GE to provide services for three Petrobras power plants in Brazil

MONTERREY, MEXICO, September 3, 2002 -- Petroleo Brasileiro S.A. (Petrobras) of Brazil, one of the world's leading oil companies, has awarded service contracts totaling more than $340 million to GE Power Systems, covering nine GE gas turbines in three Brazilian power plants.

The 12-year agreements cover GE FA technology gas turbines at these sites:

-- Ibiritermo power plant in the southern Brazil state of Minas Gerais. GE is supplying total operation and long-term maintenance services for this facility, the only land-based power plant in Brazil operated by GE. The plant is owned by Petrobras, Edison Fiat and Petros (Petrobras Pension Fund).

A GE Frame 7FA gas turbine recently began simple-cycle operation here, delivering 152 megawatts to help meet the region's growing need for power. This is the first GE Frame 7FA machine to enter service in Brazil, and the first of three units planned for the plant which will generate 720 megawatts of power in combined-cycle operation when it is completed in 2005.

-- Canoas power plant in the southern state of Rio Grande do Sul. GE has signed a long-term maintenance agreement for this facility which is expected to produce 160 megawatts in the third quarter of this year, and 500 megawatts when it is completed.

-- Tres Lagoas in Mato Grosso do Sul. GE also will provide maintenance for this plant, which comprises four GE Frame 6FA gas turbines and is scheduled to start operation in the third quarter of 2002. When complete, this facility will generate 360 megawatts in combined-cycle operation.

These plants represent the largest concentration of GE's FA gas turbine technology in Latin America, and are part of an overall program by GE to supply 50 gas turbines for projects across Brazil that will eventually contribute 4.6 gigawatts of new power capacity to the country's grid.

"A major benefit of these service agreements for our customers is that planned maintenance costs are fixed for the life of the contracts," said Marcos Garcia, Team Leader, Contractual Services, GE Power Systems. "This enhances the customer's capability to control cash flow and manage long-range financial planning."

Based in Rio de Janeiro, Petrobras is an integrated company operating in exploration, production, refining, retailing and transportation of petroleum and its byproducts in Brazil and around the world. Petrobras also is a power company with a major focus on preservation of the environment.

The use of advanced technology for the Ibiritermo, Canoas and Tres Lagos projects will limit emissions and reduce the overall environmental impact. All three plants are planning to use natural gas, one of the cleanest fuel options available, as their primary fuel.

GE Energy Services, the services arm of GE Power Systems, currently has multi-year, contractual service agreements in place at 384 customer sites in 45 countries, covering 952 power generation units.

These agreements are designed to support maximum performance, reliability and availability of power generating equipment over a number of years.

About GE Power Systems

GE Power Systems (www:gepower.com) is a supplier of power generation technology, energy services and management systems with 2001 revenues exceeding $20 billion.

The business has the largest installed base of power generation equipment in the global energy industry. GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

Sponsored by FLSmidth

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