AES Wins Bid to Develop 160MW Combined Cycle Power Plant in Sri Lanka.

ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 19, 1998--The AES Corporation (NYSE:AES) announced Thursday that it was selected by the Government of Sri Lanka as the preferred bidder to develop a 160MW combined-cycle power plant.

The Letter of Intent ("LOI") is to be issued to a new company, formed by a Consortium led by AES and Hayley's Engineering Ltd.

The LOI is for a 160MW combined-cycle power plant to be located at the CEB premises at Kelanitissa. AES will build, own, operate and transfer (BOOT) power plant concession that would be valid for a period of 20 years, with the power being sold into the National Grid.

It is expected that the open cycle mode of the plant will reach 100MW capacity by the year 2000, with capacity increasing to 160MW with commencement of combined cycle operations in the year 2001.

Shahzad Qasim, Managing Director of AES Oasis, said, "We are happy to be awarded this opportunity to supply low-cost electricity to the people of Sri Lanka. We look forward to concluding the project agreements quickly so that the financing and construction of the project can begin."

Dennis Bakke, President and CEO of AES, stated, "We have won this bid in Sri Lanka in the face of significant competition and are pleased about the transparent manner in which the evaluation was conducted. This project will be a great addition to our South-Asia business."

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-Servicos de Electricidade,

acquired Eletropaulo 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.

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

financing for the AES Merida III 484 MW gas-fired combined

cycle power plant in the City of Merida, Yucatan, Mexico.

-- In June, AES won a bid to sell electricity from a 450 MW

gas-fired plant, Meghnaghat, in Bangladesh.

-- In June, AES completed the $350 million acquisition of

Edelap, an electric distribution company in the province of

Buenos Aires, Argentina.

-- In August, AES won a bid to acquire six coal-fired, electric

generating plants from NGE Generation, Inc., an affiliate of

New York State Electric & Gas Corporation ("NYSEG") for

approximately $950 million.

-- In October, AES signed a Shareholders Agreement with the

Government of Orissa as part of the process to acquire a 49%

share in the Orissa Power Generation Corporation ("OPGC")

for approximately $144 million.

-- In October, AES won a bid to acquire a 75 percent interest

in Telasi, the electricity distribution company of Tbilisi,

Georgia, for approximately $25.5 million.

-- In November, AES won a bid to acquire 49% of Empresa de

Generacion Chiriqui S.A. (EGE Chiriqui) and 49% of Empresa de

Generacion Bayano (EGE Bayano), two hydroelectric generation

companies in Panama, for $91 million.

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

AES also distributes electricity to nearly 13 million customers. In addition to having assets in excess of $9 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.