QUANTUMONLINE.COM SECURITY DESCRIPTION:  American Electric Power Co. Inc., 9.25% Equity Units, stated amount $50 per unit, initially consisting of Equity Units which include a stock purchase contract and a 5.75% senior note with a principal amount of $50. The purchase contract requires the holder to purchase for $50 a variable number of shares of American Electric Power Co. Inc. (NYSE: AEP) common stock no later than 8/16/2005 and pays a contract adjustment payment of 3.50% of the stated amount per year The settlement rate will be 1.0187 shares per unit if the then current market price is equal to or greater than $49.08 and 1.2225 shares per unit if the price is equal to or less than $40.90. The senior note is due 8/16/2007, pays quarterly distributions of 9.25% ($4.625) per annum on 2/16, 5/16, 8/16 & 11/16 to holders of record one business day prior to the payment date while the securities remain in book-entry form and is subject to reset and remarketing on or after 5/16/2005. The senior notes are pledged as collateral to secure the holder's obligations under the stock purchase contract. The holder has the right at any time to convert the Equity Units to Stripped Units by the substitution of a specified zero-coupon U.S. Treasury security for the senior notes and to later recreate Equity Units. The senior notes are unsecured and will rank equally with all other senior unsecured indebtedness of the company. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Conversion Shares@Price	Distribution Dates	15% Tax Rate
NYSE Chart	9.25% $4.625	$50.00 N/A	8/16/2005 8/16/2007	Baa3 BBB 3/25/2005	1.0187@$49.08+ 1.2225@$40.90-	2/16, 5/16, 8/16 & 11/16 Click for MW ExDiv Date Click for Yahoo ExDiv Date	No

Notes:  Aug. 12, 2005 -- American Electric Power today announced the settlement rate for the forward purchase contracts that form a part of its outstanding 9.25% Equity Units. Holders of equity units will receive 1.2225 of AEP common stock for each purchase contract and cash in lieu of fractional shares. The settlement rate is based upon the average of the closing price per share of AEP common stock on the New York Stock Exchange for the 20 consecutive trading days ending Aug. 11. Since the average closing price per share was lower than $40.90, the settlement rate is 1.2225. As a result, on Aug. 16, each holder of the equity units will purchase from AEP 1.2225 shares of AEP common stock per unit for $50. Each holder will not be required to make any additional cash payment. The equity security unit holder's purchase obligation will be satisfied from the proceeds of a portfolio of U.S. Treasury securities held in a collateral account that matures on or prior to Aug. 15, 2005. The portfolio of US Treasury securities were acquired in connection with the June 2005 remarketing of AEP's Senior Notes due Aug. 16, 2007 that were formerly part of the equity units. Settlement of the forward purchase contracts will result in AEP issuing approximately 8.4 million shares of common stock, subject to cash settlement of fractional shares, in exchange for $345 million of proceeds. As a result of the settlement of the forward purchase contract component of the equity units, the equity units will cease trading on the New York Stock Exchange after close of the market Aug. 15.

Company's Online Information Links

HOME PAGE:     http://www.aep.com/
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Company's Online News Releases	Go to News Releases
Online Company Profile	Go to Online Profile

Company's Online SEC EDGAR Filings

Company's SEC EDGAR Filings

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Company's Email Address Links

Email Address	klkozero@aep.com
Email Request Form on Website	Go to Email Form

Address and Phone Numbers

Address:   1 Riverside Plaza, 28th Floor, Columbus, OH 43215
Main Phone Number	614-716-1000
Fax Number	614-716-1823
Investor Relations   Kathleen Kozero	614-716-2819
Toll Free Phone Number	800-237-2667

CEO - Michael G. Morris

CFO - Brian X. Tierney