AES and BNDES Reach Preliminary Agreement to Repay Brasiliana's Debt.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) today announced that AES Transgas Empreendimentos S.A. (Transgas), a wholly-owned subsidiary of Brasiliana Energia S.A. (Brasiliana), plans to sell a portion of its interest in Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (Eletropaulo), the largest regulated electric utility in Brazil. Brasiliana is jointly owned by AES and the Brazilian National Development Bank (BNDES).

Proceeds from the secondary sale are expected to be used by Brasiliana to repay in full its debt to BNDES, which was $582 million as of March 31, 2006. Upon completion of the proposed sale, Brasiliana will continue to control Eletropaulo by maintaining a 76.5 percent stake of the controlling shares. The offering, which is subject to regulatory approval, is expected to be completed this summer.

Eletropaulo serves approximately 5.3 million customers in Sao Paulo State. Through its interest in Brasiliana, AES currently has a 34 percent economic interest in Eletropaulo, a 24 percent economic interest in Tiete, a 2,650 megawatt hydroelectric power generation business, and a 46 percent economic interest in Uruguaiana, a 639 megawatt gas-fired power plant. AES has a controlling interest in all of these businesses and also owns AES Sul, a regulated electric utility serving approximately one million customers in the state of Rio Grande do Sul in southern Brazil.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities, nor does it constitute an offer to buy or the solicitation of an offer to sell securities. The securities will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About AES

AES is one of the world's largest global power companies, with 2005 revenues of $11.1 billion. With operations in 26 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amass annual sales of over 82,000 GWh and our 127 generation facilities have the capacity to generate over 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at [e-mail].

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience. The forward-looking statements contained in this press release include statements related to a possible offering of securities, including the possible completion of any of such transactions. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES's 2005 Annual Report on Form 10-K. Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.