Itabo 3Q10

Third Quarter 2010 Relevant Results

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

Santo Domingo, Dominican Republic December 15th, 2010

3Q10 Relevant Results

inversoraesdom@aes.com

www.aesdominicana.com.do

Itabo reports Net Loss of US$9.4 million for the third quarter 2010 Santo Domingo, Dominican Republic, December 15th, 2010 – Itabo announced today results for the third quarter 2010. All operating and financial information, except where otherwise specified, is expressed in US dollars in conformity with Generally Accepted Accounting Principles applicable in the United States (USGAAP).

Revenues increased 10.3% in the third quarter 2010 compared to the same period of 2009 and the accumulated results for the nine month period ending in September 2010 decreased 10.5% compared to the same period of the previous year. Net Loss was US$9.4 million for the third quarter of 2010 and the accumulated Net loss was US$22.1 million against a Net Income of US$23.6 million for the same period 2009.

3Q10

3Q09

(Millions of US$)

9M10

9M09

50.2 65.0 (14.8)

45.5 Revenues 53.8 Operating costs and expenses (8.3) Operating (Loss) income

148.8 171.1 (22.3)

166.2 128.2 38.0

-29.5%

-18.2% Operating (Loss) income margin

-15.0%

22.9%

(22.1)

23.6

(9.4)

(10.0)

(7.5) Net (loss) Income

Inside this report: Page Analysis of Financial Results

2-3

Financial Debt Summary

3-4

Liquidity

4

Operational Results

4

Operational Developments

5

Safety Indicators

5

Environmental Matters

5

Financial Statements

Net Cash (Used in) Provided by 11.6 Operating Activities

14.2

15.3

6-8

Glossary of Key Terms

10

External Factors1 Coal, Natural Gas and Fuel-Oil #6 Price Evolution

Dominican Republic’s GDP grew 7.6% during 3Q10.

The exchange rate as of September 30th, 2010 was RD$37.22 per US dollar (Bid) and RD$37.07 per US dollar (Ask).

Fuel-Oil #6

10 US$/MMBTU

Inflation stood at 4.24% at the end of September 2010.

12

9.98

10.83

9.86

8 Gas Natural

6 4

4.23 Carbón

2

5.03

3.58 2.43 3.19

2.22

0 3Q09

4Q09

1Q10

2Q10

3Q10

Average Coal prices were US$3.19 per MMBtu for the quarter, with a peak of US$3.26 per MMBtu and a low of US$3.06 per MMBtu. Total electricity demand as of September 30th, 2010 reached 9,012 GWh, an increase of 9.3 % versus the same period 2009.

1

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

Itabo, Earning Release

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3Q10 Relevant Results Analysis of Consolidated2 Financial Results (In USGAAP) Revenues increased 10.3% to US$50.2 million in the third quarter 2010 compared to the same period of 2009. This result was mainly driven by US$4.7 of higher electricity sales that resulted from a higher volume of contract sales and higher contract prices. th As of September 30 , 2010, Revenues totaled US$148.8 million, a decrease of 10.5% compared to the same period of 2009.

This decrease was mainly a result of: (i) lower electricity sales by US$17.2 million, due to lower contracted prices; and, (ii) lower other revenues by US$0.2 million.

Revenues consist of the following:

3Q10

3Q09

49.9 0.3 50.2

45.2 0.3 45.5

Var% 10.4 0.0 10.3

(Millions of US$)

9M10

9M09

Electricity sales Other revenues Total Revenues

148.0 0.8 148.8

165.2 1.0 166.2

Var% (10.4) (20.0) (10.5)

Operating Costs and Expenses increased 20.8%, in the third quarter of 2010 compared to the same period 2009, from $53.8 million to US$65.0 million. This variance was principally a net result of: (i) higher energy purchases by US$25.1 million due to lower generation; (ii) US$18.3 million of lower coal costs primarily due to lower generation; (iii) higher operating and maintenance expenses by US$5.8 million resulting from Itabo’s planned maintenances in its units; (iv) lower depreciation by US$1.6 million; and, (v) higher selling, general and administrative expenses by US$0.2 million.

