AES and partner to acquire two Argentine electricity companies for $565 million.

ARLINGTON, Va.--(BUSINESS WIRE)--April 22, 1997--The AES Corporation (NYSE:AES) announced Tuesday that it, along with its partner, CEA, won a bid to acquire two integrated electricity companies serving the Province of Buenos Aires, Argentina.

The two companies were sold as part of the Argentine privatization program, and consist of Empresa Distribudora Electrica Norte (Eden) which serves the northern part of the province (and is headquartered in San Nicolas) and Empresa Distribudora Electrica Sur (Edes), which serves the southern part of the province (and is headquartered in Bahia Blanca).

AES and CEA will acquire a 90% ownership in each company from the Buenos Aires provincial government for an aggregate purchase price of $565 million. AES will own 60%, CEA will own 30% and 10% will be owned by the employees of Eden and Edes.

The companies operate under 95 year concession contracts in their respective franchise areas, and serve a combined total of approximately 400,000 customers. Eden and Edes are contractual customers of the San Nicolas generating plant, which is also jointly owned by AES and CEA. The transaction is subject to certain regulatory approvals, and is expected to be completed shortly.

Thomas Tribone, president of AES Americas, stated, "We continue to build the AES business franchise in the Southern Cone region. Eden and Edes are attractive businesses which will strongly complement our existing businesses."

Dennis Bakke, president and chief executive officer of AES, stated, "We are very pleased to be adding Eden and Edes to AES's portfolio. The Argentine economy is strong and stable and we anticipate that the Province of Buenos Aires will be one of the strongest growth regions in Argentina. Eden and Edes and our other Argentine businesses will allow AES to support that growth."

Highlights of AES's business development successes in 1997 include the following:

-- In April, AES won the right to build, own and operate a 600 MW

gas-fired, combined cycle plant in Uruguaiana, Brazil.

-- In March, AES completed a combined public offering of common

stock and term convertible securities ("TECONS"), yielding net

proceeds to the company of approximately $390 million.

-- In February, AES entered into an agreement to acquire all of

the international businesses of Destec Energy Inc., consisting

of five plants in operation and construction representing

approximately 950 MW (based on AES's net equity ownership to

be acquired), and numerous projects in various stages of

development.

-- In February, a subsidiary of AES raised 112.5 million pounds

of non-recourse project financing for its 230 MW (net) gas-fired

combined cycle plant in Barry, South Wales, United Kingdom.

-- In February, AES announced plans to build a 720 MW (net)

gas-fired combined cycle plant in Pennsylvania to supply

electricity to a subsidiary of GPU Inc., pursuant to three

restructured power purchase agreements.

-- In January, AES acquired an additional 2.4% interest in Light

Servicos de Eletricidade S.A., a 3,800 MW integrated Brazilian

utility, bringing AES's total interest to 13.75%.

-- In January, AES won a bid to build, own and operate a 484 MW

(net) gas-fired combined cycle power plant in Merida, Mexico.

AES is a leading global power company that currently owns or has an interest in 34 power facilities totaling over 11,000 megawatts in the United States, Argentina, Brazil, Pakistan, Hungary, Kazakstan, China and the United Kingdom.

In addition to having assets of $3.7 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. -0- 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: The AES Corporation

Kenneth R. Woodcock, 703/522-1315