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GE Harbin Ship First 9FA Gas Turbine Assembled in China

Unit is Among 13 GE Machines That Will Add 4.5 Gigawatts of Power to China's Grid

QIN HUANG DAO, CHINA (July 30, 2004) — As some of the country's leading officials looked on, the first GE Frame 9FA gas turbine to be assembled in China under a technology transfer agreement with Harbin Power Equipment Company (HPEC) was shipped today from HPEC's manufacturing facility in Qin Huang Dao, Heibei Province.

The gas turbine is the first of 13 GE F technology machines being supplied for China's Gas Turbine Power Plants Construction Project, a centerpiece of the country's efforts to meet its growing power requirements. All 13 gas turbines are scheduled to be shipped over the next 15 months and will add a total of 4.5 gigawatts of power to China's grid in the critical Shanghai region.

In consortium with Harbin, GE won a $900 million contract last year to become one of two major gas turbine suppliers for the construction program. The shipment of the first gas turbine today was marked by a ceremony at the HPEC facility attended by several Chinese officials including Wu Bangguo, Chairman of the National People's Congress and Zhang Guo Bao, Vice Minister of National Development and Reform Commission.

The first Frame 9FA is being shipped to Zhejiang Banshan Power Plant located in the Zhejiang Province.

Through the joint efforts of GE and HPEC, the gas turbine assembly and test facility was constructed in only 15 months, an operation that usually takes two years. The assembled Frame 9FA gas turbine was successfully first-fired on June 26 and completed full-speed, no-load testing on June 30.

"The successful assembly and delivery of the first 9FA gas turbine truly represents the partnership we are building with HPEC and China's rapidly growing energy industry," said John Rice, president and CEO of GE Energy. "It demonstrates our long-term commitment and our local capabilities to provide technology that will produce the reliable power needed to support China's continuing growth and progress."

Zhao Kefei, president of HPEC, said: "HPEC and its technology and engineering team are very pleased to work with GE to deliver this world-class product that has certainly created a significant milestone in China's energy industry. As one of the key players in the industry, we will continue to drive for excellence and provide greater benefits to our customers."

When completed later this year, the HPEC Qin Huang Dao facility also will include the GE-HEPC Energy Service Company, a joint venture formed in February to provide repair and field services for GE 9FA gas turbines in China.

Each 9FA combined-cycle system generates 380 megawatts of electricity. GE's F-class fleet includes more than 900 units in operation worldwide and has compiled more than ten million hours of commercial operation, positioning GE as an industry leader in advanced gas turbine technology experience.

GE Energy has been in China for more than 90 years and has provided the country with 56 steam turbines, more than 160 gas turbines and more than 100 hydro units. In addition, GE Energy has been providing total engineering solutions to help Chinese customers improve the reliability and availability of their energy production and transmission assets and supply. Such service solutions are provided through a network of remote access with diagnostic capabilities for all process machinery and monitoring.

About GE Energy
GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2003 revenues of nearly $18.5 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.

For more information, contact:

GE Energy:
Dennis Murphy
GE Energy
+1 678 844 6948
dennis.murphy@ps.ge.com

Ken Darling or Howard Masto
Masto Public Relations
+1 518 786 6488
kenneth.darling@ps.ge.com
howard.masto@ps.ge.com

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