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U.S. Navy Awards GE $26 Million Contract for H-46E Engine Upgrades

March 16, 2006

LYNN, MA -GE - Aviation has been awarded a $26.4 million contact modification by the United States Navy for the purchase of 60 T58 module kits, with an option for 60 more in FY2007, for Marine Corps H-46E helicopters.

The contract calls for 96 titanium nitride (TiN) coated airfoil kits for upgrades of modules previously delivered under the T58 Engine Reliability Improvement Program (ERIP), plus miscellaneous tooling. Work will be done in Lynn, Massachusetts, and is expected to be completed in November 2007.

"We continue to be excited by the U.S. Navy's confidence in the venerable T58 engine and its ability to perform a variety of missions around the world every day," said Ed Birtwell, general manager of GE's Turboshaft/Turboprop department. "The new configuration will greatly assist the CH-46E to perform its critical mission well into the 21st century."

Parts treated with the TiN coating process are expected to double time-on-wing life expectancies compared to earlier designs by reducing compressor blade erosion and subsequently cutting maintenance time. Initial modules with the erosion-resistant TiN compressor coating were introduced to the H-46E fleet in July 2005.

The T58 ERIP program includes both new production core modules and accessory kits to support the conversion of 449 T58-GE-16 engines to an upgraded -16A model configuration at Naval Air Depot Cherry Point, North Carolina. GE was initially awarded a T58 ERIP contract in 2002.

Developed in 1953, more than 900 T58 engines are in service with the USN and USMC, and more than 800 are operating with foreign military services. In addition, more than 400 CT58 engines power helicopters of 40 commercial operators throughout the world.

GE - Aviation, an operating unit of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft. GE also is a world-leading provider of maintenance and support services for jet engines.