AES Reaches Agreement to Sell Two African Businesses, Songas and Kelvin, for Approximately $329 Million; Net Equity Price to AES is $116 million.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 17, 2002

The AES Corporation (NYSE:AES) today announced an agreement with CDC Globeleq, CDC Group Plc's emerging markets' power business, to sell 100 percent of its ownership interest in two generation businesses in Africa in an aggregate transaction valued at $329 million, which includes cash and assumed project debt.

AES has agreed to sell its majority ownership of Songas Limited, a gas-to-electricity business currently under construction in Tanzania, and its 95% economic interest in AES Kelvin Power (Pty.) Ltd., a 600MW coal-fired facility that is currently under refurbishment in South Africa.

The combined value of both transactions equates to an equity purchase price of $116.1 million, which is approximately equal to the book value of AES' investment in both Songas and AES Kelvin, and is approximately equal to the expected cash proceeds to AES upon completion of the transactions.

Completion of the transactions is subject to certain government and bank approvals, and AES expects the sale of both businesses to close in the first quarter of 2003.

Paul Hanrahan, President and Chief Executive Officer of AES, commented, "Following the recent closing of our bank and bond refinancings, this sale marks another positive step towards successfully executing our plan to strengthen our balance sheet. We are particularly pleased with the credit enhancing aspects of this sale - as these businesses were not expected to generate any significant cash flows in the near term. The successful execution of our turnaround plan continues to be the primary focus of the company. We expect to demonstrate our continued progress in the execution of this plan in the weeks and months ahead."

About CDC Globeleq

CDC Globeleq currently holds investments in twenty-one power assets in fifteen developing countries, with a total generating capacity of 1200 MW, based on equity share. With these acquisitions CDC Globeleq will own 1900 MW of capacity in sixteen countries.

CDC Globeleq was recently established by CDC Group plc, formerly the Commonwealth Development Corporation. CDC Group plc is owned 100% by the UK Government through its Department for International Development.

"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 176 facilities totaling over 60 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells 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].