ROANOKE, Va., Jan. 28, 1998 – Appalachian Power Co., a wholly owned subsidiary of American Electric Power Co. (NYSE:AEP), today announced it will redeem on March 1, 1998, all of the outstanding $60,000,000 principal amount of its First Mortgage Bonds, Designated Secured Medium Term Notes, 7.95% Series due March 1, 2002, at the regular redemption price of 101.14 percent of the principal amount of each bond, plus accrued interest to March 1, 1998. This action is being taken under the terms of the mortgage under which the bonds were issued which permit Appalachian to redeem the bonds prior to maturity. The notice of redemption is expected to be mailed on or before Jan. 30, 1998. Bankers Trust Company, New York, is the redemption agent and trustee. AEP, a global energy company, is one of the United States' largest investor-owned utilities, providing energy to 2.9 million customers in Ohio, Indiana, Michigan, West Virginia, Virginia, Tennessee and Kentucky. AEP has holdings in the United States, the United Kingdom and China. Wholly owned subsidiaries provide power engineering, consulting and management services around the world. The company is based in Columbus, Ohio.