AES Replaces Customer for 700 MW Ironwood Project.

ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 10, 1999--The AES Corporation announced today that it has 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.

The PPA is a twenty-year tolling arrangement under which AES Ironwood will provide capacity and fuel conversion services, and Williams will supply the fuel, and will own and market the power output.

AES Ironwood plans to begin the two-year construction phase for the natural gas-fired, combined cycle plant, for South Lebanon Township, Pa., during the first quarter of 1999. Operations of the facility are targeted for the first quarter of 2001.

Patricia Rollin, Project Director of AES Ironwood, said, "We are pleased that through this agreement with Williams, AES Ironwood remains on schedule to deliver power into the vital Pennsylvania-New Jersey-Maryland market within two years. Our state-of-the-art facility will be an industry pacesetter in both energy efficiency and environmental performance."

John Ruggirello, President of AES Enterprise, stated, "AES Ironwood is a major greenfield project that provides us with another exciting opportunity to produce electricity under a long term, fixed price contract. We are very happy to be working with Williams, who bring their considerable strengths in gas supply and power marketing."

The development phase of the AES Ironwood project is near completion, with several major permits having received approval. In April and May 1998, respectively, the Delaware River Basin Commission and the Susquehanna River Basin Commission granted approval on the water permit applications for the facility.

In November 1998, the South Lebanon Township Supervisors further approved the Land Development Plans submitted by AES Ironwood. AES Ironwood has also received issuance of the draft air permit by the Pennsylvania Department of Environmental Protection.

Another AES' business development success in 1999 is:

-- In January AES entered into exclusive negotiations with Florida's

Orlando Utilities Commission (OUC) to purchase its Indian River

Steam Electric Plant, a 610 MW facility burning oil and natural

gas, located in Titusville, Fla.

The AES Corporation, the parent company of AES Ironwood, is a leading global power company that currently owns or has an interest in ninety three power facilities, totaling over 27,000 MW, in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, India, Pakistan, the Netherlands, Hungary, Kazakhstan, Mexico, China, and the United Kingdom. AES also distributes electricity to over 13 million customers in Brazil, Argentina, El Salvador and Georgia.

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. The AES Corporation is dedicated to providing safe, clean, low-cost 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.