First Quarter Diluted Earnings Per Share from Continuing Operations increased versus the First Quarter of 2010 by $0.06 to $0.30, reflecting the impact of higher volumes in Latin America, lower parent interest expense in 2011 and favorable foreign currency.

First Quarter Adjusted Earnings Per Share declined versus the First Quarter of 2010 by $0.06 to $0.22, primarily due to higher share count but in line with our expectations.

The balance of 2011 will benefit from the addition of over 1,700 MW of new capacity coming on-line by year-end.

Consolidated Revenue

Consolidated Gross Margin

4,200

Proportional Gross Margin¹

2,650

Consolidated Cash Flow from Operating Activities

2,850

3,500

Proportional Cash Flow from Operating Activities¹

1,600

2,225

Consolidated Free Cash Flow¹

1,950

2,400

Proportional Free Cash Flow¹

950

1,400

Subsidiary Distributions to the Parent Company²

1,300

1,600

Diluted EPS from Continuing Operations

0.99

1.25

Adjusted EPS¹

1.03

1.37

A non-GAAP financial measure.

See definitions.

2011 Guidance includes costs associated with the acquisition of DPL Inc. of approximately ($0.11). It does not include the potential impacts of hedging interest costs on the acquisition financing which could have an impact on 2011 and 2012 reported results.

Consolidated Revenue increased by $344 million to $4.3 billion, benefiting from: (i) the favorable impacts of foreign currency of $155 million; (ii) higher prices and volumes in Chile and Argentina; (iii) contributions from its Ballylumford plant in Northern Ireland; and (iv) increased demand at its Brazil utilities. These gains were partially offset by: (i) lower prices at

its utility business in Latin America; (ii) lower volume in Sri Lanka; and (iii) lower prices at Kilroot in Northern Ireland.

Consolidated Gross Margin increased by $55 million to $1 billion, benefiting from: (i) the favorable impacts of foreign currency of $36 million; (ii) higher prices and volumes in Chile; (iii) increased demand at its Brazilian utilities; and (iv) contributions from its Ballylumford plant in Northern Ireland. These gains were partially offset by: (i) an increase in fixed costs; (ii) lower prices at Kilroot in Northern Ireland; (iii) lower prices at its utility businesses in Latin America; (iv) increased outages, primarily in Panama; and (v) lower volume in the Philippines.

Proportional Gross Margin (a non-GAAP financial measure, see Appendix for definition and reconciliation) was flat to the first quarter of 2010 at $620 million.

Consolidated Cash Flow from Operating Activities decreased by $163 million to $505 million. This decrease is primarily related to higher tax payments in 2011 combined with higher collections of past due government receivables in 2010 within Latin America Generation. In addition, Asia Generation declined as the result of lower operating income in the Philippines and the sale of its businesses in Oman, Pakistan and Qatar during 2010.

Proportional Cash Flow from Operating Activities (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased by $101 million to $322 million, driven primarily by Latin America, Asia and North America Generation.

Consolidated Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased by $249 million to $263 million, driven by lower operating cash flow discussed above as well as higher maintenance capex of $86 million primarily in Latin America and North America Utilities.

Proportional Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased by $158 million to $159 million.

Diluted EPS from Continuing Operations increased $0.06 per share to $0.30 per share. This increase was driven by higher volume, new businesses and unrealized foreign currency transaction gains. These positive drivers were partially offset by a net 13% share count increase and higher fixed costs and outages.

Adjusted EPS (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased $0.06 to $0.22 per share. The decrease was primarily attributable to higher share count, higher fixed costs and outages, partially offset by higher volume and new businesses. Table 2 provides a reconciliation of Diluted EPS to Adjusted EPS for first quarter 2011 as compared to first quarter 2010.

