AES reaches agreements on three asset sales transactions

ARLINGTON, Va., March 25, 2003 — The AES Corp. announced it had reached agreement on three separate sales transactions providing approximately $327 million in proceeds to AES.

AES announced an agreement with CDC Globeleq, CDC Group Plc’s emerging markets power business, to sell 100% of its ownership interest in two generation businesses in Bangladesh (AES Haripur Private Limited, a 360 MW gas fired combined cycle power plant and AES Meghnaghat Limited, a 450 MW gas fired combined cycle power plant) in an aggregate transaction valued at $437 million, which includes cash and assumed project debt of $310 million.

The transaction equates to an equity purchase price of $127 million, which is subject to purchase price adjustment at the time of financial close. Completion of the sales transactions is subject to certain conditions, including government and lender approvals. AES expects the sale of both businesses to close in the third quarter of 2003.

AES will also be released from approximately $44 million in contingent liabilities.

In addition, AES announced an agreement to sell an approximately 32% ownership interest in AES Oasis Limited to the IDB Infrastructure Fund, managed by Emerging Markets Partnership (Bahrain) E.C. AES Oasis is a newly created company that will own two electric generation and desalination plants in Oman and Qatar, the oil-fired generating facilities AES LalPir and AES PakGen in Pakistan, as well as future power projects in the Middle East.

AES expects this sale to close in the second or third quarter of 2003. Completion of the transaction is subject to certain conditions, including government and lender approvals. At the time of closing, AES will receive cash proceeds of approximately $150 million.

AES also announced that it recently closed the sale of its 100% equity interest in California based Mountainview Power Company (an existing retired 126 MW gas-fired thermal power plant), and its 100% equity interest in Mountainview Power Company LLC (a 1,056 MW partially constructed gas-fired combined cycle plant) to Sequoia Generating L.L.C. (a wholly owned subsidiary of InterGen (North America) Inc.).

The transaction resulted in initial cash proceeds to AES of $25 million and an additional payment of $5 million will be paid to AES on April 15, 2003. In addition, AES shall receive another $20 million if certain project specific milestones are achieved.

The aggregate book value of AES’s interest being sold in all of the above businesses is approximately $350 million.

Paul Hanrahan, President and Chief Executive Officer of AES, commented, “These additional achievements in our asset sales program demonstrate AES’s continued progress in strengthening our balance sheet and executing our turnaround plan. We continue to focus on other sales while also concentrating on enhancing our business performance.”

AES is a global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses.

The company’s generating assets include interests in 160 facilities totaling over 55 gigawatts of capacity, in 30 countries. AES’s electricity distribution network sells 108,000 gigawatt hours per year to over 16 million end-use customers.

For more general information visit our web site at or contact investor relations at

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