GE Specialty Materials Completes Acquisition of Osmonics, Inc.; Business will join GE Betz in GE's water and process technologies business.

Business Editors

WILTON, Conn.--(BUSINESS WIRE)--Feb. 28, 2003

GE Specialty Materials, a unit of General Electric Company (NYSE: GE), announced today it has completed its acquisition of Osmonics, Inc. (NYSE: OSM), a global manufacturer and marketer of high-technology water purification, filtration and water handling systems

Osmonics, with operations at eight locations in the US, France and Thailand, joins GE Betz within GE Specialty Materials' water and process technologies business, creating a $1.4 billion enterprise with over 5,400 employees worldwide. The transaction was first announced in November of 2002. George R. Oliver, currently vice president and general manager of GE Betz, will lead the combined businesses.

The GE Osmonics brand offers a complete line of reverse osmosis, nano-filtration, ultra- filtration and micro-filtration membranes and a variety of specialty and microfiber filtration products. In addition to providing complete engineered water treatment systems, it also offers a complete line of components including instruments, pumps, valves and controls for commercial and industrial as well as household water treatment use.

"Osmonics will play a prime role in the evolution and growth of GE's water and industrial process technology enterprise," said D. Dean Spatz, former chairman and chief executive officer of Osmonics, Inc. "This new combination of technical prowess and strong product offerings will reap significant rewards for both the business and its customers."

GE Betz is a leader in the engineered chemical treatment of water and process systems in industrial, commercial and institutional applications, and has water treatment capability in demineralizers and the patented E-Cell electrodeionization (EDI) units.

"Osmonics is a tremendous fit for our expanding water and process business," said William Woodburn, president and chief executive officer of GE Specialty Materials. "Bringing Osmonics together with GE Betz positions us to provide to customers more capability and innovative technology in a marketplace that is demanding integrated solutions to water and process requirements."

GE Specialty Materials' water and process business serves a wide range of industries, including petroleum refining, power generation, pharmaceuticals, medical, chemical processing, mining, transportation, and the food and beverage industry, as well as the household water treatment segment.

The addition of Osmonics brings complementary strengths to the business in many of those industries, and also offers point-of-use filtration products for the residential and commercial use.

"GE's mission is to deliver ever-increasing value to customers, and the addition of Osmonics to the business enhances our ability to do that," Oliver said. "It enables us to utilize technologies, expertise and best practices across wider pursuits in water and processes, to better serve existing customers and to attract new ones."

GE Specialty Materials (GESM) is a platform for growth within GE offering a wide range of products including fused quartz, polymer additives, silicones, industrial diamonds, and water and process technologies. GESM uses technological innovation and Six Sigma to serve customers in segments as diverse as cosmetics, semi-conductors, oil drilling, construction and telecommunications. Visit GE Specialty Materials online at gespecialtymaterials.com.