Transaction Includes Three Power Plants in California With Total Capacity of 330 MW

ARLINGTON, VA, July 31, 2001 -- The AES Corporation (NYSE: AES) announced today that an AES subsidiary completed the final phase of its acquisition of the energy assets of Thermo Ecotek Corporation, a wholly owned subsidiary of Thermo Electron Corporation (NYSE: TMO) of Waltham, Massachusetts. The purchase price for this final transaction is $19 million in cash, inclusive of closing adjustments. The initial phase of the transaction, which occurred on June 29, was closed at a price of $238 million in cash. This results in a total acquisition price for the two phases of the Thermo Ecotek acquisition of $257 million, inclusive of $62 million of closing adjustments for the reimbursement of Thermo Ecotek's development expenses since September 30, 2000.

The transaction, completed yesterday, includes two gas-fired facilities, Mountainview (126 MW) and Riverside (154 MW) as well as the Delano (50 MW) biomass-fired plant. All three plants are located in California. The transaction received clearance yesterday from the Department of Justice following Hart-Scott-Rodino Act review.

J. Stuart Ryan, Executive Vice President of AES, said, "The addition of these three plants to our portfolio of generating facilities allows AES to further serve the growing demand for electricity in the Western US. We are also pleased to be diversifying our gas-fired western portfolio with the solid-fuel facility at Delano."

Dennis W. Bakke, President and CEO, commented, "With the addition of these three operating plants to our total fleet of AES plants, we now have nearly 200 generating facilities worldwide. The people at these plants in California will soon become AES business people and integrated with our people and plants in the United Kingdom, China, Brazil, Kazakhstan, Northern Ireland, and elsewhere. I am pleased that we continue to grow our family of business people who strive to serve the world's need for clean, safe, reliable electricity."

Business development milestones in 2001 include the following:

• In July, a subsidiary of AES signed agreements to acquire a 56% interest in SONEL, an integrated electricity utility in Cameroon.
• In July, a subsidiary of AES acquired a majority of the energy assets of Thermo Ecotek Corporation.
• In June, AES signed a definitive agreement to sell the customers and related assets of AES Power Direct.
• In June, a subsidiary of AES secured the financing for its $104 million, 163 MW combined cycle diesel-fired power plant in Sri Lanka.
• In June, AES announced that its AES-3C Maritza East 1 project in Bulgaria signed two key contracts with NEK and Maritza East Mines.
• In May, AES was awarded the Ras Laffan 750 MW and 40 million imperial gallons of water per day natural gas-fired, combined-cycle cogeneration power and water desalination project in the State of Qatar.
• In May, AES announced that it received certification from the California Energy Commission and is set to commence construction on the refurbishment of two retired gas-fired units 3 & 4 at Huntington Beach, California.
• In May, a subsidiary of AES signed a strategic alliance agreement with COTEL, the largest local telephone carrier in Bolivia.
• In May, a subsidiary of AES secured the financing for its, $348.6 million, 427 MW Barka facility in Oman.
• In May AES announced that it won a bid for approximately $23.2 million to purchase a 75% controlling interest in Rivenoblenergo, the distribution company that serves the Rivno region, which is about 200 kms from Kiev, the capital city of Ukraine.
• In April, AES announced that it won a bid for approximately $45.9 million to purchase a 75% controlling interest in Kievoblenergo the distribution company that serves the region that surrounds Kiev, the capital city of Ukraine.
• In April, a subsidiary of AES signed agreements for the financing of its $300 million, 450 MW combined cycle gas-fired Meghnaghat power plant in Bangladesh.
• In April, a subsidiary of AES completed a $180 million financing for its 360 MW gas-fired combined cycle facility Haripur in Bangladesh.
• In April, AES announced the completion of its acquisition of IPALCO in Indiana.
• In March, a subsidiary of AES secured the financing for the 720 MW gas-fired Granite Ridge project in New Hampshire.
• In March, a subsidiary of AES acquired from EniChem SpA an oil-fired 140MW cogeneration facility in the town of Ottana, which is in the province of Nuoro, Sardinia, Italy.
• In February, a subsidiary of AES entered an agreement to purchase all of the energy assets of Thermo Ecotek Corporation, a wholly owned subsidiary of Thermo Electron Corporation of Waltham, Massachusetts for $195 million.
• In January, AES announced the start of construction of the $300 million AES Wolf Hollow power plant at a site in Granbury, Texas.
• In January, a subsidiary of AES acquired a majority interest in a 290MW barge-mounted natural-gas-fired electric generating business in Lagos, Nigeria.
• In January, AES Huntington Beach submitted a proposal to the California Energy Commission to restart two retired gas-fired units that will add an additional 450 megawatts of generation in the electricity-strapped state of California.
• In January, AES announced the purchase of an additional 39% ownership interest in Hidroelectrica Alicura, a 1000 MW hydro plant in Argentina.
• In January, AES announced that it had successfully completed its offer to exchange all American Depositary Shares of Gener S.A. for AES common stock.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Cameroon, Canada, Chile, China, Colombia, Czech. Republic, Dominican Republic, El Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and seventy three facilities totaling over 59 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 18 million end-use customers. In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.