AES reports first quarter earnings of 50 cents per share.

ARLINGTON, Va.--(BUSINESS WIRE)--April 15, 1997--

Business development accomplishments continue

The AES Corporation (NYSE:AES) announced Tuesday that net income was $40 million for the quarter ended March 31, 1997.

Net income increased 38% compared to net income of $29 million for the first quarter of 1996. Earnings per share were 50 cents for the quarter, compared to 38 cents for the same quarter in 1996. Revenues for the quarter were $261 million, up 52% compared to $172 million reported in the same period last year.

Dennis W. Bakke, president and chief executive officer, commented, "We are extremely pleased with our strong first quarter performance. Outstanding results were achieved in a number of areas, including:

- excellent plant operations throughout the world;

- significant progress shown in major 1996 acquisitions,

including Hungary and Brazil;

- major milestones on three large low-cost greenfield natural

gas-fired combined cycle plants in the US, UK and Mexico; and

- successful US and international offering of common and

convertible securities ("TECONS").

Furthermore, we are pleased with the businesses we are building in Kazakstan during extremely challenging times when the Kazak government is making dramatic changes in their economy and electric sector."

Roger W. Sant, chairman, stated, "We are also excited by the more recent events where we won the right to develop the 600 MW Uruguaiana combined-cycle plant in Brazil using natural gas from Argentina, and the positive support from AES Chigen Class A shareholders to merge Chigen into AES.

"Going forward, AES leaders around the world are actively focused on a broad range of new business opportunities, including some significant acquisitions."

Business development successes in the first quarter of 1997 include the following:

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

and term convertible securities, 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 megawatts (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 also announced today that a new division has been created that will be responsible for AES's electricity supply business in Central America, Mexico, the Caribbean and Texas. Sarah Slusser, who is currently the project director of AES's 450 MW Puerto Rico project, was named division director.

The division will initially include the Puerto Rico and Merida III (Mexico) projects as well as two operating plants, 235 MW Los Mina (Dominican Republic), pending completion of the Destec transaction, and 140 MW AES Deepwater (Texas).

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 $3.8 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. -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. -0-

THE AES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED MARCH 31, 1997 AND 1996

---------------------------------------------------------------------
Unaudited
                Three              Three             Change
                Months      %      Months      %      From
                Ended      of      Ended      of     Previous    %
               03/31/97   Sales   03/31/96   Sales    Year     Change
---------------------------------------------------------------------
($ in millions, except per share amounts)

REVENUES:
Sales and
 services        $261      100%      $172     100%    $ 89       52%

OPERATING COSTS AND EXPENSES:
Cost of sales
 and services     167       64%        98      57%     (69)     -70%
Selling, general
 and administrative
 expenses           9        3%         9       5%      --       --
Provision to
 reduce contract
 receivable         7        3%        --      --       (7)    -100%
                -----               -----             -----

Total operating
 costs and
 expenses         183       70%       107      62%     (76)     -71%
                -----               -----             -----

OPERATING INCOME   78       30%        65      38%      13       20%

OTHER INCOME AND
 (EXPENSE):
Interest expense  (44)     -17%       (30)    -17%     (14)      47%
Interest income     8        3%         5       3%       3       60%
Equity in net
 earnings of
 affiliates        16        6%         5       3%      11      220%
                -----               -----            -----

INCOME BEFORE INCOME
 TAXES AND MINORITY
 INTEREST          58       22%        45      27%       13      29%

Income taxes       16        6%        15       9%      (1)      -7%
Minority interest   2        1%         1       1%      (1)    -100%
                -----               -----            -----

NET INCOME       $ 40       15%      $ 29      17%    $ 11       38%
                =====               =====            =====

NET INCOME PER
 SHARE:         $0.50       --      $0.38      --    $0.12       --
                =====               =====           ======

CONTACT: The AES Corporation

Kenneth R. Woodcock, 703/522-1315