AES to Sell Interests in Canadian Power Plant for $110 Million.

ARLINGTON, Va. -- The AES Corporation (NYSE:AES) today announced that its wholly-owned subsidiary AES Kingston Holdings, B.V., has agreed to sell its indirect interest in Kingston Cogeneration Limited Partnership (KCLP), a 110 MW cogeneration power plant in Ontario, Canada, to its partner, Northland Power Income Fund.

Under the terms of the agreement, AES Kingston Holdings, B.V., will sell its indirect 50% interest in KCLP for $110 million. AES said the sale will result in a pre-tax gain of approximately $90 million.

"AES is committed to creating shareholder value through the growth and active management of our portfolio. This compelling opportunity resulted from a review of our global portfolio of businesses," said AES President and Chief Executive Officer Paul Hanrahan. "Nevertheless, Canada remains an important market for AES, and we are continuing to pursue other attractive growth opportunities there."

The sale is subject to certain regulatory and third-party approvals and to customary purchase price adjustments. The transaction is expected to be complete by the end of March 2006.

About AES

AES is one of the world's largest global power companies, with 2004 revenues of $9.5 billion. With operations in 26 countries on five continents, AES provides power to people in more countries around the world than any other company. Through 129 generation facilities and 14 regulated utilities, AES has the capacity to generate 44,000 megawatts of electricity and provide power to 100 million people worldwide. 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].