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GE Signs First Customer for CF34 Engine Modernization Program on Challenger 601

October 18, 2006

ORLANDO, Florida --GE has signed Herzog as its launch customer for its new CF34 engine modernization program on the Challenger* 601 aircraft. The modernization program for GE's CF34-1A/-3A/-3A2 engines upgrades the engines' hot section to enable operators to transition from a "hard-time" maintenance schedule with scheduled hot section inspections and overhauls to an "on-condition" maintenance schedule. 



"We are very excited that Herzog has signed on as the launch customer for the modernization program," said Bill Hoernschemeyer, general manager of Corporate Aviation Sales at GE - Aviation. "The modernization program offers operators many benefits, including longer time on wing, increased aircraft resale value and lower overall cost of ownership. The modernization will allow operators to enroll in our OnPointSM Rate Per Hour services plan at a rate per hour up to 60% lower than the current hard-time rate." 



The modernization program essentially retrofits the hot section of CF34-1A/3A/3A2 to the airline-proven CF34-3A1 hot section. The upgrade includes adding high-pressure turbine (HPT) borescope capability, utilizing advanced steel shrouds and more robust stator in the HPT, and incorporating advanced combustion and transition liners. The current "hard-time" maintenance is scheduled for every 3,000 hours, which is equivalent to about seven years. With the new upgrade, the average first unscheduled shop visit will occur at about 9,000 hours, which is equivalent to 20 years of typical business jet operation. 



This upgrade creates a more robust engine that will support an "on-condition" maintenance plan, pending a full MSG-3 analysis with Bombardier. The modernization program can be performed, along with a scheduled overhaul, at GE's Strother facility, GE Branded Service Shops, or at other GE-authorized shops. 



This program coincides with the launch of a new web portal dedicated to GE's business aircraft operators - ge.com/bizaviation. This website allows GE's business jet customers to go directly to the support and OnPointSM Solutions services that are tailored to their needs. GE offers a wide variety of maintenance solutions for business jet operators, including a comprehensive rate per hour program. 



GE has also expanded many features of its Strother Field facility in Kansas. The new features, including a pilot room and concierge services, are geared for Challenger operators flying in and out of Strother to have maintenance performed on their engines. 



With more than 600 Bombardier Challenger* and CRJ100/200 business jets in operational service since 1983, the CF34 engine has set new standards for reliability. 



GE - Aviation, an operating unit of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft. GE is also the world's leading provider of maintenance and support services for jet engines.