AES Files 2004 Annual Report on Form 10-K.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) completed its annual financial statements and filed its 2004 Annual Report on Form 10-K with the Securities and Exchange Commission today.

In connection with its 2004 year-end closing process, the company identified additional fourth quarter adjustments that changed the results the company reported in a press release dated March 17, 2005.

Final results for the year ended December 31, 2004 include:

--Revenues were $9,486 million ($15 million above the previously reported amount) reflecting an increase of 13% from $8,415 million in 2003.

--Gross margin was $2,772 million ($4 million above the previously reported amount) reflecting an increase of 14% from $2,436 million as restated for 2003.

--Diluted earnings per share were $0.60 ($0.01 below the previously reported amount of $0.61) versus a ($0.69) loss per share as restated for 2003.

--Diluted earnings per share from continuing operations were $0.57 ($0.01 below the previously reported amount of $0.58) versus $0.56 as restated for 2003. The majority of the $0.01 earnings per share difference is attributable to adjustments of capacity billings at AES's Dominican Republic generating plants for 2004 that were calculated and submitted post year-end by the government.

As previously reported, the company restated its 2003 and 2002 financial statements. The 2003 and 2002 restatement adjustments had no impact on revenue or net cash flow in either year, a $3 million positive impact on gross margin in 2003 and no impact on gross margin in 2002. In 2003, net income from continuing operations declined by $4 million to $332 million and net loss increased by $11 million to $414 million. In 2002, net loss from continuing operations increased by $37 million to $1,646 million, and net loss increased by $50 million to $3,559 million. The restatement adjustments related to the following:

--Deferred tax reconciliation adjustments associated with certain of the company's foreign subsidiaries, including amounts to correctly reflect the tax effect of a minimum pension liability account;

--Discontinued operations adjustments associated with eliminating certain identified net liabilities related to operations previously written off in 2003;

--Balance sheet reclassification adjustments to certain accounts associated with income tax, minority interest and foreign currency translation.

In connection with its Sarbanes-Oxley evaluation of internal controls, the company completed its assessment of the effectiveness of its internal controls. Management concluded that an individual material weakness existed as of December 31, 2004. This was due to the lack of an effective control for timely and detailed reconciliation of the components of its foreign subsidiaries' income tax assets and liabilities to related consolidated balance sheet accounts. The company is taking steps to remedy this weakness.

None of the restatement amounts described above will have an impact on the 2005 guidance previously disclosed on February 3, 2005.

The company's Form 10-K is available at www.aes.com.

About AES

AES is a leading global power company, with 2004 sales of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 120 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact media relations at [e-mail].