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GEAviation

Scott C. DonnellyPresident & CEO

GE Aviation

GE Company Proprietary

“This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.”

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GE Company Proprietary

Aviation industry is strong

Fuel ($ / Gallon)

Average

$1.46

$1.84

5.9%

5.3% 5.2%

1Q2005

Average

1Q2006

4.9%

ASKGrowth

RPKGrowth

ATKGrowth

FTKGrowth

Aircraft Orders(Airbus & Boeing)

266

1Q2005 1Q2006

188

Pax Capacity & Traffic Growth(1Q2006 over 1Q2005)

Cargo Capacity & Traffic Growth(1Q2006 over 1Q2005)

ASK RPK

ATK RTK

Sources: International Air Transport Association (IATA), US DOE, Airbus, Boeing

GE Company Proprietary

Aviation … business model

~70% of orders from non-US customers –b)

Everywhere in the world

GEnx … $7B ordered to-date

Differentiate with technology

OnPoint solutions … $35B backlog

Win lifecycle service

864 commercial deliveries YTD –a)

Grow installed base

(a- 520 YTD deliveries CFM, 344 YTD deliveries GE(b- 18% of non-US customer orders won by CFM International

CFM International is a 50/50 joint company between GE and Snecma

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GE Company Proprietary

Product lineage Commercial installed base (K)

1971 CF6

CFM1979

1992 CF34

1995 GE90

2008 GEnx

Next LEAP56TM

Source: ACAS, GE internal studiesGP7000 developed by GE/P&W Engine Alliance

CFM International is a 50/50 joint company between GE and SnecmaLEAP56TM is a trade mark of CFM International, a 50/50 joint company between GE and Snecma

Commercial engines … win with technology

2006 GP7000

EA‘95 ‘05 ‘15F

GE

CFM~16.5

~11.0

4.07.5

14.04.5

11.5

21.0

GE Company Proprietary

Invest in technology … grow installed base

1995 2005 2015F

25,000

15,000

10,000

5,000

0CFM PW RR IAEGE CFM PW RR IAEGE CFM PW RREA IAEGE

Source: ACAS, GE internal studiesCFM International is a 50/50 JV with Snecma

EA is a 50/50 JV between GE and Pratt & Whitney

CommercialEngines

20,0001,700 current

year adds(1,000 adds CFM, 700 adds GE)

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GE Company Proprietary

CFM56 … the world’s most popular engine

Highlights

• Longstanding JV with Snecma

• 1,162 in new orders through June ‘06

• Key orders at Air India, China Southern

easyJet, Indian Airlines & Southwest

• Certified latest CFM56 Tech Insertion

Focus

• Support … ~12,000 engines around the world

• Production ramp up … 1,000 engines per year

• LEAP56TM … define and validate technologies for future

CFM International is a 50/50 joint venture with SnecmaLEAP56TM is a registered trade mark of CFM

GE Company Proprietary

GE90 value … ask the airlines that fly it

Sources: 9/05 Air Finance Journal, GE Internal Study

Highlights

• #1 Widebody … investor & operators poll

• 22% more fuel efficient per seat, 16% lower seat mile cost

• In flight shutdown rate … best in class

• $2.1B in new orders through June ‘06

• Guinness Book of World Records … highest thrust

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GE Company Proprietary

Embraer 190

Bombardier CRJ705

CF34 … now a 70-110 pax game• CF34-10E early service reliability

excellent on EMB190

• EMB195 EIS at Flybe in October ‘06

• 500+ engines to be delivered to Embraer over next 3 years

• >300 CF34-8C powered CRJsand still growing strong

• CRJ700: -8C1 fleet upgrade delivering customer value

• CRJ900: more variants coming

GE Company Proprietary

CF6 … continued strong demand

• Middle of the market interim lift … 747-400bridge to 747-8

• $0.7B in new orders through June ‘06

• Key CF6-80E1 win at Jet Airways

• Customers recognize value & reliability

• Over 4,500 fielded engines … approaching 300 million flight hours

• Tech CF6 endurance engine on test

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GE Company Proprietary

• Leading with 72 GP7000 powered aircraft

• Significant hub to hub advantage … cost & capacity

• Certified December 2005 … A380 flight test 3Q06

• First Emirates ship set assembled & tested … performance better than spec

GP7000 certified … taking flight

GP7200 developed by GE/P&W Engine AllianceEA is a 50/50 JV between GE and Pratt & Whitney

