In addition to retaining KPMG LLP to audit the consolidated financial statements for 2001, the Company and its affiliates retained KPMG and many other accounting and consulting firms to provide various advisory, auditing, and consulting services in 2001. GE understands the need for KPMG to maintain objectivity and independence in its audit of the Company's financial statements. Therefore, GE does not use KPMG for internal audit work, and only uses KPMG for non-audit work when it concludes that KPMG is the most appropriate provider of that service. GE's use of KPMG for non-audit services declined significantly in 2001. The Audit Committee annually evaluates whether the Company's use of KPMG for non-audit services is compatible with KPMG's independence. The aggregate fees billed for professional services by KPMG in 2001 for these various services were:

	Audit Fees: $23.5 million for services rendered for the annual audit of the Company's consolidated financial statements for 2001 and the quarterly reviews of the financial statements included in the Company's Forms 10-Q;
	Financial Information Systems Design and Implementation Fees: $2.1 million for services rendered in connection with the design or implementation of hardware or software for financial information systems; and
	All Other Fees: $17.5 million for tax services; $13.8 million for non-financial statement audit services such as due diligence procedures associated with mergers and acquisitions, including the proposed Honeywell transaction; and $3.7 million for all other services.

GE managers make all management decisions with respect to its financial information systems, and are responsible for evaluating the adequacy of such systems and for establishing and maintaining the Company's system of internal accounting controls.