Increased Use Of Cogeneration In Hungary Drives GE Energy's Jenbacher Gas Engine Orders

Hungarian Energy Efficiency Initiative Key to Largest District Heating Plant

JENBACH, AUSTRIA - October 12, 2007 : – GE Energy's Jenbacher gas engine business has supplied 12 of its 3-megawatt (MW), natural gas-fueled engines for the largest district heating project in Hungary, as countries in Central and Eastern Europe continue to modernize their municipal cogeneration systems.

In place since 2002, the country's energy efficiency initiative is critical for the realization of such projects. The program promotes the increased use of combined generation of power and heat, enabling primary energy savings of roughly 40 percent compared to the costs associated with equipment for separate generation. Since the initiative went into effect, GE Energy has delivered Jenbacher gas engines capable of producing a total of roughly 220 MW of power to district heating customers in Hungary.

Popular for on-site power projects due to their high reliability, durability and efficiency, the new Jenbacher units were installed in early September in the city of Dunaujvaros, located 67 kilometers south of the capital city of Budapest, along the east side of the Danube River. The project was developed by plant owner and general contractor, Energott Kft.

GE's JMS 620 GS-N.LC Jenbacher engines will generate a combined 36.5 MW of electricity and 36.8 MW of thermal power, with a total efficiency of 86.4 percent. The units will be commissioned at the end of October.

Losses of heat during transportation and distribution will also be reduced as the decentralized energy supply is set up where the thermal output is needed, thus saving on fuel costs.

This district heating project is the latest to be built by Energott Kft., which previously built another cogeneration plant featuring eight Jenbacher JMS 620 GS-N-LC units to support the local public grid and district heating system in the industrial city of Székesfehérvár, 65 kilometers southwest of Budapest. That plant is capable of generating a total of 24.4 MW of electricity and 22.4 MW of thermal power.

"GE Energy is very excited to have its Jenbacher engines support, yet another important district heating plant in Hungary as the country, and the entire region, turn to cogeneration to boost energy efficiency, thus reducing the overall use of fossil fuels," said Prady Iyyanki, CEO of GE Energy's Jenbacher gas engine business.

To strengthen customer service capabilities as more cogeneration plants are installed in Central and Eastern Europe, GE Energy opened a Hungarian Jenbacher engine service center in late 2005. Located in the city of Veresegyház, 20 kilometers northeast of Budapest, the office is "co-located" with GE's gas-turbine spare parts manufacturing operation.

"This service and sales facility is crucial to supporting the growth of GE's Jenbacher gas engine presence in the region by helping to ensure the success of our customers," Iyyanki noted.

About Jenbacher Gas Engines by GE Energy

GE Energy's Jenbacher gas engine business, based in Jenbach, Austria, is a leading manufacturer of gas-fueled reciprocating engines and packaged generator sets for power generation and cogeneration systems as well as gas engines for mechanical drive applications.

Jenbacher engines cover an output range of 0.25 to 3 MW and operate on natural gas or a variety of specialty fuels, including landfill and coal mine gas or alternative fuels like biogas, sewage gas and industrial waste gas.

Patented combustion systems coupled with advanced engine and plant management systems enable customers to meet stringent international emission standards, while offering high levels of efficiency, durability and reliability.

GE Energy manufactures Jenbacher gas engines equipment at its production facilities in Jenbach, Austria.

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 2006 revenue of $19 billion. Based in Atlanta, Ga., 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. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.