Nature Conservancy, AEP Launch Landmark Reforestation Effort in Guatemala

Agreement is Part of Broader Effort by the Central America and Mexico Hurricane Relief Fund

Arlington, VA—July 13, 2006—Today, The Nature Conservancy and American Electric Power (AEP) announced a landmark conservation and reforestation effort in the hurricane-ravaged Sierra Madre highlands of Guatemala.

This agreement is part of a larger public-private partnership, called the Central America and Mexico Hurricane Relief Fund, which raises financial donations to help affected regions recover from the devastation of the 2005 hurricane season. As part of that fund, AEP has earmarked $2M that will directly support an ambitious reforestation program in Guatemala led by The Nature Conservancy and its partners.

“This effort represents an opportunity for hope and renewal after the devastation of last year’s Tropical Storm Stan, which impacted 1,100 communities and caused $450 million in damage in the Sierra Madre,” said Steve McCormick, President and CEO of The Nature Conservancy. “Through this joint project, the Conservancy and AEP will work with local Guatemalan communities to help with storm recovery and natural resource conservation in order to improve the quality of life of local peoples.”

The conservation and reforestation components of this agreement are critical to minimizing hurricane damage and to strengthening long-term economic development in the region. The forest areas of the Sierra Madre volcanic mountain range have become highly fragmented from years of unplanned use, hurting the supply of both water and forest resources for the communities that depend on them. Some species of plants and animals are dwindling and disappearing, and the landscape has become more vulnerable to mudslides, as evidenced by the damage caused during last year’s hurricane season.

The Conservancy and its local partners are increasing their forest protection efforts to ensure that the damage from future hurricanes is lessened by the presence of forest cover. This will also help prevent excessive erosion and siltation into freshwater streams and rivers and then onto coral reefs downstream.

“When we became aware of the devastation in this region, we knew we had to do something to help,” said Michael G. Morris, AEP Chairman, President and Chief Executive Officer. “Our company has a long history of planting trees to reforest areas of the United States and working with groups like The Nature Conservancy to help restore and protect areas of significant international biodiversity, including areas of Bolivia, Brazil, and Belize. Because of this experience, we’re pleased to fund a program, through the AEP Foundation, that is focused on reforestation and forest protection to help restore this region’s natural hurricane defense mechanisms and reduce the impact of future storms.”

Among other things, the $2M agreement with AEP calls for:

• Reforesting approximately 1,500 acres of land around Atitlan in areas impacted by landslides and conserving approximately 21,000 acres of private and public forestlands. This will result in 22,500 acres of newly conserved forests that will support local needs while protecting vulnerable areas.

• Working with local communities to improve their quality of life from better management of the resource base, including water use, tourism, and forest management. This will help maintain and improve local livelihoods, strengthen local economies and improve their capacity for conserving the remaining biodiversity.

In addition to conservation and environmental efforts, this AEP contribution may also support the Conservancy’s work in leveraging additional resources for assistance to the area. As part of a possible “debt for nature” swap, the U.S. government could forgive a percentage of debt owed by the Guatemalan government, with support from The Nature Conservancy and Conservation International, in exchange for Guatemala’s continued commitment to conservation through investment in related projects.

The reforestation project, which starts this year, is expected to last through 2008.

The Nature Conservancy and partner organizations are also working to preserve Guatemala’s natural and cultural heritage in other areas of the country. Just last week, the Conservancy announced that with a Guatemalan non-governmental organization – Defenders of Nature - it had purchased two pristine holdings totaling 77,000 acres in the heart of the Maya Biosphere Reserve. The two parcels are in the center of the 500,000 acre Sierra Del Lacandon National Park, home to several endangered species. Other Conservancy program sites include the Gulf of Honduras and the Motagua/Polochic Region.

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The Nature Conservancy is a leading international, nonprofit organization that preserves plants, animals and natural communities representing the diversity of life on Earth by protecting the lands and waters they need to survive. To date, the Conservancy and its more than one million members have been responsible for the protection of more than 15 million acres in the United States and have helped preserve more than 102 million acres in Latin America, the Caribbean, Asia and the Pacific. Visit us on the Web at nature.org.