GETransportation

2

20%

Transportation

• Expand profitability of core N.A. businesses with technology & operating excellence

• Extend business reach to global markets

• Build strong adjacencies with technology & market synergies

– Propulsion systems

– Signaling & “Avionics”

– Power storage

29%

18%

2003

$0.5

2006

$0.8

Revenue

SegmentProfit

$2.5$4.2

$2.4

$5.1

Global demand & technology fueling growth

($ in billions)

Business imperativesOrdersBacklog

CAGR

3

Environment

Global trade … Commodities, coal & finished good flows driving growth on land & sea

Emerging markets growth … GDP growth gated by rail & mining infrastructure

North America market growth … industry strong, investment focused on productivity, fuel, service, & emissions … backlog growing

Capacity challenges & fuel cost … Driving advanced technologies

Highway congestion & labor… Challenging truck capacity

Aging fleets … Being upgraded for fuel, emissions & reliability

Strong fundamentals

4

Global growth

Global expansion driven by emerging mkts, commodities growth

17

25 25 26 27

N. Am China Russia/CIS India L. Am

• RR’s critical in developing countries

• Coal & commodity growth

• Freight corridors, land bridges & mining

• Emphasis on reliability, life cycle, & emissions

Approx.Fleet Size

27,700 11,400 13,600 4,900 3,600

2003 2004 2005 2006 2007e

Global backlog (locos)

Key Wins:• Kaz/Russia/CIS (Loco’s, Mods, OHV)• China (Locos, Signaling, OHV, O&G, M&S) • Middle East/Africa (Loco’s, M&S, Parts) • SEA/ANZ (Loco’s, M&S)• Europe (Loco’s, Mods, Signaling, M&S) • S. America (Loco’s, OH’s)

30110 120

640

760

Age of fleet (years)

5

Hybrid technology, fuel & emissions

N.A. Class 1 RR Op Ex

(annualized est, $B)

Investing in leadership technologies

Transportation Fuel MGPP

Product Enhancements

•Combustion optimization (’08)

•Trip Optimizer (’09)

•Common rail fuel injection (’10)

Alternative Fuels•Locomotives Low sulfur, Bio-diesel

•Stationary power gen Palm oil

•Marine engines Marine diesel oil

Hybrid Locomotive

•May ’07 demo in California

•Prototype loco 2010

•Targeting 10%+ fuel & emissions benefits

•Fuel ~20% of class 1 Op Expense annually•2% fuel savings yields ~$200MM annual benefits

Fuel20%

C&B40%Other

Op Ex40%

~15% benefit

6

Propulsion adjacencies

LocomotiveControl & System Design

Marine Propulsion OHV Propulsion

• Our knitting … Engines, AC Propulsion, Generator, Wheel Motor, Control, Gears … Batteries next

• Leverage system design/control … technology advantage

• Higher value add … compete as propulsion system vs. component supplier

Propulsion business generating 30%+ loco business & growing

Drill Systems Power Storage

7

1996 2001 2006

NA Int'l

Signaling & Rail ops revenue

($ in millions)

Leveraging technology to improve global asset management

Dispatching

Signaling

“Avionics”

$310

$550

Signaling, solutions & “avionics” in Rail

8

Fuel Savings 10% savings vs. operators

Train Coverage All Cargo

(e.g. Coal, Inter-modal)

Network Coverage in All Territories

(e.g. Mountains, Undulations)

Training < 2 hrs./Operator

% Trip in Auto >60%

Fleet Coverage 10,000 NA units

PTC Interface Common Components

(e.g. Wireless, Track DB)

In-cab technology to drive fuel & RR productivity

System overview:

• GPS + Forecasting Tools

• Automatic Throttle Control

Key deliverables

“Avionics”

Ton-Mile/Gallon

RR Operators

10+% Fuel Savings!

Trip Optimizer

9

Transportation summary

Global transportation market … fundamentals are

strong

Strong backlogs … equipment & services

Expanding CM’s … in core business from technology

& ops excellence

Rapidly globalizing … successful N. America business

Building propulsion adjacencies … technology

synergies

Building an “Avionics” business … market synergies

GEInfrastructure