AES Wins Bid To Sell Electricity From A 450 MW Gas-Fired Plant In Bangladesh.

ARLINGTON, Va.--(BUSINESS WIRE)--June 26, 1998--

Second Winning Bangladesh Bid Brings Total to 810 MW

The AES Corp. (NYSE: AES) announced Friday that it was selected by the Bangladesh Power Development Board as the First-Ranked Sponsor to build, own and operate a 450 MW (net) gas-fired combined cycle  power plant at a site 12 miles southeast of Dhaka, Bangladesh on the Meghna River (the Meghnaghat Project).

The site is about 3 miles from AES's recently announced Haripur 360 MW gas-fired plant that is currently under development. AES was awarded the Haripur project in January 1998.

Electricity from the Meghnaghat Project will be sold to the Bangladesh Power Development Board under the terms of a 22 year power purchase agreement, which is expected to be signed shortly following the formal award. Commercial operations of the Meghnaghat plant is expected to commence in the year 2000.

Titus Gas Transmission and Distribution Company, a subsidiary of Petrobangla, will supply natural gas to the facility from a nearby pipeline for the term of the power purchase agreement.

Shahzad Qasim, president of AES Oasis, said, "We are pleased to be awarded this second opportunity to supply low-cost electricity to the people of Bangladesh. With an expected total of 810 megawatts of electric generating capacity in this country, we will be a significant supplier of electricity and are excited about supporting the prospects for economic growth."

Dennis W. Bakke, president and CEO of AES, stated, "With the assistance of many AES people from around the world, our team in Bangladesh submitted creative, low-cost winning bids for Haripur and Meghnaghat in competitive processes that involved a number of significant international firms.

"Our Bangladesh 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 1998 include the following:

--In January, AES acquired the CLESA distribution company in El Salvador for $96.5 million.

--In January, AES won a bid to sell electricity from a 360 MW gas-fired plant in Haripur, Bangladesh.

--In April, AES Caracoles signed a 40 year concession agreement for its 230 MW Caracoles project and has taken over the operation of Quebrada de Ullum, an existing 45 MW hydroelectric plant in Argentina.

--In April, AES' affiliate, Light-Servios de Electricidade, acquired Electropaulo Metropolitana, the distribution company serving the city of Sao Paulo, Brazil.

--In May, AES completed its purchase of three electric generating stations from Southern California Edison.

--May, AES reached agreement to acquire 90% of Edelap, an electric distribution company in the province of Buenos Aires, Argentina.

--In June, AES raised $173 million of non-recourse project

financing for the AES Merida III 484 MW gas-fired combined cycle power plant currently under construction in the City of Merida, Yucatan, Mexico.

AES is a leading global power company that currently owns or has an interest in ninety-one power facilities totaling over 27,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Pakistan, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

In addition to having assets in excess of $8 billion, the company has more than $5 billion of projects in construction or late stages of development. 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.

   CONTACT:  AES Corp.
              Kenneth R. Woodcock, 703/522-1315