ARLINGTON, Va., March 27, 2001 — The AES Corporation announced today that it has completed its acquisition of IPALCO Enterprises, Inc., the Indianapolis-based utility with 3,000 MW of generation and 433,000 customers in and around Indianapolis.

IPALCO has become a wholly-owned subsidiary of AES through an exchange of shares where each outstanding share of IPALCO common stock will be exchanged for 0.463 shares of AES common stock. IPALCO common stock will be suspended from trading after today’s market close. Information relating to exchange procedures will be mailed to IPALCO shareholders.

Pursuant to an SEC Order, AES will restructure and/or sell its ownership interests in CILCORP within 2 years in order to continue as an exempt holding company under the Public Utility Holding Company Act of 1935.

Thomas A. Tribone, Executive Vice President, stated, “We’re pleased to welcome the people and shareholders of IPALCO to AES. We look forward to serving in Indianapolis and building on IPALCO’s already strong record.”

Dennis W. Bakke, President and CEO, commented, “We are excited to be adding to our capabilities in the Midwest with this acquisition of IPALCO. As we go forward, Lenny Lee and his team will be leading our effort to integrate IPALCO and the IPALCO people into the AES family.”

AES is a 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.

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

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