COLUMBUS, Ohio, Oct. 8, 2001 - American Electric Power (NYSE: AEP), in a move to advance its European wholesale strategy, today agreed to acquire 4,000 megawatts of coal-fired generation in the United Kingdom from Edison Mission Energy, a subsidiary of Edison International (NYSE: EIX).

“The acquisition is consistent with the strategic objectives of our European business, which is to build a trading, marketing and optimization business across key aspects of the wholesale fuel and power generation value chain in Europe,“ said E. Linn Draper Jr., AEP chairman, president and chief executive officer. “We’ve been very successful in the U.S. with a strategy that links wholesale marketing and trading operations to generating assets. This acquisition allows us to replicate our successful U.S. wholesale model in the UK.”

The acquisition is valued at US$960 million (UK£650 million) and will be immediately accretive to AEP’s earnings by approximately $0.06 per share in 2002.

“We are paying approximately $200 per kilowatt for these assets, which is an attractive price based on current market conditions in the UK,” said Hank Jones, senior vice president with AEP subsidiary AEP Energy Services. Jones heads the company’s wholesale business in Europe.

AEP intends to fund the acquisition with a combination of short-term debt and non-recourse debt. Since it will generate sufficient cash flow after all debt service, the company anticipates credit ratings will not be impacted. The transaction is expected to be completed by the end of the year.

Assets acquired are:

• Fiddler’s Ferry, a four-unit, 2,000-megawatt station on the River Mersey in northwest England, approximately 200 miles from London

• Ferrybridge, a four-unit, 2,000-megawatt station located on the River Aire in northeast England, approximately 200 miles from London

The transaction also includes the fuel supplies associated with Fiddler’s Ferry and Ferrybridge.

“AEP is the largest generator of electricity in the U.S. and has decades of experience operating large, efficient power plants like the ones being acquired from Edison Mission,” Jones said. “These assets are currently well operated. We look forward to working with the plants’ existing management and staff.”

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it America’s largest generator of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume with a growing presence in natural gas. AEP provides retail electricity to more than 7 million customers worldwide and has holdings in the U.S. and select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.

The comments set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including (1) statements concerning the Company´s plans, objectives, expected performance and expenditures and (2) other statements that are other than statements of historical fact. These forward-looking statements reflect assumptions, and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from forward-looking statements are electric load and customer growth, abnormal weather conditions, availability of generating capacity, the ability to recover net regulatory assets and other stranded costs in connection with deregulation of generation, the outcome of environmental regulation and litigation, the impact of fluctuation in commodity prices and interest rates, and other risks and unforeseen events over which the Company has no control. The reader is also directed to the Company´s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company´s results of operations and financial condition. Furthermore, historical results may not be indicative of the Company´s future performance.