AES To Acquire 1,000 Mw Hydro Facility in Argentina; AES Also Announces Commercial Operations at AES Warrior Run.

Business Editors/Banking & Environmental Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 22, 2000

The AES Corporation (NYSE: AES) announced today that it has entered into an agreement to acquire a 59% stake in the 1,000 MW hydroelectric facility of Hidroelectrica Alicura S.A. ("Alicura") in Argentina from Southern Energy, Inc. ("SEI").

Alicura owns the concession to operate a 1,000 MW peaking hydro-facility located in the province of Neuquen, Argentina. AES also agreed to acquire from SEI a 100% stake in Operadora de Argentina S.A. ("Operadora"). Operadora is providing operations and maintenance services to Alicura under a long-term contract.

The agreement entails a total consideration (including assumption of debt support obligations) of approximately $205 million. This transaction is subject to approval by the anti-trust authorities of the Federal Government of Argentina, which is expected to be granted within 2 to 3 months.

Paul Hanrahan, President of AES Americas South, stated, "The acquisition of a controlling stake in the Alicura hydroelectric business will provide a nice balance to our thermal power plants in Argentina, which will total over 1,400 MW when the 845 MW gas-fired AES Parana facility begins operation in late 2001."

Dennis W. Bakke, President and CEO of AES, commented, "Sometimes good opportunities come with patience. We had an interest in purchasing this hydro facility the first time it was for sale seven years ago. We are delighted that we have reached an agreement with Southern which is fair to both of us. Alicura will be an excellent compliment to AES' seven other businesses in Argentina."

AES also announced today the commencement of commercial operations at the AES Warrior Run cogeneration facility, a 180 MW clean coal-fired plant located near Cumberland, Maryland. The plant burns western Maryland coal in a circulating fluidized boiler. Steam is supplied to a process that makes food-grade carbon dioxide.

Commercial operations began on February 10 under a 30-year power purchase agreement with The Potomac Edison Company.

AES' business development successes in 2000 include the following:

-- In February, AES announced that a subsidiary had reached an agreement with
the Bulgarian state-owned electric utility NEK, that will allow AES to build,
own, operate and transfer a $750 million lignite-fired power plant.

-- In January, a subsidiary of AES agreed to acquire 59% of the outstanding
preferred (non-voting) shares of Eletropaulo S.A. ("Eletropaulo").

-- In January, a subsidiary of AES and Caterpillar Inc. reached a service
agreement for multiple energy products that will result in the construction of
a 45 MW cogeneration plant in Mossville, Illinois.

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.