As of September 30th, 2010, Operating Costs and Expenses increased 33.5% to US$171.1 million compared to same period of 2009. This variation was mainly caused by the net effect of: (i) higher electricity purchases of US$38.1 million resulting from higher demand, combined with lower energy production; (ii) higher coal cost by US$4.5 million due to higher per unit costs of contracted coal derived from a contract signed in 2008, which is expected to expire in mid 2011; (iii) higher operation and maintenance cost by US$3.9 million, due to planned maintenances in both units; (iv) lower depreciation by US$2.7 million; and, (v) lower selling, general and administrative expenses by US$0.9 million.

Operating costs and expenses consist of the following:

3Q10

3Q09

49.3 9.3 3.0 3.3 0.1 65.0

42.5 3.5 2.8 4.9 0.1 53.8

Var%

(Millions of US$) 16.0 Cost of electricity sales 165.7 Operating and maintenance expenses 7.1 Selling, general and administrative expenses (32.7) Depreciation 0.0 Amortization of contracts 20.8 Total Operating Cost and Expenses

9M10

9M09

133.8 16.5 8.5 12.0 0.3 171.1

91.2 12.6 9.4 14.7 0.3 128.2

Var% 46.7 31.0 (9.6) (18.4) 0.0 33.5

Total Other Expenses were US$5.3 million in the third quarter 2010 compared to a total other expenses of US$0.7 million in the same period of 2009. This variation was primarily attributable to the net effect of: (i) higher other expenses by US$3.3 million due to asset disposals during planned maintenance; (ii) lower net commercial interest income by US$1.6 million due to lower accounts receivables since the agreement signed in 2009 by DR Government with the IMF; (iii) lower net financial interest expenses by US$0.5 million; and, (iv) higher exchange expense by US$0.1 million.

As of September 30th, 2010, Net Expenses increased to US$9.0 million, as compared to the Net Expenses recorded in the same period of 2009 of US$7.3 million. This variance was the net result of: (i) lower net commercial interest income by US$1.5 million due to the 2010 outstanding balance was decreased since the agreement signed with IMF in 2009 by DR Government; (ii) lower net financial interest expenses by US$0.5 million; (iii) higher other expenses by US$0.6 million; and, (iv) higher exchange expenses by US$0.1 million.

2

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

Itabo, Earning Release

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3Q10 Relevant Results Other (Expenses) Income consists of the following:

3Q10

3Q09

(2.8) 1.3 (0.1) (3.6) (0.1) (5.3)

(3.3) 2.4 (0.1) 0.3 0.0 (0.7)

Var% (15.2) (45.8) 0.0 n/a n/a n/a

(Millions of US$)

9M10

Interest (expenses)- financial- net Interest income- commercial- net Amortization of deferred financing cost Other income (expenses)- net Remeasurement loss Total Other (Expenses)

(10.1) 5.1 (0.3) (3.6) (0.1) (9.0)

9M09 (10.7) 6.7 (0.3) (3.0) 0.0 (7.3)

Var% (5.6) (23.9) 0.0 20.0 n/a 23.3

Net Cash Used in Operating Activities was US$10.0 million for the third quarter 2010 compared to a Net Cash Provided by Operating Activities of US$11.6 million in the same period of 2009, resulting in a negative variation of US$21.6 million. This negative variance was mainly a result of: (i) higher accounts receivables by US$22.5 million; (ii) higher accounts payables by US$11.4 million; (iii) negative adjustment due to higher deferred tax by US$10.2 million; (iv) an impact of US$5.3 million from negative adjustments, reconciling net loss to net cash used in operations; and, (v) lower inventory by US$5.0 million.

As of September 30th, 2010, the Net Cash Provided by Operating Activities was US$14.2 million against a Net Cash Provided by operating activities of US$15.3 million in the same period of 2009. This variation was primarily the net result of: (i) higher accounts payables US$53.7 million; (ii) US$45.7 million of higher Net Loss; (iii) negative adjustment due to higher deferred tax by US$24.2 million; (iv) lower inventory by US$18.8 million; (v) US$11.5 million of negative reconciling adjustments, reconciling net loss to net cash provided by operating activities; (vi) lower accounts receivables by US$7.8 million.

Free Cash Flow (a non-GAAP 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$13.4 million for the third quarter 2010. During this period, in addition to the net cash used of US$10.0 million, there were additions to property, plant and equipment by US$3.4 million.

