GE’s acquisition of Jenbacher closes

ATLANTA, Ga., May 12, 2003 — GE Power Systems announced the successful completion of its acquisition of Jenbacher AG of Austria, a global manufacturer of reciprocating engines for power generation.

Over 95% of Jenbacher’s outstanding shares were tendered by April 25, the end of the offer period, paving the way for GE to complete the transaction. Today’s closing was the final step in the acquisition which had previously received all of the required regulatory approvals.

Jenbacher will become part of GE Aero Energy Products (AEP) and the headquarters and the manufacturing facilities will remain in Jenbach, Austria. GE plans to have the company renamed GE Jenbacher and make it GE’s global “Center of Excellence” for gas reciprocating engine products.

“We’re delighted to welcome the employees of Jenbacher into GE,” said Rick Stewart, president of GE AEP. “We greatly value Jenbacher’s brand recognition, reputation for quality workmanship, and commitment to advanced technology. We are confident that the synergies of GE and Jenbacher will allow us to better serve the distributed power requirements of our customers around the world. Combining GE’s sourcing network, technology, and sales and service infrastructure with Jenbacher’s existing operations will enable more rapid product development and sales growth.

He added, “The Jenbacher engines, in addition to running on natural gas, are particularly well suited for power generation utilizing a wide range of renewable biogas and special gases. This acquisition greatly expands the GE product family for small power generation, and extends our renewable power portfolio beyond wind and hydro.”

Tracing its roots to the 15th century, Jenbacher started manufacturing reciprocating engines in 1948. Today, the company is a global manufacturer of gas-fueled reciprocating engines and packaged generator sets, with outputs up to three megawatts. The use of clean natural gas in combination with patented combustion systems enables Jenbacher’s generation packages to meet the strictest international emission standards, while offering high levels of efficiency.

About GE Power Systems

GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems with estimated 2002 revenues of $23 billion. The business has the largest installed base of power generation equipment in the global energy industry. Based in Atlanta, Georgia, GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.