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GE Power Systems signs agreement to acquire PII Group Ltd.


ATLANTA, Ga., Jan. 16, 2002 — GE Power Systems announced today that it has signed a definitive agreement to acquire PII Group Ltd., formerly Pipeline Integrity International, from HgCapital.

Based in the United Kingdom, PII is the global leader in pipeline in-line inspections and integrity management services for the oil and gas industry. Financial terms of the deal were not disclosed.

PII uses in-line inspection tools to gather and assess data to determine the condition of a pipeline. This data is used to optimize pipeline utilization, maintenance and repair service.

GE Power Systems continues to expand its service presence in the oil and gas industry to offer fully integrated solutions focusing on customers’ asset optimization and technology needs, according to John Rice, president and CEO of GE Power Systems. “This is an extremely important step in building a broader and stronger platform to better serve our global oil and gas customers,” said Rice.

In 1998, HgCapital acquired PII from British Gas. PII expanded its position in the pipeline integrity business by making a number of strategic acquisitions. PII now operates in over 45 countries worldwide with an annual revenue base of over $170 million.

“PII has been an excellent investment for us. GE Power Systems is the perfect fit for PII and will ensure that the business maintains its market position,” said Frances Jacob, managing director of HgCapital.

“GE Power Systems is the perfect new parent for PII and we are looking forward to the next stage of our company’s development under GE’s ownership,” said Tony Powell, CEO of PII. “Our customers are always our number one priority and this new partnership will provide our customers with a continued focus on quality and a wider portfolio of services and technology.”

PII is headquartered in Cramlington, Newcastle UK and has 775 employees worldwide.

About GE Power Systems

GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems with projected 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.