AES Eliminates Financing Requirement for the Acquisition of 51% of EDC.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--May 16, 2000

The AES Corporation (NYSE: AES) announced today that the financing conditions in the offers by its subsidiaries Inversora DS 2000, C.A. and Acquisition I LLC to acquire shares and ADS's of C.A. La Electricidad de Caracas and Corporacion EDC, C.A. have been satisfied.

On May 12, 2000, AES announced the pricing of its offerings of common stock and trust convertible preferred securities, which will result in net proceeds to the Company of approximately $1.16 billion (before taking into account the exercise of the underwriter's overallotment option).

The US and the Venezuelan offers for EDC shares were conditioned on AES having obtained sufficient funds to purchase ADS's and shares pursuant to the offers and pay related fees and expenses. As a result of AES' successful offering, the required funds for the EDC acquisition have been obtained.

"We are pleased to have eliminated the financing condition," said Jeff Safford, Vice President and Chief Financial Officer, AES Americas South. "This represents an important step toward successful completion of our tender offer."

On April 28, 2000, AES offered to acquire 51% of the outstanding shares of C.A. La Electricidad de Caracas and Corporacion EDC, C.A., including stock represented by ADS's. AES offered $0.47 per share in the Venezuelan Offer and $23.50 per ADS in the US offer.

AES is a leading global power company comprised of competitive generation 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 twenty-five facilities totaling over 44 gigawatts of capacity. AES' electricity distribution network has over 954,000 km of conductor and associated rights of way and sells over 114,000 gigawatt hours per year to over 15 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.