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GE Supports Industrial Growth in Italy With Seven Gas Turbine Projects Totaling Nearly US$250 Million

June 4, 2008

GE Energy continues to support industrial growth in Italy through seven contracts for 12 aeroderivative units totaling nearly US$250 million and including the first ever LMS100 gas turbine generator packages in Europe.

Under the scope of the projects, GE Energy will provide the following:

— Three LM2500+ DLE gas turbine generator packages for Fenice S.p.A. for operation at the Barilla factory in Parma, Italy and the Fiat factories in Melfi and Atessa, Italy.

— Two LMS100 gas turbine generator packages to the Edison Group S.p.A. for use at its Marghera Azotati combined-cycle power station located near Venice, Italy.

— Two LM6000 PD SPRINT(R) and one LM2500+G4 gas turbine generator packages for the Burgo Group S.p.A. The LM6000 packages will be used at a combined-cycle paper mill located in Duino, Italy, while the LM2500+G4 package will be used at the Sora Paper Mill located in Sora, Italy.

— One LM6000 PD SPRINT gas turbine generator package for Sadelmi S.p.A. to be operated by Cartiere del Garda S.p.A. at a combined-cycle paper mill facility located in Riva del Garda, Italy.

— One LM2500+G4 water injected gas turbine generator package for CO.LA.RI S.p.A. to supply combined-cycle power to Europe’s largest landfill located in Rome, Italy.

— Two LM6000 PD 15PPM SPRINT packages for Dufenergy Italia S.p.A. to power a new combined-cycle plant located inside SILVACHIMICA’s chemical factory near Mondovi, Italy.

“According to TERNA, the Italian National Grid operator, Italy must import in excess of 10% of its consumed electric power in order to meet current levels of demand. Combined with high power prices and new environmental policies, we’re seeing an increase in the development of new, more efficient gas turbine power generation projects in this region,” said Charles (Chip) Blakenship, general manager of GE Energy’s aeroderivative business.

“Our aeroderivative gas turbines have been utilized to support the power generation needs of more than 126 industrial applications. Applied in on-site combined heat and power applications, our gas turbines help mitigate the high costs and production losses associated with grid instability and peak power tariffs. Also, the flexibility inherent in our gas turbine technology helps operators easily match energy production to process steam needs to maximize productivity. With more than 99.7% reliability and 98.6% availability, GE’s LM technology provides a new level of reliable energy, ensuring process continuity and stabilized energy costs.”

Fenice purchased the three LM2500+ DLE gas turbine generators for combined-cycle operation at the Barilla Pasta Factory in Parma, the Fiat SATA factory in Melfi and the Fiat SEVEL factory in Atessa. The gas turbines will supply electrical power to the factories with the excess power being exported into the ENEL grid. All three units are accompanied by a 12-year contractual service agreement and are expected to enter commercial operation during the third quarter of this year.

The Edison Group selected GE’s 100 megawatt LMS100 as part of an effort to increase the profitability of its Marghera Azotati combined-cycle power station that is currently powered by two heavy-duty turbines. Both units will be manufactured at GE’s Houston, Texas facility with the first unit entering commercial operation in April 2009 and the second following in February 2010.

The Burgo Group is Italy’s largest paper mill company and the biggest industrial independent power producer outside of oil and gas related companies. In addition to the two LM6000 PD SPRINT units purchased for its Duino paper mill and the LM2500+G4 DLE unit purchased for the Sora facility, the Burgo Group also currently operates two LM2500+ gas turbines at its Avezzano mill and two Frame 6B packages at its Verzuolo site.

The Duino units are paired with a 13-year full coverage contractual service agreement with an availability guarantee, while the Sora unit is paired with a similar 12-year agreement. Both will help the Burgo Group meet the availability target and revenue expectations of the cogeneration sites. The Duino units are scheduled to be shipped in August 2008 with anticipated commercial operation of the first unit in February 2009 and the second unit following in April 2009. The Sora unit was shipped earlier this year and is scheduled for commercial operation this summer.

Cartiere del Garda purchased its LM6000 PD SPRINT as part of a repower effort replacing four smaller, lower-efficiency gas turbines and two steam turbines. The new plant, based on GE Energy’s aeroderivative turbine, will take over the steam and power needs of the paper mill. The unit is accompanied by a 12-year contractual service agreement and is expected to enter commercial operation this summer.

GE’s LM2500+G4 selected by CO.LA.RI S.p.A. to power is Malagrotta Power Plant will operate in combined cycle and be capable of running on either high hydrogen synthesis gas or natural gas. As the primary gas fuel, the syngas will be generated from a patented gasification system where the garbage is converted into high hydrogen syngas after being processed through a 1600-degree C reactor. In order to meet environmental requirements, a water injection system will control nitrogen oxide (NOx) emissions to levels significantly lower than current incineration technology. The unit ships later this year and will enter commercial operation during the first half of 2009.

GE Energy’s aeroderivative division is a leading supplier of aeroderivative gas turbines and packaged generator sets for industrial and marine applications. The company provides power-generating equipment to utilities, industries and marine fleets throughout the world. It is also the world’s largest and most experienced aeroderivative gas turbine service provider.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world’s leading suppliers of power generation and energy delivery technologies, with 2007 revenue of $22 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

About GE Energy Europe

With more than 9,000 employees in Europe, GE has plants in France, Germany, Austria, Spain and Hungary. The European headquarters of GE Energy Europe are based in Belfort employing more than 1,800 employees. A center of excellence in its area, Belfort is the only producer of heavy duty gas turbines in France. The sites in Salzbergen, Germany and Noblejas, Spain are centers of excellence for new generation wind turbines, while one of the four GE Global Research Centers is based in Germany, near Munich. The Jenbacher plant in Austria is a leading manufacturer of gas-fueled reciprocating engines, packaged generator sets and cogeneration systems for power generation. In addition, there are several plants in numerous European countries producing spare elements and services, including Hungary, Italy and Great Britain. GE Energy Europe owns a University in Florence, Italy, training employees and one engineering center in Warsaw, Poland and also in Moscow, Russia.

About GE

GE is Imagination at Work–diversified technology, media and financial services company focused on solving some of the world’s toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing and media content, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at http://www.ge.com.




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