Diluted Earnings Per Share from Continuing Operations

Derivative Mark-to-Market (Gains)/Losses

Currency Transaction (Gains)/Losses

Disposition/Acquisition (Gains)/Losses

Impairment Losses

Debt Retirement (Gains)/Losses

Adjusted Earnings Per Share

AES announced on April 20^th that it has executed a definitive agreement under which it has agreed to acquire DPL Inc. in a transaction valued at $4.7 billion on an enterprise value basis. Upon closing of the transaction, DPL will become a wholly-owned subsidiary of AES. DPL is the parent company of the Dayton Power & Light Company (DP&L) in Ohio.

AES Wind Generation reached financial close and commenced construction on Drone Hill, a 28.6 MW wind project in the United Kingdom. This is the first project to close this year stemming from the 2010 acquisition of Your Energy Ltd (YEL), a United Kingdom based wind developer.

Angamos, a 518 MW coal-fired plant under construction in Chile, reached commercial operations for its first unit, of two, on April 9^th.

Year-to-date in 2011, the Company has repurchased 7.7 million shares for $99 million, at an average price of $12.76 per share. Since inception of the $500 million share repurchase program in July 2010, the Company has invested $198 million for 16.1 million shares, at an average price of $12.29 per share.

Revenue:

Regulated

Non-Regulated

Total revenue

Cost of Sales:

Regulated

Non-Regulated

Total cost of sales

GROSS MARGIN

General and administrative expenses

Interest expense

Interest income

Other expense

Other income

Gain on sale of investments

Foreign currency transaction gains (losses) on net monetary position

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES

Income tax expense

Net equity in earnings of affiliates

INCOME FROM CONTINUING OPERATIONS

Income (loss) from operations of discontinued businesses, net of income tax

Loss from disposal of discontinued businesses, net of income tax

NET INCOME

Noncontrolling interests:

Income from continuing operations attributable to noncontrolling interests

Income from discontinued operations attributable to noncontrolling interests

Total net income attributable to noncontrolling interests

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION

BASIC EARNINGS PER SHARE:

Income from continuing operations attributable to The AES Corporation common stockholders, net of tax

Discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

DILUTED EARNINGS PER SHARE:

Income from continuing operations attributable to The AES Corporation common stockholders, net of tax

Discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

Income from continuing operations, net of tax

Discontinued operations, net of tax

NET INCOME

REVENUE

Latin America - Generation

Latin America - Utilities

North America - Generation

North America - Utilities

Europe - Generation

Asia - Generation

Corp/Other & eliminations

Total Revenue

GROSS MARGIN

Latin America - Generation

Latin America - Utilities

North America - Generation

North America - Utilities

Europe - Generation

Asia - Generation

Corp/Other & eliminations

Total Gross Margin

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Restricted cash

Short-term investments

Accounts receivable, net of allowance for doubtful accounts of $324 and $307, respectively

Inventory

Receivable from affiliates

Deferred income taxes - current

Prepaid expenses

Other current assets

Current assets of discontinued and held for sale businesses

Total current assets

NONCURRENT ASSETS

Property, Plant and Equipment:

Land

Electric generation, distribution assets and other

Accumulated depreciation

Construction in progress

Property, plant and equipment, net

Other assets:

Deferred financing costs, net of accumulated amortization of $296 and $287, respectively

Investment in and advances to affiliates

Debt service reserves and other deposits

Goodwill

Other intangible assets, net of accumulated amortization of $163 and $157, respectively

Deferred income taxes - noncurrent

Other

Noncurrent assets of discontinued and held for sale businesses

Total other assets

TOTAL ASSETS

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable

Accrued interest

Accrued and other liabilities

Non-recourse debt - current, including $1,169 and $1,152, respectively, related to variable interest entities

Recourse debt - current

Current liabilities of discontinued and held for sale businesses

Total current liabilities

LONG-TERM LIABILITIES

Non-recourse debt - noncurrent, including $2,256 and $2,201, respectively, related to variable interest entities

