GE, XD Electric form global transmission and distribution partnership

Atlanta, May 7, 2012 — GE and XD Electric Group formed a new partnership to deliver an electric transmission and distribution and grid automation solutions to customers around the world.

The partnership creates a new global competitor to provide customers with proven technology offerings to build and upgrade their electrical infrastructure to meet the high demand for reliable electricity.

The three major components of the partnership are:

* Creation of a global partnership to combine GE's grid automation and service capabilities with XD Electric's comprehensive portfolio of primary power equipment to offer customers an array of integrated transmission and distribution solutions;

* Establishment of a joint venture with XD Electric to offer customers in China localized grid automation solutions; and

* GE's purchase of a 15 percent equity stake in XD Electric and appointment of a representative to the XD board of directors.

Globally, T&D is a $100 billion industry with strong growth dynamics tied to the rise in electricity demand as middle-class populations grow around the world. China represents about a quarter of the T&D industry's projected expansion.

Over the next decade, China plans to invest $600 billion in its electrical infrastructure. In places like Europe, North America and Australia, modernization of electrical systems is contributing to the industry's growth, driven by new requirements from renewable and distributed power sources.

Expansion in electrification in energy intensive industries also will drive electrical infrastructure investments as they upgrade their equipment to improve the efficiency of their operations.

The formation of the partnership remains subject to regulatory approvals and the satisfaction of customary closing conditions. GE and XD Electric expect that the partnership will be able to begin operations in 4Q 2012.

Citigroup acted as sole financial advisor to GE on this transaction. Weil, Gotshal & Manges LLP and Fangda Partners are GE's lead legal advisers.

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