AES Andres - Itabo Results 2Q11 by AES Dominicana

Second Quarter 2011 Relevant Results Santo Domingo, Dominican Republic August 15th, 2011

Contact: Yandery Teran Investor Relations Director (1) (809) 955-2223

2Q11 Relevant Results

inversoraesdom@aes.com

www.aesdominicana.com.do

AES Andres B.V. and Subsidiary and Dominican Power Partners and Subsidiary announced a combined Net Income of US$28.1 million in the second quarter 2011. Despite Itabo reporting a Net Loss of S$1.1 million for the second quarter 2011, the accumulated Net income was US$5.6 million. Santo Domingo, Dominican Republic, August 15th, 2011 – Andres-DPP and Itabo announced today results for the second quarter 2011. All operating and financial information, except where otherwise specified, is expressed in the International Financial Reporting Standards, as of any date of determination, or “IFRS.”. These figures are not audited. For Andres-DPP the revenues increased 27.2% in the second quarter 2011 compared to the same period of 2010 and in the accumulated results for the period ended in June 2011 increased 16.3% compared to the same period of the previous year. Net Income was US$28.1 million for the second quarter of 2011 and the accumulated Net Income was US$41.9 million against US$24.7 million for the same period 2010. 2Q11 113.5 61.5 52.0 45.8%

2Q10

(Millions of US$)

89.2 Revenues 57.3 Operating costs and expenses 31.9 Operating income 35.8% Operating income margin

6M11

6M10

207.2 124.3 82.9

178.1 115.8 62.3

40.0%

35.0%

28.1

10.9 Net Income (*)

41.9

24.7

(6.2)

Net Cash Provided by (used in) (5.5) Operating Activities

23.1

52.4

* Net Income includes interest expenses of US$9.5 million in 2Q11 and 2Q10, related to interest under a subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres. AES views this loan as an equity investment and the respective interests are a restricted payment under the indenture.

For Itabo, the revenues increased 21.9% in the second quarter 2011 compared to the same period of 2010 and in the accumulated results for the period ending in June 2011 increased 16.2% compared to the same period of the previous year. Net Loss was US$1.1 million for the second quarter of 2011 and the accumulated Net income was US$5.6 million against a Net loss of US$12.8 million for the same period 2010.

2Q11

2Q10

(Millions of US$)

56.2 52.9 3.3

46.1 Revenues 59.3 Operating costs and expenses (13.2) Operating (Loss) income

5.9%

-28.6% Operating (Loss) income margin

(1.1)

3.3

(13.8) Net (loss) Income Net Cash Provided by Operating (0.9) Activities

Andres Dominicana and Itabo Dominicana, Earning Release

6M11 114.6 106.5 8.1

6M10 98.7 108.9 (10.2)

7.1%

-10.3%

5.6

(12.8)

(4.4)

23.8

-1-

2Q11 Relevant Results External Factors1 Dominican Republic’s GDP grew 4.30% in 1Q11.

Coal, Natural Gas and Fuel-Oil #6 Price Evolution 16

Inflation stood at 5.85% at the end of June 2011.

Average Nymex Henry Hub natural gas prices were US$4.38 per MMBtu for the second quarter 2011, with a peak of US$4.85 per MMBtu and a low of US$4.04 2 per MMBtu. Average Coal prices were US$4.65 per MMBtu for the second quarter 2011, with a peak of US$4.80 per MMBtu and a low of US$4.48 per MMBtu.

12 US$/MMBTU

The exchange rate as of June 30 , 2011 was RD$38.07 per US dollar (Bid) and RD$38.01 per US dollar (Ask).

14.74

Fuel-Oil #6

10 8

10.97

10.26 Natural Gas

4.35

4.65

3.97

4 2

2.97

4.38

3.73 Coal

0 2Q10

3Q10

4Q10

1Q11

2Q11

Total electricity demand as of June 30th, 2011 reached 5,960 GWh, an increase of 2.8 % versus the same period 2010. Analysis of Andres-DPP Combined3 Financial Results (In IFRS) For Andres-DPP the Revenues increased 27.2% to US$113.5 million in the second quarter 2011 compared to the same period of 2010. This result was mainly driven by: i) US$21.5 million of higher spot electricity sales due to higher volume, prices and energy production; ii) the other sales increased around US$5.5 million mainly from natural gas sales since in February 2010 Andres started the operation of the liquefied natural gas loading terminal, expanding the use of this fuel in the Dominican Republic; and, iii). US$2.7 million lower contracted electricity sales. As of June 30th, 2011, Revenues totaled US$207.2 million, an increase of 16.3% compared to the same period of 2010. This increase was mainly a result of: (i) higher spot sales by US$27.5 million, due to higher energy volume and spot prices; (ii) lower contracted energy sales by US$8.5 million; and, (ii) higher other sales by US$10.1 million mainly from sales of natural gas. Andres-DPP’s Revenues consist of the following:

2Q11 66.7 40.0 6.8 113.5

2Q10 69.4 18.5 1.3 89.2

Var%

(Millions of US$)

(3.9) Electricity sales – Contracts 116.2 Electricity sales – spot market 423.1 Natural Gas Sales & Other Sales 27.2 Total Revenues

6M11 128.5 66.2 12.5 207.2

6M10 137.0 38.7 2.4 178.1

Var% (6.2) 71.1 420.8 16.3

For Andres-DPP the Operating Costs and Expenses increased 7.3%, in the second quarter of 2011 compared to the same period 2010, from US$57.3 million to US$61.5 million. This variance was principally a net result of: (i) higher fuel cost by US$18.7 million due to higher generation and higher fuel prices; (ii) lower energy purchases by US$14.3 million; (iii) US$0.2 million of lower operating and maintenance and general expenses. Operating Costs and Expenses as of June 30th, 2011, increased 7.3% to US$124.3 million compared to the same period in 2010. This variance was mainly caused by: (i) higher cost of sales by US$6.6 million derived from higher generation, the related increase in LNG consumption (DPP was generating as base load power plant) combined with higher LNG prices that were partially offset by lower electricity purchases; and, (ii) higher operating, maintenance and general expenses by US$1.9 million.

