Columbus, Ohio, and Dallas, Aug. 6, 1999 – American Electric Power (NYSE: AEP)and local unions of the Utility Workers Union of America (UWUA) representing employees of AEP have ratified a settlement agreement covering issues raised in the pending merger between AEP and Central and South West Corporation (NYSE: CSR), the parties announced today. The agreement covers approximately 1,370 UWUA members employed by AEP in Indiana, Ohio, and West Virginia. The agreement is between AEP and the UWUA and does not include CSW, since no CSW employees are members of UWUA. The agreement confirms that AEP will not eliminate any current UWUA employee as a result of the merger, the company will recognize existing labor agreements, and the company and the union will meet periodically to discuss and seek mutually satisfactory resolution of issues of concern. As part of the settlement, the UWUA local unions will not oppose the merger. "We've said from the start that this merger will be good for our employees, as well as beneficial to our customers and shareholders," said E. Linn Draper Jr., AEP chairman, president and chief executive officer. "We're pleased that our employees who are UWUA members recognize the importance of this merger and will work with us as we build the new AEP. This agreement and the agreement reached in April with the International Brotherhood of Electrical Workers (IBEW) demonstrates solidarity between employees and management as we work to complete regulatory approvals." "We believe our agreement with AEP will enhance the employment security of the members of our local unions," said Don Opatka, UWUA Region III representative. "The agreement further provides a method to address issues of mutual concern in the employee-employer relationship in a constructive forum that can bring added value to shareholders, consumers, our members and the company. Our members look forward to an improved relationship, remaining an integral component of the company, and continuing to be an asset to the communities in which they work and live." AEP and CSW announced their intent to merge on Dec. 22, 1997. The merger has received conditional approval by state regulatory commissions in Arkansas, Louisiana and Oklahoma, three of the four states within CSW's service territory. The Oklahoma order confirmed an Oklahoma Corporation Commission (OCC) staff settlement recommendation to the OCC to not oppose approval of the merger by the FERC. The companies have a pending merger settlement with key parties in Texas, the fourth CSW state, that awaits action by the Public Utility Commission of Texas. AEP and CSW have reached a settlement with the FERC trial staff, in which the staff supports a finding that the merger will have no adverse effect on competition. The FERC hearings concluded on July 19. On July 28, the FERC issued an order imposing a procedural schedule on the administrative law judge and other parties so the commission can act on the pending merger in February or March of next year. AEP and CSW have also announced settlement agreements with the International Brotherhood of Electrical Workers (IBEW) resulting in the IBEW local unions withdrawing their opposition to completion of the merger; with the Indiana Utility Regulatory Commission (IURC) resulting in Indiana customers receiving merger benefits and including a commitment by the IURC to not oppose the merger during consideration of the merger agreement by the FERC and the SEC; with key parties in Kentucky that has been approved by the Kentucky Public Service Commission; with the Missouri Public Service Commission that addresses the commission's concerns about the effect of the merger on retail competition in the state; and with a variety of wholesale customers that had intervened in federal proceedings. The Nuclear Regulatory Commission has approved a license transfer application related to the merger. The merger requires approval by the FERC and the SEC and review by the Department of Justice. Once the merger is completed, the new company will be called American Electric Power. Central and South West Corp. is a global, diversified public utility holding company based in Dallas. CSW owns four electric operating subsidiaries serving 1.7 million customers in Texas, Oklahoma, Louisiana and Arkansas; a regional electricity company in the United Kingdom; other international energy operations and non-utility subsidiaries involved in energy-related investments, telecommunications, energy efficiency and financial transactions. AEP, a global energy company, is one of the United States' largest investor-owned utilities, providing energy to 3 million customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia. AEP has holdings in the United States, the United Kingdom, China and Australia. Wholly owned subsidiaries provide power engineering, energy consulting and energy management services around the world. The company is based in Columbus, Ohio. News releases and other information about CSW can be found on the World Wide Web at http://www.csw.com.