GE Infrastructure

William WoodburnPresident & CEO

"This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects","anticipates","intends", "plans", "believes", "seeks", "estimates", "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of GE. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise."

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February 2005

The world is experiencing dynamic shifts in:

• Population

• Life expectancy

• Energy usage & stress

• Availability of clean water

…all of which increase global tension

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February 2005

The world population will become grossly out of balance.

80% of the world’s population will be in countries least capable of supporting further growth…

… but 33 developed countries’ populations will shrink dramatically.

Source: CSIS

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February 2005Source: CSIS

Medical technologies may allow today’s children to live until age 120.

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February 2005Source: GE Energy

The energy needs of this growing population will spike usage by 60%

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February 2005

The population explosion will put even more pressure on this valuable resource

Source: The World Bank

Nearly half of the world’s population will be water-stressed in the future

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February 2005

GE is structured to address these dynamic changes

GROWTH ENGINES

CASH GENERATORS

Commercial Finance

Advanced Materials ConsumerAnd Industrial

Infrastructure

ConsumerFinance

Equipment Services Insurance

NBC UniversalTransportationHealthcare

Energy

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February 2005

GE’s Global Research Center

•4 Global Research Centers

•2,500 technologists worldwide

•Technical Disciplines

> Chemistry> Mechanics> Physics> Electrical

Global Research CenterNiskayuna, NY

John F. Welch Technology Centre

Bangalore, India

China Technology CenterShanghai, China

Global Research -EuropeMunich, Germany

>Computer Science>Materials>Biology>Mathematics

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February 2005

GE Infrastructure-$5B in 2005

Security GE Fanuc AutomationSensingWater & Process

Technologies

Infrastructure

Structured to provide global customer solutions

Technology focused on solving emerging global market needs.

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February 2005

Chemicals$14

Desalination$5

Membranes$10

Equipment$13

Ind’l. Svcs.$8

Water strategyTotal market

$360B$50B

GE Growth Focus

Industrialservices

12%

8%

8%

12%

CM% >40%Growth rate +10%

What we bought

Great distributionStrong technologyCompetent team

Segmentation

Betz,Ionics

Glegg,Ionics

OsmonicsIonics

Ionics

4% Betz

What we bring

Global distributionServicesMore technologyFinancingPublic policyMore leadership

+

In the game … with scale

Investment Value creation

1.9X revenue10X EBITDA

Key ProfitSegments

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February 2005

GE InfrastructureWater & Process Technologies

The GE difference…

• Imagination Breakthrough Technology

• 2,200+ Sales and ServiceEngineers

• Game-changing commercialoffering

DifferentiatingTechnology

People CommercialOffering

GE’s competitive advantages drive our growth.

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February 2005

The Value To Customers…

• We Optimize Total System Performance

• We Safeguard Customer Assets From Corrosion, Fouling and Scaling

• We Protect The Environment Through Water and Energy Conservation

Filtration

Equipment

$2.1 B

The Platform

Aligned with customers to drive growth

Chemicals

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February 2005

Creating technology that improves our world. Water Purification

Desalination

Air Quality

Water Reuse

Waste Treatment

Pathogen Protection Plant Optimization

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February 2005

Desalination & Micro Biological Control

Desalination technology

• Energy efficient membranes

• Reduce equipment cost and footprint

• Improved energy recovery

• Integrate RO system design with renewable energy sources

Micro Biological Control technology

• RNA Testing applied to Industrial segments

• Environmentally friendly MB control techniques…UV, ozone and chlorine dioxide

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February 2005

Mobile Water technology

• Incorporation of filtration technologies within rapidly deployable mobile fleet

• Global service network

Mobile Water & NDT

Non-Destructive Testing technology

• Diagnostics and imaging software

• Predictive models

• Corrosion prevention solutions

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February 2005

What Our 2,200 Service Reps Do …• Perform Field Analytics

• Troubleshoot Plant Systems

• Prescribe Treatment Solutions

• Live on the Customer Site

What Our Customers Get …• Expert Technical Service, 24 X 7

• Continuous Performance Monitoring

• Detailed Performance Reporting

• Optimized Performance of Costly Fixed Assets

We continue to build excellence with our field sales team.