Source: Dominican Central Bank, Coordinating Body and FOB, 6300 kcal/kg Puerto Bolivar, Platts International Coal Report.

Pricing under the BP Contract is at a premium to the Henry Hub natural gas price per MMbtu on the NYMEX Index.

The accompanying combined financial results include the accounts of Andres, DPP and its subsidiary Andres Dominicana.LTD Intercompany balances and transactions have been eliminated in these combined financial statements.

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Andres-DPP’s operating costs and expenses consist of the following:

2Q11 46.3 15.2 61.5

2Q10 41.9 15.4 57.3

Var%

(Millions of US$)

10.5 Cost of electricity sales- fuel & electricity purchases (1.3) Operating, maintenance and general expenses 7.3 Total Operating Cost and Expenses

6M11 93.1 31.2 124.3

6M10 86.5 29.3 115.8

Var% 7.6 6.5 7.3

Andres- DPP, total Other Expenses were US$11.1 million in the second quarter 2011 compared to other expenses of US$12.2 million in the same period of 2010. This decrease was mainly a net function of: (i) higher net commercial interest income by US$0.9 million derived from higher accounts receivables; (ii) lower other expenses by US$0.4 million; (iii) lower net financial interest expenses by US$0.1 million; and, (iv) higher Foreign currency loss by US$0.3 million. As of June 30th, 2011, Net Other Expenses increased to US$24.3 million, as compared to total net expenses in the same period of 2010 of US$23.7 million. This increase was mainly a net function of: (i) lower net commercial interest income by US$0.2 million, basically due a new sector agreement eliminated the outstanding interest for the spot market transactions; and, (ii) higher Foreign currency loss US$0.4 million. Andres- DPP Other (Expenses) Income consists of the following:

2Q11 (4.1) 2.9 (9.5) (0.1) (0.3) (11.1)

2Q10 (4.2) 2.0 (9.5) (0.5) 0.0 (12.2)

Var% (2.4) 45.0 0.0 (80.0) 0.0 (9.0)

(Millions of US$) Interest (expense) – financial - net Interest income – commercial and others-net Subordinated intercompany loan interest expense (**) Other (expenses) Foreign currency gain (loss) Total Other (Expenses)

6M11 (8.7) 4.1 (18.9) (0.6) (0.2) (24.3)

6M10 (8.7) 4.3 (18.9) (0.6) 0.2 (23.7)

Var% 0.0 (4.7) 0.0 0.0 (200.0) 2.5

(**) Interest expenses are those generated by the subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres.

For Andres-DPP, Net Cash Used in Operating Activities was US$6.2 million for the second quarter 2011, an increase of 12.7% compared to a Net Cash Used in Operating Activities of US$5.5 million in the same period of 2010, mainly due to the following: (i) Negative impact as result of higher accounts receivables by US$23.1 million basically due to higher sales and higher days of sales outstanding; (ii) higher interest paid by US$22.4 million, basically from intercompany Subordinated Loan, since Andres paid this year the interest from the second semester 2010 and first semester 2011; (iii) higher net income by US$17.2 million; (iv) positive impact from higher accounts payable by US$16.3 million; (v) positive adjustment by US$7.3 million from reconciling net income to net cash used in operations; and, (vi) higher income tax expenses by US$4.0 million. Net Cash Provided by Operating Activities for the semester ended in June 30th, 2011 was US$23.1 million compared to a Net Cash Provided by operating activities of US$52.4 million for the same period in 2010. This variation was primarily the result of: (i) negative impact due to higher accounts receivable by US$55.0 million; (ii) higher net interest paid by US$17.5 million; (iii) higher net income by US$17.1 million derived from higher generation and higher sales; (iv) positive impact due to higher accounts payable by US$21.3 million; (v) US$4.8 million higher positive reconciling adjustments, reconciling net income to net cash provided by operations. Free Cash Flow (a non-IFRS financial measure defined as net cash from operating activities less capital expenditure defined in the accompanying financial statement as Additions to Property, Plant and Equipment and advances to suppliers in purchases of PP&E) was net cash used in US$18.5 million for the second quarter 2011. In addition to the net cash used in Operating Activities of US$6.2 million, during this period, there were additions to property, plant and equipment of US$12.3 million. As of June 30th, 2011, the Free Cash Flow was net cash provided of US$3.2 million. In addition to the net cash provided by operating activities of US$23.1 million, there were additions to property, plant and equipment by US$19.9 million.

