AEI Completes Acquisition of Interests in Chilquinta and Luz Del Sur From PSEG

AEI, a company that owns and operates essential energy infrastructure businesses in emerging markets worldwide, announced today that it has completed the acquisition of a 50.0% indirect interest in Chilquinta Energia S.A. (“Chilquinta”) and a 37.9% indirect interest in Luz del Sur S.A. (“Luz del Sur”) from Public Service Enterprise Group (“PSEG”) for $685 million. The acquisition includes, among other associated companies, service companies that provide management of technical projects and services, construction work, maintenance and other services to the utilities.

Chilquinta is the fourth-largest power distribution company in Chile by sales, serving more than 541,000 customers in Valparaiso and the surrounding area. In addition to its power distribution operations, Chilquinta also owns Energas, a natural gas distribution business that services more than 35,000 customers.

Luz del Sur is the largest power distribution company by sales in Peru. Luz del Sur (along with its subsidiaries) services more than 800,000 customers in the southern half of Lima and Canete, including the capital’s key economic areas. Luz del Sur is listed on the Lima Stock Exchange under the symbol “LUSURBC1″.

As announced in late October, this acquisition marks AEI’s entry into the Chilean market and further strengthens the Company’s presence in Peru. Earlier this year, AEI announced in partnership with its subsidiary Promigas S.A. E.S.P. the acquisition of Peruvian natural gas distributor Cálidda, whose service territory is complementary to that of Luz del Sur.

JPMorgan Securities Inc. acted as exclusive financial advisor to AEI in connection with the transaction.

About AEI

AEI is a company that owns and operates essential energy infrastructure businesses in emerging markets worldwide. AEI manages interests in a group of 37 energy companies with operations in 19 countries and more than $2.7 billion in revenues (2006 pro forma) and approximately 11,800 employees. The Company serves more than 6.0 million customers worldwide by operating businesses in Power Distribution, Power Generation, Natural Gas Transportation and Services, Natural Gas Distribution, and Retail Fuel, with approximately 39,000 km of gas and liquids pipelines, 160,000 km of power distribution lines, over 1,500 gasoline stations and a gross installed capacity of 1,735 MW. You can visit the AEI website at www.aeienergy.com.