GE to Provide a Detailed Review of GE Capital

GE to Provide a Detailed Review of GE Capital;
Expects GE Capital Finance to be Profitable in 1Q and Full Year 2009;
Does Not Foresee a Need for External Capital Even Under Stress Assumptions Approximating Federal Reserve’s Adverse Case

FAIRFIELD, Conn. - GE (NYSE: GE) is today providing investors with a detailed update on GE Capital’s framework and outlook at an investor meeting in New York and via webcast. The session builds on the December 2008 update in which the Company outlined tough but prudent actions intended to improve liquidity, reduce costs and control credit losses at GE Capital amid the global recession.

“Even in this difficult environment of credit pressure and declining asset values, we expect GE Capital Finance to be profitable in the first quarter and full year 2009,” GE Vice Chairman and Chief Financial Officer Keith Sherin said. “Our funding position is strong, having already completed 93% of 2009 funding goal.”

“We have a strong set of financial services businesses built with discipline, sound risk management and a conservative, originate-to-hold model. We expect these businesses to perform through this difficult cycle. We have sufficient capital and alternatives to weather the tough environment,” GE Vice Chairman & GE Capital Chairman and CEO Mike Neal said.

“To give our investors further assurance and recognizing the uncertainty of the current climate, we have stress tested GE Capital Finance using assumptions consistent with the Federal Reserve’s base case and a more severe adverse case, which contemplates unemployment peaking at 10% and GDP declining by more than 3% in 2009,” Neal said. “Even under this more severe case, which would potentially cause our losses and impairments to increase significantly, GE Capital Finance would still essentially break even and not require additional capital.

“GE Capital Finance’s key capital ratios compare favorably to banks, including the important ratio of tangible common equity to tangible assets (TCE/TA),” Neal said. “With the recent $9.5 billion capital infusion by GE, GE Capital Finance will have a TCE/TA ratio of approximately 6%, which reflects a very strong capital base.”

GE is providing a detailed review of the GE Capital businesses and will address questions raised by investors about portfolio risk, such as commercial real estate, global mortgage, U.S. consumer and Eastern Europe.

The meeting in its entirety will be presented live via webcast beginning at 9:00 a.m. ET today. Webcast and call information is available at www.ge.com/investor, and related charts will be posted there prior to the call.

GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.

Caution Concerning Forward-Looking Statements:

This document contains “forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.