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Analysis of Itabo’s Consolidated4 Financial Results (In IFRS) For Itabo the Revenues increased 21.9% to US$56.2 million in the second quarter 2011 compared to the same period of 2010. This result was mainly driven by US$10.0 of higher electricity sales that resulted from higher contract prices indexed by higher average coal market prices. As of June 30th, 2011, Revenues totaled US$114.6 million, an increase of 16.1% compared to the same period of 2010. This increase was mainly a result of: (i) higher electricity sales by US$16.2 million, due to higher contracted prices; partially offset by, (ii) lower other revenues by US$0.3 million. Itabo’s Revenues consist of the following:

2Q11

2Q10

55.9 0.3 56.2

45.9 0.2 46.1

(Millions of US$)

6M11

6M10

Electricity sales Other revenues Total Revenues

114.3 0.3 114.6

98.1 0.6 98.7

Var% 21.8 50.0 21.9

Var% 16.5 (50.0) 16.1

For Itabo the Operating Costs and Expenses decreased 10.8% in the second quarter of 2011 compared to the same period 2010, from US$59.3 million to US$52.9 million. This variance was principally a net result of: (i) lower coal cost by US$1.0 million; (ii) US$5.2 million of lower electricity purchase derived from lower sales in GWh (2Q’11- 429 GWh vs 2Q’10- 445GWh) and higher generation; and, (iii) lower operating, maintenance expenses and general expenses by US$0.2 million. As of June 30th, 2011, Operating Costs and Expenses decreased 2.2% to US$106.5 million compared to same period of 2010. This variation was mainly caused by the net effect of: (i) lower electricity purchase by US$6.3 million, derived of higher generation and lower sales in GWh (2Q’11- 875GWh vs 2Q’10- 910 GWh); (ii) higher fuel cost by US$3.3 million basically due to higher coal cost and higher generation;; and, ((iii) higher operation maintenance and general expenses cost by US$0.6 million basically from higher depreciation expenses.

Itabo’s Operating Costs and Expenses consist of the following:

2Q11

2Q10

40.3 12.5 0.1 52.9

46.5 12.7 0.1 59.3

Var%

(Millions of US$)

(13.3) Cost of Revenues (1.6) Operating, maintenance and general expenses 0.0 Amortization of contracts (10.8) Total Operating Cost and Expenses

6M11

6M10

81.5 24.8 0.2 106.5

84.5 24.2 0.2 108.9

Var% (3.6) 2.5 0.0 (2.2)

For Itabo the total Other Expenses were US$2.6 million in the second quarter 2011 compared to a total other expenses of US$1.8 million in the same period of 2010. This variation was primarily attributable to the net effect of: (i) lower net commercial interest income by US$1.2 million; (ii) lower net financial interest expenses by US$0.7 million due to the reduction of the international debt from US$125 million to US$116.4 million, with a lower interest rate (9.5% Vs 10.875%); (iii) higher net Foreign Currency loss by US$0.2 million; and, (iv) lower other income by US$0.1 million. As of June 30th, 2011, Net Expenses decreased to US$1.1 million, as compared to the Net Expenses recorded in the same period of 2010 of US$3.7 million. This variance was the net result of: (i) lower net financial interest expenses by US$1.5 million; (ii) higher net commercial interest income by US$1.4 million; (iii) higher other expense by US$0.1 million; and, (iv) higher foreign currency loss by US$0.2 million. Itabo’s Other (Expenses) Income consists of the following: 2Q11 (3.0) 0.6 0.0 (0.2) (2.6)

2Q10 (3.7) 1.8 0.1 0.0 (1.8)

Var% (18.9) (66.7) (100.0) n/a 44.4

(Millions of US$) Interest (expenses)- financial- net Interest income- commercial- net Other income (expense) - net Foreign Currency (loss) Total Other (Expenses)

6M11 (5.9) 5.1 (0.1) (0.2) (1.1)

6M10 (7.4) 3.7 0.0 0.0 (3.7)

Var% (20.3) 37.8 n/a n/a (70.3)

The accompanying consolidated financial results include the accounts of Itabo, and its subsidiary Itabo Dominicana, LTD. Intercompany balances and transactions have been eliminated in these consolidated financial statements.

Andres Dominicana and Itabo Dominicana, Earning Release

-4-

2Q11 Relevant Results For Itabo the Net Cash Provided by Operating Activities was US$3.3 million for the second quarter 2011 compared to a Net Cash Used in Operating Activities of US$0.9 million in the same period of 2010, resulting in a positive variation of US$4.2 million. This positive variance was mainly a net result of: (i) positive impact form higher net income by US$12.7 million; (ii) negative impact due to lower account payables by US$10.3 million, basically due to energy transactions payments; (iii) positive impact due to lower accounts receivables by US$2.7 million; and, (iv) an impact of US$0.9 million from negative adjustments, reconciling net loss to net cash provided by operation activities. As of June 30th, 2011, the Net Cash Used in Operating Activities was US$4.4 million against a Net Cash Provided by operating activities of US$23.9 million in the same period of 2010. This variation was primarily the net result of: (i) negative impact due to higher accounts receivables by US$50.6 million due to higher day sale outstanding (DOS); (ii) positive impact due to higher net income by US$18.3 million; (iii US$4.6 million of positive reconciling adjustments, reconciling net income to net cash used in operating activities; and, (iv) lower accounts payables US$0.6 million. Free Cash Flow (a non-IFRS financial measure defined as net cash from operating activities less capital expenditures defined in the accompanying financial statement as additions to Property, Plant and Equipment and advances to suppliers in purchases of PP&E) was a net cash used of US$0.8 million for the second quarter 2011. During this period, in addition to the net cash provided of US$3.3 million, there were additions to property, plant and equipment by US$4.1 million. As June 30th, 2011, the Free Cash Flow was net cash used by US$12.5 million. In addition to the net cash used in operating activities of US$4.4 million, there were additions to property, plant and equipment and advances to suppliers in purchases of PP&E by US$8.1 million.

