AES Reports Earnings of $0.42 Per Share for the Quarter, From Recurring Operations; Phil Lader Elected to AES Board of Directors.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--April 26, 2001

The AES Corporation (NYSE:AES) announced today that net income, before deducting the noncash foreign currency transaction losses at Brazilian affiliates and the nonrecurring acquisition costs recorded in conjunction with the IPALCO pooling of interests transaction, was $226 million for the quarter ended March 31, 2001, an increase of 19% over the comparative results for the first quarter of 2000.

As a result of the pooling transaction, the results of operations of AES for the quarter ended March 31, 2000 have also been restated to include IPALCO.

Diluted earnings per share, excluding the noncash transaction losses and the nonrecurring acquisition costs, were $0.42 for the quarter, compared to $0.38 (before foreign currency effects and nonrecurring items) for the same quarter in 2000. Net income, after all charges, was $106 million for the quarter.

Revenues for the quarter were $2.5 billion, an increase of 50% from the first quarter of 2000.

Barry Sharp, Chief Financial Officer, commented, "The operating results for the first quarter of 2001 continue to showcase the strength of our diversified portfolio of worldwide businesses. Operating income increased 35% to a record $602 million (before deducting the IPALCO nonrecurring and Brazilian foreign currency transaction losses) for the first quarter of 2001 with strong performances from our generation businesses in the Eastern U.S and South America as well as several of our distribution businesses, including those in Venezuela, Indianapolis (included as a pooling of interests transaction) and Brazil. We were encouraged with the improved results in Brazil this quarter, even after considering the operating impacts of the depreciation of the Real."

Dennis W. Bakke, President and Chief Executive Officer, stated, "In the first quarter we successfully delivered on two of our commitments: running existing businesses well and expanding the way we serve the world by adding new businesses.

On the existing business front, for example, we feel good about the progress we have made in adjusting to the new NETA rules in the United Kingdom at our 4000 MW Drax facility. We are also making great strides in reshaping our AES Eletropaulo business in Sao Paulo, Brazil, the second largest city in the world. Furthermore, the people at our plants in central New York are executing well as they both run the facilities and sell the output into the electricity market.

On the new business front, the quarter was an excellent start to the year:

-- completed two major acquisitions of integrated companies, IPALCO in the U.S.
and Gener in Chile;

-- expanded our global presence to operations in 36 countries, with new
businesses in four additional countries: Nigeria, Germany, Czech Republic and
Italy (with an additional country being added thus far in the second quarter:
the Ukraine);

-- commenced commercial operations at plants formerly under construction:
Uruguaiana in Brazil, Fifoots Point in Wales and one unit at Yangcheng in
China;

-- moved ahead on the construction of plants in the United States (Granite
Ridge, Wolf Hollow, Ironwood, Red Oak, Puerto Rico, Medina Valley), Bangladesh
(Haripur and Meghneghat), Nigeria (barge mounted), Argentina(Parana and
Caracoles), China(Yangcheng), Domincan Republic (Andes), Panama (Esti), and Sri
Lanka (Kelanitissa); and

-- expanded our ownership in the 1000 MW Alicura hydroelectric facility in
Argentina, one of our near 80 hydro plants worldwide.

All of this reaffirms AES's desire to serve the world wherever we are needed, wanted, and can live consistent with our principles. We made great progress toward this goal in the first quarter."

AES also announced that Phil Lader has been elected to the AES Board of Directors. Mr. Lader is Chairman of WPP Group, the world's largest advertising and media services company, and Senior Advisor to Morgan Stanley International.

Recently, he was U.S. Ambassador to the Court of St. James and earlier served in President Clinton's cabinet as Administrator of the U.S. Small Business Administration and as White House Deputy Chief of Staff. Earlier, he served as President of Sea Pines Company of Hilton Head, South Carolina and the president of universities in South Carolina and Australia.

Mr. Lader is a member of the Council on Foreign Relations and a trustee of the RAND Corporation.

During the quarter, AES announced the following new leadership positions:

-- Ned Hall: Group Manager for Central America and Florida;

-- Haresh Jaisinghani: Group Manager for Southeast Asia, India,

Australia and Hawaii and

-- Mike Scholey: Group Manager for Hungary, Greece, Israel,

Turkey, the Balkans and North Africa.

AES business development milestones in 2001 include the following:

-- In April, AES announced that it won a bid for approximately

$45.9 million to purchase a 75% controlling interest in

Kievoblenergo the distribution company that serves the region

that surrounds Kiev, the capital city of the Ukraine.

