AES Reports 1999 Annual Earnings of $377 Million or $1.92 Per Share Before Deducting Foreign Currency Transaction Losses.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 3, 2000

The AES Corporation (NYSE:AES) announced today that net income (before deducting foreign currency transaction losses) for 1999 increased for the fourteenth consecutive year.

Net income, before foreign currency transaction losses and extraordinary items, increased to $377 million for the year ended 1999. For the year, revenues increased 36% to $3.3 billion while operating income was up 26% to $925 million. Diluted earnings per share, before foreign currency transaction losses and extraordinary items, increased to $1.92 per share in 1999, from $1.88 for 1998.

After foreign currency transaction losses and extraordinary items AES' net income was $228 million for the year ended December 31, 1999.

For the fourth quarter, revenues increased 75% to $1.1 billion while operating income increased 30% to $283 million. Net income before foreign currency transaction gains and extraordinary items for the quarter, was $120 million, up 11% over 1998. Diluted earnings per share were $0.56 for the fourth quarter of 1999.

Dennis W. Bakke, Co-Founder, President and Chief Executive Officer of AES, commented, &uot;From a financial perspective, we began the year with the adverse impact of the devaluation of the Real in Brazil and took a number of steps in Brazil and elsewhere around the world to deliver respectable results for 1999. We created many new businesses this year and took other steps to refinance and restructure existing businesses. The sum of these efforts entailed over $10 billion of financings. We continue down our path to serve the world's need for clean, safe reliable electricity.&uot;

Roger W. Sant, Co-Founder and Chairman of AES stated, &uot;We continue to be excited with the progress we are making as a global power company. Our portfolio of new business opportunities continues to grow as the shift to competitive electricity accelerates in all corners of the world. This year we began testing our skills in the area of competitive supply of electricity at the retail level. Furthermore, we are being opportunistic with the distribution assets we have in Brazil in laying fiber optic cable to be a carriers-carrier for the communications industry. All of this would not happen without the creativity and tenacity of our AES people.&uot;

AES' business development successes in 1999 include the following:

-- In December, AES announced the start of construction of the 454

MW AES Puerto Rico cogeneration facility in Guayama, on the

southeast coast of Puerto Rico.

-- In November, a subsidiary of AES completed the acquisition of the

Drax power station from National Power for approximately $3

billion in cash.

-- In October, AES won a bid to purchase a controlling interest in

Tiete, a generating company in Brazil for approximately $486

million.

-- In October, a subsidiary of AES completed the acquisition of

CILCORP, Inc.

-- In August, AES was selected by the Government of Orissa State in

India to acquire 95% of the equity in the holding company of the

Central Electricity Supply Company of Orissa Limited (CESCO).

-- In August, AES formed a new subsidiary called Power Direct to

compete for electricity and natural gas retail customers in the

United States markets.

-- In August, AES announced that it has won a bid to acquire a

controlling 51% interest in Eletronet in Brazil.

-- In August, AES announced that it has completed the acquisition of

50% of the Empresa Distribuidora de Electricidad del Este, S.A.,

the distribution company providing electricity to approximately

400,000 users in the eastern portion of the Dominican Republic.

-- In July, AES announced that it has completed its acquisition of

NewEnergy by acquiring all of the outstanding shares of

NewEnergy.

-- In June, a subsidiary of AES has completed a $448 million

financing for its 826 MW (net) natural gas-fired combined cycle

power plant in San Nicolas, Province of Buenos Aires, Argentina.

-- In June, a subsidiary of AES has completed a $308.5 million

non-recourse bond financing for the construction of a 705 MW

natural gas-fired combined cycle plant to be located in South

Lebanon Township, Pennsylvania.

-- In June, AES announced that it has assumed management control of

two regional electric distribution companies (REC's) in

Kazakhstan.

-- In May, a subsidiary of AES has completed a 122 million pounds

(approximately $195 million) non-recourse project refinancing for

its 230 MW gas-fired combined cycle power plant in Barry, South

Wales, United Kingdom.