GE Company Proprietary

ecomagination• 30% lower emissions (NOx) than previous state of the art

• Better than noise targets on all applications

• > $1.2MM annual savings per aircraft

• 15% efficiency improvement

GEnx … next generation technology today

$7B in engines ordered to-date

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GE Company Proprietary

• Fuel burn … 10% better

– Lightweight / composite structures

– Component technology

• Maintenance cost … 25% lower

– Lower parts count

– Longer life-limited parts

• Environment

– 60% lower emissions (NOx)

– Significant improvement in margin to acoustics regulations

LEAP56TM is a trade mark of CFM International (CFM), a 50/50 joint company between GE and Snecma

LEAP56TM … foundation for the future

GE Company Proprietary

Relative to Competitors’ engine applications

0

-1

-2

-3

-4

-5

-6

A330

-200

A330

-300

767-

300E

R

747-

400

777-

200

(5k

nm)

777-

200E

R(5

k nm

)

A380

-800

(6k

nm)

Del

ta B

lock

Fue

l (%

) -5.2

-1.4 -1.1-2.0

-3.2 -3.2

-0.5

787-

8

Aircraft CompanyData

Aircraft Company Published Report

Fuel burn … GE delivers the best in operation

-0.8

787-

9 (5

k nm

)

-1.2

3,000 nm route unless specifiedGP7200 powers the A380 & is developed by GE/P&W Engine Alliance

EA is a 50/50 JV between GE and Pratt & Whitney

GE

Adv

anta

ge

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GE Company Proprietary

Support … we build our reputation on it

• The commitment … keep ~7.5K GE & ~11.5K CFM engines flying

• The expertise …

- 150 field service engineers

- 4,000 GE engineers

- Full technical resources of GE

• The tools … Lean & Six Sigma

- Improving profitability & value

- Lowering cost of ownership

CFM International is a 50/50 joint venture with Snecma

GE Company Proprietary

Services evolution

• Build on growing installed base … up ~2X in 10 years• Growing customized service agreement portfolio … OnPoint• Expanding into engine systems … Unison

Products Services

30%

Products Services

60%

$6.1$11.9

‘95 ‘05

($ in billions)Revenue

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GE Company Proprietary

Fleet growing … despite cyclical market

CFM International is a 50/50 JV with SnecmaEA is a 50/50 JV between GE and Pratt & Whitney

Engine Deliveries

Engine Installed Base

’95 ’10F’05’00 ’15F0

500

1,000

1,500

2,000

0

10,000

20,000

30,000

40,000Fleet in Service

GE GE+CFM+EA

(GE+CFM+EA)

GE Company Proprietary

Grow services opportunities

40+ Years

Parts and Services

7X

Design and test

New engines

0

GE90CF6CF34

CFMGEnx

GP7000

Engine lifecycle revenue Average fleet age 8 years

CFM International is 50/50 joint venture with Snecma GE/P&W Engine Alliance is a 50-50 JV between GE and Pratt & Whitney

~40% of GE & CFM engines have not had first shop visit

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GE Company Proprietary

Customized service agreements

‘97 ‘05 ‘07F

• Evolve with customer needs– OnPoint … new offerings

– Reduce customer cost

CSA backlog ($B)

$40+

$9

$33

Emirates Air AsiaAlaskaRyanair Singapore

Frontier KLMFedExSouthwestChina

Southern

• Solid customer base …

• Win with growing carriers …

GE Company Proprietary

• Improved fuel burn

• Lower maintenance

• Lower noise & emissions

~2013+CFM56 Technology Evolution

CFM56-7

CFM56-5B/P

Gen 1& 2 Gen 3 Gen 4

Technology roadmap … customer value

CFM56-3 CFM56-5A

CFM56-5C CFM56-5B/3CFM56-7B/3

LEAP56

• Rotating composites

• High stage loadings

• Low emissions

• Advanced acoustics

1984

Infusing technology into previous generations via upgrade programs

CFM International is 50/50 joint venture with Snecma

Tech Insertion LEAP56

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GE Company Proprietary

Helping customers win … upgrades• Chosen by the world’s leading airlines

Customer Benefit

KLM EmiratesSouthwest

Air China Alaska Airlines

FedEx

China Southern Continental

• Continually developing new upgrades– 1999 … GE90 3D aero kit

– 2000 … CF6-6 turbine

– 2002 … CFM56-3 TOW kit, CF6-50 turbine

– 2003 … CF6-80A/C2 turbine

– 2005 … CF34-8 upgrade

– 2007 … CFM56-5/7 tech insertion, Tech CF6Savings over ~10 years

Maint. cost

Fuelburn

Residualvalue

Total cash

savings

~$1.1B

CFM International is 50/50 joint venture with Snecma

GE Company Proprietary

2005 Annual Revenue Passenger Mileage Growth

O – 10%10 - 20%20 - 25%

China16%

Asia - 6% (w/o India & China)

