AES acquires 140MW cogeneration facility in Sardinia

ARLINGTON, VA, March 14, 2001 à‚– The AES Corporation (NYSE: AES) announced today that an AES subsidiary has acquired from EniChem SpA an oil-fired 140MW cogeneration facility in the town of Ottana, which is in the province of Nuoro, Sardinia, Italy.

The facility supplies, under contracts of up to ten years, electricity, steam, compressed air, dematerialized water and nitrogen to three chemical facilities adjacent to the plant. The plant is electrically connected to the electrical grid system of the island and has the opportunity to sell excess power to the market, other suppliers or large consumers in the newly deregulating Italian market.

The plant consists of two 70MW oil-fired thermal units and all balance-of-plant required to supply services to the chemical companies. The plant has recently installed new electrostatic precipitators and low NOx burners and is fully compliant with European environmental regulations. The business comes with an experienced operating team of 106 people.

The acquiring company, AES Ottana Energia S.r.l., is a 100% owned subsidiary of the AES Corporation through its holding companies in Europe. AES will assume control of the business on March 15, 2001.

Guy Wakeley, Development Manager for AES Electric, stated, “We are pleased to have completed this transaction which allows Enichem to concentrate on its core businesses and allows AES to provide safe, clean reliable electricity and other services. We look forward to further developing our business in Ottana.”

Dennis W Bakke, President and Chief Executive, commented, ” We are delighted to establish a presence in the deregulating Italian market. We look forward to adding the strong operations team at Ottana into AES’ global family of operational people and progressing from this acquisition to develop a larger presence in Italy”.

Business development milestones in 2001 include the following:

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, on December 27, 2000.

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, Kazakhstan, the Netherlands, Nigeria, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company’s generating assets include interests in one hundred and sixty facilities totaling over 54 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.

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