AES Tisza Power Completes $98 Million Financing for Retrofit Project in Hungary.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 23, 2002

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Tisza Power Plant Ltd., entered into a Euro 99 million ($ 98 million) financing agreement underwritten by Credit Lyonnais.

The funds raised in the project financing will be used to pay for the implementation of the retrofit project at the Tisza II power plant.

"This agreement represents a significant achievement in a difficult financing environment," said Paul Hanrahan, President and CEO. "As AES works to enhance liquidity and strengthen our parent balance sheet, we continue to execute limited-recourse project financings where needed to support our businesses."

The refurbishment of the 860MW Tisza II plant is intended to extend the life of the power facility through 2016. The refurbishment will also ensure that the plant continues to comply with European Union environmental directives and perform in accordance with the terms of its power purchase agreement with the Hungarian electric utility (MVM).

The PPA runs through 2016. Compliance with the European Union environmental directives is essential in light of Hungary's expected accession to the EU. Multiple fuels are supplied to Tisza II under a long term Fuel Supply Agreement entered into with the Hungarian Oil and Gas Shareholding Company (MOL).

"The Tisza retrofit project will allow us to continue to provide safe, clean, reliable and reasonably priced electricity to the Hungarian national grid," stated Allan B. Dyer, Managing Director of AES Tisza Power Plant Ltd.

"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].