AES Completes Local Currency, Non-Recourse Financing of 600MW Kelvin Power Plant in South Africa.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 9, 2002

Contract Generation Business Acquired late in 2001 Successfully

Achieves South African Rand Financing

The AES Corporation (NYSE:AES) announced today that it successfully completed a $38 million (375 Million South African Rand) local currency financing in the Republic of South Africa for its 600MW (Gross) Kelvin coal-fired power facility.

The 12-year non-recourse loan is with Rand Merchant Bank, a division of FirstRand Bank Ltd. After the financial closing, the project distributed $15 million of cash to the AES parent, an amount earlier loaned to AES South Africa Holdings.

AES Kelvin Power is selling its entire electric output to City Power Johannesburg, (Proprietary) Limited, and the distribution company for the City of Johannesburg under the terms of a 20-year power purchase agreement.

The Rand financing along with the terms of the power purchase agreement, which adjusts a portion of the electric rate for the Dollar-to-Rand exchange rate, provides AES with significant exchange rate risk protection.

AES and a South African empowerment partner, Global African Power, Limited ("GAP") agreed to acquire the Kelvin plant in November 2001 from the City of Johannesburg Metropolitan Municipality. AES has operating control of the plant. The total project cost is approximately $57 million.

Paul T. Hanrahan, President and Chief Executive Officer, commented, "This financing shows the potential for raising debt in local markets as an additional source of funding for our projects. Focusing on creative ways to meet our project obligations without using parent liquidity is a top priority at AES."

John McLaren, the AES Group Manager for Africa, said "In 2001, AES invested $19 million of equity in this business and we announced that we expected to raise approximately 50% of the acquisition price in local currency debt. We are delighted to have exceeded that target with this Rand financing and are pleased to fulfill our commitments to this business at a time when AES had dramatically cut back on our capital expenditures in new businesses."

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain "forward-looking statements" regarding The AES Corporation's business. These statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses.

The company's generating assets include interests in 177 facilities totaling over 59 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells over 108,000 gigawatt hours per year to over 16 million end-use customers.

For more general information visit our web site at www.aes.com or contact Kenneth R.Woodcock [phone].