-- In April, a subsidiary of AES signed agreements for the

financing of its $300 million, 450 MW combined cycle gas-fired

Meghnaghat power plant in Bangladesh.

-- In April, a subsidiary of AES completed a $180 million

financing for its 360 MW gas-fired combined cycle facility

Haripur in Bangladesh.

-- In April, AES announced the completion of its acquisition of

IPALCO in Indiana.

-- In March, a subsidiary of AES secured the financing for the

720 MW gas-fired Granite Ridge project in New Hampshire.

-- In March, a subsidiary of AES acquired from EniChem SpA an

oil-fired 140 MW cogeneration facility in the town of Ottana,

which is in the province of Nuoro, Sardinia, Italy.

-- In February, a subsidiary of AES entered an agreement to

purchase all of the energy assets of Thermo Ecotek

Corporation, a wholly owned subsidiary of Thermo Electron

Corporation of Waltham, Massachusetts for $195 million.

-- In January, AES announced the start of construction of the

$300 million AES Wolf Hollow power plant at a site in

Granbury, Texas.

-- In January, a subsidiary of AES acquired a majority interest

in a 290MW barge-mounted natural-gas-fired electric generating

business in Lagos, Nigeria.

-- In January, AES Huntington Beach submitted a proposal to the

California Energy Commission to restart two retired gas-fired

units that will add an additional 450 megawatts of generation

in the electricity-strapped state of California.

-- In January, AES announced the purchase of an additional 39%

ownership interest in Hidroelectrica Alicura, a 1000 MW hydro

plant in Argentina.

-- In January, AES announced that it had successfully completed

its offer to exchange all American Depositary Shares of Gener

S.A. for AES common stock.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, the Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and sixty facilities totaling over 58 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 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.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

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 SCHEDULE
FOR THE PERIODS ENDED MARCH 31, 2001 AND 2000

----------------------------------------------------------------------
                                       Quarter    Quarter
                                        Ended      Ended    Percentage
 ($ in millions, except                3/31/01    3/31/00     Change
 per share amounts)
----------------------------------------------------------------------

REVENUES:
Sales and services                     $ 2,545    $ 1,696         50%

OPERATING COSTS
 AND EXPENSES:
Cost of sales and
 services                                1,921      1,220        (57%)
Selling, general
 and administrative
 expenses                                   22         29        (24%)
                                       --------   --------

Total operating
 costs and expenses                      1,943      1,249        (56%)
                                       --------   --------

OPERATING INCOME                           602        447         35%

OTHER INCOME AND
 (EXPENSE):
Interest expense,
 net                                      (350)      (264)        33%
Other (expense)
 income                                    (13)        12       (208%)
Equity in earnings
 of affiliates
 (before income
 tax)                                       50        118        (58%)
Gain on sale of
 investment                                -          112        n/a
Nonrecurring
 severance and
 transaction costs                         (94)       -          n/a
                                       --------   --------

INCOME BEFORE
 INCOME TAXES AND
 MINORITY INTEREST                         195        425        (54%)

Income tax
 provision                                  57        133         57%
Minority interest                           32         18        (78%)
                                       --------   --------

INCOME BEFORE
 EXTRAORDINARY ITEM                        106        274        (61%)

Extraordinary item,
net of tax -
  Early extinguishment of debt             -           (7)       n/a

                                       --------   --------
NET INCOME                             $   106    $   267        (60%)
                                       ========   ========
DILUTED EARNINGS
 PER SHARE:
Before
 extraordinary item                       0.20       0.57        (65%)
Extraordinary item                         -        (0.01)       n/a
                                       --------   --------
Total                                  $  0.20    $  0.56        (64%)
                                       ========   ========

Diluted weighted
 average shares
 outstanding
 (in millions)                             538        495
                                       ========   ========



THE AES CORPORATION  ---  Supplemental Schedule (1)

      CONSOLIDATED SCHEDULE (Excluding Brazilian affiliates foreign
currency effects, Nonrecurring and Extraordinary items)(1) FOR THE
PERIODS ENDED MARCH 31, 2001 AND 2000

----------------------------------------------------------------------
                              Quarter        Quarter
                               Ended          Ended         Percentage
($ in millions, except        3/31/01        3/31/00          Change
per share amounts)
----------------------------------------------------------------------

REVENUES:
Sales and services            $ 2,545       $ 1,696             50%

OPERATING COSTS AND EXPENSES:
Cost of sales and service       1,921         1,220            (57%)
Selling, general and
 administrative expenses           22            29            (24%)
                              -------       -------