Financial Debt Summary In April, AES Andres opened a Stand-By LC with Banreservas to import a LNG Vaporizer. AES Andres, BP and Banco BHD agreed a US$15 million Standby LC on May 21st. In May, Itabo and Andres paid interest on international bonds dated Nov.12, 2010 for US$5.5 million and US$8.0 million, respectively. On May 27th, Andres paid interest on its Intercompany Loan for US$18.9 million. Financial Debt

Jun-11

Financial Debt

Dec-10

(expressed in millions of US$)

Local Currency Foreign Currency

168

Total Debt

168

Fixed Rate

Jun-11 Dec-10

(expressed in millions of US$)

Local Currency

Foreign Currency Total Debt

131 131

100%

Variable Rate

Short Term

100% 10.56%

100% 10.21%

9.2

Long Term Financing Cost (*) Average Life (years)

Fixed Rate

Long Term Financing Cost (*) Average Life (years)

Rating Agency Fitch Ratings (Andres-DPP)

Senior Notes 2020

Rating B

Outlook Positive

Fitch Ratings (Itabo) Standard & Poor's (Andres-DPP)

Senior Notes 2020 Senior Notes 2020

B B-

Positive Positive

Standard & Poor's (Itabo)

Senior Notes 2020

B-

Negative

(*) (1) After tax rates. (2) The Notes effective rate includes the interest income accrued by the interest debt reserve.

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Liquidity Average Collections Rate

Collections During the second quarter 2011 the average collection rate for Andres- DPP was 111% against 100% in the same period of 2010 and for Itabo 104% against 91%. The increase is related to the higher collection received on April 2011 since DPP and Itabo received extraordinary collections of late receivables from the Distros for US$19 milion and US$27 million respectively.

Andres - DPP

142% 100% 91%

111%

70%

131%

69% 60%

2Q10

YTD June 30th, 2011, the average collection rate for Andres-DPP was 73% against 110% in the same period 2010 and for Itabo 79% against 121%, since during the first semester 2010; the DR Government took a loan under the Standby Agreement with the IMF in order to pay their 2009 debts to the generation companies. Meanwhile, Andres accounts receivables had 17 days sales outstanding (DSO), 103 DSO for DPP and 101 DSO for Itabo compared to 24, 63 and 66 DSO, respectively in December 2010. Although these DSO levels are not according to the FMI guidelines, in July 2011, the companies collected in cash from Distros US$36.7 million of late receivables (DPP: US$15.8 million and Itabo: US$20.8 million), improving these levels.

Itabo

104%

50%

3Q10

4Q10

1Q11

2Q11

181

Days Sales Outstanding (DSO) 147 101

111 107 73

103

66 63

24 2008

2009

2010

AES Andres

Itabo

Jun. 11 DPP

Operational Results Andres-DPP: In the second quarter of 2011, the Combined Net Generation was up by 3.8% relative to the second quarter of 2010, from 811 GWh in 1Q10 to 842 GWh in 2Q11, primarily a result of DPP operated as a base load power plant since April 2010 and although Los Mina VI was put out of service for 23 days due to its major maintenance. Total Energy Sold during 2Q11 was 842 GWh, an increase of 3.3% compared with 2Q10, a function of the higher generation mentioned above and more NRU clients. During the second quarter 2011, Andres’ EAF worsen to 96% from 99% and the EFOR worsen to 0.9% affected for minor failures during the quarter and Its Firm Capacity increased 11.1% to 281MW. DPP’s Firm Capacity increased to 51MW (a 121.7%), during the second quarter 2011, as a result of higher availability since the operational improvements performed on its units. Besides the EAF has increased to 89.3% since its units has been working as based load plants since 2010. For the first half 2011, Combined Net Generation was 1,592 GWh, an increase of 4.3% compared to the same period of 2010. The Energy Sold increased 3.8% to 1,598 GWh, basically due higher generation and higher UNRs. Andres’ Firm Capacity increased 12.0% to 281MW, the EAF worsen to 86.7% from 95% and the EFOR increased to 0.5%. DPP’s Firm Capacity increased to 45MW, during the first semester 2011, as a result of higher availability since the operational improvements performed on its units. Besides the EAF has increased to 90.8% since its units has been working as based load plants since 2010.and although Los Mina V and VI were put out of service due to major maintenances

The following table presents selected operational information for each of the periods indicated: As of June 30th, 2011 Installed capacity (MW) Power Generation Units Effective capacity (MW) Contracted capacity (MW)

Andres Dominicana and Itabo Dominicana, Earning Release

Andres 319 1 304

DPP 236 2 236

Aggregate 555 3 540

184

210

394

-6-

2Q11 Relevant Results

2Q11

2Q10 Var.%

Operating Data

6M11

6M10

Var.%

855 (13)

823 (12)

3.9 Gross generation 8.3 Internal consumption

GWh GWh

1,615 (23)

