GE 2008 Annual Report

Our non-U.S. revenues have averaged 13% annual growth this decade. We expect our global growth to outpace the U.S. in 2009. This is a source of competitive advantage for GE. We are perfecting an approach called “connected and scalable localization” whereby we accelerate growth by expanding our local product lines, serving new customers, and creating strong partnerships with local champions. GE has 25 countries each with more than $1 billion in revenues, so empowering our local teams is critical to driving growth.

Global diversity is important in this cycle because it diversifies revenues and risk. We expect Healthcare’s diagnostic imaging business to suffer in the U.S. as our customers grapple with budget cuts. However, we have a $9 billion global healthcare business that we expect to experience strong demographic growth, offsetting weakness in the U.S.

We will invest $10 billion in technology and content in 2009, the same level as 2008. Since 2000, we have invested approximately $50 billion in product technology. We’ll launch economical “value products” in 2009 such as the 2.6-megawatt wind turbine, which has high efficiency, more capacity, and lower cost.

We’ll continue to build our innovation pipeline. We launched a venture in digital pathology, which we think will be a $2 billion market over time. We launched hulu™, a joint venture between NBC Universal and News Corp., which is an innovative digital content platform competing with YouTube™. We have invested $150 million in battery technology that will power our hybrid locomotives. We will continue to fund innovation through the downturn.

GE has many ventures and partnerships that help us grow and diversify risk on a global basis. Our multi-business structure makes us a particularly desirable partner for governments and other large investors. A great example is our spectacular success with the Beijing 2008 Olympic Games. This event produced $2 billion of revenues across multiple GE platforms, while building our relationships in China.

In 2008, we announced a multifaceted partnership with Mubadala, the commercial investing arm of Abu Dhabi, which includes a commercial finance joint venture, projects in renewable energy, and a training center in Abu Dhabi. Mubadala will also become a “Top 10” GE investor.

We have core processes centered on organic growth, operating excellence, and leadership development. The aim of these processes is to spread best practices across the Company.

We compare our progress on common metrics in industrial organic revenue growth, margins, return on total capital, and productivity as measured by revenue per employee. The chart on this page shows how we compare with a composite of world-class peers. We continue to perform.

In addition, we continue to invest $1 billion annually in our people and leadership development. We value our team. We remain committed to developing broad and “battle-tested” global leaders.