GE Supports China's Growing Civil Aviation Industry; New Regional Jet Engine Building On Pioneering Technology

March 27, 2003 -- HAINAN, China - As China embarks on the historic development of its ARJ21 regional jet, GE Aircraft Engines (GEAE) is working closely with the AVIC I Commercial Aircraft Co. Ltd (ACAC) to integrate one of the world's most advanced engines into the aircraft.

GE is actively developing the CF34-10A engine, while working closely with ACAC to integrate the engine into the ARJ21 regional jet. ACAC launched the Joint Definition Phase (JDP) in January. During the JDP, teams are defining key aircraft and propulsion system interfaces, along with detailed design requirements. In April, GE will begin subscale ARJ21 aerodynamic component and nacelle testing at Fluidyne's Aerotest Lab. In June, ACAC is expected to finalize aircraft configuration and GE will conduct an interim propulsion system review. The engine is slated for certification in 2005, and entry into passenger service on the ARJ21 in 2007.

Meanwhile, testing of the CF34-10 engine is progressing rapidly. The engine will soon begin flight-testing in southern California USA on GE's unique Boeing 747 Flying Testbed. This significant milestone represents another step for GE as a driving force behind the rapidly expanding worldwide regional jet marketplace - where China will make a significant contribution.

GE first launched its first CF34 model in 1983 by taking the durable TF34 military engine and developing it into a business jet engine. A decade later, GE further developed the CF34 for a new breed of aircraft -- regional jets. Today, GE continues to pioneer new technology in this market by developing and certifying new, higher thrust versions of the CF34 for the latest 70- to 90-passenger regional jets.

Over the past decade, GE has invested more than $1 billion to develop the CF34 engine family. To date, more than 5,600 CF34 engines are on order, including more than 1,500 in service worldwide.

GE brings to the ARJ21 a depth of experience that includes 500 million flight hours from across the entire GE commercial engine product line, including the GE90, the world's most powerful engine; the CF6, the most popular and reliable engine for widebody aircraft; and the CFM56, one of the most reliable and best-selling airline engines in aviation history.

In designing the CF34-10, GE has scaled the core of the successful CFM56-7, the jet engine for the Boeing 737 family, to ensure the highest durability, reliability, and greater operating temperature margins which equate to a lower cost of operation for airlines. In addition, advancements in Fully Automated Digital Engine Control (FADEC) technology will allow GE to offer its Remote Diagnostics service to monitor this engine model while in flight.

The new CF34-10's thrust capability will meet maximum passenger and payload requirements for the entire ARJ21 aircraft family, and will offer hot and high performance capability in Western China.

Designed as an easily maintainable propulsion system, the CF34-10 offers:

• Lower operating costs
• Lower maintenance costs
• GE's world-class customer and product support.

GE has a long history of mutually beneficial business activity in China, dating back to 1910, when GE first produced a light bulb there. Today, the relationship encompasses advanced research and development, including: a new 38,000-square-meter facility in Shanghai; joint ventures in high technology industries such as medical systems, plastics and lighting products; and aircraft engine maintenance facilities, training, and component manufacturing. GE has formed more than 30 different joint ventures and employs more than 9,000 people in China, representing a $1.5 billion investment. GE first delivered an aircraft engine for entry into service in China in 1985.

CFM International (CFM), a 50/50 joint company between Snecma Moteurs of France and General Electric Company of the USA, has powered aircraft for Chinese airlines since 1985. The first CFM56-3-powered Boeing 737s were delivered to Yunnan Airlines and China Southwest Airlines in 1985. Overall, there are nearly 650 CFM56 engines operating on more than 300 aircraft with 10 airlines in China.

China Southern, the largest airline operating in The People's Republic of China, is bringing new meaning to successful Extended-range Twin-engine Operations (ETOPS) as a strategic operator of GE90-powered Boeing 777s in Asia. China Southern was the first airline to operate GE90-powered Boeing 777 aircraft on long-range transpacific ETOPS routes. Since January 1996, China Southern's aircraft have accumulated more than 329,503 hours and more than 122,000 cycles.

Working closely with the Civil Aviation Administration of China (CAAC), GE and CFM opened the Aero Engine Maintenance Training Center (AEMTC) in Guanghan, Sichuan Province, adjacent to the CAAC Flying College, in November 1996. The AEMTC offers courses from line maintenance to engine technology management on both GE and CFM commercial engines, as well as serving as a CAAC vocational training facilities. To date, AEMTC has trained more than 3,400 students.

GE Aircraft Engines, a division of General Electric Company (NYSE: GE), is the world's leading manufacturer of jet engines for civil and military aircraft, including engines produced by CFM International, a 50/50 joint company of Snecma of France and GE. GEAE also manufactures gas turbines, derived from its highly successful jet engine programs, for marine and industrial applications. In addition, GEAE provides comprehensive maintenance support, through its GE Engine Services operation, for GE and non-GE jet engines in service throughout the world. Visit GEAE online at http://www.geae.com.