COLUMBUS, Ohio, Feb. 25, 1998 -- AEP Resources, a subsidiary of American Electric Power (NYSE: AEP), has signed a letter of intent to acquire 35 percent interest in an existing power plant in China. If a definitive agreement is reached, AEP Resources will join two Chinese entities -- Henan Electric Power Co. and Henan Provincial Construction Investment Corp. -- in a joint venture to own and operate the Shouyangshan Power Plant in Luoyang, a city in China's Henan Province. Henan Electric Power would hold 50.23 percent of the venture, AEP Resources 35 percent and Henan Provincial Construction Investment 14.77 percent. The letter of intent also includes plans to develop and build two 600-megawatt coal-fired units as part of an expansion of the existing 1,000-megawatt coal-fired plant. If a definitive agreement is reached, AEP Resources' will invest approximately $200 million in the joint venture. The companies must complete due diligence, expected to take eight to 10 months, before reaching a definitive agreement. AEP Resources has a 70 percent interest in a joint venture that is building a 250-megawatt power plant near Nanyang City in Henan Province. The first 125-megawatt unit is expected to be completed late this year. Completion of the second unit is expected in early 1999. Others involved in the Nanyang venture include Henan Electric Power and Nanyang Municipal Financial Development Co. AEP Resources, a wholly owned subsidiary of American Electric Power, pursues energy-related domestic and international investment opportunities and projects. The company has offices in Columbus, Ohio; London; Singapore; Toronto; Beijing; and Sydney, Australia. AEP, a global energy company, is one of the United States' largest investor-owned utilities, providing energy to 2.9 million customers in Ohio, Indiana, Michigan, West Virginia, Virginia, Tennessee and Kentucky. AEP has holdings in the United States, the United Kingdom and China. Wholly owned subsidiaries provide power engineering, consulting and management services around the world. The company is based in Columbus, Ohio.