Total operating costs
 and expenses                   1,943         1,249            (56%)
                              -------       -------

OPERATING INCOME                  602           447             35%

OTHER INCOME AND (EXPENSE),
 Excluding Brazilian affiliates
  foreign currency effects,
   nonrecurring and
    extraordinary items:
Interest expense, net            (350)         (264)            33%
Other (expense) income            (13)           12           (208%)
Equity in earnings of
 affiliates
 (before income tax)              140            99            (41%)
                              -------       -------

INCOME BEFORE TAXES AND
 MINORITY INTEREST, Excluding
  Brazilian affiliates foreign
   currency effects,
    nonrecurring and
      extraordinary items:        379           294            (29%)

Income tax provision              121            86             41%
Minority interest                  32            18            (78%)
                              -------       -------

NET INCOME, Excluding
 Brazilian affiliates foreign
  currency effects,
   nonrecurring items and
    extraordinary item        $   226       $   190             19%
                              =======       =======

DILUTED EARNINGS PER SHARE,
 Excluding Brazilian
  affiliates foreign currency
   effects, nonrecurring and
    extraordinary items       $  0.42       $  0.38             11%
                              =======       =======

Diluted weighted average
  shares outstanding
  (in millions)                   558           495
                                  ===           ===

(1)    Basis of presentation - This schedule presents, on a proforma
       basis, the results of operations of AES excluding the aggregate
       (both subsidiaries and affiliates) Brazilian affiliates foreign
       currency losses of approximately $59 million after income tax,
       or $0.11 per share in 2001 and gains of approximately $13
       million after income tax, or $0.03 per share in 2000 and
       nonrecurring items, including transaction and severance costs
       related to the IPALCO acquisition of $61 million after income
       tax, or $0.11 per share in 2001 and a gain on the sale of an
       investment held by IPALCO of $77 million after income tax, or
       $0.16 per share in 2000. This schedule also excludes the
       extraordinary loss of approximately $7 million incurred during
       the first quarter of 2000.



                          The AES Corporation
                      Unaudited Supplemental Data
                 For the Quarter Ended March 31, 2001

                                           2000                 2001
                                1st   2nd  3rd   4th   Year      1st
                                Qtr   Qtr  Qtr   Qtr             Qtr
                               ----  ---- ----  ----   ----     ----
GEOGRAPHIC-% of Total
 North America
 Revenues                       45%   47%   45%   42%   45%      39%
 EBCIT (1)                      37%   44%   43%   36%   42%      40%

 South/Central America
 Revenues                       24%   27%   33%   35%   30%      38%
 EBCIT                          31%   38%   43%   53%   41%      51%

 Europe
 Revenues                       22%   17%   15%   15%   17%      14%
 EBCIT                          24%   10%    7%    7%   11%       8%

 Asia
 Revenues                        9%    9%    7%    8%    8%       9%
 EBCIT                           8%    8%    6%    4%    6%       1%

SEGMENTS-% of Total
 Generation
 Revenues                       51%   48%   45%   44%   47%      48%
 Operating Margin (2)           70%   80%   67%   59%   68%      59%
 EBCIT                          64%   65%   55%   38%   52%      43%

 Distribution
 Revenues                       49%   52%   55%   56%   53%      52%
 Operating Margin               30%   20%   33%   41%   32%      41%
 EBCIT                          36%   35%   45%   62%   48%      57%

FINANCIAL HIGHLIGHTS-million $, except Total Assets in billion $

 Revenues             $1,696  $1,751  $1,995  $2,141  $7,583   $2,545
 EBCIT                $  397  $  268  $  364  $  468  $1,497   $  463
 Net Income Excluding
  Extraordinary and
  Other Items (3)     $  190  $  140  $  164  $  225  $  796   $  226
 Total Assets
  (billions)          $   26  $   31  $   32  $   33  $   33   $   35
 Deprec./Amort.       $  143  $  163  $  197  $  201  $  704   $  209
 Parent EBITDA -
  LTM (4)             $  387  $  501  $  593  $  871  $  871   $  965

(1) EBCIT is net income excluding corporate interest, other corporate
costs, income taxes and nonrecurring items. Additionally, in the first
quarter of 2001 Brazilian affiliate foreign currency effects have been
excluded.

(2) Operating Margin is revenues reduced by cost of sales,
depreciation and amortization and other operating expenses.

(3) In the first quarter of 2000 and 2001, Net Income excludes
extraordinary items, Brazilian affiliate foreign currency effects and
nonrecurring items.

(4) Parent EBITDA is cash flow earnings distributed to parent less
parent operating expenses.