AES Reaches Agreement With Union Fenosa to Sell Non-Core Assets of EDC.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--May 31, 2000

The AES Corporation (NYSE: AES) and Union Fenosa S.A. (BVM:UNF), a major Spanish electric utility, today announced that they have reached an agreement, pursuant to which, in the event that AES acquires control of C.A. La Electricidad de Caracas and Corporacion EDC (BVC: EDC, OTC: ELDAY), Union Fenosa will continue to provide certain management information services to EDC and has rights to purchase certain non-core and non-regulated assets of EDC. AES believes that the sale of such assets to Union Fenosa would allow Group EDC to focus on the quality of service and core business of EDC in Venezuela, and to seek to optimize the Group EDC capital structure and cash flow.

Prior to reaching the agreement with AES, Union Fenosa had determined not to pursue a bid for EDC. In connection with the agreement, Union Fenosa has agreed, among other things, not to purchase or make any offer to purchase the shares or American Depositary Shares of EDC or to participate in any group attempting to acquire direct or indirect control of EDC or such shares or ADSs without AES' prior consent.

The agreement provides that Union Fenosa has options, to be exercised within 60 days after the time AES acquires control of EDC, to purchase separately Venezolana Domestica Gas, Empresa de Energia del Pacifico S.A., Electrificadora de la Costa Atlantica, Electrificadora del Caribe and Generacion de Vapor C.A. (GENEVAPCA). Further information concerning the agreement is available at the web site established in connection with the U.S. Offer.

AES has also agreed with Union Fenosa to bid jointly for C.A. Energia Electrica de Venezuela if it determines to pursue such a bid.

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.