AES To Construct 190 MW Gas-fired Plant in Hungary.

ARLINGTON, Va.--(BUSINESS WIRE)--Feb. 26, 1999--The AES Corp. (NYSE:AES) announced today that its subsidiary, AES Phoenix, has been selected by the Hungarian utility, the MVM, to build, own and operate a 190 MW gas-fired combined cycle power plant at the site of one of AES' existing power plants in Tiszaujvaros, located in eastern Hungary.

Electricity from the Phoenix Project will be sold to the MVM under the terms of a 15 - 20 year power purchase agreement, which is expected to be signed in the near future. Commercial operation of the Phoenix plant is expected to commence in the year 2004. Fuel for the facility will either come from a nearby pipeline owned by the Hungarian oil and gas company, MOL or from Gazprom.

Successful completion of this transaction is subject to a number of conditions, including financing, permits and other government approvals.

Mark Fitzpatrick, Senior Vice President of AES said, "We are pleased to have the opportunity to generate this additional low-cost electricity for the people of Hungary. This facility coupled with our ownership of three other generating facilities and two coal mines increases AES' already significant investment in the country. Hungary is at the forefront of Central European countries in restructuring its energy industry. AES and other international investors have been major participants in the restructuring of the Hungarian electric sector."

Dennis W. Bakke, President and CEO of AES, stated, "The AES team that developed this bid is a good example of the diversity within the company. It was comprised of Hungarians, Americans and British people who consulted with other AES people on their experiences in other parts of the world. Based in Hungary, the bid they submitted won in the face of tough competition from a number of significant international firms. This team has demonstrated the results that can flow from people in a global company who work closely together to meet the world's need for safe, clean, reliable power."

AES' business development successes in 1999 include the following:

-- In January a subsidiary of AES entered into exclusive

negotiations with Florida's Orlando Utilities Commission (OUC) to

purchase its Indian River Steam Electric Plant, a 610 MW facility

burning oil and natural gas, located in Titusville, Florida.

-- 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.

The AES Corp. is a leading global power company that currently owns or has an interest in ninety four power facilities, totaling over 28,000 MW, in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, India, Pakistan, the Netherlands, Hungary, Kazakhstan, Mexico, China, and the United Kingdom.

AES also distributes electricity to over 13 million customers in Brazil, Argentina, El Salvador and Georgia. In addition to having assets in excess of $10 billion, the Company has more than $5 billion of projects in construction or late stages of development. The AES Corp. is dedicated to providing safe, clean, low-cost electricity worldwide in a socially responsible way.

-- For more general information visit our web site at www.aesc.com

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