AES Earns $1.46 Per Share in 2000, Up 135% Over Earlier Year, Excluding One-Time Charge; Year Closes with Robust Quarter of 50 Cents Per Share.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Jan. 29, 2001

The AES Corporation (NYSE:AES) announced today that net income for 2000 (before deducting a one-time charge relating to the environmental fine in California) increased for the fourteenth consecutive year.

Net income, before the $17 million (after tax) one-time charge, increased 189% to $658 million for the year ended 2000. For the year, revenues increased 106% to $6.7 billion. Diluted earnings per share, before the one-time charge and extraordinary items in 2000 and 1999, increased to $1.46 per share in 2000, from $0.62 for 1999.

For the fourth quarter, revenues increased 70% to $1.9 billion. Net income before the one-time charge increased 113% to $238 million for the quarter. Diluted earnings per share, before the one-time charge, were $0.50 for the fourth quarter of 2000. Including the one-time charge, diluted earnings per share were $0.46 for the quarter.

Barry J. Sharp, Chief Financial Officer, stated, "This was a record quarter and a record year for AES, continuing to show the strength and diversification of our businesses around the world. We met our growing financial expectations despite the difficulties in the California market (included in AES's 2000 annual results is a pre-tax operating loss of $11 million from the Company's generation and retail electricity businesses in California) and the lower than expected electricity pool prices in the United Kingdom. Additionally, depreciation of the Brazilian Real during the year resulted in foreign currency transaction losses of $.05 per share for the quarter and $.10 per share for the year. These impacts were offset by strong performance at several of our other businesses, particularly those in Venezuela, Brazil and parts of the U.S."

Dennis W. Bakke, President and Chief Executive Officer of AES, commented, "Our 19th year as a business was magical. We had the largest increase in new business in the history of AES. Moreover, we surpassed our budgeted earnings commitment. Significant progress was observed in making every person an AES 'business person', as was indicated in our Values Survey. We surely made some mistakes, but overall the year 2000 was a terrific year."

AES's Expectations for 2001

The following information constitutes forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. These statements are not intended to be a guarantee of performance, but instead constitute AES's current expectation based on reasonable assumptions. Actual events and results may differ materially from those projected.

In addition to those listed below, important 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.

AES expects its earnings per share for 2001 to be in the range of $1.75 - $1.90. This expectation excludes any restructuring charges resulting from the IPALCO merger, any adjustments according to Financial Accounting Standard 133 and any possible charges that may result from rationalizing businesses in China.

In addition, this expectation assumes that there is no substantial change in foreign currency exchange rates.

The major businesses or factors that could cause AES's 2001 earnings to be at the higher or lower end of the $1.75 - $1.90 per share range (or fall outside the range) include but are not limited to the performance of AES's New York plants, Eletropaulo, EDC, electricity pool prices in the United Kingdom and the acquisition of new businesses.

AES provided further guidance on its longer-term earnings growth expectations. AES expects earnings per share to grow at an average, compounded annual growth rate in the range of 25 to 30% over the next five years. This growth rate expectation assumes that AES has similar success with new business acquisitions in the next three to five years that it has had over the last few years.

With no significant new business acquisitions, annual EPS growth rates from existing AES businesses are expected to average 22% over 3 years and 19% over 5 years.

AES' business development successes in 2000 include the following:

-- In December, AES announced that it had purchased 3,466,600,000 shares of
common stock of Gener S.A. pursuant to its Chilean offer.

-- In December, a subsidiary of AES concluded an agreement with RAO UES of
Russia to sell 300MW of electric power (or 210m kWh per month) from the AES
Ekibastuz 4,000 MW coal-fired plant in the Republic of Kazakhstan to the
Russian Federation.

-- In December, AES and EDF announced they have entered into an agreement to
acquire a 9.2% interest in Light Servicos de Eletricidade S.A. from a
subsidiary of Companhia Siderurgica Nacional for $362 million.

-- In December, AES announced that it has acquired 100% of KMR Power
Corporation in a stock-for-stock transaction valued at approximately $53
million.

-- In November, a subsidiary of AES was awarded the Barka Power and
Desalination Project - Phase I (427 MW of electricity and 20 million gallons
per day (mgd) of water) in the Sultanate of Oman.

-- In November, AES made an offer to acquire all outstanding Gener S.A. ADSs in
exchange for AES common stock and that it had commenced in Chile an offer to
acquire 3,466,600,000 Gener shares.

-- In September, AES entered the Bolivian telecom market with the purchase of
100% of Redibol, a Competitive Access Provider based in La Paz, for $2.5
million.

-- In September, AES and EDF International S.A. announced they have entered
into an agreement to jointly acquire the 11.68% interest in Light Servicos de
Eletricidade S.A. owned by two subsidiaries of Reliant Energy for $430 million.


-- In September, AES began construction on a $340 million electric power plant
and liquefied natural gas importing facility located in the Dominican Republic.


-- In August, AES completed the acquisition of a 59% stake in the 1,000 MW
hydroelectric facility of Hidroelectrica Alicura S.A. in Argentina from
Southern Energy, Inc. and its partners.

