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MARTIN MARIETTA CLOSES GE AEROSPACE TRANSACTION

 BETHESDA, Md., April 2 /PRNewswire/ -- Martin Marietta Corporation (NYSE: ML) and the General Electric Company (NYSE: GE) today completed a $3.05 billion transaction combining GE's aerospace businesses with Martin Marietta.
 The transaction combines the U.S. Department of Defense's two leading research and development contractors and creates a new corporation with more than $10 billion in annual sales, including $3 billion generated from commercial, international and civil government customers.
 "The synergies and critical mass created by this combination strengthen our ability to grow core businesses, protect jobs, serve our customers and maximize value to stockholders," said Norman R. Augustine, Martin Marietta chairman and chief executive officer.
 John F. Welch Jr., chairman and chief executive officer of General Electric, said: "This combination allows the new Martin Marietta Corporation to move into the global arena as number one in its industry, with twice the resources and a fraction of the overhead rate of the two companies that created it. We believe the agreement presents a unique opportunity for employees of the new corporation to be part of a dynamic enterprise that is well-positioned for the challenging business environment ahead."
 At closing, GE received $1 billion in Martin Marietta convertible preferred stock and $906 million in cash. Martin Marietta assumes $750 million of payment obligations associated with GE long-term debt, and GE retained $394 million in accounts receivable.
 "We are looking forward to an ongoing relationship with GE that will serve to ease and expedite the transition, reduce costs and help maintain the high quality of product and financial performance associated with both companies," said Augustine.
 Augustine said a transition committee, co-chaired by A. Thomas Young, president and chief operating officer of Martin Marietta, and Eugene F. Murphy, a GE senior vice president who also headed GE's aerospace businesses, will be making recommendations on how best to structure the new organization to maximize effectiveness.
 -0- 4/2/93
 /CONTACT: Charles Manor of Martin Marietta, 301-897-6258, or Bruce Bunch of GE, 203-373-2039/
 (ML GE)


CO: Martin Marietta Corporation; General Electric Company ST: Maryland IN: ARO SU: TNM

KD -- DC015 -- 2475 04/02/93 11:27 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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