S.A., an Argentine industrial firm. Edelap serves approximately 278,000 customers in and around the city of La Plata, the capital of Buenos Aires Province.

Thomas Tribone, Executive Vice President of AES, said, "We are pleased that we have completed this acquisition. The skills that we have developed by operating our nearby Eden and Edes distribution businesses will assist us in providing high quality service to the customers in the La Plata region."

Dennis W. Bakke, President and CEO of AES, stated, "The completion of this acquisition and financing demonstrates our confidence in the stability and continued growth of the Argentine electric power market."

Separately, AES announced today a major court victory in the permitting of a 450 MW coal-fired cogenerating power plant in Puerto Rico. In a 47-page decision, the Supreme Court of Puerto Rico upheld the decision of the Puerto Rico Environmental Quality Board approving the Environmental Impact Statement for AES' power plant.

AES' business development successes in 1998 include the following:

-- In January, AES acquired the CLESA distribution company in El Salvador for $96.5 million.

-- In January, AES won a bid to sell electricity from a 360 MW gas-fired plant in Haripur, Bangladesh.

-- In April, AES Caracoles signed a 40 year concession agreement for its 230 MW Caracoles project and has taken over the operation of Quebrada de Ullum, an existing 45 MW hydroelectric plant in Argentina.

-- In April, AES' affiliate, Light-Servicos de Electricidade, acquired Electropaulo Metropolitana, the distribution company serving the city of Sao Paulo, Brazil.

-- In May, AES completed its purchase of three electric generating stations from Southern California Edison.

-- In May, AES acquired 90% of Edelap, an electric distribution company in the province of Buenos Aires, Argentina.

-- In June, AES raised $173 million of non-recourse project financing for the AES Merida III 484 MW gas-fired combined cycle power plant in the City of Merida, Yucat n, Mexico.

-- In June, AES won a bid to sell electricity from a 450 MW gas-fired plant, Meghnaghat, in Bangladesh.

AES is a leading global power company that currently owns or has an interest in ninety-one power facilities totaling over 27,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Pakistan, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

In addition to having assets in excess of $8 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.

   CONTACT:  The AES Corporation
              Kenneth R. Woodcock, 703/522-1315