-- In August, AES and REI announced that they have entered into an agreement
whereby a subsidiary of AES will acquire Reliant Energy International's
interest in El Salvador Energy Holdings, S.A. which owns three distribution

companies in El Salvador.

-- In August, subsidiaries of AES issued approximately $1 billion of
non-recourse project bonds to refinance outstanding debt at the Drax Power
Station, located in North Yorkshire, England.

-- In August, a subsidiary of AES entered into an agreement whereby AES will
acquire the 49% interest held by TransCanada PipeLines Limited in the Songo
Songo Gas-to-Electricity Project in Tanzania.

-- In July, AES and IPALCO Enterprises Inc. announced that they entered an
agreement whereby AES will acquire IPALCO Enterprises, Inc.

-- In June, AES acquired approximately 87% of the stock of C.A. La Electricidad
de Caracas, an integrated electricity company serving Caracas, Venezuela.

-- In June, a subsidiary of AES completed an $815 million non-recourse
financing for a circulating fluidized bed coal-fired facility currently being
built on the south coast of Puerto Rico.

-- In May, a subsidiary of AES acquired 100% of Tractebel Power Ltd., from
Tractebel S.A. With this transaction, AES owns approximately 92% of NIGEN's
common stock.

-- In May, AES announced that it won a bid to purchase a 70% interest in the
1,580 MW Mohave Generating Station in Laughlin, Nevada for approximately $667
million.

-- In April, AES announced it intends to launch a tender offer to acquire all
outstanding common and preference shares of Brazilian generation company
Compania de Geracao de Energia Eletrica Tiete.

-- In March, a subsidiary of AES acquired for $8 million, GeoUtilities Inc., an
internet-based superstore for energy, telecom and other vital services.

-- In March, a subsidiary of AES completed a financing associated with 823 MW
of generating facilities in the Republic of Georgia, which included the
acquisition of the 600 MW Gardabani thermal plant and the establishment of
25-year concessions for the Khrami I and II hydro stations, which have a
combined capacity of 223 MW.

-- In March, a subsidiary of AES completed a $440 million non-recourse project
financing for AES Red Oak, an 832 MW natural gas-fired combined cycle plant in
Sayerville, New Jersey.

-- In February, AES announced that a subsidiary had reached an agreement with
the Bulgarian state-owned electric utility NEK, that will allow AES to build,
own, operate and transfer a $750 million lignite-fired power plant.

-- In January, a subsidiary of AES agreed to acquire 59% of the outstanding
preferred (non-voting) shares of Eletropaulo S.A.

-- In January, a subsidiary of AES and Caterpillar Inc. reached a service
agreement for multiple energy products that will result in the construction of
a 45 MW cogeneration plant in Mossville, Illinois.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and fifty three facilities totaling over 53 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 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.

THE AES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 2000 AND 1999
----------------------------------------------------------------------
                                       Quarter    Quarter
                                        Ended      Ended
($ in millions, except per                                  Percentage
 share amounts)                       12/31/00   12/31/99     Change
----------------------------------------------------------------------

REVENUES:
Sales and services                     $ 1,916    $ 1,128         70%

OPERATING COSTS AND EXPENSES:
Cost of sales and services               1,423        818        (74%)
Selling, general and
 administrative expenses                    16         27         41%
                                       -------    -------

Total operating costs and
 expenses                                1,439        845        (70%)
                                       -------    -------

OPERATING INCOME                           477        283         69%

OTHER INCOME AND
 (EXPENSE):
Interest expense                          (351)      (224)       (57%)
Interest and other income                   95         69         38%
Equity in earnings of
 affiliates (before income tax)            156         78        100%
Environmental fine                         (17)       -          n/a
                                       -------    -------

INCOME BEFORE INCOME TAXES
 AND MINORITY INTEREST                     360        206         75%

Income tax provision                        86         56        (54%)
Minority interest                           53         21       (152%)
                                       -------    -------

INCOME BEFORE EXTRAORDINARY ITEM           221        129         71%

Extraordinary item, net of tax -
Early extinguishment of debt               -          (17)       n/a
                                       -------    -------

NET INCOME                             $   221    $   112         97%
                                       =======    =======

DILUTED EARNINGS
 PER SHARE:
Before extraordinary item                 0.46       0.30         53%
Extraordinary item                         -        (0.04)       n/a
                                       -------    -------
Total                                  $  0.46    $  0.26         77%
                                       =======    =======

Diluted weighted average
  shares outstanding (in
  millions)                                501        445
                                       =======    =======



THE AES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 2000 AND 1999
----------------------------------------------------------------------
                                        Year       Year
 ($ in millions, except                 Ended      Ended    Percentage
 per share amounts)                    12/31/00   12/31/99    Change
----------------------------------------------------------------------

REVENUES:
Sales and services                     $ 6,691    $ 3,253        106%

OPERATING COSTS AND EXPENSES:
Cost of sales and services               4,991      2,257       (121%)
Selling, general and
 administrative expenses                    85         71        (20%)
                                       -------    -------

