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GE Aircraft Engines Maintains Strong Presence In China; CF34 Well Positioned For ARJ21 Regional Jet

February 26, 2002

SINGAPORE - GE Aircraft Engines (GEAE), the world's largest supplier of jet engines for commercial regional jets, views China as an important participant in this rapidly expanding segment of commercial aviation. 

GEAE is holding discussions with the China Aviation Industry Corporation I (AVIC I) relative to future industrial cooperation opportunities between GEAE and China, as well as the potential use of GEAE's CF34 engine on an indigenous 70- to 90-passenger regional jet, the ARJ21, being studied by AVIC I. 

"We believe that a market exists for 500 or more regional jet aircraft in China over the next 20 years," said David Joyce, general manager of Small Commercial Engine Programs at GEAE. "GE wants to be more than a supplier of jet engines for this market. We want to be a strategic participant to the development of China's commercial airliner industry, supporting growth with our existing products, and developing new products in conjunction with the Chinese aerospace industry." 

Today, the CF34 engine family powers 50-, 70-, and 90-passenger regional jets in operation or under development by Bombardier, Fairchild Dornier, and Embraer. GEAE currently has a firm and option order backlog of nearly 5,000 regional jet engines. GEAE's presence in China will expand with the continued success of its CF34 engine family. 

The 9,000-pound (40-kN) thrust-class CF34-3 powers the Bombardier CRJ-100/200 regional airliners and the Challenger 601 and 604 business jets. Entering airline service in 1992, the CF34 has helped airlines achieve dramatic business growth and profitability and has contributed significantly to the success of the regional jet. 

GE's CF34-8 series engines, rated in the 14,000-pound (62-kN) thrust class, entered revenue service on the CF34-8C1-powered Bombardier CRJ700. GE is also advancing toward its goal of certifying the CF34-8C5, -8D, and -8E engines in March 2002. In the second quarter of 2002, GE will be participating in aircraft flight test programs for all three engines: the CF34-8C5 powering the Bombardier CRJ900 in North America; the CF34-8D powering the Fairchild Dornier 728 in Europe; and the CF34-8E powering the EMBRAER 170 in South America. 

Detail design for the latest and most powerful CF34, the C34-10, is complete, and integration of the 18,000-pound (80-kN) thrust-class CF34-10 with the Fairchild Dornier 928 and EMBRAER 190 is ongoing. GE will conduct the first CF34-10 engine test in July. U.S. Federal Aviation Administration certification of the CF34-10 is targeted for early 2003. 

GEAE continues to expand its presence in China as a supplier of commercial jet engines and services, and is an important participant in China civil aviation. Currently, 24 Chinese airlines operate more than 300 aircraft powered by engines produced by GE and CFM International, a 50/50 joint company of Snecma Moteurs of France and GE. An additional 63 aircraft are also on order. 

GE Engine Services recently opened GE Engine Services (Xiamen), located at Xiamen's Gaoqi International Airport. This facility serves as an overhaul facility for CFM56 engines. 

GEAE also operates a spare parts warehouse in Beijing as well as the Aero Engine Maintenance Training Center in Guanghan. GEAE continues to build on its overall strategy of increasing its investments in China, as well as the company's commitment to training and employing Chinese nationals. 

GEAE, 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 Moteurs 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. For more information on GE in China, visit: www.ge-china.com.