ARLINGTON, Va., March 13, 2003 — The AES Corp. announced another step in reshaping its board to help meet the demands of the changing energy sector.
AES is continuing to add new board members with strong business, financial, and governmental experience, while also arranging for an orderly reduction in the board’s size and a process of succession to the board’s chairmanship.
The newest addition to the AES board is Charles O. Rossotti, who joins as an independent member. Mr. Rossotti served for five years as the Commissioner of the US Internal Revenue Service (IRS). Earlier, he was Chairman of American Management Systems, Inc. (AMS) an international business and information technology consulting firm, which he helped found in 1970.
“Charles brings to AES extensive experience in government and in the private sector. He has demonstrated his exceptional leadership ability both at the IRS and as founder and leader of AMS,” said Roger Sant, Chairman of the Board of AES. “His addition to our Board is part of our ongoing, purposeful initiative to bring new leadership to the AES board that can best direct the Company in the radically different energy sector in which we now compete.”
In the past year, three new board members have been named in addition to Mr. Rossotti.
They are Paul Hanrahan, who was appointed President and Chief Executive Officer of the company in June 2002; Sven Sandstrom, an advisor and director at several European corporations and institutions and formerly a Managing Director at the World Bank; and Richard Darman, former Director of the Office of Management and Budget and a Partner of the Carlyle Group, one of the world’s largest private equity firms.
Earlier, Mr. Darman was Managing Director of Shearson Lehman Brothers.
As part of the continuing reshaping of the AES Board, Mr. Sant said he expects to step down as Chairman of the Board following the Company’s annual meeting on May 1, 2003, with Mr. Darman expected to be elected Chairman by his fellow Board members at that time. Mr. Darman, who was elected Vice Chairman and Lead Independent Director in December 2002, joined the AES board last July.
Mr. Sant is expected to continue on the Board as Chairman Emeritus.
Mr. Sant commented, “In today’s energy industry, AES must focus on execution of business fundamentals and improving its financial strength as the best way to enhance shareholder value. Our Board of Directors today, and under Dick Darman’s leadership in the future, is superbly suited to the challenges at hand.”
Also, with the remaking of the Company’s Board of Directors, four current directors have decided not to stand for re-election, Mr. Sant said. They include Dennis Bakke, Hazel O’Leary, Frank Jungers, and Tom Unterberg. “We are extremely grateful for the leadership and guidance these four exceptional individuals have given AES over their terms on the Board,” said Mr. Sant. “Without their vision of AES as a global power company, AES could never have grown as it did and achieved the successes that have marked our company’s first two decades.”
Following the Board election at the May 1 board meeting, it is expected that the AES Board will consist of nine members. Additional candidates for the Board with strong business experience are being considered, and one of those may be proposed for election at the annual meeting, Mr. Sant said.
Mr. Rossotti said, “I have been watching AES respond to adverse market conditions and now look forward to making a contribution as the company strengthens both its balance sheet as well as its portfolio of businesses around the globe.”
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 www.aes.com or contact investor relations at email@example.com.