COLUMBUS, Ohio, July 24, 2000 – American Electric Power (NYSE: AEP) has invested in Powerspan Corp., a privately held emerging technology company that is developing new environmental control technology for coal-fired power plants.

AEP´s investment in the company will be made through its non-regulated subsidiary, AEP Pro Serv, Inc. AEP Pro Serv provides professional services in all areas of transmission, distribution, generation, and industrial projects including siting; environmental licensing, permitting and remediation; engineering; design; construction; and operation and maintenance. The terms of the transaction were not disclosed.

"This is a strategic investment for AEP in the development of new emissions control technology that goes well beyond what´s available for coal-fired power plants today," said Marty Mearhoff, AEP´s vice president of renewable energy and advanced technologies. "AEP is one of the nation´s largest generators of electricity and a leading consumer of coal, so it is logical for the company to help foster the development of new technologies to burn coal more cleanly."

Concurrent with AEP´s equity investment in Powerspan, Mearhoff was elected to Powerspan´s board of directors.

Investments in Powerspan by AEP and others will be used to accelerate product development and commercialization of Powerspan´s patented Electro-Catalytic OxidationTM (ECO) technology for coal-fired power plants. ECO provides the functionality of four separate control technologies into a single integrated system and produces valuable byproducts that become the feedstock for other industrial processes. In pilot testing, Powerspan has reported significant reductions in nitrogen oxides (NOx), sulfur dioxide (SO2), particulate matter, mercury and other emissions.

"Almost 57 percent of the nation´s electricity is provided by coal-fired power plants, but the use of coal as a fuel has been threatened by increasingly stringent environmental regulations," Mearhoff said. "Decreasing the use of coal increases the demand for natural gas, which can lead to higher costs for gas used for home heating and by many industries. It´s important for the economy that coal, a relatively inexpensive fuel, remain a viable part of the nation´s energy mix, along with natural gas, oil, nuclear, hydro and renewables. To accomplish that, we must develop clean-coal technologies."

Mearhoff heads a department announced in June that will take a leadership role in the development and commercialization of new and emerging renewable energy options and power generation technologies.

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP is one of the United States´ largest generators of electricity with more than 38,000 megawatts of generating capacity. AEP is also one of the nation´s leading wholesale energy marketers and traders. AEP delivers electricity to more than 4.8 million customers in 11 states -- Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The company serves more than 4 million customers outside the U.S. through holdings in Australia, Brazil, China, Mexico and the United Kingdom. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.