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AES News AES Announces Plans to Expand Electricity Service in Cameroon

ARLINGTON, Va.--(BUSINESS WIRE)--The AES Corporation (NYSE: AES) announced today that its subsidiary, AES SONEL, plans to expand its electricity network in Cameroon, more than doubling the number of people it currently serves over the next 15 years and extending its network to previously unserved parts of the country. The improvements are part of an amended concession agreement AES SONEL has reached with the Government of Cameroon. AES also announced that AES SONEL secured a $340 million (€260 million) financing package—one of the largest ever provided to a privatized utility in Sub-Saharan Africa—to finance a majority of these system improvements.

AES SONEL expects to add approximately 50,000 new electricity connections each year over the next 15 years. The company also plans to upgrade its existing transmission, distribution and generation facilities. AES SONEL is the sole electric utility in Cameroon and currently generates and distributes electricity to more than 528,000 customers in the country.

“This is the most ambitious expansion program for Cameroon’s electricity sector. We expect to more than double the number of people we serve in Cameroon and to provide electricity to thousands of individuals who never had it before,” said John McLaren, President of AES’s Europe, CIS and Africa region. “AES SONEL is committed to improving Cameroon’s energy sector, which is essential to the country’s continued economic development and we’re pleased to move forward with the government under our amended concession agreement.”

Since AES acquired SONEL in 2001, AES has significantly expanded the country’s back-up power generation capacity in Cameroon. In 2004, AES SONEL finalized construction and began operation of an 85 MW thermal power plant, called Limbé, which has increased the country’s available generating capacity in the dry season by approximately 20%.

“Over the last six years, we have steadily improved and expanded electricity generation and distribution across Cameroon,” said Jean David Bilé, CEO of AES SONEL. “Under our investment program, we will continue to improve the reliability and efficiency of our generation, transmission and distribution systems. We thank the Government of Cameroon for its support of AES SONEL and the development of the country’s power sector, and for the continued support of the development banks.”

The 13-year $340 million financing was provided by a syndicate comprising eight developmental finance institutions, which includes the International Finance Corporation (IFC), the European Investment Bank, African Development Bank, the Central African Development Bank, DEG – Deutsche Investitions-und Entwicklungsgesellschaft mbH, the Emerging Africa Infrastructure Fund, FMO – The Netherlands Development Finance Company and Proparco.

About AES

AES is one of the world's largest global power companies, with 2005 revenues of $11 billion. With operations in 26 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amassed 2005 annual sales of over 82,000 GWh and our 122 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.

Safe Harbor Disclosure

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.