AES Ironwood Completes $308.5 Million Bond Financing.

ARLINGTON, Va.--(BUSINESS WIRE)--June 28, 1999--

Construction of the 705 MW Pennsylvania Facility Underway

The AES Corporation (NYSE: AES) announced today that its subsidiary, AES Ironwood L.L.C., has completed a $308.5 million non-recourse bond financing for the construction of a 705 MW natural gas-fired combined cycle plant to be located in South Lebanon Township, Pennsylvania.

The sale of bonds was lead managed by Lehman Brothers and co-managed by Morgan Stanley Dean Witter and Dresdner Kleinwort Benson.

Siemens Westinghouse Power Corporation began on-site construction of the AES Ironwood facility under a turnkey construction contract in early June. Completion of construction and commencement of operations is expected in the second quarter of 2001.

All of the capacity, associated energy and ancillary services from the plant will be sold under a 20-year tolling agreement with Williams Energy Marketing & Trading Company, a subsidiary of The Williams Companies. Under the tolling agreement, Williams will provide fuel to the facility. The power plant will be owned and operated by a subsidiary of AES.

Patricia Rollin, Project Director of AES Ironwood, said, "We are very pleased to have completed the development and bond financing of the first AES greenfield project in the robust Pennsylvania-New Jersey-Maryland ("PJM") electricity market."

Dennis W. Bakke, President and Chief Executive Officer, commented, "This facility with state-of-the-art combined cycle technology will offer high efficiency with very low emissions and allow us to deliver clean, low-cost power into the PJM market for many years to come. We look forward to adding this plant to our portfolio of businesses that supply energy conversion services to Williams."

Business development milestones in 1999 include the following:

-- In February, a subsidiary of AES executed a Power Purchase

Agreement ("PPA") with Williams Energy Marketing and Trading

Company, a subsidiary of The Williams Company, Inc., for the

entire output of the planned 700 MW AES Ironwood power generating

facility.

-- In February, a subsidiary of AES was selected by the Hungarian

utility, the MVM, to build, own and operate a 190 MW gas-fired

combined cycle power plant, AES Phoenix, in eastern Hungary.

-- In April, AES Thames reached agreement to a partial prepayment of

future electricity sales with Connecticut Light & Power Company

(CL&P).

-- In April, a subsidiary of AES won a bid to acquire 50 percent of

the shares of Empresa Distribudora Electrica Este (EDE Este), an

electric distribution company in the Dominican Republic.

-- In May, AES completed the financing of six power plants it

purchased in New York from NGE Generation, Incorporated ("NGE")

for $953 million.

-- In May, a subsidiary of AES completed the financing for a 393 MW

coal-fired plant, AES Fifoots Point, in South Wales, United

Kingdom.

-- In May, a subsidiary of AES completed the purchase of two Ecogen

Energy power plants from the government of Victoria, Australia

for approximately $227 million.

-- In May, a subsidiary of AES agreed to acquire subscription rights

from Eletrobas Centrais Eletricas Brasileiras, S.A., which will

allow it to purchase additional shares in Light Servicos de

Eletricidade S.A. ("Light") and Eletropaulo S.A.

-- In May, a subsidiary of AES has completed a 122 million pound

($195 million) non-recourse project refinancing for its 230 MW

gas-fired combined cycle power plant in Barry, South Wales,

United Kingdom.

-- In June, AES announced that it has entered into a definitive

agreement to acquire New Energy Ventures in a transaction valued

at approximately $90 million.

-- In June, AES announced that it has assumed management control of

two regional electric distribution companies (REC's) in

Kazakhstan.

AES is a leading global power company that currently owns or has an interest in one hundred and four power facilities totaling over 31,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Panama, Mexico, Pakistan, India, Bangladesh the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

AES also distributes electricity to nearly 14 million customers. In addition to having assets in excess of $10 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.