AES Expands Wind Energy Business into Europe; Acquires Majority Ownership of UK-Based Wind Development Company

"This acquisition is the first expansion of AES's wind energybusiness into Europe and represents a strategic step in our efforts tobecome a leader in wind generation development and operationworldwide," said William Luraschi, AES Executive Vice President ofBusiness Development. "Growing our wind energy business is a keycomponent of our expansion into alternative energy. With globalinstalled wind generation capacity expected to more than double overthe next five years, we see tremendous growth opportunities in windand we will continue to seek expansion projects worldwide."

"Through this transaction, AES gains a portfolio of wind projectsin a market that has huge potential for growth," said Ned Hall, AESVice President of Wind Generation. "The UK has one of the fastestgrowing and most attractive wind energy markets in Europe, whereinstalled capacity is expected to increase fivefold over the next fouryears. In addition, Scotland enjoys some of the highest wind resourcesin the world, which allows for particularly efficient wind powergeneration. That's just the type of opportunity we're looking forglobally."

AES has been in the wind generation business since 2004 andcurrently operates 600 MW of wind facilities. On April 17, 2006, thecompany announced plans to triple its investment in wind generationover the next three years, and currently is pursuing an additional2,000 MW of wind projects in development, primarily in the UnitedStates. AES also said it is currently evaluating wind power projectsin continental Europe, China, India and Central and South America,with an emphasis on countries with existing AES businesses.

AES has operated generation businesses in the United Kingdom since1992, when it acquired AES Kilroot, a 520 MW coal-, oil- andbiomass-fired power plant in Northern Ireland. AES also owns andoperates AES Indian Queens, a 140 MW oil-fired plant in England.

Founded in 2002, WEL is a privately held company engaged solely inthe development of wind power projects in Scotland. As part of thistransaction, the WEL group is being restructured with AES taking acontrolling interest in each of the group companies.

About AES

AES is one of the world's largest global power companies, with2005 revenues of $11.1 billion. With operations in 26 countries onfive continents, AES's generation and distribution facilities have thecapacity to serve 100 million people worldwide. Our 14 regulatedutilities amassed 2005 annual sales of over 82,000 GWh and our 127generation facilities have the capacity to generate over 44,000megawatts. Our global workforce of 30,000 people is committed tooperational excellence and meeting the world's growing power needs. Tolearn more about AES, please visit www.aes.com or contact AES mediarelations at media@aes.com.

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