1,550 (24)

4.2 (4.2)

842

811

3.8 Net Generation

GWh

1,592

1,526

4.3

842 281 7,744 96.0 0.9

815 253 7,592 99.0 0.0

GWh MW Btu/KWh % %

1,598 281 7,782 86.7 0.5

1,539 251 7,621 95.0 0.0

89.3

79.0

0.1

3.3 11.1 2.0 (3.0) 100.0

Total Energy Sold Andres' Firm Capacity Andres Heat Rate Andres EAF Andres EFOR

121.7 DPP's Firm Capacity 13.0 DPP EAF 0.0 DPP EFOR

3.8 12.0 2.1 (8.7) 100.0

90.8

70.5

107.0 28.8

0.04

0.6

(92.7)

Itabo: During the second quarter 2011, the Net Generation was 417 GWh, an increase of 9.4% with respect to the same period of 2010. The Energy Sold decreased 3.6% compared to the same period of the previous year. The Heat Rate increased 5.5% basically due to technical limitation in Unit I, the EAF decreased to 80.3% and the EFOR worsen from 1% to 1.5%. As of June 30th 2011, the Net Generation was 799 GWh, an increase of 4.4% against the same period 2010 primarily due to at the end of June 2010, the Unit II started its major maintenance, meanwhile in 2011 it ocurred after the first semester. The Energy Sold decreased 3.2% when compared to the same period of the previous year due mainly to lower spot sale. The Itabo’s Heat Rate worsen 2.9%, and the EFOR worsen to 4.4% from 1% as of June, 2010. The following table presents selected operational information for each of the periods indicated:

As of June 30th, 2011 Installed capacity (MW)

260

Power Generation Units Effective capacity (MW)

2 260

2Q11

2Q10

458 (41) 417 429 226 11,326 80.3 1.5

422 (41) 381 445 226 10,737 81 1

Var.% 8.5 0.0 9.4 (3.6) 0.0 5.5 (0.9) 50.0

Gross generation Internal consumption Net Generation Total Energy Sold (*) Firm Capacity Heat Rate EAF EFOR

GWh GWh GWh GWh MW Btu/KWh % %

6M11

6M10

878 (79) 799 881 226 11,089 78.6 4.4

846 (81) 765 910 226 10,781 86 1

Var.% 3.8 (2.5) 4.4 (3.2) 0.0 2.9 (8.1) n/a

Operational Developments During the second quarter 2011, Andres received three vessels with 9.0 TBTU of natural gas and Itabo received four coal vessels containing 163,946 MT. On May 22nd, Los Mina VI was put out of service due to its annual Programmed maintenance until June 14th, 2011. As of June 30th, Andres had a total of 44 NRU contracts, totaling 133.5 MW. On July 1st, Itabo I was put out of service due to a major maintenance for 50 days period.

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Other Relevant Information On July 15th, the Executive Board of the International Monetary Fund (IMF) completed the pending fifth and sixth reviews of the Dominican Republic’s economic performance under its current 28-month, US$1.7 billion Stand-By Arrangement (SBA). Completion of this reviews allowed the immediate disbursement of US$348 million. The IMF welcomed the government’s commitment to introduce a cost-recovery technical tariff and adopt a flexible tariff mechanism for electricity to reduce reliance on elevated official subsidy. The CDEEE and Andres reached a friendly agreement in relation with the dispute of their PPA agreement.

Safety Indicators During the quarter, Andres, DPP and Itabo do not have Lost Time Incidents (LTI) or fatalities. Andres, DPP and Itabo celebrated the Security Day for the AES companies. During three days the employees and contractors analyzed the achievements and the improvement opportunities in the companies, in relation with the security topics..

As part of the Safety Program, the companies continue with the training in security matters, among all employees and contractors.

In Itabo, we performed an audit to the electricity system, in order to develop a program in electricity security to the employees and contractors.

Environmental Matters During the second quarter 2011, Andres, DPP and Itabo have complied with all environmental requirements. During the values day celebration, was treated the theme "Our Values-Our Environment: Growing together". It signifies the commitment of our people and our business to create and maintain a healthy environment for the communities in which we operate.

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results

AES Andres B. V. and subsidiary, and Dominican Power Partners and subsidiary (Indirect Wholly-Owned Subsidiaries of The AES Corporation) UNAUDITED COMBINED STATEMENTS OF INCOME (Expressed in thousandsUS$)

2Q11

2Q10

6M11

6M10

REVENUES 66,712 39,960 6,766 13 113,451

69,322 18,514 1,302 13 89,151

(41,655) (4,609) (15,246)

(41,792) (143) (15,357)

(61,511)

(57,292)

Electricity sales – contracts Electricity sales – spot market Natural gas sales Other sales Total revenues

128,514 66,135 12,483 26 207,157

136,932 38,737 2,372 27 178,068

(84,383) (8,677) (31,248)

(85,719) (826) (29,214)

(124,308)

(115,759)

82,850

62,309

(4,652) (18,955) (592) (110)

(4,436) (18,955) (533) 210

OPERATING COSTS AND EXPENSES Cost of sales – electricity purchases and fuel costs used for generation Cost of sales – fuel and fuel related costs purchased for resale Operating, maintenance and general expenses Total operating costs and expenses

51,941

31,860 OPERATING INCOME

(1,223) (9,530) (75) (250)

(2,245) (9,530) (494) 53

40,863

19,644 INCOME BEFORE TAXES

58,541

38,595

(8,735)

(16,690)

(13,883)

41,851

24,712

OTHER INCOME (LOSS)

(12,783) 28,080

Interest (expense) – net Intercompany loan interest (expense) (*) Other (expense) Exchange gain (loss)

Income tax

10,909 NET INCOME (**)

(*) Interest expenses are those generated by the subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres. (**)Net Income includes interest expenses of US$9.5 million in 2Q11 and 2Q10, related to interest under a subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres. AES views this loan as an equity investment and the respective interests are a restricted payment under the indenture.

