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Press Release

GE and Joint Venture Partners Celebrate Groundbreaking for 6FA Gas Turbine Facility in Russia

October 30, 2012

GE expands presence in fast-growing Russian energy market
Technology to help meet Russia's growing need for cogeneration
JV with Russian partners INTER RAO UES and UEC
Rybinsk facility to start producing gas turbines in Q2'2014

Rybinsk, Russia -- October 31, 2012 -- GE (NYSE: GE) and two Russian joint venture partners, INTER RAO UES and United Engine Corporation, today held a groundbreaking ceremony for the Russian Gas Turbines LLC Manufacturing Facility.

The foundation stone was laid by Jeff Immelt, GE Chairman and CEO, Yuriy Sharov, Member of INTER RAO UES Management Board and Vladimir Artyakov, Deputy General Director of the RUSSIAN TECHNOLOGIES State Corporation.

The new plant will manufacture, sell and service 77 MW highly efficient, low-emission 6FA industrial gas turbines in Russia and CIS countries. The production facility will be built near Rybinsk in the Yaroslavl region with an initial capacity of 14 units per year and will start operations in Q2'2014.

The plant will help address Russia's growing need for high-performance, mid-sized power blocks in cogeneration and combined heat and power applications. With its output of 77 megawatts, high exhaust energy, full packaging and robust design, the 6FA gas turbine is well suited for a wide variety of applications, including industrial cogeneration and district heating.

The cost of the construction and commissioning of the turbine manufacturing plant is estimated at $170 million. The investment will come both from the JV's participants' own budgets and external financing.

"We are pleased to break ground on our new facility with our valued partners INTER RAO UES and UEC and bring GE gas turbine production capability to the Russian energy market", said GE Chairman and CEO Jeff Immelt. "Today is an important milestone in our near 90-year history in Russia and reflects our confidence in the power of partnership to support the modernizing of the Russia's infrastructure".

"Efficient power generation is a priority for the Russian economy, and we believe the development of this new facility in Rybinsk will help localize technology for the sector in a region known for its professional workforce. The facility will employ many highly skilled engineers and create hundreds of additional jobs for partners and suppliers," stated Ron Pollett, President & CEO of GE in Russia & CIS.

"The construction of a mid-size turbine producing plant will enable INTER RAO UES to significantly reinforce its position in the engineering business," said Boris KOVALCHUK, Chairman of INTER RAO UES Management Board. "I am confident that our joint venture will promote state-of-the-art highly efficient technologies in the Russian energy market. This will have a positive impact on social indicators in Russian regions and on INTER RAO UES Group's engineering business efficiency."

"The joint venture to produce 77 MW gas turbine units in Rybinsk will expand the product line of the companies of United Engine Corporation and help fill the gap in the supply of gas turbine units between 60 MW and 90 MW," said Vladimir Artyakov, Deputy General Director of RUSSIAN TECHNOLOGIES State Corporation. "Additionally, our participation in the localization of components production for General Electric allows us to expand our footprint on the international market for power engineering technology as a second level supplier."

About GE in Russia
GE has been operating in Russia since the early 20th century, starting with the Soviet Union's electrification and then with the sale of locomotives and oil and gas equipment. Today, GE is represented across Russia in multiple industries: healthcare, transportation, aviation, electric power, oil and gas, water treatment, financial services, lighting and intelligent platforms. With a head office in Moscow, GE has over 3,200 employees and reported 2011 revenues of US $2 billion in Russia. GE has established training centers for Energy and Healthcare in Moscow.

About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

About INTER RAO UES JSC
INTER RAO UES, JSC is one of Russia's largest electric power companies, controlling a number of generation and distribution assets in Russia and abroad. The total installed capacity of the electric power stations of INTER RAO UES Group is 28,000 MW. The company is a major investor and a leading exporter and importer of electric power in Russia, as well as a major generator in Russia (www.interrao.ru).

About UEC
United Engine Corporation is a leading Russian industrial group for manufacturing civil and military aircraft engines, LV propulsion systems, industrial gas turbines for electric power generation, gas pumping units and marine engines. The UEC group of companies includes more than 85% of the main companies supporting the design, serial production and after market for these industries as well as the key suppliers of to the Russian gas turbine industry. A stated priority of UEC is the development of gas turbines engine enterprises based on new technologies that conform to International Standards (www.uk.odk.ru).

Elena Ushakova
GE Russia/CIS
[email protected]
+7-495-739-6178
+7-916-802-4225


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