Total operating costs and
 expenses                                5,076      2,328       (118%)
                                       -------    -------

OPERATING INCOME                         1,615        925         75%

OTHER INCOME AND
 (EXPENSE):
Interest expense                        (1,299)      (641)      (103%)
Interest and other income                  245        115        113%
Equity in earnings of
 affiliates (before income tax)            475         21      2,162%
Environmental fine                         (17)        --        n/a
                                       -------    -------

INCOME BEFORE INCOME TAXES
 AND MINORITY INTEREST                   1,019        420        143%

Income tax provision                       252        111       (127%)
Minority interest                          119         64        (86%)
                                       -------    -------

INCOME BEFORE EXTRAORDINARY
 ITEM                                      648        245        164%

Extraordinary item, net of tax -
Early extinguishment of debt                (7)       (17)        59%
                                       -------    -------

NET INCOME                             $   641    $   228        181%
                                       =======    =======

DILUTED EARNINGS
 PER SHARE:
Before extraordinary item                 1.42       0.62        129%
Extraordinary item                       (0.02)     (0.04)        50%
                                       -------    -------
Total                                  $  1.40    $  0.58        141%
                                       =======    =======

Diluted weighted average
  shares outstanding
  (in millions)                            473        392
                                       =======    =======



                         The AES Corporation
                     Unaudited Supplemental Data
               For the Quarter Ended December 31, 2000

                             -------------------1999------------------
                             1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   Year
                             -------  -------  -------  -------   ----

GEOGRAPHIC-% of Total
  North America
  Revenues                     27%      31%      45%      39%      37%
  EBCIT (1)                    35%      35%      40%      32%      35%

  South/Central America
  Revenues                     38%      41%      33%      32%      35%
  EBCIT                        17%      28%      36%      32%      29%

  Europe
  Revenues                     14%       9%       9%      17%      13%
  EBCIT                        23%       9%       9%      23%      17%

  Asia
  Revenues                     21%      19%      13%      12%      15%
  EBCIT                        25%      28%      15%      13%      19%

SEGMENTS-% of Total
  Generation
  Revenues                     61%      64%      63%      56%      60%
  Operating Margin (2)         78%      80%      83%      76%      79%
  EBCIT                        84%      78%      73%      79%      77%

  Distribution
  Revenues                     39%      36%      37%      44%      40%
  Operating Margin             22%      20%      17%      24%      21%
  EBCIT                        16%      22%      27%      21%      23%

FINANCIAL HIGHLIGHTS-
 million $, except Total
 Assets in billion $

  Revenues                 $  638   $  640   $  847   $1,128   $3,253
  EBCIT                    $  147   $  171   $  197   $  245   $  760
  Net Income Excluding
   Extraordinary Items (3) $   74   $   84   $   99   $  120   $  377
  Total Assets (billions)  $   10   $   11   $   12   $   21   $   21
  Deprec./Amort            $   60   $   62   $   72   $   84   $  278
  Parent EBITDA - LTM (4)  $  360   $  381   $  370   $  403   $  403


                             -------------------2000------------------
                             1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   Year
                             -------  -------  -------  -------   ----

GEOGRAPHIC-% of Total
  North America
  Revenues                     37%      40%      37%      36%      38%
  EBCIT (1)                    28%      32%      34%      25%      29%

  South/Central America
  Revenues                     27%      31%      37%      39%      34%
  EBCIT                        35%      46%      51%      62%      49%

  Europe
  Revenues                     25%      19%      18%      17%      19%
  EBCIT                        28%      12%       8%       8%      14%

  Asia
  Revenues                     11%      10%       8%       8%       9%
  EBCIT                         9%      10%       7%       5%       8%

SEGMENTS-% of Total
  Generation
  Revenues                     62%      52%      51%      49%      53%
  Operating Margin (2)         83%      93%      76%      68%      79%
  EBCIT                        70%      90%      65%      44%      63%

  Distribution
  Revenues                     38%      48%      49%      51%      47%
  Operating Margin             17%       7%      24%      32%      21%
  EBCIT                        30%      10%      35%      56%      37%

FINANCIAL HIGHLIGHTS-
 million $, except Total
 Assets in billion $

  Revenues                 $1,476   $1,538   $1,761   $1,916   $6,691
  EBCIT                    $  343   $  222   $  311   $  402   $1,278
  Net Income Excluding
   Extraordinary Items (3) $  181   $  111   $  134   $  221   $  648
  Total Assets (billions)  $   23   $   29   $   29   $   31   $   31
  Deprec./Amort            $  112   $  132   $  166   $  172   $  582
  Parent EBITDA - LTM (4)  $  387   $  501   $  593   $  871   $  871

(1) EBCIT is net income excluding corporate interest, other corporate
    costs and income taxes.
(2) Operating Margin is revenues reduced by cost of sales,
    depreciation and amortization and other operating expenses.
(3) In 1999, Net Income Excluding Extraordinary Items also excludes
    foreign currency transaction gains and losses.
(4) Parent EBITDA is cash flow earnings distributed to parent less
    parent operating expenses.