The results presented in this report have not been audited and were prepared in Dollars in conformity with the International Financial Reporting Standards, as of any date of determination, or “IFRS.”

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results AES Andres B. V. and subsidiaries, and D ominican Power Partners and subsidiary (Indirect Wholly-Ow ned Subsidiaries of The AES Corporation) U NAUD ITED COMBINED STATEMENTS OF FINANCIAL POSITION (Expressed in thousands US$) June 30th, 2011

Dec. 31st, 2010

ASSETS C URRENT ASSETS Cash and cash equivalents Short term investment Customer Related parties Other rec eivables Other - related parties Intercompany loan Inventories Income tax receivable Prepaid expenses Deferred income tax Derivative asset Total current assets

131,669 10,207 91,816 44,211 3,033 2,659 24,455 423 5,230 79 118 313,900

119,652 73,631 39,503 2,016 3,343 19,269 18,338 6,095 281,847

15,784 697,806 (190,912) 522,678

15,784 688,335 (186,548) 517,571

OTHE R ASSETS Intangible assets – net Accounts receivables non c urent Debt service reserves Contractual assets Other assets Restricted cash Total ther assets

21,120 7,959 18,848 4,040 155 52,122

22,465 7,959 20,508 2,997 9 53,938

TOTAL ASSETS

888,700

853,356

9,100 20,109 2,136 9,097 2,402 8,995 51,839

10,198 5,955 19,269 2,289 9,112 11,910 58,733

69,938 413,153 163,890 869 50 1,010 648,910

69,428 413,153 163,773 860 82 1,287 648,583

15,019 109,222 620 (36) 36,852 26,274 187,951

15,019 109,204 579 (37) 36,852 (15,577) 146,040

888,700

853,356

PROPER TY, PLANT AND EQUIPMEN T Land Property, plant and equipment Les s accumulated depreciation Total Property, plant and equipment

LIABILITIES AND SHAREH OLDER'S EQUITY C URRENT LIABILITIES Accounts payable Related parties Interest related parties Interest payable Income tax payable Derivative current Deferred income tax - short term Accrued expenses and other liabilities Total current liabilities LONG TERM LIABILITIES Deferred income tax Intercompany loan Notes payable Derivative non current Long term compensation Other non current liabilities Total long term liabilities SHAREHOLD ER'S EQUITY Common stock Contributed capital Additional paid–in capital Accumulated other comprehensive loss Restricted retained earnings Accumulated (defic it) earnings Total shareholder's equity TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results

AES Andres B. V. and subsidiary, and Dominican Power Partners and Subsidiaries (Indirect Wholly-Owned Subsidiaries of The AES Corporation) UNAUDITED COMBINED STATEMENTS OF CASH FLOWS (Expressed in thousands US$) 2Q11

2Q10

6M11

6M10

CASH FLOW FROM OPERATING ACTIVITIES: 28,080

10,909

Net income

41,851

24,712

Adjustments to reconcile net income to net cash used in operating activities: 6,549 1,406

6,357 953

Depreciation and amortization Derivative instruments

12,529 3,530

12,711 1,366

12,783 1 206

8,735 1,035 114

Income tax expense Loss on asset disposal Long term compensation

16,690 597 442

13,883 1,035 223

10,753

11,775

Subordinated intercompany loan interest expense Interest expense – net

23,606

23,392

102 (2,646) 3,142 3 (47) (1,134) (679) -

(150) (850) 22,369 1,615 370 (2,339) (4,064) 761

(11,642) 502

(6,715) (20,692)

(215) 47,165

(438) 29,746

3,326 (45,151)

6,285 (25,753)

(11,529) (6,190)

(15,764) (5,486)

Foreign exchange gain (Increase) decrease in accounts receivable Decrease in accounts receivable – related parties

(206) -

(303) -

(23,636) 13,377

10,902 31,498

(Increase) decrease in other receivable Decrease (Increase) in other receivable – related parties

(1,041) 529

1,387 410

(Increase) decrease in inventories Decrease (increase) in prepaid insurance

(5,962) 865

617 (3,099)

(1,399)

(Decrease) increase in accounts payable and accrued liabilities (Decrease) increase in accounts payable – related parties

Increase (decrease) in deferred tax assets

(3,783) (3,931)

8,421 (37,400)

(Decrease) increase in accrued and other liabilities Cash generated from operations

(352) 75,104

1,574 89,931

Interest received Interest paid

9,431 (46,100)

7,611 (26,737)

Income taxes paid Net cash (used in) provided by operating activities

(15,375) 23,061

(18,415) 52,390

CASH FLOW FROM INVESTING ACTIVITIES: (13,260) 983 4 372 (10,579)

