Ex Smiths 14% 20% 14% 17% Growing commercial installed base 1,747 -a) deliveries in 06 ~2,100 -b) deliveries in 07 Segment Profit

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1 GE Aviation Aviation ($ in billions) $7.6 20% Ex Smiths 14% Business imperatives Winning technology Revenue $6.3 $1.4 $1.6 17% 14% Deep domain knowledge Growing commercial installed base 1,747 -a) deliveries in 06 ~2,100 -b) deliveries in 07 Segment Profit $40B commercial & military CSA backlog 1H 06 1H 07 Strong track record of organic & inorganic growth Great business model (a- 1, deliveries CFM, deliveries GE (b- ~1, deliveries CFM, ~ deliveries GE, ~12 07 deliveries EA CFM is a 50/50 joint company between GE and Snecma EA is a 50/50 joint company between GE and Pratt & Whitney 2

2 Industry strength continues 1H 07 revenue passenger mileage growth India 20% MEA 18% China 16% Americas 5.0% Europe 4.9% Asia 4.5% (w/o India & China) 20-30% 10-20% 0 10% 3 Expanded Aviation portfolio ($ in billions) Commercial Engines Commercial Engine Services Military Engines & Services 06 Rev b) a) $3.8 $5.9 $3.5 Systems Digital Systems Electrical Power Mechanical Systems Unison Engine Components 06 Rev b) $0.8 $0.2 $0.8 $0.6 A leading aviation technology business (a- Includes GE s 50% of CFM CFM is a 50/50 joint company between GE and Snecma (b- Systems & Unison Engine Components on Smiths 06 fiscal calendar 4

3 GE + Smiths B787 Flight data recorder Leading/trailing edge actuators GEnx Common core computing Flight deck interface / flight voice recorder Nose gear steering controls Common core remote data concentrators Landing gear actuation & controls / brake monitoring Smiths Innovative systems & engine components supplier Commercial, business & military segments Great technology & products Well-positioned for growth + GE Leading technology products Operational excellence Supply Chain management Project management Expanding capability beyond the engine = Synergy Top-line growth driven by B787, A380, B747-8 & JSF New channels & expanded services $300MM revenue & cost synergies by year 3 5 Walter Engines small turbo-props 11+ Turbo-prop airframers outside US/W Europe 1,595 Walter engines in service >30 a/c types 80%+ flying outside US/ W Europe Infusing GE technology to accelerate product development $100MM+ revenue in 5 years Total OEM Engine shipments ~3,400 Installed Engines 197 Developed Countries 1,398 ROW ~2,000 ~100 Current Products ~800 ~ shp shp k shp 2.3k 2.8k shp > 2.8k shp New products 6

4 Military winning in a tough environment Environment Global war on terror Aging equipment operating & maintenance cost up 2x in 10 yrs Must re-capitalize / modernize Sikorsky CH-53K 3 to 5 year lead-time for procurement funding F110 (Turkey) F414 (USN/Australia) F136 (JSF) CH-53K (GE38) R&D benefits both commercial & military Growing helicopter business ~$1B annual revenue 7 Recent U.S. military funding $340MM USAF ADVENT (Advanced Versatile Engine Technology) HEETE (Highly Efficient Embedded Turbine Engine) AATE (Advanced Affordable Turbine Engine) $231MM demonstration focused on Var Cycle Tech Major advance in evolution of propulsion Adaptive Cycle Engine (2012) Multi-mission flexibility & efficient supersonic flight $16MM Compressor Rig Test Next Gen compression system Lighter, smaller core Less fan/booster & LPT stages Cooled air for rear stage disks $93MM 4 Year Demonstrator Program Targeted for attack & utility helicopters 67% increase in Power SHP 25% improved fuel burn Potential SDD program in

