AES Panama Completes $275 Million Financing for the Construction of Two Hydroelectric Facilities; Largest Private Financing in Panama's History.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 5, 2002

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Panama, closed a $275 million financing to fund the construction of two hydroelectric power facilities in Panama.

The seven-year non-recourse loan is with a syndicate of 17 banks, including Banco Continental of Panama, Societe Generale, and Banco Nacional de Panama. The financing received an international investment grade rating of "BBB-" (Triple B Minus) from Fitch Ratings.

The 120MW Esti greenfield hydroelectric plant and the 110MW Bayano hydroelectric facility expansion are in the advanced stages of construction. The Esti facility is expected to commence commercial operations in November 2003, and the Bayano expansion is expected to initiate commercial operations in September 2002.

With the completion of these facilities, AES will have an installed generating capacity in Panama of 510MW.

Paul T. Hanrahan, President and Chief Executive Officer, stated, "We are pleased to have completed this financing during a time when AES is focused on enhancing liquidity, de-levering our balance sheet and strengthening our businesses around the world. AES Panama has shown that stand-alone electric generating businesses with solid business fundamentals can attract non-recourse financing, even during a time when capital markets are extremely tight for the power industry."

David Sundstrom, President and General Manager of AES Panama, commented, "AES Panama is delighted to have achieved this financing for these two facilities. With the participation of Panamanian and international banks, this is the largest private financing achieved in the history of the Panama banking sector."

"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 investor relations at [e-mail].