GE Transportation and Tülomsas Combine Expertise To Supply Markets with GE’s PowerHaul™ Series Locomotives

GE Transportation, a unit of General Electric Company (NYSE: GE), and Tülomsas have announced the signing of a Memorandum of Understanding (MOU) for a strategic relationship in which GE Transportation and Tülomsas have agreed to collaborate to supply the market with GE’s PowerHaul™ locomotives.

Under the terms of the agreement, GE will supply Tülomsas with the necessary technology and material to assemble GE’s PowerHaul series locomotives in Turkey for the European, Middle East and North African markets.

"Our strategic approach is to bring to the market advanced technology from GE, a world leader in diesel electric locomotives, with Tülomsas’s manufacturing expertise, while remaining a productive, profitable and competitive enterprise,” said Hayri Avci, General Director and Chairman of Board of Directors of Tülomsas,. “Our strategic relationship with GE will be beneficial to both companies and help Tülomsas expand its footprint and increase its technological prowess and profitability. This relationship brings two companies together, each of which has over 100 years of locomotive manufacturing experience.”

“GE Transportation is committed to growth by focusing on technical leadership, deep enduring customer relationships and global competitiveness,” said Lorenzo Simonelli, President and CEO of GE Transportation. “We are very pleased to be working with Tülomsas on this MOU as it is a natural step along the path to regional localization of our capabilities.”

Added Simonelli: “We’re investing in Turkey because of its strategic proximity to the customers we wish to serve and its advanced technology and manufacturing skills. Finally, we hope to leverage GE’s longstanding expertise and global reach to be a true partner in the economic development of the country. “

GE’s PowerHaul series locomotives are driven by the 16-cylinder PowerHaul engine, which is GE’s most technologically advanced locomotive engine to-date. This new engine combined with other technologies from GE is projected to reduce PowerHaul Locomotive fuel use by up to 9% compared to current operating fleet averages.

The 3,700 GHP engine is European Stage IIIa compliant and Ecomagination certified. Ecomagination is a GE-wide commitment to developing technology designed to help GE customers satisfy environmental challenges, while maximizing performance and reducing cost. GE Transportation’s PowerHaul Locomotive is based on the company’s global Evolution® Series locomotive platform introduced in 2005. With close to 3,000 units in use today, the Evolution Series locomotive is one of GE Transportation’s best-selling products worldwide.

“The PowerHaul engine used in these locomotives significantly increases fuel efficiency while lowering emissions, said Simonelli. “PowerHaul Locomotives are designed for cost-effective long-haul operating range, high pulling power, long-term emissions compliance and reduced life-cycle cost.”

GE Transportation received an order for 30 locomotives, powered by GE’s PowerHaul engine, from UK-based Freightliner Group Ltd. in November 2007. The purchase represented the largest order of freight locomotives in Freightliner’s history and the PowerHaul engine’s debut into the UK and European market place.

More than 16,500 GE locomotives are currently in use in more than 50 countries around the world. GE Transportation has evolved from a supplier to the North American rail industry to a global transportation leader. Through the end of 2008, international locomotive orders will contribute more than 40% of the company’s locomotive-related revenue.