GE Awarded $126 Million SDD Contract For The C-5 Galaxy Modernization Program.

Business Editors

EVENDALE, OHIO--February 11, 2002--Lockheed Martin Aerospace Company has awarded to GE Aircraft Engines (GEAE) a $126 million contract to provide CF6-80C2 propulsion systems for the System Development and Demonstration (SDD) phase of the U.S. Air Force C-5 Galaxy Reliability and Enhancement and Re-engining Program (RERP). The propulsion system includes the CF6-80C2 engine, the thrust reverser, and nacelle.

The SDD phase is the first step in this long-term program. The RERP is part of a comprehensive modernization plan for the C-5 Galaxy fleet to meet the Air Force's future heavy airlift requirements while greatly reducing the fleet's operating costs.

During the SDD phase, GEAE will provide 14 CF6-80C2 propulsion systems to support a three-aircraft flight test program scheduled to begin in 2005. The contract also includes an option for four additional propulsion systems for a potential fourth aircraft. Propulsion system deliveries are targeted to begin in 2004.

After the six-year SDD phase is completed, the C-5 RERP enters the production phase, which could call for up to 490 GEAE CF6-80C2 propulsion systems, plus service support, at a potential value of $2.6 billion to GEAE. The program will help the C-5 fleet remain operationally viable until at least 2040.

Following a detailed technical evaluation, Lockheed Martin selected GEAE's CF6-80C2 engine to re-engine the Air Force's fleet of C-5 airlifter aircraft. The engine is the world's best-selling engine for wide-body commercial aircraft, is expanding its presence on government and military aircraft. Because of its industry-leading reliability and performance, the CF6-80C2 was selected to power the U.S. Government's Air Force One, as well as Japan's new 767 AWACS early warning aircraft. Other CF6 models power the U.S. Air Force's KC-10 Cargo/Tanker and E-4B Command Post.

Between now and 2005, GEAE will be working closely with Lockheed Martin on the overall integration of the new propulsion system into the aircraft, and will be establishing the C-5 RERP logistics support program.

The CF6-80C2 replaces the C-5's historic TF39 engine, which was developed by GEAE almost 40 years ago as the world's first operational high bypass turbofan engine. In fact, the TF39 became the foundation of GEAE's highly successful CF6 engine family, which has powered commercial jets since the early 1970s.

"The Air Force's C-5 modernization program is an integral part of our national security," said Andy Solem, general manager of the Turbofan and Turbojet Programs at GEAE's Military Engine Operations. "The direct operational savings and improved readiness resulting from the installation of the CF6-80C2 propulsion system into the C-5 fleet make this an outstanding program for the Air Force and the taxpayer."

The CF6-80C2L1F engine selected for the C-5 will drastically reduce the C-5 fleet's maintenance costs and fuel burn, while providing dramatically improved noise and emission characteristics. For the C-5 RERP, the CF6-80C2 engine will incorporate a new-generation digital control system (FADEC). Because of the popularity of the CF6-80C2 worldwide, the engine can be overhauled by a global network of GE service shops.

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. Visit GEAE online at http://www.geae.com.