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Feb. 6, 1998News Release
COLUMBUS, Ohio, Feb. 6, 1998 -- American Electric Power (NYSE: AEP), through its AEP Resources subsidiary, has agreed to take a 20 percent equity interest in Pacific Hydro Ltd., an Australian company that develops and operates hydroelectric facilities. The agreement was announced this morning in Melbourne, Australia. The transaction, valued at approximately US$10 million, is subject to approval by Pacific Hydro's shareholders and Australia's Foreign Investment Review Board (FIRB). The 20 percent interest will be entirely through the issuance of new shares by Pacific Hydro. Pacific Hydro will schedule a special shareholders meeting in mid March to approve the placement of the shares to AEP. Under the agreement, AEP will appoint two directors to the Pacific Hydro board following shareholder and FIRB approval. "The Asia-Pacific region has been an area of interest for AEP, so this agreement fits with our global strategy," explained Donald M. Clements, president of AEP Resources. "Pacific Hydro broadens AEP's activities in the region and diversifies the types of projects in which we can participate." Pacific Hydro, located in Surrey Hills, Victoria, is listed on the Australian Stock Exchange (ASX: PHY). It operates four hydroelectric power stations in Australia with an installed capacity of 40 megawatts. Pacific Hydro is involved in two hydroelectric projects in the Philippines with Pacificorp (NYSE: PPW) and the Philippine group Aboitiz Equity Ventures. It has a one-third share of a 70 megawatt facility under construction on the Bakun River, scheduled for completion in 2000, and a 30 percent interest in a 68 megawatt facility on the Tagaloan River, scheduled for completion in 2001. AEP Resources is a wholly owned subsidiary of American Electric Power that pursues energy-related domestic and international investment opportunities and projects. The company holds a 50 percent ownership in Yorkshire Electricity Group, a regional electric company in the United Kingdom. AEP Resources also holds a 70 percent interest in Nanyang General Light Electric Co. Ltd., which is building two 125-megawatt coal-fired units in China. The company has offices in Columbus, Ohio; Toronto; Beijing; and Sydney, Australia. 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.
For More Information, Contact: Pat D. Hemlepp Manager, Media Relations American Electric Power 614/223-1620

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