U.S. Army Awards $35 Million T700 Maintenance Contract To GE Engine Services.

Business Editors

EVENDALE, Ohio--May 9, 2002--The U.S. Army's Aviation and Missile Command (AMCOM), Redstone Arsenal, Alabama, has awarded GE Engine Services (GEES) three separate T700 repair and overhaul contracts each having four-year periods of performance. The total value for the first year of all three agreements is approximately $35.8 million. The total four-year value of all three agreements is approximately $205 million.

Under terms of the three agreements, GEES will overhaul, repair and recapitalize up to 650 T700 engines and up to 435 T700 engine modules, including up to 400 stage one nozzles, at GE's Strother facility, near Arkansas City, Kansas.

"We are pleased the U.S. Army AMCOM has chosen GE Strother to overhaul its T700 engines in this highly competitive environment," said Lynn Bowles, director of military services with Military Engine Operations at GE Aircraft Engines. "This agreement reflects the Army's continued confidence in GE's ability to supply the Army with quality overhauled engines and modules at fair prices."

The first agreement covers overhaul and repair of up to 300 T700-700 engines and up to 200 power turbine modules for the U.S. Army's UH-60 Black Hawk helicopter,

The second agreement covers overhaul and repair of up to 200 T700-701 engines and 35 T700-701 power turbine modules used in the AH-64 Apache helicopter, to also be performed through April 2006.

The third agreement covers overhaul and repair of up to 150 T700-701C engines for the AH-64 Apache and UH-60 Black Hawk and up to 200 T700-701C power turbine modules for the AH-64 Apache and UH-60 Black Hawk. This agreement also includes overhaul and repair of up to 400 T701C Stage One Nozzles, up to 82 T401C engines for the U.S. Navy Seahawk helicopter and up to 198 T401C power turbine modules to be performed through December 2007.

In January, the U.S. Army signed a four-year extension that contracted GE to supply T700 helicopter engine parts and technical expertise to support the Corpus Christi Army Depot's (CCAD) overhaul programs at Corpus Christi, Texas. The Depot supports all AH-64 Apache helicopters for the U.S Army, all UH-60 Black Hawk, Seahawk and Pave Hawk helicopters for the U.S. Army, U.S. Navy, and U.S. Air Force, and the AH-1W SuperCobra for the U.S. Marines.

The T700/CT7 engine family provides greater reliability and maintainability compared with other engines in its class. The T700/CT7 family has proven itself in battle, extreme environments, and in commercial revenue service, amassing more than 35 million engine flight hours.

With an installed base of more than 11,000 engines, GE's T700/CT7 turboshaft and turboprop engines are the most widely used engines in their class. The engines currently power 25 types of civil and military helicopters as well as regional airliners, military transports, and multipurpose aircraft.

GEAE, a division of General Electric Company (NYSE: GE), is the world's leading manufacturer of jet engines for military and civil 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 www.geae.com.