Ann M. Fudge and Scott G. McNealy were named to the Board in 1999.

Ms. Fudge is an Executive Vice President of Kraft Foods, Inc., where she is President of Kraft’s cereal and food division. She brings a wide range of consumer business experience, leadership, insight and judgment to the Board.

Mr. McNealy is Chairman of the Board and Chief Executive Officer of Sun Microsystems, Inc., a supplier of network computing solutions that he co-founded. His vision, entrepreneurial passion and candor will help GE’s e-Business transformation.

Eugene F. Murphy retired as Vice Chairman and Executive Officer of GE after over 35 years of highly effective service to the Company and RCA. Prior to his serving GE as President and CEO of our Aircraft Engines and Aerospace businesses, he had served in senior executive positions with RCA before GE acquired that company in 1986.

Mr. Murphy epitomizes the first and most important of GE values: absolute integrity. His strength of character and uncompromising demand for the highest of standards in everything done by GE are his legacy to our Company and will remain a part of its culture.

The GE Board held eight meetings during 1999.

At the December meeting, the Directors voted to increase GE’s quarterly dividend by 17%, from 35¢ to 41¢ per share, marking the 24th consecutive year of GE dividend increases. The Board also announced an increase in GE’s current share repurchase authorization from $17 billion to $22 billion, which will allow the program to continue through the year 2002 at about $2 billion annually.

Board committees addressed a variety of matters during 1999.

The Audit Committee, which consists entirely of outside Directors, held four meetings. It reviewed the activities and independence of GE’s independent auditors and the activities of GE’s internal audit staff. It also reviewed the Company’s financial reporting process, internal financial controls and compliance with key GE policies and applicable laws.

The Finance Committee, in four meetings, reviewed GE’s pension trust and retirement plans, foreign exchange exposure, airline industry financing and other matters involving major uses of GE funds.

The Management Development and Compensation Committee, which consists entirely of outside Directors, held eight meetings. Its activities included review of all executive compensation plans, policies and practices, all changes in executive assignments and responsibilities, and succession plans for key positions.

The Nominating Committee, at its three meetings, reviewed candidates for the Board and recommended the structure and membership of Board committees for the ensuing year.

The Operations Committee, in four meetings, reviewed the Company’s operating plan and various operational matters.

The Public Responsibilities Committee, in two meetings, evaluated environmental and other public responsibility issues as well as activities of the GE Fund.

The Technology and Science Committee participated in one meeting at which it reviewed the GE Capital Services business.