Europe - 6%

Americas - 7%MEA11%

India24%

Passenger growth … worldwide

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GE Company Proprietary

943

6,537

221 241

U.S.A. China India Brazil

0.3

1.3

1.1

0.2

Aircraft in service

Growth … now

• China ... 100 airplanes per year

• India ... 196* engines ordered ... 9 new airlines in ‘05

• Latin America ... new operating model ... GOL, TAM, COPA, Lan Chile

• Russia ... buying despite import duties

Emerging marketsPopulation (B)

*76 CFM engines … CFM International is a 50/50 JV with Snecma

GE Company Proprietary

Strong Commercial outlook

Revenues’03-’06

~10% AAGR

Services

Engines $2.2

$4.2

$3.1

$5.1

~$9.3B

‘03 ’06E’05

$8.1B

$6.4B$3.6

$5.7

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GE Company Proprietary

Military engines … win with technology

Fighters

1954

1960

1971

1980

1970

1979

1998

2011

J79

J85

TF34

F404

F101

F110

F414

F136

Transport / Tankers

GEnx

LEAP56

TF39

CF6-6

CF6-50

CF6-80C2

CFM56-2

Next

Next

1964

1968

1969

1985

1982

1997 CFM56-7

Turboshaft

1957

1964

2002

Next

1978

1988

1984

T58

T64

CT7-8

GE38

T700

CT7-9

CT7

GE Company Proprietary

Technology upgrades … customer value

• T700 upgrade for Apache & Blackhawk

- Materials and aerodynamics

- 400 of 5,700 engines delivered

- $2B opportunity

• Improves fleet performance

- 5% power increase

- 2X component life

• Funding plan defined

UH-60M Blackhawk

US Army engine transition plan

’05 ’10F ’15F

Flee

t Eng

ines

T700-GE-700

6,000

4,000

2,000

T700-GE-701

T700-GE-701C

T700-GE-701D

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GE Company Proprietary

F101 B-1B

CFM56-5B/-7 A320/B737NGService Life Extension

CFM56-2/3 B737

$1B USAF savings … $1.3B GE worldwide sales opportunity

CFM56-5A/C A320/A340

CommercialMilitary

Military & Commercial synergy … F110 SLEP

F110 F-16/F-15

F110 SLEP F-16

CFM International is 50/50 joint venture with Snecma

GE Company Proprietary

International markets ... significant growth

• Asia

– Korea … F-15, AEWC, T-50 trainer, Navy FFX

– Japan ... Emerging F-X program, utility helicopters

– India ... Fighter program, utility helos, maritime patrol

• Middle East

– Turkey ... Utility & attack helo

– Saudi ... Tanker, Apache, Blackhawk, maritime patrol

– UAE .... Tankers, trainers

• Europe

– UK, Netherlands, Italy ... F-35

– Spain ... NH90

– NATO ... Alliance Ground Surveillance (AGS)

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GE Company ProprietaryCFM International is a 50/50 JV with SnecmaSource: HeliCAS, MiliCAS, ACAS, GE internal studies

Invest in technology … grow installed base

15,000

10,000

5,000

GE RRPWCFM HON

1990 2005 2015F

GE RRPWCFM HON GE RRPWCFM HON

20,000

US MilitaryEngines

GE Company Proprietary

Services growth … expanding PBLs

Backlog ($B)• Improved fleet readiness

• Pay for performance

• Lean teaming with customer depots– Jacksonville– Corpus Christi– Cherry Point

• Enhanced asset utilization

• Commercial solutions for DoD

4X since ‘04

0.6

0.1

‘02 ’04 ’06E

2.5

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GE Company Proprietary

Revenues’03-’06

~6% AAGR

Services

Engines & Development

$1.6

$1.5

$1.9

$1.6

$3.5B$3.1B

‘03 ’06E’05

$3.5B

$1.8

$1.7

Drive installed base … expand services

GE Company Proprietary

• Invest in technology

• Grow installed base … focus on

departures

• Win in China, India, Middle East

• Expand services footprint

• Deliver customer productivity'04 '06E

Revenue

OP

$2.2

$11.1

$11.9

GE Aviation

'05

$2.6

~$12.8

~$2.9

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GEAviation

Scott C. DonnellyPresident & CEO

GE Aviation