OUR ANNUAL LETTER

DEAR FRIENDS,
Less than 150 feet below us, on the banks of a railroad grade from which the floodwaters had recently receded, I saw bloated human bodies being cremated on hastily built fires. Everywhere, gray cattle carcasses littered fields and clogged roads. The stench was powerful even from the helicopter. Death, destruction and despair that followed in the wake of the massive "super cyclone" that hit Orissa, India in November encompassed thousands of square miles. In the face of such an enormous human crisis, the damage or loss of 80-90% of the poles and wires within the AES distribution company that serves that area seemed inconsequential. At that moment no one had to remind me why AES was in Orissa. This disaster in a poor, remote Indian state might be the ultimate test of AESs purpose to serve the world's need for electricity, for light and maybe even for a little hope. We remain committed to this mission.
          A week before I left for India, Eduard Shevardnadze, the President of Georgia, met with Roger and me in Washington to thank us profusely for bringing lights to the capital city, Tbilisi, for the whole winter for the first time in years.
          And, two months later in Poteau, Oklahoma, 150 community leaders celebrated AES Shady Point and its "first couple" David and Beverly McMillen (who are transferring to lead our newly acquired 4,000 megawatt facility in England). LeFlore county's unemployment has gone from over 13% to about 4% in the 10 years since AES arrived there. Both the economy and life in the community are robust. People there give AES much of the credit.
          These stories highlight the kind of challenges and opportunities that exist for AES as we seek to fulfill our mission of serving the world. My reactions to our opportunities are many, but gratitude dominates my 1999 list. I am thankful for the trust placed in us by governments and communities; for the support of hundreds of private financial institutions that supply funds and multilateral agencies such as the World Bank and the International Finance Corporation; for shareholders who stuck with us during rocky times in Brazil; for customers who spur us to excellence; and for the love of AES colleagues that sustains our passion for shared principles and makes our work fun.
          AES had a remarkable year! Yes, I know, it seems like I say that every year, but it's true again. We added 22 new or greatly expanded businesses t( our corporate family. These new businesses and those already in our portfolio will allow us to serve over 130 million people worldwide in the next few years.                                                                                 Jose Hugo Junqueria,
                                                                                                                                          AES Tiete