GE'S F Technology to Help Meet Malaysia's Growing Need for Additional Power.

Business Editors

ATLANTA--(BUSINESS WIRE)--April 2, 2001

GE Power Systems has received contracts totaling approximately US$188 million to supply equipment and long-term services for a 350-megawatt power plant in Prai, Pulau Pinang, Malaysia.

Marking the first installation of GE 9FA combined-cycle technology in Malaysia, the new combined-cycle plant will supply power to help support the country's economic growth, which surpassed 10% in 2000.

The plant owner, SKS Ventures Sdn Bhd. of Malaysia selected Sumitomo Corporation of Japan for the installation and erection of the power plant. The contract signing was witnessed by Dato' Mohd Annas, Director General of Electricity and Gas Supply of Malaysia.

GE is the subcontractor for the power island equipment, which includes an MS9001FA gas turbine, a heat recovery steam generator and a steam turbine. GE also has signed a long-term service agreement (LTSA) to supply parts, services and repairs for 19 years. GE Power Systems' services unit, based in Atlanta, GA, now has more than $17 billion in commitments for LTSAs and operation and maintenance agreements for power plants worldwide.

Tenaga Nasional Berhad (TNB), the national utility in Malaysia, will be the sole purchaser of electricity from the Prai power plant, which is expected to begin commercial service in March of 2003.

Dato' Mohd Hilmi, chairman of SKS Ventures, said that GE's 9FA technology was selected based on its proven design, and also noted that the plant heat rate, availability and emissions levels will meet the requirements negotiated between SKS and TNB. GE's F-class gas turbines now have accumulated more than 3.6 million hours of commercial operation, with more than 1,000 units installed or on order for projects worldwide.

"We are very pleased to be supporting the Prai project, and believe that it will be a milestone for future power plant development in the area," added F.L. Leow, Region Executive - Asia Pacific for GE Power Systems.

As part of Malaysia's aggressive program to provide electricity for continuing economic growth, TNB is projecting the need to add 1000 megawatts of power per year, over the next five years. The Prai combined-cycle plant is in the first wave of independent power plants that will be commissioned in 2003 and beyond.

SKS Ventures Sdn. Bhd. is part of the SKS Group, which is involved in major infrastructure projects in Malaysia including ports, property development, highways and mechanical fabrication works. Recently entering the power industry, SKS now controls Malakoff, which owns the largest independent power plant in Malaysia, a 1303-megawatt combined-cycle facility at Lumut in the state of Perak. SKS also has received a license to develop a 2100-megawatt coal-fired power plant at Palau Bunting in the state of Kedah, which is expected to be commissioned in 2005.

About GE Power Systems

GE Power Systems (www.gepower.com) is one of the world's leading suppliers of power generation technology, energy services and management systems with 2000 revenue of $15 billion. The business has the largest installed base of power generation equipment in the global energy industry. GE Power Systems provides turnkey equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.