AEP Resources Completes Acquisition of CitiPower; Announces New CEO and Board

Dec. 31, 1998•News Release

COLUMBUS, Ohio, Dec. 31, 1998 -- AEP Resources, a subsidiary of American Electric Power (NYSE: AEP), has completed the purchase of CitiPower from Entergy Corp. (NYSE: ETR). AEP Resources announced that John Marshall has been named managing director and chief executive officer of CitiPower. The company concurrently announced that CitiPower's board of directors consists of Donald M. Clements, president, AEP Resources; Donald Boyd, senior vice president - Asia/Pacific Development, AEP Resources; William J. Lhota, executive vice president, AEP; Armando Pena, senior vice president - finance, treasurer and chief financial officer, AEP; Paul Addis, executive vice president, AEP Energy Services; and Marshall. Marshall was previously CEO of Solaris Power in Melbourne, where he oversaw the transformation of the company from five government-owned council electricity distributors and part of the SEC into a privatized national electricity retailer serving New South Wales and Queensland. He has also held positions with ICI and Quaker Oats. He holds a master's degree in business from Bradford University. "John's track record in consumer and industrial marketing, as well as his experience with rationalizing assets and changing organizational culture from a state-owned to a service-oriented company, made him the ideal candidate for CitiPower CEO," said Boyd. "He will be a strong asset to our entire Australian team." CitiPower, an Australian electricity distribution and retail sales company, serves approximately 240,000 customers in the Melbourne central business district and inner suburbs. With about 3,100 miles of distribution lines in a service area that covers approximately 100 square miles, the company distributes about 4,800 gigawatt-hours annually. AEP Resources' transaction with Entergy was valued at A$1.7 billion (US$1.1 billion), financed through a combination of A$0.5 billion (approximately US$325 million) AEP equity and A$1.2 billion (approximately US$775 million) AEP Resources debt. The pending acquisition was announced Nov. 22. "We're absolutely delighted to have completed such an important acquisition in such a compressed time," said Boyd. "CitiPower will be a strong asset for AEP Resources, and fits well with our global strategy to build a portfolio of investments in energy assets." "AEP's timing is perfect," said Marshall. "It is acquiring a skilled base of employees operating in a privatized environment, just as electricity companies are beginning to privatize in other states. I believe many exciting opportunities are ahead for CitiPower and AEP Resources in Australia." The acquisition of CitiPower is AEP Resources' second transaction in Victoria. The company acquired 20 percent of Pacific Hydro earlier this year. Pacific Hydro is a Victorian company that develops and operates hydroelectric facilities. AEP Resources pursues energy-related investment opportunities and projects throughout the world, and is actively pursuing greenfield development projects and business and asset acquisition throughout North America, Latin America, Europe and the Asia/Pacific region. The company monitors global developments from its offices in Columbus, Ohio; London; Singapore; Toronto; Beijing; and Sydney, Australia. AEP Resources owns 50 percent of Yorkshire Electricity Group, a regional electric company in the United Kingdom; 70 percent of a two-unit power plant nearing completion in Nanyang City, Henan Province, China; and 20 percent of Pacific Hydro, an Australian company that develops and operates hydroelectric facilities. The company also owns midstream natural gas assets in Louisiana. AEP, a global energy company, is one of the United States’ largest investor-owned utilities, providing energy to 3 million customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia. AEP has holdings in the United States, the United Kingdom, China and Australia. Wholly owned subsidiaries provide power engineering, energy consulting and energy management services around the world. The company is based in Columbus, Ohio. On Dec. 22, 1997, AEP announced a definitive merger agreement for a tax-free, stock-for-stock transaction with Central and South West Corp., a public utility holding company based in Dallas.

For More Information, Contact: Deb Strohmaier Senior Media Representative American Electric Power 614/223-1656

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