Coal, Gas

GE wins contracts of US $900 million to supply gas turbines in China

BEIJING, People’s Republic of China, March 7, 2003 — GE Power Systems (GEPS) has signed a series of contracts with five Chinese power producers.

An additional contract will be signed shortly bringing the total contract value to approximately US$900 million and calling for GE to provide 13 GE 9FA gas turbine-based combined cycle systems.

The signing, which took place March 6 at the prestigious Diao Yu Tai State Guesthouse in Beijing, makes GE the leading supplier for China’s Gas Turbine Power Plants Construction Project. One of the largest purchases by the Chinese power industry, GE won over international competition to become one of the two major gas turbine suppliers.

Jeff Immelt, Chairman and CEO of GE, said: “The agreement represents a significant milestone of our business expansion in this promising market. It will reinforce our position as China’s strategic partner in the power industry and in the growth of infrastructure as a whole.”

Each 9FA gas turbine combined cycle system generates 380 megawatts of electricity. GE’s F-class gas turbine fleet includes more than 900 units in operation worldwide, an installed fleet bigger than all other major competitors combined. GE has recorded more than seven million hours of commercial operation with the F-class turbine fleet, giving the company a decisive lead in advanced gas turbine technology experience.

John Rice, President and CEO of GE Power Systems, said: “We are pleased to be chosen as a partner in this win-win situation for both China and GE. We look forward to continuing to support China’s energy needs with our manufacturing and service capabilities in natural gas, hydro and wind power, and other advanced clean energy technologies.”

GE won the bidding in consortium with Harbin Power Equipment Co. Ltd., the Chinese partner where the GE turbines will be assembled under a technology transfer arrangement. GE also signed a joint venture agreement with Shenyang Liming Aero-Engine Group Corporation Ltd. for the technology transfer and production of combustion systems for the 9FA class gas turbines.

With this significant project order and upcoming oil and gas equipment and services, hydro and wind power deals, GE Power Systems is aiming for $1 billion in orders in China in 2003.

Del Williamson, President of Global Sales for GE Power Systems, said: “Our win in this program is a significant step toward an increased presence for GE Power Systems in China. We are now better positioned to support China’s rapid economic expansion by selling, sourcing and servicing our customers.”

GEPS has been in China for more than 90 years and has provided China with 56 steam turbines, more than 160 gas turbines and more than 100 hydro units. In addition, GE Power Systems has been providing total engineering solutions to help Chinese customers improve the reliability and availability of their energy production and transmission assets and supply.

Such service solutions are provided through a network of remote access with diagnostic capabilities for all process machinery monitoring. GE Power Systems continues to actively support China’s promising energy industry by reinforcing strategic relationships with local partners and actively participating in mega projects such as the gas turbine power plant construction, hydro projects like the Three Gorges, West-to-East Gas Pipeline and 2008 Beijing Olympics.

About GE Power Systems

GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems with 2002 revenues of nearly US$23 billion. Based in Atlanta, Georgia, GE Power Systems provides equipment, services and management solutions across the power generation, oil and gas, distributed power and energy rental industries.