Site Generation Provides Reliable, Cost-EffectiveAlternative for Businesses Threatened by...

LOS ANGELES--(BUSINESS WIRE)--July 30, 1999--

Businesses and institutions whose operations are threatened by shortages of power from the nation's electric utility system now have a smart alternative: Make their own electricity.

"Not long ago, only huge users of electricity could

afford the privilege of making their own electricity," said Kimberly Cotter, chief operating officer of NewEnergy Technologies. "Now, thanks to recent advances in small-scale generation technology, almost any business can afford to protect itself from blackouts by generating its own electricity."

NewEnergy Technologies is a subsidiary of NewEnergy Inc., the nation's largest energy service provider. NewEnergy Technologies can provide business and institutional energy users with a wide range of on-site distribution systems with the capacity to meet the load needs of everything from a convenience store to a large office building or college campus.

"Depending on local electric rates and the energy use patterns of a particular business, site generation can prove competitive with utility rates or even more economical. When you factor in the extraordinary cost to businesses of losing power during brownouts or rotating blackouts, site generation makes more sense than ever before," Cotter said.

A recent study by Applied Energy Group warns of a greater potential for blackouts in the future if additional generation units and transmission capacity is not added to the existing power grid.

"Another study by Impulse Research shows that small businesses alone lose an average of $7,500 per day due to blackouts," Cotter said. "A site generation unit can immediately help businesses combat outages so that they are not reliant on their utility making any necessary improvements to the grid that increase reliability.

"Site generation produces more than just reliable power -- it provides power delivery systems built around business needs that result in risk reduction that equates to cost savings," Cotter added.

Site generation solutions are simple, straightforward and economical. NewEnergy will work within a company's existing utility budgetary framework to assure that site generation application conforms with the company's business and operational goals. If necessary, NewEnergy will own and operate site generation facilities, completely eliminating the need for a company to make any capital investment.

NewEnergy has established a comprehensive network of preferred partnerships with leading site generation equipment manufacturers to secure access and superior service to top-of-the-line, leading-edge solutions including micro-turbines, large turbine engines and reciprocating engines.

"With site generation, a company can not only prepare for unexpected power outages, but also take advantage of tremendous new market opportunities to enhance productivity and lower operating costs," Cotter said. "Whether a business needs demand back-up power, improved power reliability, or simply more control over its own operations, site generation can make a positive difference."

NewEnergy Technologies is a subsidiary of NewEnergy Inc. It was formed to provide customers, both in the United States and internationally, with access to new technologies that will maximize energy savings. NewEnergy Technologies' portfolio of site generation applications includes products from such industry leaders as AlliedSignal, Capstone, Caterpillar and Solar Turbines.

NewEnergy Inc. (formerly New Energy Ventures) is an AES corporation. AES Corp. (NYSE:AES) is a leading global power company that currently owns or has an interest in 104 power facilities totaling more than 31,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, the Dominican Republic, Panama, Mexico, Pakistan, India, Bangladesh, the Netherlands, Hungary, Kazakhstan, China and the United Kingdom.

AES also distributes electricity to nearly 14 million customers. In addition to having assets in excess of $10 billion, the company has more than $5 billion of projects in construction or late stages of development. AES is dedicated to providing electricity worldwide in a socially responsible way.

NewEnergy is America's largest energy service provider. Formed in 1995 to serve customers in every state where a competitive energy market is emerging, this rapidly growing technology-based energy company is active today throughout the United States. With headquarters in Los Angeles, it has regional offices in Austin, Texas; Boston; Chicago; New York; Philadelphia; Phoenix; Tucson, Ariz.; and the San Francisco Bay area.

NewEnergy strives to help its customers increase their profitability through integrated, high-value energy solutions. Its services include energy buying for its customers, energy-efficiency services, site generation and low-cost supply of energy-related equipment and supplies. More information on NewEnergy and its products and services is available at www.newenergy.com.

Note to Editors and News Directors: Kimberly Cotter is available in Los Angeles for interviews either by telephone or in person. To arrange for interviews, contact Dave Potter, Manager of Public Relations for NewEnergy at 213/996-6132.