As of September 30th, 2010, the Free Cash Flow was net cash provided of US$5.9 million. In addition to the net cash provided by operating activities of US$14.2 million, there were additions to property, plant and equipment and advances to suppliers in purchases of PP&E by US$8.3 million.

Financial Debt Summary On September 28th, Itabo and its subsidiary, Itabo Finance, executed the redemption clauses established in the International Notes Indenture and called US$18,968,000 of senior notes, with a redemption price of 105.438% and redemption date of October 28th, 2010.

On October 6th Itabo paid interest due on its International Senior Notes of US$6.8 million.

On October 25th Itabo allocated a total of US$6.9 million of year local bonds at an interest rate of 7.5%.

On October 28th, Itabo settled the partial call announced on September 28th, 2010 and redeemed 189,680 of its international Senior Notes due 2013. Total amount paid was $20,131,268 which included principal, premium and accrued interest.

th On October 28 2010 Itabo announced an offer to purchase all of its still outstanding international Notes, through a Tender th Offer expiring on November 26 , 2010. This Tender Offer included an option for investors to provide Early Consent by November 10th, 2010 in exchange for a premium over the tender price. On November 12th and concurrent with the Early Consent, AES Itabo, through its newly established Itabo Dominicana subsidiary, issued $116.4M of senior notes and th th announced that any notes not tendered by November 26 , 2010 would be called by December 13 , 2010. The new Senior Notes expire on November 12, 2020 and bear interest at 9.5%.

Financial Debt

Sep-10

Dic-09

(expressed in millions of US$)

Local Currency Foreign Currency Total Debt Fixed Rate Variable Rate Short Term Long Term Financing Cost (*) Average Life (years)

125 125

125 125

100%

100%

0% 0%

0% 0%

100% 12.10%

100% 12.10%

3

4

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

Itabo, Earning Release

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3Q10 Relevant Results Rating Agency Fitch Ratings

Rating Senior Notes 2013 B-

Standard & Poor's

Senior Notes 2013

Outlook Stable

B

Liquidity

Stable

Collection Rate

Collections IMF Agreement

ƒ During the third quarter 2010 the average collection rate was 60% against 97% in the same period of 2009. However, for the period YTD September 30th, 2010, the average collection rate remains 101%, against 102% in the same period 2009. During this period the electricity sector has been benefited by the DR Government under the Standby Agreement with the IMF in order to pay their 2009 debts to the generation companies. Currently Itabo accounts receivables have 103 days sales outstanding, (DSO) compared to 168 during the same period of 2009.

206% 151% 91%

97%

60%

3Q09

4Q09

1Q10

2Q10

3Q10

Operational Results For the third quarter 2010, the Net Generation was 205 GWh, a decrease of 44.4% with respect to the same period of 2009, this was principally due to planned maintenance performed on the Itabo I & II units. The Energy Sold increased 5.0% compared to the same period of the previous year, mainly from contracts. It should be noted that the increase in sales, when combined with a decrease in generation, also required an increase in energy purchases. The EAF decreased 48.2% to 44.0%, due to the planned maintenance performed during this period and the EFOR decreased from 11% to 4% because the implementation of several operational improvement initiatives.

As of September 30th 2010, the Net Generation was 969 GWh, a decrease of 8.2% against the same period 2009 primarily due to higher planned outage days. The Energy Sold increased 10.9% when compared to the same period of the previous year due mainly to higher contract sale. The Itabo’s Heat Rate decreased 2.1%, primaly related to lower EFOR (2%).

The following table presents selected operational information for each of the periods indicated:

3Q10

3Q09

231 (26) 205 439 226 11,912 44 4

409 (40) 369 418 226 11,181* 85* 11

As of September 30th, 2010 Installed capacity (MW)

260

Power Generation Units Effective capacity (MW)

2 260

Var.% (43.5) (35.0) (44.4) 5.0 6.5 (48.2) (63.6)

9M10 Gross generation Internal consumption Net Generation Total Energy Sold Firm Capacity Heat Rate EAF EFOR

GWh GWh GWh GWh MW Btu/KWh % %

9M09

1,050 1,171 (81) (116) 969 1,055 1,330 1,199 226 226 11,158 11,398* 72 81* 2 9

Var.% (10.3) (30.2) (8.2) 10.9 (2.1) (11.1) (77.8)

*Data revised: The 3Q09 Heat Rate and EAF were revised.