-- In May, a subsidiary of AES agreed to acquire subscription rights

from Eletrobas Centrais Eletricas Brasileiras, S.A., which will

allow it to purchase additional shares in Light Servicos de

Eletricidade S.A. (&uot;Light&uot;) and Eletropaulo S.A.

-- In May, a subsidiary of AES completed the purchase of two Ecogen

Energy power plants from the government of Victoria, Australia

for approximately $227 million.

-- In May, a subsidiary of AES completed the financing for a 393 MW

coal-fired plant, AES Fifoots Point, in South Wales, United

Kingdom.

-- In May, AES completed the financing of six power plants it

purchased in New York from NGE Generation, Incorporated (&uot;NGE&uot;)

for approximately $953 million.

-- In April, AES Thames reached agreement to a partial prepayment of

future electricity sales with Connecticut Light &Power Company

(CL&).

-- In February, a subsidiary of AES was selected by the Hungarian

utility, the MVM, to build, own and operate a 190 MW gas-fired

combined cycle power plant, AES Phoenix, in eastern Hungary.

-- In February, a subsidiary of AES executed a Power Purchase

Agreement (&uot;PPA&uot;) 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.

AES is a leading global power company comprised of competitive generation, distribution 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-three facilities totaling over 43 gigawatts of capacity. AES' electricity distribution network has over 954,000 km of conductor and associated rights of way. In addition, through its various retail electricity supply businesses, the company sells over 110,000 gigawatt hours per year to over 15 million 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.

THE AES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998

----------------------------------------------------------------------
                          Three            Three         Change
                          Months     %     Months    %    From
                          Ended     of     Ended    of   Previous    %
                         12/31/99  Sales  12/31/98 Sales  Year  Change
----------------------------------------------------------------------
($ in millions,
 except per
 share amounts)

REVENUES:
Sales and services         $1,128   100%   $  646   100% $  482    75%

OPERATING COSTS
 AND EXPENSES:
Cost of sales
 and services                 817    72%      405    63%   (412) -102%
Selling, general and
 administrative
 expenses                      27     3%       14     2%    (13)  -93%
Provision to reduce
 contract receivables, net      1     0%       10     1%      9    90%
                           ------          ------         -----

Total operating costs
 and expenses                 845    75%      429    66%   (416)  -97%
                           ------          ------         -----

OPERATING INCOME              283    25%      217    34%     66    30%

OTHER INCOME AND
 (EXPENSE):
Interest expense             (224)  -20%     (138)  -22%    (86)  -62%
Interest and other
 income                        51     5%       20     3%     31   155%
Foreign currency
 transaction gain (loss)       18     1%       (2)    -      20 -1000%
Equity in earnings of
 affiliates (before
 income tax):
     Earnings of
      affiliates      $83
     Foreign currency
      transaction
      loss             (5)
                       --
     Total             78      78     7%       73    11%      5     7%
                           ------          ------         -----

INCOME BEFORE
 INCOME TAXES
 AND MINORITY
 INTEREST                     206    18%      170    26%     36    21%

Income tax provision           56     5%       46     7%    (10)  -22%
Minority interest              21     2%       32     5%     11    34%
                           ------          ------         -----

INCOME BEFORE
 EXTRAORDINARY ITEM           129    11%       92    14%     37    40%

Extraordinary item,
 net of tax - Early
 extinguishment of debt       (17)   -1%        2     0%    (19) -950%
                           ------          ------         -----

NET INCOME                 $  112    10%   $   94    14% $   18    19%
                           ======          ======         =====

BASIC EARNINGS
 PER SHARE:
Before extraordinary item  $ 0.63          $ 0.51        $ 0.12
Extraordinary item          (0.08)           0.01         (0.09)
                           ------          ------         -----
Total                      $ 0.55          $ 0.52        $ 0.03
                           ======          ======         =====

DILUTED EARNINGS
 PER SHARE:
Before extraordinary item  $ 0.60          $ 0.49        $ 0.11
Extraordinary item          (0.08)           0.01         (0.09)
                           ------          ------         -----
Total                      $ 0.52          $ 0.50        $ 0.02
                           ======          ======         =====

