AES to acquire a top wind company

ARLINGTON, Va., Jan. 11, 2005 (BUSINESS WIRE) — The AES Corporation announced it has entered into an agreement to acquire SeaWest Holdings Inc., a move which will make AES one of the top developers and operators of wind farms in the U.S. AES will purchase SeaWest for approximately $60 million in cash. The acquisition is expected to close by the end of the first quarter of 2005, subject to regulatory approvals.

AES also announced plans to acquire and construct SeaWest’s 120 megawatt (MW) Buffalo Gap wind generation project near Abilene, Texas, at an estimated cost of $165 million. AES plans to begin construction in early 2005 and the facility is expected to become operational in the fourth quarter of 2005.

SeaWest is a privately-owned wind generation operating and development company based in San Diego, California. SeaWest operates over 500 MW of wind facilities in California, Wyoming and Oregon and has 1,800 MW of development sites in ten states in the western United States. The company has been in the wind energy business since it was formed in 1982 and employs 175 people.

AES’s acquisition of SeaWest, combined with its recent investment in US Wind Force, LLC, advances AES’s goal to become a strong competitor in wind generation. Upon closing, AES will have wind projects operating or in development in 13 states, including California which has the largest installed base of wind projects in the U.S. AES gains options on more than 100,000 acres of land for potential sites in SeaWest’s development pipeline.

“Wind is one of the fastest growing sources of electricity around the world and a natural extension of AES’s business,” said AES President and Chief Executive Officer Paul Hanrahan. “SeaWest is an established player in wind energy with experienced wind development and operations teams. This acquisition, combined with AES’s expertise in building and operating generation facilities, puts AES in a competitive position to meet the world’s growing demand for renewable power generated by wind.”

Global demand for wind generation is expected to grow by more than 15% a year, from 46,000 MW in 2004 to 112,000 MW by 2010. In 2005 alone, the U.S. is expecting to see new construction of over 2,000 MW of wind generation as the result of new state requirements for power companies to include renewable sources of energy, such as wind, in their portfolios. Eighteen states in the U.S. have passed, or have pending, legislation on renewable portfolio standards.

About AES [ ]

AES is a leading global power company, with 2003 revenues of $8.4 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 111 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world’s growing power needs.

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