AES Sells Seven Percent Of AES Gener Shares For $123 Million

ARLINGTON, Va.--(BUSINESS WIRE)--April 25, 2006--The AES Corporation (NYSE:AES) today announced it has completed the sale of approximately 7.6% of its shares in AES Gener, the second largest power generation company in Chile to a group of Chilean and international institutional investors for approximately $123 million. AES Gener has a market capitalization of $1.6 billion.

After accounting for this transaction, AES remains the largest shareholder of AES Gener, with a 91% interest held through its Chilean holding company. Proceeds from the sale will be used by AES Corporation for debt retirement and to fund growth investments in its global business portfolio and other corporate purposes.

“Selling a portion of our investment provides us with greater financial flexibility and, with broader public ownership, better access to capital markets to support future growth projects in Chile.”

"AES Gener is an important part of our business today and will continue to play a key role in our growth strategy going forward," said AES President and Chief Executive Officer Paul Hanrahan. "Selling a portion of our investment provides us with greater financial flexibility and, with broader public ownership, better access to capital markets to support future growth projects in Chile."

"The positive market reception to this share offering and recent upgrade of AES Gener to investment grade reflect its good performance and strong growth prospects," said Andres Gluski, President of AES Latin America. "AES Gener has a solid financial structure and is an efficient, diversified and responsible generation company."

In Chile, AES Gener is constructing a 120 MW power plant and is planning to build two coal-fired power plants totaling 450 MW. The company is the second largest electric generation company in Chile with installed capacity of 2,428 MW, composed of 271 MW of hydroelectric and 2,157 MW of thermoelectric generating capacity, which includes coal, natural gas, diesel and cogeneration capacity. In 2005, AES Gener recorded operating income of $219 million and net income of $84 million.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A, "Risk Factors" in AES's 2005 Annual Report on Form 10-K. Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About AES

AES is one of the world's largest global power companies, with 2005 revenues of $11.1 billion. With operations in 25 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amass annual sales of over 82,000 GWh and our 128 generation facilities have the capacity to generate over 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.