AES-Tisza Power Plant Retrofit Completed; Cuts SO2 Emissions by 94% and NOx by 56%.

TISZAUJVAROS, Hungary -- The AES Corporation (NYSE:AES) announced today that its Hungarian subsidiary AES-Tisza Eromu Kft completed the 860MW Tisza Power II Plant Refurbishment Project reducing environmental emissions and extending the life of the plant.

The Tisza II Power plant is an oil and gas fired power plant originally commissioned in the mid 1970s. The two year, $126M refurbishment project extends the plant's life to 2016 and complies with recent EU environmental regulations. The retrofit combined with a fuel change reduces SO2 emissions by 94 percent and NOx emissions by 56 percent. The AES Tisza Retrofit team completed the project on schedule and under budget.

The Tisza II plant life extension was 100 percent project finance funded and is matched by a Power Purchase Agreement with the Hungarian Electric Utility (MVM) which will last until 2016. Tisza II receives multiple fuels under a long term Fuel Supply Agreement with the Hungarian Oil and Gas Shareholding Company (MOL).

"AES's investment in this plant enables us to supply clean, competitive and reliable electricity for our Hungarian customers and contributes to the safe operation of the Hungarian national grid," stated Peter Lithgow, AES Hungary Country Manager.

"Refurbishing Tisza II clearly demonstrates how AES shares knowledge, innovation and resources to serve the needs of a market in a financially viable and environmentally compliant manner," said John Ruggirello, AES Executive Vice President and Chief Operating Officer.

AES entered the Hungarian market in 1996 and contributes approximately 15 percent of the nation's installed capacity. At present, AES owns and operates three power generating facilities in Hungary and employs 500 people.

About AES

AES is a leading global power company, with 2004 sales of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 120 power facilities and delivers electricity through 15 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact media relations at [e-mail].