AES Plans 720 Megawatt U.S. Power Facility.

ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 4, 1997--The AES Corporation (NYSE: AES) announced Tuesday that it plans to build a 720 MW natural gas-fired, combined cycle facility, named AES Ironwood, to be located in Southeastern Pennsylvania.

Subsidiaries of AES have executed three restructured power purchase agreements for an aggregate 520 MW (equivalent to 457 MW summer peak capacity) with GPU Energy, the energy services and delivery business of GPU Inc. The three contracts will be serviced by AES Ironwood.

In 1996, AES acquired the rights to the three power purchase agreements from other suppliers for a total cost of $28 million. AES and GPU Energy are now working together to finalize a site for the plant which is expected to complete construction and begin commercial operations in the year 2000.

Thomas Tribone, president of AES Americas, commented, "The acquisition and the restructuring of these agreements represents a win-win situation for the original developers, GPU, AES and the GPU Energy customers. The project restructurings provided for cost recovery by the original developers while allowing GPU Energy to retain future capacity in a way that saves its customers money.

"The aggregation of the projects in AES Ironwood allows AES to gain economies of scale. We have worked closely with GPU Energy to structure these agreements to provide flexibility while also providing a structure that would allow for traditional project finance."

Dennis Bakke, president and CEO of AES, stated, "This planned facility is one of the largest independent power plants to be built in the U.S. in the 1990's. The continuing joint effort by AES and GPU Energy should result in a unique project that sets a precedent for the U.S. market.

"AES Ironwood demonstrates that AES continues to seek and create opportunities in the U.S. as well as in markets around the world."

AES also announced today that John H. McArthur, former Dean of the Harvard Business School, was appointed to the AES board of directors. In addition, John Ruggirello, the division director of AES Enterprise, which serves most of the United States market, was named a vice president of the corporation.

Furthermore, AES created a new division that will be responsible for AES's electricity supply business in parts of Asia and the Middle East as well as some of the countries that were formerly a part of the U.S.S.R.

Paul Stinson, who is currently the plant manager of AES's 660 MW Medway facility in England, was named the division director and Shazad Quazim, who initiated AES's business in Pakistan, will join the new division.

AES currently owns or has an interest in thirty-three power facilities totaling over 11,000 megawatts in the United States, Argentina, Brazil, Pakistan, Hungary, Kazakstan, China and the United Kingdom.

In addition to having assets of $3.7 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]

CONTACT: AES Corp., Arlington

Kenneth R. Woodcock, 703/522-1315