AES To Acquire Generation Business in Brazil.

ARLINGTON--(BUSINESS WIRE)--Oct. 27, 1999--

The AES Corporation (NYSE: AES) announced today that it won a bid to purchase a controlling interest in Tiete (Companhia de Geracao de Energia Eletrica Tiete), a generating company in Brazil for approximately $486 million.

AES will acquire 61% of the voting stock and 39% of the total capital stock of the company. Approximately $183 million of project financing will be provided by BNDES, the Brazilian development bank, and AES will fund the remaining investment in the company of approximately $303 million. The acquisition is expected to close shortly.

Tiete is a 2,644 MW generation company with nine hydro generating plants mainly located along the Tiete and Pardo Rivers, in the State of Sao Paulo, Brazil. It is located in the heart of the largest electrical load center in the country and currently has contracts to sell electricity to the major electric distribution companies including Eletropaulo, which is controlled by AES and its partners.

Mr. Thomas A. Tribone, Executive Vice President of AES, stated, "The acquisition of Tiete greatly enhances our strategic position in Brazil. During the last few years, as the Brazilian market has been liberalized, we have put together a low cost, complementary set of premier electric and telecom properties.

"During this initial acquisition phase in Brazil our strategy has been to build an unparalleled franchise position from which to serve Brazil's growing markets. Tiete in combination with our generation assets in Cemig, gives us a very attractive generating park from which to serve our distribution customers and the rest of Brazil."

Mr. Dennis W. Bakke, President and CEO of AES, stated, "We are very pleased to get this strong company at a great price. We continue to believe in the attractiveness of Brazil as a place where AES can invest successfully while fulfilling its mission. Brazil has taken the right steps to recover from the crisis last January and to stay the course of reforms. We are confident that they will continue to do so."

Business development milestones in 1999 include the following:

-- 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.

-- 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 April, AES Thames reached agreement to a partial prepayment of future electricity sales with Connecticut Light & Power Company (CL&P).

-- 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 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, 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 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 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 June, AES announced that it has assumed management control of two regional electric distribution companies (REC's) in Kazakhstan.

-- 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, 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 July, AES announced that it has completed its acquisition of NewEnergy by acquiring all of the outstanding shares of NewEnergy.

-- 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 August, AES announced that it has won a bid to acquire a controlling 51% interest in Eletronet in Brazil.

-- In August, AES announced that a subsidiary has reached agreement with National Power for the acquisition of the Drax Power Station for (pound)1.875 billion (approximately $3 billion).

-- 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 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).

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 eight facilities totaling over 35 gigawatts of capacity. AES' electricity distribution network has over 845,000 km of conductor and associated rights of way. In addition, through its various retail electricity supply businesses, the company sells over 112,000 gigawatt hours per year to over 14 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.