GE Sees Sustainable Double-Digit Earnings Growth Starting in Fourth Quarter 2004.

FAIRFIELD, Conn. -- GE expects to deliver double-digit earnings growth in fourth quarter 2004, 2005 and for the foreseeable future, GE Chairman and CEO Jeff Immelt told investors today at the company's meeting on its outlook for the coming year. The meeting is being Webcast at www.ge.com starting at 3 p.m.

"GE is now a much stronger company with faster-growth industrial businesses and higher-return financial services businesses," Immelt said. "We are positioned in the right demographic trends and see an accelerating organic growth rate. GE's incremental returns on capital are expanding, and we anticipate increasing cash flow and broad financial flexibility. We are well positioned to continue to invest in the company and return an increasing amount to shareowners as well."

In his presentation, Immelt made the following points about the company's financial outlook:

--Fourth quarter 2004 revenues are on track to grow approximately 15%, with earnings of $5.2-$5.5 billion, an increase of 13-20%. In line with previous guidance, earnings per share (EPS) are on track for $.48-$.51, up 7-13% over fourth quarter 2003. Growth in the quarter is expected to be broad-based, with nine of GE's 11 businesses delivering double-digit earnings growth. Full-year EPS is expected to be $1.57-$1.60, in line with previous guidance.

--GE expects to grow 2005 earnings 13-17% over 2004 to $18.6-$19.5 billion, with EPS up 10-15% to $1.75-$1.83. Consolidated revenues are expected to grow 10%, and 10 of GE's 11 businesses should grow earnings at double-digit rates.

--Cash flow from operating activities is expected to grow annually at double-digit rates at least through 2007. GE plans to use this strong cash flexibility to continue to invest in its businesses, self-fund growth in financial services, and return significant value to shareowners through a substantial dividend and a share repurchase program. As announced last week, GE raised its quarterly dividend 10% and authorized the repurchase of up to $15 billion of its common stock over the next three years.

--Incremental returns on invested capital should exceed 25% in 2005 and further expand in 2006 and 2007.

"We have excellent momentum going into 2005," Immelt said, "and the right businesses with the right team to sustain our growth for years to come."

GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.

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