COLUMBUS, Ohio, Nov. 30, 2001 - American Electric Power (NYSE: AEP) said today that it has current counterparty exposure to Enron of less than $50 million. AEP took prudent measures in recent weeks to limit exposure.

AEP´s counterparty exposure estimate includes the impact of potential Enron bankruptcy. Transactions completed up to 90 days before a bankruptcy filing can be considered by the court during bankruptcy proceedings.

AEP, with revenue of $47 billion and ongoing earnings of $973 million for the first nine months of 2001, ranks second among North American wholesale power and wholesale natural gas marketers in terms of volume - behind Enron in both categories.

AEP expressed confidence in the wholesale energy marketplace.

"The wholesale energy marketplace is bigger and stronger than any one company," said Eric van der Walde, AEP executive vice president - trading and marketing. "The market has performed well during these weeks of uncertainty about Enron´s future. We are confident that AEP and other leading wholesale energy providers can fill any market needs that may arise.

"Enron´s wholesale energy trading and marketing strategy didn´t lead to the company´s difficulties," van der Walde said. "Instead, Enron´s problems are linked to decisions related to other business lines, financing and disclosure issues."

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 North America in wholesale electricity and wholesale natural gas volume. 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.

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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.