GE Signs Gas Turbine Contracts Valued over $950 Million for Three Projects in Saudi Arabia.

Projects Will Add 2,900 Megawatts to Grid

ATLANTA -- GE Energy (NYSE: GE) announced it has signed three contracts with the Saudi Electric Company (SEC) worth in excess of $950 million to supply 23 F-class gas turbines and additional equipment for three power plants that will add 2,900 megawatts of capacity to the Kingdom's electricity grid.

These projects include:

* Fifteen GE Frame 7FA gas turbine-generators for the Qurayyah Open Cycle Power Plant, a 1,907-megawatt project in Saudi Arabia's Eastern Province.

* Four 7FA units for the Faras Power Plant Expansion, also located in the Kingdom's Eastern Province, totaling 509 megawatts.

* Four 7FA machines for the Riyadh Power Plant No. 8 Extension-III Simple Cycle Power Plant in Saudi Arabia's Central Province, totaling 491 megawatts.

With its rapidly growing population and economic development, Saudi Arabia's demand for electricity has been increasing at a rate of seven per cent or more a year. Saudi Arabia's Industry and Electricity Ministry estimates that the Kingdom will require up to 20 gigawatts of additional power generating capacity by 2019.

"We are excited to be able to support our long-standing relationship with Saudi Electric Company as well as the continuing growth of Saudi Arabia," said Steve Bolze, President of Power Generation for GE Energy. "We are pleased that SEC has selected our F-class gas turbines, which have been well-proven in more than 17.5 million hours of commercial service worldwide, to meet the challenge for reliable and efficiently produced power."

"These contracts are the latest in a long series of agreements between the two companies," said Abdullah Taibah, Region Executive, GE Energy - Middle East. "Over the years, SEC has purchased more than 200 GE Frame 5, 6 and 7E gas turbines for projects across the Kingdom."

In addition to the gas turbine-generators, GE will supply generator step-up transformers and main breakers, unit auxiliary transformers and ISO-phase busbars for each of the three plants. The scope of GE's contracts also includes technical advisory services, customer on-site training and performance testing.

Initially, the 7FA gas turbines will be used in simple-cycle, base load operation at all three plants, while the Qurayyah plant will have the option to be converted to combined-cycle in the future. Natural gas will be the primary fuel, with distillate oil as a backup, at all three plants.

The gas turbines will be manufactured at GE's facilities in Greenville, S.C. For the Qurayyah project, the first seven units will be shipped during the second half of 2007 and are scheduled to enter commercial operation by June of 2008. The remaining eight units will ship during the second half of 2008 and will enter commercial service by June of 2009.

The 7FA units for Faras and Riyadh PP8 will be shipped during the second half of 2007 and are scheduled to begin commercial operation by June of 2008.

The Saudi Electric Company was formed in 2000, as the result of a merger agreement among Saudi Arabia's ten regional power companies. Today, SEC distributes and supplies electricity to domestic, commercial, industrial and agricultural customers throughout the Kingdom.

Saudi Arabia is one of GE's key growth regions. GE maintains a workforce of more than 600 employees in the Kingdom with offices in Jeddah, Riyadh and the Eastern Province as well as joint ventures in fields of energy, healthcare and appliances. GE's current business portfolio in Saudi Arabia includes power and water, transportation and healthcare, in addition to new opportunities in financial services and advanced materials.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.