The AES Corporation (AES)

11. BENEFIT PLANS

        Total pension cost for the three months ended March 31, 2008 and 2007 includes the following components:

(1)

Expense of $3 million is included in the above amounts and is reflected as part of discontinued operations for the three months ended March 31, 2007.

        The total amount of employer contributions paid for the three months ended March 31, 2008 was $35 million for foreign subsidiaries. U.S. subsidiaries have not made any employer contributions for the three months ended March 31, 2008. The expected remaining scheduled annual employer contributions for 2008 are $57 million for U.S. subsidiaries, and $95 million for foreign subsidiaries.

11. BENEFIT PLANS

        Total pension cost for the three and nine months ended September 30, 2007 and 2006 includes the following components:

(1)

Expense of $2 million is included in the above amounts and is reflected as part of discontinued operations for the three months ended September 30, 2006.

(2)

Expense of $6 million and $8 million is included in the above amounts and is reflected as part of discontinued operations for the nine months ended September 30, 2007 and 2006, respectively.

        The total amounts of employer contributions paid for the nine months ended September 30, 2007 were $2 million for U.S. subsidiaries and $83 million for foreign subsidiaries. The expected remaining scheduled annual employer contributions for 2007 are $1 million for U.S. subsidiaries, and $29 million for foreign subsidiaries. The Company values its plan assets at fair value.