(4,124) (723) 1,200 -

Additions to property, plant and equipment Advances to suppliers in purchase of PP&E Decrease (increase) in restricted cash Decrease (increase) in short term investment Purchase of short term investment

(18,328) (1,633) (146) 372 (10,579)

(6,077) (834) 1,200 -

19,269 (3,211)

(3,647)

Loans made to other parties Net cash (used in) investing activities

19,269 (11,045)

(5,711)

(5,000)

CASH FLOW FROM FINANCING ACTIVITIES: -

(9,401)

Principal payments – notes payable Net cash (used in) provided by financing activities

(9,133) EFFECT OF EXCHANGE RATE CHANGES ON CASH

141,070

112,643 NET INCREASE IN CASH CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

12,017 119,652

41,679 61,831

131,669

103,510 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

131,669

103,510

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY (An indirectly subsidiary of The AES Corporation) CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts expressed in thousands of US dollars) 2Q11

2Q10

6M11

55,895 295

45,852 271

56,190

46,123

(40,349) (12,463) (117)

(46,462) (12,751) (117)

(52,929)

(59,330)

REVENUES: Electricity sales Other revenues Total revenues

6M10

114,357 272

98,083 593

114,629

98,676

(81,529) (24,804) (235)

(84,443) (24,206) (235)

(106,568)

(108,884)

OPERATING COSTS AND EXPENSES

3,261

(2,362) 35 (251) 683

Cost of revenues Operating, maintenance and general expenses Amortization of contracts Total operating costs and expenses

(13,207) Operating income (expense)

(1,950) 96 (44)

Other income (expense): Interest (expense), net Other Income (expenses) – net Exchange (loss), net

(15,105) INCOME (LOSS) BEFORE INCOME TAX

8,061

(794)

(10,208)

(3,770)

(255)

(71)

(85)

6,941

(14,009)

(1,792)

1,293 Income tax expense

(1,373)

1,241

(1,109)

(13,812) NET INCOME (LOSS)

5,568

(12,768)

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results

EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY (An indirectly subsidiary of The AES Corporation) CONSOLIDATED BALANCE SHEETS (Amounts expressed in thousands of US dollars)

June 30, 2011

Dec. 31, 2010

ASSETS CURRENT ASSETS Cash and cash equivalents Restricted cash and cash equivalents Accounts receivable Clients Related companies Other receivable Other receivable – related parties Inventory Prepaid Tax Prepaid Expenses

3,070 84,158 109 1,752 25,109 19,737 732

71,482 267 3,422 56,573 51 1,456 22,185 20,888 688

193,902

177,012

568,580 (256,177) 14,027 16,953

566,159 (245,618) 11,547 16,953

343,383

349,041

OTHER ASSETS Long term receivables from customers other

30,709 17,720

32,690 14,550

TOTAL OTHER ASSETS

48,429

47,240

TOTAL ASSET

585,714

573,293

23,226 49,295

19,011 42,893

612 3,061

6,820

Total current liabilities

76,194

68,724

LONG TERM LIABILITIES Notes payable - long term Deferred income tax liability Other long - term liabilities

128,675 40,733 69

128,564 40,301 16

169,477

168,881

355,556 218 (108,480) 92,749

355,556 207 (112,824) 92,749

340,043

335,688

585,714

573,293

Total current assets PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment Accumulated depreciation and amortization Construction in progress Land Net property, plant and equipment

58,907 328

LIABILITIES AND STCOKHOLDERS'EQUITY CURRENT PAYABLES: Accounts payable Supplies Related parties Dividends Accrued liabilities

Total long term liabilities STOCKHOLDERS' EQUITY Common stock (56,355,556 shares autorized and outstanding) Additional paid-in-capital Accumulated losses Restricted Accumulated losses Total stockholders' equity Total liabilities and stockholders' equity

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY (An indirectly subsidiary of The AES Corporation) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts expressed in thousands of US dollars) 2Q11

2Q10

6M11

6M10

CASH FLOWS FROM OPERATING ACTIVITIES: (1,109)

(13,812)

Net (loss) income

5,568

(12,768)

11,270 235

11,499 235

1,373

(1,241)

Adjustments to reconcile net income to net cash (used in) provided by operating activities: 5,495 117

6,579 117

Depreciation and amortization Amortization of contracts

1,792

(1,293)

Income tax

(167)

2,362

1,950

8,494

(6,447)

Long-term compensation Loss on asset disposal

199

Interest expense – net

794

3,770

19,451

1,527

(5,723)

(13,316)

(27,585)

28,422

Changes in assets and liabilities: 3,381

236

333

(11)

1,258

693

4,859

10,271

(271)

(11,404)

(Increase) decrease in accounts receivable Decrease (increase) accounts receivable – related parties Decrease (increase) in other receivable Decrease (increase) in other receivable - related parties

(58)

183

(296)

1,653

Decrease (increase) in inventories

(2,924)

8,562

(Increase) decrease in prepaid expenses

1,107

(10,360)

(8,640)

1,167

Increase (Decrease) in accounts payable suppliers

2,306

2,093

(1,160) 1,167

(693) 2,542

Increase (decrease) in accounts payable - related parties Increase in accrued expenses and other liabilities

5,790 2,131

6,644 (539)

8,747

(2,914)

(5,802)

24,869

1,053

3,237

Interest received

8,056

8,005

(6,498)

(1,182)

Interest paid

(6,685)

(9,001)

3,302

(859)

