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GE Awarded F414 Performance Based Logistics Contract

December 1, 2006

LYNN, MASS.-- In late November, the U.S. Navy awarded GE Aviation a four-year Performance Based Logistics (PBL) contract covering the repair, replacement, consumables and program support for F414-GE-400 engine components for the F/A-18 E/F Super Hornet and EA-18G Growler aircraft.

The contract covers more than 600 engines already powering the Navy aircraft fleet as well as engines to be delivered during the next four years. Current projections call for approximately 84 engines to be delivered each year powering 42 aircraft.

Building on two previously awarded F414 PBL contracts, GE is now responsible for the full spectrum support for Navy F414 engines.

"Since the inception of F414 PBL, we have continued to leverage our success and thus expand our service offerings. Our goal is to provide the most cost-effective support option and optimize the overall readiness of the F414 engines," said Steve Knopping, F404/F414 PBL director.

This contract also works to strengthen GE's relationship with the Naval Inventory Control Point (NAVICP), as this is the fourth major, multi-year GE PBL contract. Other PBL contracts involve F404 and T700 engines.

"This contract is a true win-win for the Navy and GE," Knopping said. "The Navy benefits from GE providing availability of components in a firm fixed priced contract. GE benefits from providing additional value to the Navy beyond simply supplying spare parts."

GE's Lynn facility produces several of the contracted parts, while others come from GE sites in Hooksett, NH, Rutland, VT, Wilmington, NC, Albuquerque, NM, and Madisonville, KY. GE will be teaming with the Navy's Fleet Readiness Center (FRC) Southeast in Jacksonville, Florida to provide the depot repair labor on these components.

The F414 combines advanced technology with the proven reliability, maintainability and operability of its successful F404 predecessor that powers the F/A-18 C/D, while delivering 35% more thrust. It significantly enhances range, payload and survivability of Super Hornet aircraft.

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 is also the world's leading provider of maintenance and support services for jet engines.

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