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GE Renews Canadian Navy Contract for Maintenance and Logistic Support of LM2500 Gas Turbine-Based Frigates

May 16, 2007

EVENDALE, Ohio - GE Marine announced it recently renewed a contract with Public Works and Government Services Canada to provide maintenance and logistics support services. The five-year contract covers the Canadian Navy's fleet of LM2500 aeroderivative gas turbines that power Halifax-class patrol frigates.

"The original five-year contract with Public Works and Government Services Canada began in 2001, and since that time has provided the Canadian Navy with more predictable maintenance costs," said Brien Bolsinger, GE Marine general manager, Evendale, Ohio. "We are delighted that the Canadian Navy opted to extend the contract another five years, and that they see the many benefits which include a lower total cost of ownership for their fleet of 24 installed LM2500 gas turbines and six spare engines."

As a result of the contract with GE, the Canadian Navy has also witnessed decreased administrative functions such as procurement, inspection and technical support, and material and inventory management associated with the LM2500.

According to Bolsinger, "The agreement allows for resources to be dedicated to other equipment and maintenance tasks at a time when both the Canadian Navy and the marine industry as a whole are experiencing significant shortages in skilled technicians. In addition, the Canadian Navy sees considerable benefit from the contract's spare LM2500 inventory control features."

Backed by GE's extensive network of global field service technicians, the Canadian Navy has access to GE service located throughout the globe, providing immediate on site technical support 24-hours-a-day, 7-days-a-week.

Similar to the original contract, the scope of the Canadian Navy's renewed contract includes:

- Repair, overhaul and engineering support

- Parts warehousing and inventory management (including spare engines, supply of spare parts and replenishment of inventory)

- Field service representative support (home port and deployed)

- Support of Canadian Forces naval engineering school training curriculum for on-engine and equipment maintenance

- Operational level maintenance

- Configuration management

- Supply and distribution of technical manuals

GE Marine is one of the world's leading manufacturers of marine products and services, including gas turbines ranging from 6,000 to 57,300 shaft horsepower, and marine main reduction gearing.

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