(4,431)

23,873

(2,604)

(174)

(1,521)

(2,489)

(2)

(271)

(4,127)

(2,934)

Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment

(4,678)

(2,166)

Advances to suppliers in purchase of PP&E

(3,405)

(2,725)

Change in restricted cash Net cash used in investing activities

(61)

(8,144)

(4,886)

(33,774)

(12,575)

(14,787)

71,482

78,874

58,907

64,087

CASH FLOWS FROM FINANCING ACTIVITIES: -

(20,000)

(825) 59,732 58,907

Dividends paid Net cash used in financing activities

(23,793) Net (decrease) in cash and cash equivalents 87,880 Cash and cash equivalents at the beginning of the quarter 64,087 Cash and cash equivalents at the end of the semester

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Andres-DPP and Itabo are controlled and managed by subsidiaries of AES. Itabo owns the lowest-cost thermal power generation units in the Dominican Republic. Itabo operates power generation units that in the aggregate have 260 MW of effective and installed capacity. Itabo also has the only loading dock with the capacity to service Panamax vessels and to unload to 60,000 tons of solid fuels in bulk. Andres and DPP, own and operate power generation units that in the aggregate have 555 MW of installed capacity, which represent approximately 18.7% of the current total installed capacity, in the Dominican Republic. Andres also has the only liquefied natural gas, or LNG, shipment receiving terminal in the Dominican Republic, a degasification facility and a storage facility, or LNG facility, and a natural gas pipeline to Santo Domingo. The unaudited pro forma combined balance sheet and statement of operations presented in this report have not been audited and were derived from the unaudited consolidated financial statements of Andres and the unaudited consolidated financial statements of DPP. The information provided by the consolidated financial statements of Andres and the consolidated financial statements of DPP and for Itabo has been prepared in accordance with International Financial Reporting Standards (IFRS) as established in the Offering Memorandum of the USD$284 million notes units. The unaudited pro forma combined financial information described above is being provided for illustrative purposes only. Andres and DPP may have performed differently if they had actually been combined during the periods presented. This unaudited proforma combined financial information should be read in conjunction with the unaudited consolidated financial statements as of and for the periods ended on June 30th, 2011 and 2010, and notes thereto, of each of Andres and DPP. You should not rely on the pro forma combined financial information as being indicative of the historical results that would have been achieved by Andres and DPP if they had always been combined. The AES Corporation (NYSE: AES) is a Fortune 500 global power company with generation and distribution businesses. Through our diverse portfolio of thermal and renewable fuel sources, we provide affordable and sustainable energy to 29 countries. Our workforce of 27,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2010 revenues were $17 billion and we own and manage $41 billion in total assets. To learn more, please visit www.aes.com. This report may contain forward-looking statements speculative in nature based on the information, operational plans and forecasts currently available about future trends and facts. As such, they are subject to risks and uncertainties. A wide variety of factors may cause future real facts to differ significantly from the issues presented or anticipated in this report, including, among others, changes in general economic, political, government and business conditions. In the event of materializing any of these risks or uncertainties, or if underlying assumptions prove to be mistaken, future real facts may vary significantly. Itabo is not bound to update or correct the information contained in this report.

Please address any questions or comments related to this report to Investor Relations, email address: inversoraesdom@aes.com

Andres Dominicana and Itabo Dominicana, Earning Release

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2Q11 Relevant Results Glossary of key terms Btu:

CDEEE:

British thermal units of measurement. It is a unit of heat in the English European System. Its equivalence in the International System (IS) is the Calorie. The prices of Natural Gas are usually expressed in US$/MMBtu. 1 Btu is equivalent to 252 calories. Corporación Dominicana de Empresas Eléctricas Estatales. Previously known as CDE.

Coordinating Body:

“OC” or Organismo Coordinador. Whose function is to plan and coordinate the economic operations of the power providers with those of the transmission, distribution and commercialization system that form the SENI.

Deregulated Users (NRU):

The user of the electrical service which monthly demand exceeds the limits established by Superintendence in order to be classified as an unregulated user under the General Electricity Law.

EAF: Effective Capacity: EFOR: Firm Capacity: FX:

Equivalent Availability Factor The currently available capacity, as of any date of determination, for generation of a unit or the amount of MW that a power generation unit can reliably generate. Equivalent Forced Outage Rate The amount of capacity assigned by the Coordinating Body to each power generation unit for being available to cover the demand in peak hours. Foreign exchange, a banking term for changing money from one currency into another.

GDP:

The gross domestic product (GDP) is one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).

Henry Hub:

The specific pricing point for natural gas future contracts on the New York Mercantile Exchange, or NYMEX.

Installed capacity:

The amount of MW a turbine is designed to produce upon installment (name-plate capacity).

Liquid Natural Gas (LNG):

Platts:

Natural Gas processed to be transported in liquid form. It is the best alternative for transporting and storage because when transformed into liquid at atmospheric pressure and -163° C, the liquefaction process reduces the volume of gas by 600 times. Is a provider of energy information around the world that has been in business in various forms for more than a century and is now a division of The McGraw-Hill Companies. Products include Platts Energy Economist, industry news and price benchmarks for the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets.

PPA:

Power Purchase Agreement.

SENI:

Sistema Eléctrico Nacional Interconectado or the National Interconnected Electrical System.

Andres Dominicana and Itabo Dominicana, Earning Release

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