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U.S. Army Awards T700 Upgrade Contract

September 20, 2007

LYNN, Mass. -- The U.S. Army has awarded GE Aviation a contract valued at $30 million to support an increase in T700-701D engine upgrades at the Corpus Christi Army Depot (CCAD). This contract helps ensure the continuation of a UH-60 Black Hawk and AH-64 Apache helicopter fleet-wide T700 engine upgrade program that could ultimately involve more than 5,000 engines.

This is the latest in a series of contracts that began with a five-year, $668-million CCAD contract initiated in 2000. Since that time, overhaul turntimes have been reduced by nearly 80%, while production capacity has tripled from 500 units per year to approximately 1,600. The GE-CCAD teaming arrangement has been instrumental in eliminating engine backlogs during the global war on terrorism, while sustaining the demands of a fleet operating at two-to-four times the norm.

"We are committed to the continued progress on -701D upgrades and proud of our relationship with CCAD," said Scott Reed, GE's Director - T700 US Military Programs. "CCAD is a great success story, evolving into a state-of-the-art depot. After some initial technical assistance, they are now operating their shops more effectively and have reached the point where they are performing quality upgrades and conversions of the T700 series."

The Army announced in 2004 plans to convert its entire Apache and Black Hawk helicopter fleet to the T700-GE-701D. The potential long-term value of the program to GE is valued at more than $1.5 billion. Based on estimated workload at CCAD, retrofitting all remaining Apache and Black Hawk engines could be accomplished over the next four to five years.

The -701D features improved hot-section components that is estimated to provide at least twice the hot section durability, lower life-cycle costs and 5 percent more power than the current T700-701C engine. Rated at 2,000 shaft horsepower, the -701D was awarded U.S. Army qualification in 2004.

T700-701D upgrade opportunities for GE also exist in the foreign military sales market, covering 2,000-plus engines for both current AH-64 and UH-60 operators and those on contract for UH-60M deliveries later this decade.

GE's successful T700/CT7 family of turboprop and turboshaft engines powers 25 types of helicopters and fixed-wing aircraft in service with more than 130 customers in more than 50 countries.

GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.

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