COLUMBUS, Ohio, March 10, 2004 - American Electric Power (NYSE: AEP) has entered into an agreement to sell its ownership interests in four independent power plants (IPPs) to wholly-owned, indirect subsidiaries of The Bear Stearns Companies Inc. (NYSE: BSC) for an aggregate $156 million.

The transaction, which is contingent upon partner and lender approval and customary closing conditions including Hart-Scott-Rodino antitrust review, is expected to close around mid-year. The transaction is part of AEP´s plan to divest of assets that don´t fit with the company´s long-term strategy.

Included in the transaction are:

• AEP´s 47.75 percent interest in Brush II, a 68-megawatt gas-fired combined cycle cogeneration plant located in Brush, Colo.; AEP´s interest is 32 megawatts.
  
• AEP´s 50 percent interest in Thermo, a 272-megawatt gas-fired combined cycle cogeneration plant located in Ft. Lupton, Colo.; AEP´s interest is 136 megawatts.
  
• AEP´s 46.25 percent interest in Mulberry, a 120-megawatt gas-fired combined cycle cogeneration plant located in Bartow, Fla.; AEP´s interest is 56 megawatts.
  
• AEP´s 50 percent interest in Orange, a 103-megawatt gas-fired combined cycle cogeneration plant located in Bartow, Fla.; AEP´s interest is 52 megawatts.
  

The transaction will result in a pre-tax gain of approximately $100 million, primarily from the sale of the Florida plants. AEP recorded a pre-tax impairment of $70 million for the Colorado IPPs in the third quarter of 2003.

Proceeds from the sale will be used to reduce debt and strengthen the balance sheet.

"Our long-term strategy focuses on our strong utility business, which includes the nation´s largest power generation fleet," said Michael G. Morris, AEP´s chairman, president and chief executive officer. "Supplying power into wholesale markets is an important part of our business, but these IPPs are well outside the markets served by our core utilities and do not fit our refocused geographic strategy."

AEP acquired its ownership interest in the plants through the company´s 2000 merger with Central and South West Corp.

AEP is continuing the process of divesting operations in the United Kingdom, the Jefferson Island gas storage assets in Louisiana and other smaller holdings before the end of 2004.

AEP announced last month that it had signed a definitive agreement to sell LIG Pipeline Co. and its subsidiaries for $76.2 million. Earlier this month the company completed the sale of its 70-percent interest in Nanyang General Light, owners of a power plant in China, for total consideration of approximately $61 million. The company also has completed the sale of various smaller holdings as it continues to shed assets that don´t fit its long-term strategy.

American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

--

These reports made by AEP and its registrant subsidiaries contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; abnormal weather conditions; available sources and costs of fuels; availability of generating capacity; the speed and degree to which competition is introduced to the company´s service territories; the ability to recover stranded costs in connection with deregulation; new legislation and government regulation including (i) requirements for reduced emissions of sulfur, nitrogen, carbon and other substances and (ii) electricity transmission policy; pending and future rate cases and negotiations; oversight and/or investigation of the energy sector or its participants; the company´s ability to successfully control costs; the success of disposing of existing investments that no longer match the company´s corporate profile; international and country-specific developments affecting foreign investments including the disposition of any current foreign investments; the economic climate and growth in the company´s service territory and changes in market demand and demographic patterns; inflationary trends; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP’s pension plan; electricity and gas market prices; interest rates; liquidity in the banking, capital and wholesale power markets; actions of rating agencies; changes in technology, including the increased use of distributed generation within the company´s transmission and distribution service territory; other risks and unforeseen events, including wars, the effects of terrorism, embargoes and other catastrophic events.