5 Commercial outlook strong Commercial engines Best-selling on regionals 800 engine backlog Commercial installed base Best-selling on single-aisle 4,500 engine backlog Best-selling on Boeing engine backlog Best-selling on widebodies 2,250 engine backlog 21,900 12,600 4,600 14,600 8,200 4, F CFM GE EA Fleet in active commercial service Source: ACAS, GE internal studies GP7000 developed by GE/P&W Engine Alliance CFM is a 50/50 joint company between GE and Snecma 9 Materials stream fueled by departures Annual departures* (MM) % V 21% V 40% V 42% V 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: ACAS data and GE analysis CFM International is a 50/50 joint company between GE and Snecma 10

6 Growing service business Engine lifecycle revenue Parts and Services 7X Average fleet age 8 years Design and test GEnx 0 GP7000 CF34 New engines GE90 CFM CF6 40+ Years Key initiatives Delivering customer value - $39B commercial service agreement backlog Technology upgrades - Operating savings and improved residual value Build out diagnostics - Unique operational knowledge Reducing cost of ownership - More repair and used material 11 Tech investment family additions ($ in billions) Highest R&D commitment in history $7B since 2000 Service 08 Boeing ER GE90-115B Service 08 Total R&D $1.2 Airbus A380 GP7200* Boeing 787 GEnx $1.1 Service 09 Service 10 Service 08 $0.9 ARJ21 CF GEnx Service GE/Honda** HF120 *GP7000 developed by GE/P&W Engine Alliance **HF118 developed jointly by 50/50 JV between GE & Honda 12

7 GEnx 950+ engine wins to-date GAP GEnx powered 787 vs. previous generation 50% lower NOx* emissions 50% lower noise footprint** 20% fuel burn improvement > $1.3MM annual fuel savings*** per aircraft Accepted in the market 13 *CAEP6 levels **Stage 3 noise requirements LEAP56TM foundation for the future Fuel burn ~20% better* Lightweight/composite structures Component technology Maintenance cost ~10% lower Lower parts count Longer life-limited parts Environment 60% lower emissions (NOx) than 2008 regulations 50% lower noise than current regulations 14 * Compared to CFM56 Tech Insertion (certified in 2007) LEAP56TM is a trade mark of CFM, a 50/50 joint company between GE and Snecma

8 Aviation supply chain GE s plants Suppliers Partners 28 component shops 6 assembly and test sites 335 domestic 105 global 15 Strategic Investment Plan Strategic Technology H Turbine Airfoils Invest Combustors Rotating Parts Manage Partners Spares/service OM opportunity Nacelles Configs Partners Controls & Accessories Composites Structures Assembly & Test L Performance impact H Need process control Focused on turbine airfoils, rotating parts and composites 16

9 Supply Chain investment Volume ($ in billions) Turbine airfoils Greenville plant Expanding 3X Rotating parts West Jefferson Capital equipment Composites Mississippi plant Operational 08 Investing ~$150MM+ annually CFAN -a) expansion GE90/GEnx Blade volume 10X (a - CFAN is a 50/50 joint company between GE and Snecma 17 Raw material focus Nickel 17 Titanium Price ($/lb) 7 11 Price ($/lb) 21 '05 '06 '07 '05 '06 '07 Cost reduction playing offense!! Cost reduction funding ($MM) $9 $29 $78 '05 '06 '07 Engineers applied to cost reduction '05 '06 '07 Buy-to-Fly GE90-115B TCF From: 1 pc forging 1878 lbs To: 4 pc UEC welded rings 1082 lbs Driving material efficiency 18

10 Lean CFM56 Turbine Blade Cycle Time (days) Single piece flow lines Quick change tooling Robotics '06 '07 YTD GE90 Assembly and Test Cycle Time (days) Material kitting Standard blocks of work 19 Automated test setup '05 '06 '07 YTD 19 Aviation summary Continuing to introduce new high technology products Improved fuel burn Lower maintenance cost Environmentally friendly Systems and engines for next generation wide and narrow bodies GE active in ~80% of $66B military funding activities ( 07-16) continue capturing commercial benefits Develop adjacencies integrate Smiths Walter Great business model 20

11 GE Infrastructure