MELBOURNE, Australia, Nov. 22, 1998 -- AEP Resources Inc., a subsidiary of American Electric Power (NYSE: AEP), has been selected by Entergy Corp. (NYSE: ETR) to acquire CitiPower, an Australian electricity distribution and retail sales company. The announcement was made 11 a.m. Monday in Melbourne (7 p.m. EST Sunday). The transaction, valued at A$1.7 billion (US$1.1 billion), is expected to close by the end of 1998. The transaction will be financed through a combination of A$0.5 billion (approximately US$325 million) AEP equity and A$1.2 billion (approximately US$775 million) AEP Resources debt. Entergy announced in August that it would divest of CitiPower and other non-related assets in an effort to focus resources on the growth of Entergy's core businesses. Bids for CitiPower were accepted Friday, Nov. 20. Entergy had acquired CitiPower in January 1996 from the Victoria government as part of the privatization of the state's electricity supply industry. CitiPower serves approximately 240,000 customers in the Melbourne central business district and inner suburbs. The annual energy distribution is about 4,800 gigawatt-hours. The company has approximately 3,100 miles of distribution lines in a service area that covers approximately 100 square miles. "The state of Victoria is in the midst of a transition to a fully competitive electricity marketplace," said Donald M. Clements, president of AEP Resources. "A distribution and retail sales company like CitiPower is an attractive investment because the risk brought by competition for retail customers is offset by the relative stability of the distribution business, which operates with regulated tariffs. "AEP Resources has long been interested in adding Australian assets to our portfolio of global investments. CitiPower is a well-run company that is positioned to be a strong competitor in Victoria's electricity marketplace. We're very pleased to have been the successful bidder for the company." AEP Resources, a wholly owned subsidiary of American Electric Power, pursues energy-related domestic and international investment opportunities and projects. AEP Resources is actively pursuing greenfield development projects or business and asset acquisition throughout North America, Latin America, Europe and the Asia/Pacific region. The company monitors global developments from its offices in Columbus, Ohio; London; Singapore; Toronto; Beijing; and Sydney, Australia. AEP Resources owns 50 percent of Yorkshire Electricity Group, a regional electric company in the United Kingdom; 70 percent of a two-unit power plant nearing completion in Nanyang City, Henan Province, China; and 20 percent of Pacific Hydro, an Australian company that develops and operates hydroelectric facilities. In September, AEP Resources was selected to acquire midstream natural gas assets in Louisiana and Texas from Equitable Resources Inc. (NYSE: EQT). The transaction is expected to close by the end of 1998. 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. On Dec. 22, 1997, AEP announced a definitive merger agreement for a tax-free, stock-for-stock transaction with Central and South West Corp., a public utility holding company based in Dallas.