THE AES CORPORATION--Supplemental Schedule (1)

CONSOLIDATED SCHEDULE (Excluding Foreign Currency Transactions and
Extraordinary Items) (1)
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998

----------------------------------------------------------------------
                          Three            Three         Change
                          Months     %     Months    %    From
                          Ended     of     Ended    of   Previous    %
                         12/31/99  Sales  12/31/98 Sales  Year  Change
----------------------------------------------------------------------
($ in millions,
 except per
 share amounts)

REVENUES:
Sales and services         $1,128   100%   $  646   100% $  482    75%

OPERATING COSTS
 AND EXPENSES:
Cost of sales
 and services                 817    72%      405    63%   (412) -102%
Selling, general and
 administrative
 expenses                      27     3%       14     2%    (13)  -93%
Provision to reduce
 contract receivables, net      1     0%       10     1%      9    90%
                           ------          ------         -----

Total operating costs
 and expenses                 845    75%      429    66%   (416)  -97%
                           ------          ------         -----

OPERATING INCOME              283    25%      217    34%     66    30%

OTHER INCOME AND
 (EXPENSE) Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items:
Interest expense             (224)  -20%     (138)  -22%    (86)  -62%
Interest and other
 income                        51     5%       20     3%     31   155%
Equity in earnings of
 affiliates (before
 income tax)                   83     7%       95    15%    (12)  -13%
                           ------          ------         -----

INCOME BEFORE
 INCOME TAXES
 AND MINORITY
 INTEREST, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items          193    17%      194    30%     (1)   -1%

Income taxes                   52     5%       54     8%      2     4%
Minority interest              21     2%       32     5%     11    34%
                           ------          ------         -----

NET INCOME, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $  120    10%   $  108    17% $   12    11%
                           ======          ======         =====

BASIC EARNINGS PER
 SHARE, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $ 0.58          $ 0.60        $(0.02)
                           ======          ======         =====

DILUTED EARNINGS PER
 SHARE, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $ 0.56          $ 0.57        $(0.01)
                           ======          ======         =====

(1)  Basis of presentation -- This schedule presents, on a proforma
basis, the results of operations of AES excluding the aggregate (both
subsidiaries and affiliates) foreign currency transaction gains of
approximately $13 million ($9 million after income taxes) during the
fourth quarter of 1999 and transaction losses of $24 million ($16
million after income taxes) incurred during the fourth quarter of
1998. This schedule also excludes the extraordinary loss of
approximately $17 million incurred during the fourth quarter of 1999,
and the extraordinary gain of approximately $2 million incurred during
the fourth quarter of 1998.

THE AES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998

----------------------------------------------------------------------
                          Twelve           Twelve        Change
                          Months     %     Months    %    From
                          Ended     of     Ended    of   Previous    %
                         12/31/99  Sales  12/31/98 Sales  Year  Change
----------------------------------------------------------------------
($ in millions,
 except per
 share amounts)

REVENUES:
Sales and services         $3,253   100%   $2,398   100% $  855    36%

OPERATING COSTS
 AND EXPENSES:
Cost of sales
 and services               2,249    69%    1,587    66%   (662)  -42%
Selling, general and
 administrative
 expenses                      71     2%       56     2%    (15)  -27%
Provision to reduce
 contract receivables, net      8     -        22     1%     14    64%
                           ------          ------         -----

Total operating costs
 and expenses               2,328    71%    1,665    69%   (663)  -40%
                           ------          ------         -----

OPERATING INCOME              925    29%      733    31%    192    26%

OTHER INCOME AND
 (EXPENSE):
Interest expense             (641)  -20%     (485)  -20%   (156)  -32%
Interest and other
 income                       106     3%       67     3%     39    58%
Foreign currency
 transaction gain (loss)        9     -        (1)    -      10 -1000%
Equity in earnings of
 affiliates (before
 income tax):
     Earnings of
      affiliates     $224
     Foreign currency
      transaction
      loss           (203)
                     ----
     Total             21      21     1%      232    10%   (211)  -91%
                           ------          ------         -----

