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Press Release

GE Energy to Supply Equipment for Two New HydroPlants in China

October 18, 2004

GE Energy to Supply Equipment for Two New Hydro Plants in China

SHANGHAI, China--(BUSINESS WIRE)--Oct. 18, 2004--GE Energy announced today it has received contracts totaling more than US$38 million to supply equipment and services for two new hydroelectric plants in China.

In the first project, GE has a contract of nearly US$35 million to provide four turbine-generator sets for the new Xi Xia Yuan hydroelectric facility on the Yellow River in Henan Province, in the northeastern region of People's Republic of China. The plant, which is being built by the Yellow River Water & Hydropower Development

Corporation (YRWHDC), will be located in Luoyang City, one of China's seven ancient capitals. Xi Xia Yuan will have an installed capacity of 144 megawatts and is expected to provide 583 million kilowatt hours of electricity annually. It is one of several hydroelectric facilities planned by the Chinese government to increase its electrical supply to meet growing industrial and private demand.

GE Energy will design, manufacture and supply four 36-megawatt Kaplan turbines; four sets of governors; four 35-megawatt vertical generators; and four sets each of excitation systems and unit automation elements. The scope of the contract also includes a model test, site service, equipment transportation, training, spare parts and special tools.

The turbine-generator sets and related parts will be shipped to the site between January 2005 and August 2007. Three of the units will begin commercial operation between June and December 2007, while the fourth unit will begin in March 2008. The equipment will be manufactured by GE Hydro Asia from its manufacturing facility in Xiaoshan, Hangzhou City, Zhejiang Province.

GEHA was formed in 2003 when GE Energy acquired majority ownership of Kvaerner Power Equipment Co., Ltd. (Kvaerner Hangfa) of Hangzhou, one of the leading suppliers of hydropower generation equipment in China.

The Xi Xia Yuan project represents the biggest equipment order for GEHA and its first contract with YRWHDC.

We are delighted that our technology has been selected to help China meet the country's growing need for power, said Li Shu-Ping, sales leader for GE Energy's hydropower division in China. Wuhan Stars Electric Company Limited and Electric Control Sub-Co., NARI Group Corporation, are the recommended subcontractors that will install the governors and excitation systems, respectively.

In the second project, GE Energy has a contract of US$3.33 million. Through its GE Hydro Asia unit, the company will provide two 33-megawatt, 234-meter head Francis hydro turbines, generators, spare parts, special tools and site technical services to Fujian Jinzaoqiao Hydropower Company, Ltd. for the Jinzaoqiao hydropower station, to be built on the Jinzao River in Fujian Province, China.

Scheduled to enter service in 2006, the new hydro plant will produce nearly 70 megawatts of electricity for the regional grid to help meet China's growing power requirements.

Shipments of the GE-supplied equipment for the project will begin in late 2004 and will be completed by early 2006. The first GE hydro turbine-generator is scheduled to enter commercial operation in April 2006 and the second unit in June 2006.

Developing hydropower stations such as Fujian Jinzaoqiao is a significant part of China's sustainable energy initiative, said Li Shu-Ping. We are pleased that our high-head technology has been selected for a number of these projects.

About GE Energy

GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2003 revenues of nearly $18.5 billion. Based in Atlanta, Georgia, GE

Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.

The company is a world leader in the supply of hydro turbines, generators and related electro-mechanical equipment for the hydropower production industry. Capabilities include complete water-to-wire solutions for new hydroelectric plants and refurbishment and service for existing plants.

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CONTACT: GE Energy, Atlanta
Dennis Murphy, +1 678 844 6948
[email protected]

or

Masto Public Relations
Ken Darling or Howard Masto, +1 518 786 6488
[email protected] or [email protected]


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