COLUMBUS, Ohio, Oct. 31, 2001 - American Electric Power (NYSE: AEP) announced today it has completed its acquisition of Quaker Coal Co. under terms approved by the U.S. Bankruptcy Court for the Eastern District of Kentucky.

The acquisition resolves Chapter 11 bankruptcy proceedings initiated by Kentucky-based Quaker. On Oct. 19, the bankruptcy court accepted AEP’s reorganization plan for Quaker Coal.

Under the revised agreement, AEP will pay $101 million to creditors - as originally announced - for Quaker assets that include surface and coal mining operations and associated facilities and coal reserves in Kentucky and Ohio; coal reserves in Pennsylvania; property interests in Colorado, and royalty interests in West Virginia. AEP also will assume associated liabilities of approximately $40 million.

The acquisition will be immediately accretive to earnings and will be funded with short-term debt.

"Our acquisition of the Quaker assets is another illustration of our wholesale business strategy at work," said Eric J. van der Walde, executive vice president - marketing and trading for AEP Energy Services Inc. "We are creating value for our customers and shareholders all along the energy chain. From coal mines to barge lines to natural gas pipelines to generating plants, we´re involved in every aspect of energy production, up to and including the marketing and trading of power, gas and coal in the wholesale marketplace. We expect the Quaker Coal acquisition will significantly expand our coal marketing opportunities."

AEP will continue to operate Quaker´s currently active mines and associated businesses, which employ approximately 840 people. The Quaker operations are expected to increase AEP’s coal production by approximately 7 million tons annually and once again place AEP among the top 20 coal producers in the region.

AEP also maintains ownership interests in lignite reserves in east Texas and northwestern Louisiana. AEP’s Southwestern Electric Power Co. (SWEPCO) subsidiary operates the Dolet Hills Lignite Co. in Mansfield, La., which produces approximately 3 million tons of lignite per year for the nearby Dolet Hills Power Station, which is co-owned by SWEPCO and CLECO Power LLC (CLECO) and operated by CLECO.

AEP Energy Services, Inc., is a subsidiary of AEP involved in trading and marketing energy commodities, including electric power, natural gas, natural gas liquids, oil, coal and SO2 allowances in North America and Europe.

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.