AES To Acquire Control of 823 MW Of Generation in Georgia; Also AES Shady Point Completes $243 Million Refinancing.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 23, 1999

The AES Corporation (NYSE: AES) announced today that two of its subsidiaries have signed agreements to acquire control of three electric generating facilities from the Republic of Georgia with a combined capacity of 823 MW.

AES Gardabani Holdings BV will purchase outright the 600 MW Gardabani thermal power plant which consists of two 300 MW supercritical gas and oil-fired units that were constructed in 1990. AES Georgia Holdings BV has acquired a 25 year management contract for the Khrami I and II hydroelectric power stations which have a combined capacity of 223 MW.

The total acquisition price for the three facilities is $11 million plus the assumption of approximately $80 million of loans from the World Bank, European Bank for Reconstruction and Development and KfW (German development bank). Repayment of principle for most of the loans commences in 2008. The average rate of interest for the loan package is around 3.8 percent.

The financing of this transaction should be completed in the first quarter of 2000.

The electrical output of the Gardabani plant will be sold to the Georgian Wholesale Electricity Market (WEM) under a 20 year power purchase contract. Approximately one-third of the Gardabani output and the entire output of Khrami I and II will be sold to AES Telasi. The terms of the Khrami I and II contracts with AES Telasi are 13 and 20 years, respectively.

AES Telasi is the AES distribution company which serves 370,000 customers in Tbilisi, the capital of Georgia. The concession agreement includes the rights for AES to export power to the wholesale electrical market in Turkey, which AES intends to pursue.

Garry Levesley, President, AES Silk Road, stated, "We are delighted with the acquisition of these generating assets. Gardabani is in excellent condition and is the premier thermal power plant in the whole of the Caucasus region. The hydros are in good condition and will be enhanced by an agreed upon refurbishment program that is presently under way. Our right to export power to Turkey allows us to partially protect ourselves from payment shortfalls from the wholesale electricity market in Georgia."

Dennis W. Bakke, President and Chief Executive Officer, commented, "This acquisition of Georgian generating facilities fits nicely with the existing distribution company AES owns in Tbilisi. Our combined businesses should enhance our ability to serve Tbilisi and the surrounding areas with clean, safe, reliable electricity. We are excited about the difference we have been making in Georgia since the beginning of 1999 and this has been possible because of the support we have received from the progressive leadership of the country."

AES also announced today that its subsidiary, AES Shady Point, has recently completed a $243 million non-recourse project refinancing for its 320 MW coal-fired power plant in Panama, Oklahoma. The lead arranger for the refinancing was Union Bank of California. The credit facility provides an 8 year term.

Business development milestones in 1999 include the following:

-- In December, a subsidiary of AES purchased the remaining 20

percent interest in AES Beaver Valley from Shepperton Leasing

Corporation(SLC).

-- 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 (pound)122 million

(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. ("Light") 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 ("NGE")

for approximately $953 million.

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

future electricity sales with Connecticut Light & Power Company

(CL&P).

-- 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 ("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.

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 nineteen facilities totaling over 42 gigawatts of capacity. AES' electricity distribution network has over 940,000 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.