Itabo, Earning Release

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3Q10 Relevant Results Operational Developments • During the third quarter 2010, two coal vessels were received containing 81,623 MT. th • On August 10 , Itabo announced the construction of natural gas fired power plant at a cost of US$15 million to supply 34 megawatts.

• On August 28th, Itabo II 60 days planned maintenance, finished and on October 5th Itabo I finished a 16 days planned maintenance.

Safety Indicators During the third quarter 2010, Itabo had one contractor fatality during the Unit II planned maintenance.

Itabo’s Unit I planned maintenance was free of Loss time incidents (LTI) or fatalities.

As par of the Safety initiatives a new program call “Safe Start” was initiated.

Environmental Matters During the third quarter 2010, the businesses recycled around 7,337.86 tons of ash (85% of the ash generated during the quarter), which was subsequently used in cement production.

During the third quarter 2010, the Environmental Compliance Report ICA No. 18 for the period January – February 2010, was submitted to the Environmental Ministry.

During the third quarter 2010, 4,225,161 gallons of water recovered by the zero discharge program.

During first nine months we have complied with all environmental requirements.

AES Dominicana Group received from RENAEPA (Red Nacional Apoyo Empresarial para la Proteccion Ambiental) the “Decalogue RENAEPA award” for compliance in a set of ten principles in the environmental protection.

Itabo, Earning Release

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3Q10 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)

3Q10

3Q09

49,936 261 50,197

REVENUES 45,156 Electricity sales 346 Other revenues 45,502 Total revenues

9M10 148,019 854 148,873

165,085 1,093 166,178

(133,726) (16,471) (8,514) (12,065) (353)

(91,129) (12,616) (9,392) (14,670) (353)

(171,129)

(128,160)

(8,256) Operating (loss) income

(22,256)

38,018

5,023 Interest income (5,914) Interest expense (127) Amortization of deferred financing costs 301 Other income - net 19 Remeasurement gain (698) Total non operational

7,759 (12,793) (398) (3,514) (199) (9,145)

12,531 (16,487) (383) (2,983) (8) (7,330)

(8,955) (Loss) income before taxes

(31,401)

30,688

9,287

(7,059)

(22,114)

23,629

OPERATING COSTS AND EXPENSES Cost of electricity sales Operating, maintenance and general expenses Selling, general and administrative expenses Depreciation Amortization of contracts

(49,283) (9,277) (3,001) (3,312) (118)

(42,527) (3,448) (2,803) (4,863) (118)

(64,991)

(53,759) Total operating costs and expenses

(14,794) 1,984 (3,513) (133) (3,568) (114) (5,344) (20,138) 10,722 (9,416)

9M09

1,450 Income tax expense (7,505)

Net (loss) income

The company’s Financial Results were prepared in Dollars in conformity with Generally Accepted Accounting Principles in the United States, as of any date of determination, or “GAAP.”

Itabo, Earning Release

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3Q10 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)

Sept. 30th, 2010

Dec. 31st, 2009

ASSETS CURRENT ASSETS Cash and cash equivalents Restricted cash and cash equivalents Accounts receivable Accounts receivable – related parties, net Other receivable Other receivable – related parties Fuel inventory Materials and supplies inventory - current Income tax receivable Prepaid expenses and other assets Deferred tax asset Total current assets Property, plant and equipment Property, plant and equipment Accumulated depreciation and amortization Construction in progress Land Net property, plant and equipment Long term assets Long term receivables from customers Income tax receivable LT Debt service reserves Deferred financing costs Intangible - contracts Other assets Total long term assets

49,963 1,010 673 76,767 95 8,214 7,090 10,488 1,238 1,326 156,864

78,874 276 1,703 88,782 1,567 1,737 14,812 12,170 19,471 667 862 220,921

339,968 (128,404) 8,431 8,038 228,033

344,276 (121,558) 1,280 8,030 232,028

33,680 19,875 6,797 1,724 2,746 6,590 71,412

36,652 6,797 1,959 3,099 2,254 50,761

456,309

503,710

18,968 18,858 36,275 11,306 85,407

8,873 28,789 21,631 59,293

106,032 1,557 14 107,603

125,000 13,987 41 139,028

Stockholders' equity Common stock (56,355,556 shares autorized and outstanding) Additional paid-in-capital Accumulated losses Total stockholders' equity