• Typical Contracts ~1 year

• Customer Pays On Chem Usage… Average $60K / Year

$1.5B Revenue in 2004

80%Recurring

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February 2005

• Broad array of solutions

• Scale + on-site reliability + reputation

Optimize SystemPerformance

Protect the Environment

Safeguard Assets

Result: $160MM Service Contract

Build, Own, Operate or Maintain

Our commercial offering represents a paradigm shift in the industry.

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February 2005

Today’s Water Scarcity

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February 2005

Desalination Opportunity

2005 2014

Growth Projections

$4.3B

$14.1B

$9.2B

Industrial

Municipal60%

40%

10%

25%

65%

Americas

Asia

EMEA

14% CAGR

9% CAGR

ProjectedGrowthRange

2005 Market Segmentation

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February 2005

Ionics Business Segments

• Long term outsourcing & emergency services

• ~500 trailers/12 regeneration centers

• Build – Own – Operate facilities for industrial/muni consumption

• ~200 facilities/$4.2B backlog

40%

Operations

50%

• Water purification equipment to diversified industrial & muni customers

• Leader in desalination & zero liquid discharge

Equipment

10%

Revenue %

• Home water purifiersConsumer &Instruments

DescriptionSegment

• Analytical instruments for measuring impurities in water

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February 2005

Leading Mobile Fleet of ultra purity vehicles

40 Trucks 500 Trucks

Ionics Opportunity

Synergies• Ionics 60 person sales team turbo-

charged with GE Industrial team of > 2,200

• GE Capital financing capabilities

GE: 1 MGD Ionics: 25 MGD

Desal Scale

Global leader in Desalination• 3,000 Installed Base• $4.2 B backlog

• GE Capital financing capabilities

• Advanced technology & cost execution capabilities

• GE scale / reputation

Synergies

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February 2005

Ionics – Trinidad Desal Plant

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February 2005

Why We Like DesalLarge, high-growth segment

GE Commercial Finance opportunity

Technology drives lower Cost

Trinidad Desal Plant Example

Ionics

GE + Ionics

OM ROE OM ROE

Year 1 Year 3

$10$8$12

$16

9%

42%

26%

56%

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February 2005

GE’s Water PlatformPre-GE Post-GE

On strategy … business with breadth, diversity & real scale

Path to20%ROTC

Rev. growth 7% 12/40% 10+%OM % 12% ~18% ~20%% services ~50% ~75% ~80%IROIC ~3% ~50+%

$1.6

'05E '07F

$2.8

Membranes/FiltrationPolymers

Desalination

Revenue($B) $2.1

Water Services

~10%organic growth

Ionics pending

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February 2005

Global Security Industry$160 Billion

Market OpGrowth Profit ROTC

Current Segments ($26 B)

Facility Security 7% H Hresidential, commercial, enterprise

Homeland 8% H Htransportation & defense solutions

Emerging Segments ($13 B)

Integrated Facility Mgmt. 7% M M

RFID / GPS Surveillance 12% M M

GE’s Robust Growth Strategy…• Acquire & build capabilities• Integrate and streamline operations

• Deliver excellence in customer service

• Maintain technology leadership

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February 2005

Enterprise$25

Facility$5

Homeland$10

Security strategyTotal market

$160B

$40B15%

4%

10%

CM% >40%Growth rate +13%

What we bought

Technology leadersDistribution/Market accessInstalled base

Segmentation

Ion TrackInVision

InterlogixEdwards

Interlogix What we bring

Global distributionServicesTechnology synergiesGE leadership

+

Quickly becoming a major playerin targeted segments

Investment Value creation

2.3x revenue13.4x EBITDA

Key ProfitSegments

GE Growth Focus

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February 2005

GE InfrastructureSecurity

NewMarkets

NewTechnology

Solutions &Services

The GE difference…

• Creating new market opportunities with technology

• Developing Imagination Breakthrough new products

• Delivering a broad set of security solutions & services

GE’s advanced science & engineeringdrive our growth

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February 2005

Protecting Facilities & the Home

StreetLab:Narcotics & bio-detection

VideoIQ:Intelligent videoidentifies humanactivity

• ID management

• Access control

• Digital video

• Fire detection

• Intrusion detection

• Integrated data centers

Home Security:Wireless systems &self monitoring

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February 2005

Winning with technology

• EntryScan systems used in TSA & Amtrak security trials

• XRD – GE has the first new bomb detection technology certified by TSA since 1994