INCOME BEFORE
 INCOME TAXES
 AND MINORITY
 INTEREST                     420    13%      546    24%   (126)  -23%

Income tax provision          111     3%      145     7%     34    23%
Minority interest              64     2%       94     4%     30    32%
                           ------          ------         -----

INCOME BEFORE
 EXTRAORDINARY ITEM           245     8%      307    13%    (62)  -20%

Extraordinary item,
 net of tax - Early
 extinguishment of debt       (17)   -1%        4     -     (21) -525%
                           ------          ------         -----

NET INCOME                 $  228     7%   $  311    13% $  (83)  -27%
                           ======          ======         =====

BASIC EARNINGS
 PER SHARE:
Before extraordinary item  $ 1.28          $ 1.73        $(0.45)
Extraordinary item          (0.09)           0.02         (0.11)
                           ------          ------         -----
Total                      $ 1.19          $ 1.75        $(0.56)
                           ======          ======         =====

DILUTED EARNINGS
 PER SHARE:
Before extraordinary item  $ 1.25          $ 1.67        $(0.42)
Extraordinary item          (0.09)           0.02         (0.11)
                           ------          ------         -----
Total                      $ 1.16          $ 1.69        $(0.53)
                           ======          ======         =====

THE AES CORPORATION--Supplemental Schedule  (1)

CONSOLIDATED SCHEDULE (Excluding Foreign Currency Transactions and
Extraordinary Items) (1)
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998

----------------------------------------------------------------------
                          Twelve           Twelve        Change
                          Months     %     Months    %    From
                          Ended     of     Ended    of   Previous    %
                         12/31/99  Sales  12/31/98 Sales  Year  Change
----------------------------------------------------------------------
($ in millions,
 except per
 share amounts)

REVENUES:
Sales and services         $3,253   100%   $2,398   100% $  855    36%

OPERATING COSTS
 AND EXPENSES:
Cost of sales
 and services               2,249    69%    1,587    66%   (662)  -42%
Selling, general and
 administrative
 expenses                      71     2%       56     2%    (15)  -27%
Provision to reduce
 contract receivables, net      8     -        22     1%     14    64%
                           ------          ------         -----

Total operating costs
 and expenses               2,328    71%    1,665    69%   (663)  -40%
                           ------          ------         -----

OPERATING INCOME              925    29%      733    31%    192    26%

OTHER INCOME AND
 (EXPENSE) Excluding
 Foreign Currency
 Transactions:
Interest expense             (641)  -20%     (485)  -20%   (156)  -32%
Interest and other
 income                       106     3%       67     3%     39    58%
Equity in earnings of
 affiliates (before
 income tax)                  224     7%      290    11%    (66)  -23%
                           ------          ------         -----

INCOME BEFORE
 INCOME TAXES
 AND MINORITY
 INTEREST, Excluding
 Foreign Currency
 Transactions                 614    19%      605    25%      9     1%

Income taxes                  173     5%      164     7%     (9)   -5%
Minority interest              64     2%       94     4%     30    32%
                           ------          ------         -----

NET INCOME, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $  377    12%   $  347    14% $   30     9%
                           ======          ======         =====

BASIC EARNINGS PER
 SHARE, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $ 1.97          $ 1.96        $ 0.01
                           ======          ======         =====

DILUTED EARNINGS PER
 SHARE, Excluding
 Foreign Currency
 Transactions and
 Extraordinary Items       $ 1.92          $ 1.88        $ 0.04
                           ======          ======         =====

(1)  Basis of presentation -- This schedule presents, on a proforma
basis, the results of operations of AES excluding the aggregate (both
subsidiaries and affiliates) foreign currency transaction losses of
approximately $194 million ($132 million after income taxes) and $59
million ($40 million after income taxes) incurred during the years
ended December 31, 1999 and 1998, respectively. This schedule also
excludes the extraordinary loss of approximately $17 million incurred
during the year ended December 31, 1999, and the extraordinary gain of
approximately $4 million incurred during the year ended December 31,
1998.