Recourse debt - noncurrent

Deferred income taxes - noncurrent

Pension and other post-retirement liabilities

Other long-term liabilities

Long-term liabilities of discontinued and held for sale businesses

Total long-term liabilities

Cumulative preferred stock of subsidiary

EQUITY

THE AES CORPORATION STOCKHOLDERS’ EQUITY

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 806,431,926 issued and 784,683,934 outstanding at March 31, 2011 and 804,894,313 issued and 787,607,240 outstanding at December 31, 2010)

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Treasury stock, at cost (21,787,992 shares at March 31, 2011 and 17,287,073 shares at December 31, 2010)

Total The AES Corporation’s stockholders’ equity

NONCONTROLLING INTERESTS

Total equity

TOTAL LIABILITIES AND EQUITY

OPERATING ACTIVITIES:

Net income

Adjustments to net income:

Depreciation and amortization

Loss from sale of investments and impairment expense

Loss on disposal and impairment write-down - discontinued operations

Provision for deferred taxes

Contingencies

(Gain) loss on the extinguishment of debt

Noncontrolling interest of discontinued operations

Other

Changes in operating assets and liabilities:

Increase in accounts receivable

(Increase) decrease in inventory

Decrease in prepaid expenses and other current assets

(Increase) decrease in other assets

Increase (decrease) in accounts payable and accrued liabilities

Decrease in income taxes and other income tax payables, net

Increase in other liabilities

Net cash provided by operating activities

INVESTING ACTIVITIES:

Capital expenditures

Acquisitions–net of cash acquired

Proceeds from the sale of businesses

Proceeds from the sale of assets

Sale of short-term investments

Purchase of short-term investments

(Increase) decrease in restricted cash

Increase in debt service reserves and other assets

Affiliate advances and equity investments

Other investing

Net cash used in investing activities

FINANCING ACTIVITIES:

Issuance of common stock

Borrowings under the revolving credit facilities, net

Issuance of non-recourse debt

Repayments of recourse debt

Repayments of non-recourse debt

Payments for deferred financing costs

Distributions to noncontrolling interests

Financed capital expenditures

Purchase of treasury stock

Other financing

Net cash (used in) provided by financing activities

Effect of exchange rate changes on cash

Total increase in cash and cash equivalents

Cash and cash equivalents, beginning

Cash and cash equivalents, ending

Reconciliation of Adjusted Earnings Per Share ⁽¹⁾

Diluted EPS From Continuing Operations

Derivative Mark-to-Market (Gains)/Losses⁽²⁾

Currency Transaction (Gains)/Losses⁽³⁾

Disposition/Acquisition (Gains)/Losses

Impairment Losses

Debt Retirement (Gains)/Losses

Adjusted Earnings Per Share⁽¹⁾

Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses of the consolidated entity due to (a) mark-to-market amounts related to derivative transactions, (b) unrealized foreign currency gains or losses, (c) significant gains or losses due to dispositions and acquisitions of business interests, (d) significant losses due to impairments, and (e) costs due to the early retirement of debt. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability due to mark-to-market gains or losses related to derivative transactions, currency gains or losses, losses due to impairments and strategic decisions to dispose or acquire business interests or retire debt, which affect results in a given period or periods. Adjusted earnings per share should not be construed as an alternative to earnings per share, which is determined in accordance with GAAP.

Derivative mark-to-market (gains)/losses were net of income tax per share of $0.00 and $0.01 in the three months ended March 31, 2011 and 2010, respectively.

Unrealized foreign currency transaction (gains)/losses were net of income tax per share of $(0.01) and $0.00 in the three months ended March 31, 2011 and 2010, respectively.

