AES starts construction of 230 MW plant in South Wales, UK.

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 1, 1996--The AES Corporation (NASDAQ:AESC) announced Tuesday that its subsidiary AES Electric, has given notice to proceed to TBV Power to begin construction of a 230 MW gas-fired combined cycle power plant in Barry, South Wales, United Kingdom.

Electric power will be sold into the National Electricity Pool.

This project expects to take advantage of favorable electric pricing conditions in the UK. The project is expected to be operational by the second quarter of 1998.

The $150 million combined-cycle facility will be owned and operated by a subsidiary of AES Electric. The project company will initially be owned 100% by AES Electric. Financing efforts for the project will commence immediately and are expected to be completed in the first quarter of 1997.

Mark Fitzpatrick, managing director of AES Electric Ltd., commented, "We believe we have a competitive, low-cost generating source with our Barry facility. Our seven year experience with the UK electricity market leaves us confident that this new facility will be beneficial for UK ratepayers as well as AES shareholders. We are extremely pleased with the cooperation we have received from TBV Power."

Dennis Bakke, president and CEO of AES, stated, "Our Barry facility is the first of a kind for AES. It will be a low-cost plant positioned to respond quickly to electricity market conditions and is another example of the creativity that is being demonstrated by our divisions around the world."

This has been a banner development year for AES. Milestones include the following:

-- In September, AES Chigen funded a 42 MW natural-gas-fired simple-cycle gas turbine facility in Chengdu City, Sichuan Province, China.

-- In August, AES and a partner acquired the 4000 MW Ekibastuz GRES-1 coal-fired power station in Kazakstan.

-- In August, AES Chigen funded Wuhu Zhaoda, a 250 MW coal-fired facility under construction in Anhui Province, China.

-- In July, AES acquired three power plants totaling 1,281 MW and a coal mine through the purchase of an 81% share of Tisza Eromu Rt., an electricity generation company in Hungary.

-- In July, AES won a bid to supply electricity from a new, greenfield 288 MW simple cycle, gas turbine power station in Townsville, Queensland, Australia.

-- In May, AES, along with three partners completed the purchase of a controlling interest in Light, the 3,800 MW integrated electric utility that serves Rio de Janeiro, Brazil, which includes 800 MW of generating capacity at four hydroelectric facilities.

-- In April, AES Chigen funded Jiazuo Wan Fang, a 250 MW coal-fired facility which is under construction and located in Henan Province, China.

-- In April, AES reached agreement to acquire a site in northern Poland, which included the exclusive right to negotiate a power sales agreement for a natural-gas-fired project. This step was the result of a competitive solicitation in 1995.

-- In March, AES purchased AES San Juan, a hydro-thermal company in Argentina that consists of the 45 MW Ullum hydro facility and the 33 MW Sarmiento thermal plant.

-- In January, AES closed the financing of the 337 MW PakGen oil-fired plant in Pakistan.

AES is a leading global power company that generates, sells or markets electricity in over 35 countries. The company currently has over $2.8 billion in assets and, for the year ending Dec. 31, 1995, earned net income of $107 million on revenues of $685 million. -0- For more general information visit our web site at www.aesc.com or contact investor relations at [e-mail]

CONTACT: AES, Arlington

Kenneth R. Woodcock, 703/522-1315