AES to Acquire Second Electric Distribution Company in the Ukraine.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--May 3, 2001

The AES Corporation (NYSE:AES) announced today that it has won a bid for approximately $23.2 million to purchase a 75% controlling interest in Rivenoblenergo, the distribution company that serves the Rivno region, which is about 200 kms from Kiev, the capital city of the Ukraine.

The remaining 25% interest is either publicly traded or owned by the employees of the distribution company. In 2000, Rivenoblenergo distributed 2,210 GWh to 383,000 customers. Rivenoblenergo is one of six distribution companies that are being privatized this spring by the government of the Ukraine. Completion of the acquisition is subject to the execution of a Sale and Purchase Agreement.

Mr. Garry Levesley, Vice President of AES, stated, "The acquisition of Rivenobloenergo complements well the earlier purchase of Kievoblenergo. AES is now well positioned in the Ukrainian energy sector and we look forward to exploring additional regional energy opportunities."

Mr. Dennis W. Bakke, President and CEO of AES, stated, "We are pleased with this winning bid in Ukraine, which comes after five years of our involvement in the Ukraine while the government has contemplated opening up the electric sector to private companies and competition. We hope that AES can bring its skills, creativity and its passion to improve the contribution of this business to the people of the Ukraine."

Business development milestones in 2001 include the following:

-- In April, AES announced that it won a bid for approximately $45.9 million to
purchase a 75% controlling interest in Kievoblenergo the distribution company
that serves the region that surrounds Kiev, the capital city of the Ukraine.

-- In April, a subsidiary of AES signed agreements for the financing of its
$300 million, 450 MW combined cycle gas-fired Meghnaghat power plant in
Bangladesh.

-- In April, a subsidiary of AES completed a $180 million financing for its 360
megawatt gas-fired combined cycle facility Haripur in Bangladesh.

-- In April, AES announced the completion of its acquisition of IPALCO in
Indiana.

-- In March, a subsidiary of AES secured the financing for the 720 MW gas-fired
Granite Ridge project in New Hampshire.

-- In March, a subsidiary of AES acquired from EniChem SpA an oil-fired 140MW
cogeneration facility in the town of Ottana, which is in the province of Nuoro,
Sardinia, Italy.

-- In February, a subsidiary of AES entered an agreement to purchase all of the
energy assets of Thermo Ecotek Corporation, a wholly owned subsidiary of Thermo
Electron Corporation of Waltham, Massachusetts for $195 million.

-- In January, AES announced the start of construction of the $300 million AES
Wolf Hollow power plant at a site in Granbury, Texas.

-- In January, a subsidiary of AES acquired a majority interest in a 290MW
barge-mounted natural-gas-fired electric generating business in Lagos, Nigeria.


-- In January, AES Huntington Beach submitted a proposal to the California
Energy Commission to restart two retired gas-fired units that will add an
additional 450 megawatts of generation in the electricity-strapped state of
California.

-- In January, AES announced the purchase of an additional 39% ownership
interest in Hidroelectrica Alicura, a 1000 MW hydro plant in Argentina.

-- In January, AES announced that it had successfully completed its offer to
exchange all American Depositary Shares of Gener S.A. for AES common stock.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, the Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and sixty six facilities totaling over 58 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

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.