COLUMBUS, Ohio, June 11, 2002 - American Electric Power (NYSE: AEP) announced today that it has completed the sale of 16 million new shares of common stock at $40.90 per share and 6 million equity units at $50.00 per unit. The company had announced the equity offer on May 30.

“We are very pleased with the strong response to our equity offer, especially in the current difficult market conditions,” said Susan Tomasky, AEP executive vice president and chief financial officer. “The response to the offer demonstrates the strength of our company. The success of the equity offer will allow us to strengthen our balance sheet and positions AEP for continued growth.

“Since this equity offer has been planned for months, it was already factored into our earnings projection and will not change our earnings guidance,” Tomasky said.

Net proceeds from the transaction of approximately $926 million will be used primarily to reduce short-term debt.

Completion of the equity offer increases AEP’s total outstanding shares to approximately 339 million.

The equity units, listed under the ticker symbol AEP PrA on the New York Stock Exchange, consist of an unsecured senior note and a contract to purchase AEP common stock in the future. Total annual distributions on the equity units will be at the rate of 9.25 percent, consisting of interest on the unsecured note and payments under the contract. The contract requires the investor to purchase AEP common stock based on its trading price prior to the settlement date of Aug. 16, 2005.

The joint book-running managers for the offerings were Goldman, Sachs & Co., J.P. Morgan Securities Inc. and Salomon Smith Barney Inc.

American Electric Power is a multinational energy company with a balanced portfolio of energy assets. AEP, the United States’ largest electricity generator, owns and operates more than 42,000 megawatts of generating capacity in the U.S. and select international markets. AEP is a leading wholesale energy marketer, ranking among North America’s top providers of wholesale power and natural gas with a growing wholesale presence in European markets. In addition to electricity generation, AEP owns and operates natural gas pipeline systems, natural gas storage, coal mines, and the fourth-largest inland barge company in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s wires. The company is based in Columbus, Ohio.

This document contains 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.