355,556 201 (92,458) 263,299

355,556 177 (50,344) 305,389

Total liabilities and stockholders' equity

456,309

503,710

Total assets Liabilities and stockholders' equity Current liabilities Notes payable and short-term portion of long term debt Accounts payable Accounts payable - related parties Accrued liabilities Total current liabilities Notes payable - long term Deferred income tax liability Other long - term liabilities Total long term liabilities

The company’s Financial Results were prepared in Dollars in conformity with Generally Accepted Accounting Principles in the United States, as of any date of determination, or “GAAP.”

Itabo, Earning Release

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3Q10 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) 3Q10

3Q09

9M10

9M09

Cash flows from operating activities (9,416)

(7,505)

3,312 118 133 (11,671) 0 0 0 2,470 0 (35) (26) 0 0 0

4,863 118 127 (1,450) 5,411 (2,784) (805) (850) (65) (1) (19) 850 0 0

2,233 (13,359) 1,289 (4,097) (274) 1,115 1,124 (45) 2,876 14,602 (331) (9,982)

868 8,106 (448) 0 (4,142) (6) 76 (281) (27) 6,064 3,439 11,539

Net (loss) income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Amortization of contracts Amortization of deferred financing costs Provision for deferred tax Investment asset impairment expense Gain on early extinguishment of debt Gain on sale of investment Gain on asset disposal Income tax payments Long term compensation Remeasurement gain (loss) Gain on asset disposal Allowance for doubful accounts Other non-cash items Changes in assets and liabilities: Accounts receivable - trade Accounts receivable – related companies Other receivable Other receivable – related parties Fuel inventory Materials and supplies Prepaid taxes Prepaid expense and other assets Accounts payable Accounts payable - related parties Accrued liabilities and other Net cash provided (used in) by operating activities

(22,114)

23,629

12,065 353 398 (17,091) 2,470 (3) -

14,670 353 383 7,059 5,411 (2,784) (805) (850) (284) 50 8

-

(17) -

4,002 12,015 1,472 (6,477) 7,722 1,682 (1,642) (4,995) 7,845 21,262 (4,801) 14,163

4,474 (732) (521) (4,221) (5,128) 504 2,758 (46,316) 21,697 (4,051) 15,287

(8,266)

(3,877)

(734)

21,263 5

(9,000)

17,391

Cash flows from investing activities: (3,376) 0 0 (739)

(3,863) 3,462 5,631 1

(4,115)

5,232

Additions to property, plant and equipment Advances to suppliers in purchase of PP&E Long term investment Change in restricted cash and cash equivalents Net cash (used in) provided by investing activities Cash flows from financing activities:

0 0 (27)

(4,400) 0 0

Dividends payment Debt service reserves Payments of deferred financing costs

(33,775) (163)

(13,791)

(27)

(4,400)

Net cash used in financing activities

(33,938)

(13,791)

0 (14,124) 64,087 49,963

0 EFFECT OF EXCHANGE RATE CHANGES ON CASH 12,370 NET INCREASE (DECREASE) IN CASH 27,028 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 39,398 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

(136)

-

-

(28,911)

18,887

78,874

20,511

49,963

39,398

The company’s Financial Results were prepared in Dollars in conformity with Generally Accepted Accounting Principles in the United States, as of any date of determination, or “GAAP.” The presentation of certain prior year balances has been reclassified to conform to the current year presentation.

Itabo, Earning Release

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3Q10 Relevant Results The results presented in this report have not been audited and were prepared in Dollars in conformity with generally accepted accounting principles in the United States, as of any date of determination, or “GAAP.�

Itabo is 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.

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 2009 revenues were $14 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com.

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

Itabo, Earning Release

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3Q10 Relevant Results Glossary of key terms Btu:

CDEEE: Coordinating Body:

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

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. “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. 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).

Installed capacity:

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

Platts:

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.

Itabo, Earning Release

PPA:

Power Purchase Agreement.

SENI:

Sistema Eléctrico Nacional Interconectado or the National Interconnected Electrical System.

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