• GE technology protected attendees of the Olympics, DNC & RNC, and the reopened Statue of Liberty

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February 2005

Protecting Commerce

• Partnership with All Set Marine Security

• Adapting GE’s Supra technology to track cargo & detect container access

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February 2005

SupraRecurring Revenue Services Business

Generating High CM/OM

Sea Container

Linking existing technology to open new markets

AutomotiveAccess and Video Integration

Creates Unique Solution$750MM Opportunity

Sea ContainerUnique technology & Service Model

$1B Opportunity

Automotive

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February 2005

NPI: Balance technology development

Link ExistingTechnology

4 IBs

Resi Auto Sea Containers

New/NewTechnology

4 IBs

Time: 6months + 6 months Time: 2-3 years

MMW Imaging / Weapons Detection

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February 2005

Finding threats before they are realized

- Explosives

- Weapons

- Biological & chemical threats

Imagine…

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February 2005

Human Threat DetectionMillimeter-Wave/VideoIQ

Advanced detection and

analytical technologies to

identify potential threats

in open spaces

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February 2005

Human Threat DetectionMillimeter-Wave

Advanced detection and

analytical technologies

to pinpoint hard-to-

identify threats

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February 2005

Securing Freedom

of Movement

Imagine…

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February 2005

Making the Skies Safer

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February 2005

Advanced ScreeningWhat we Imagined

• Trace detection

• CT

• XRD

• QR

• Biometric

• Intelligent Video Technologies

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February 2005

Advanced ScreeningBecoming a Reality

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February 2005

Integrated Multi-Sensor CheckpointScreening Technologies Under Development

5

2 3

4 1

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February 2005

Closing the Loop

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February 2005

Detecting Invisible Assassins

Imagine…

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February 2005

Bio Detection

Mobile and site-based solutions

for rapid detection and

identification of biological and

chemical threats

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February 2005

Sniffing out

potential threats

for BART

Bio DetectionBio-Guard APDS

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February 2005

Growth

Organic- Technology drives NPI, Market reach

Acquisitions- InVision

- Edwards

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February 2005

Rounding Out the Platform

Strategic

- Edwards provides fire capabilities & positions GE as a leader

- InVision builds explosives detection capability

Leveraging GE Scale- Cross-selling within Edwards

- Technology leverage in CT for InVision

- GE’s global distribution reach

- Integration focus on technology, cost & organic growth

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February 2005

Edwards OverviewFire Systems Benefits

• Government mandated

• 12-15 months earlier in specification

• Backbone of every building system

• Fire: $5B industry

• Integrated Facility Mgmt: $10B

Why Edwards?

• Channel strength

• Technology leader

• Complementary product portfolio

• Synergy opportunities with GE

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February 2005

Edwards Overview

Fire CCTVBuildingControls

AccessControl

Intrusion

GE Synergies

• Utilize Edwards channel partners to sell through Security products

– Video, access control CCTV, trace detection

• Expand Edwards in Europe/ China through GE’s Security business

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February 2005

InVision

• Technology leader in explosive detection technologies

• Synergies with GE Healthcare & CT

• Rich pipeline of Imagination Breakthrough products

•Closed acquisition 4Q04

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February 2005

$650M

~$2B

~$4B

2002 2005 2007

Shaping the future

Tripled Security RevenuesFrom ’02-’05

• InVision + Edwards add ~$0.9B revenue

• Organic growth driven by technology & geographic expansion

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February 2005

Infrastructure($ in billions)

'04 '05E

Rev.

OP

~$0.6

~$0.9$3.4

~$5.1 • Strong organic growth … 3X GDP– Expanded distribution– NPIs– Globalization

• Building service capability … CSA model for customer efficiency

• Drive revenue synergy– Water … services & equipment– Security … homeland security +

fire– Sensors & GE Fanuc… technology

Great growth momentum … building global platforms

50%+

35%+

Dynamics