Reconciliation of Adjusted Gross Margin⁽¹⁾

Consolidated Gross Margin

Add: Depreciation and Amortization

Less: General and Administrative Expenses

Adjusted Gross Margin⁽¹⁾

Reconciliation of Proportional Gross Margin⁽²⁾

Consolidated Gross Margin

Less: Proportional Adjustment Factor

Proportional Gross Margin⁽²⁾

Reconciliation of Proportional Adjusted Gross Margin^(1),(2)

Consolidated Adjusted Gross Margin

Less: Proportional Adjustment Factor

Proportional Adjusted Gross Margin^(1),(2)

Adjusted Gross Margin (a non-GAAP financial measure) is defined by the Company as: Gross margin plus depreciation and amortization less general and administrative expenses. AES believes adjusted gross margin is a useful measure for evaluating and comparing the operating performance of its businesses because it includes the direct operating costs of its business including overhead related expenses and excludes potential differences caused by variations in capital structures affecting interest income and expense, tax positions, such as the impact of changes in effective tax rates and the impact of depreciation and amortization expense.

See footnote (2) on Guidance Elements for definition of proportional financial metrics.

Calculation of Maintenance Capital Expenditures for Free Cash Flow ⁽¹⁾

Reconciliation Below:

Maintenance Capital Expenditures, excluding environmental

Environmental Capital Expenditures

Growth Capital Expenditures

Total Capital Expenditures

Reconciliation of Proportional Operating Cash Flow⁽²⁾

Consolidated Operating Cash Flow

Less: Proportional Adjustment Factor

Proportional Operating Cash Flow⁽²⁾

Reconciliation of Free Cash Flow⁽¹⁾

Consolidated Operating Cash Flow

Less: Maintenance Capital Expenditures, excluding environmental

Less: Environmental Capital Expenditures

Free Cash Flow⁽¹⁾

Reconciliation of Proportional Free Cash Flow^(1),(2)

Proportional Operating Cash Flow

Less: Proportional Maintenance Capital Expenditures

Proportional Free Cash Flow^(1),(2)

Free cash flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including environmental capital expenditures), net of reinsurance proceeds from third parties. AES believes that free cash flow is a useful measure for evaluating our financial condition because it represents the amount of cash provided by operations less maintenance capital expenditures as defined by our businesses, that may be available for investing or for repaying debt.

See footnote (2) on Guidance Elements for definition of proportional financial metrics.

Total subsidiary distributions & returns of capital to Parent

Subsidiary distributions⁽¹⁾ to Parent & QHCs

Returns of capital distributions to Parent & QHCs

Total subsidiary distributions & returns of capital to Parent

Total subsidiary distributions & returns of capital to Parent

Subsidiary distributions⁽¹⁾ to Parent & QHCs

Returns of capital distributions to Parent & QHCs

Total subsidiary distributions & returns of capital to Parent

Parent Company Liquidity⁽²⁾

Cash at Parent & Cash at QHCs⁽³⁾

Availability under corporate credit facilities

Ending liquidity

Subsidiary distributions should not be construed as an alternative to Net Cash Provided by Operating Activities which are determined in accordance with GAAP. Subsidiary distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own activities but instead relies on its subsidiaries’ business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding company. The reconciliation of difference between the subsidiary distributions and the Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies.

Parent Company Liquidity is defined as cash at the Parent Company plus availability under corporate credit facilities plus cash at qualified holding companies (“QHCs”). AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the non-recourse nature of most of AES’s indebtedness.

The cash held at QHCs represents cash sent to subsidiaries of the Company domiciled outside of the US. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs.

Income Statement Elements

Gross Margin

Adjusted Gross Margin

Diluted Earnings Per Share From Continuing Operations

Adjusted Earnings Per Share Factors⁽³⁾

Adjusted Earnings Per Share⁽³⁾

Cash Flow Elements

Net Cash From Operating Activities

Operational Capital Expenditures (a)

Environmental Capital Expenditures (b)

Maintenance Capital Expenditures (a + b)

Free Cash Flow⁽⁵⁾

Subsidiary Distributions⁽⁶⁾

Reconciliation of Free Cash Flow

Net Cash from Operating Activities

Less: Maintenance Capital Expenditures