1st Quarter Earnings Growth

General Electric Company
11 April 2002


          GE First Quarter Earnings Grow 17% to a Record $3.5 Billion;

                Cash Flow from Operations Ex-Progress Rises 18%


Fairfield, Conn., April 11, 2002 - GE's first-quarter 2002 earnings before
required accounting changes grew 17% to a record $3.5 billion, or $.35 per
share, the Company announced today.

'GE delivered in the first quarter for the same reason we have delivered
throughout the economic downturn -- the strength of our business model,' said GE
Chairman and CEO Jeff Immelt. 'Power Systems, GE Capital and broad-based
productivity gains helped our short-cycle businesses ride out this
still-difficult economy. It's this mix of businesses, and execution of our
initiatives, that enable GE to deliver earnings and cash growth through economic
cycles.'

Financial highlights of the quarter include:

  • Earnings before required accounting changes rose 17%, to $3.518 billion,
    or $.35 per share, from last year's $3.017 billion, or $.30 per share. Both
    earnings and EPS were records for the quarter. Earnings after required
    accounting changes in both quarters are described below.

  • Revenues of $30.5 billion were about the same as in first quarter 2001.
    Industrial businesses' revenues grew 5%, reflecting continued strength at
    Power Systems, including termination revenues of $476 million, and NBC's
    Winter Olympics broadcasts. GE Capital Services (GECS) revenues declined 6%
    as a result of repositioning activities and the revenue effects of lower
    interest rates, the earnings effects of which were offset by lower matched
    borrowing costs.

  • Cash generated from GE's operating activities, excluding progress
    collections, was $2.2 billion, up 18% from last year's $1.8 billion.
    Reflecting record progress collections in 2001, reported cash flow from
    operating activities of $1.4 billion was 53% lower than last year's $3.1
    billion.

  • Operating margin was a first-quarter record 18.2% of sales, up from last
    year's 17.7%. GE's digitization initiative was a significant contributor to
    margin expansion in the quarter.

  • GE Capital Services (GECS) first-quarter earnings before accounting
    changes rose to $1.657 billion, up 18% over last year's reported $1.401
    billion. These results reflect the diversity of GECS businesses, with strong
    growth in its Specialized Financing, Mid-Market Financing and Consumer
    Services segments. GECS assets totaled $427 billion at the end of the
    quarter, up 15% from $370 billion at the end of first quarter 2001.

  • Required accounting changes include a non-cash transition charge to
    earnings in first quarter 2002 of $1.015 billion, or $.10 per share, for
    impairment of goodwill as required for adoption of Statement of Financial
    Accounting Standards 142 (SFAS 142). Earnings after accounting changes
    totaled $2.503 billion, or $.25 per share. In the first quarter of 2001, GE
    recorded a one-time, non-cash transition charge of $444 million, or $.04 per
    share, as required for adoption of new accounting rules for derivatives,
    warrants, options and other financial instruments (SFAS 133 and EITF 99-20).
    Earnings after accounting changes were $2.573 billion, or $.26 per share.

  • GE stopped amortizing goodwill as of January 1, 2002, in accordance with
    the adoption of SFAS 142. Excluding goodwill amortization in first quarter
    2001, EPS and earnings in first quarter 2002 rose 9% and 8% respectively. To
    facilitate comparison of segment operating results, prior-year goodwill
    amortization is now treated as a corporate rather than a segment cost. Other
    changes to segment operating results relate to the GE pension plan, now
    reported at the corporate level, and allocation to segments of other
    selected costs previously reported at the corporate level. These other
    changes have no impact on consolidated earnings. Prior-period segment
    results reflecting all of these changes are available at www.ge.com/
    investor.

As previously announced, GE will provide more detail on first-quarter results on
a conference call and Webcast to be held at 9 a.m. EDT today. Call information
is available at www.ge.com/investor.

Among first-quarter business highlights:

  • GE Power Systems (GEPS) continued to meet record demand for gas turbines,
    shipping 85 heavy-duty gas turbines in the quarter. GEPS Energy Services
    business added 41 contractual services agreements valued at $1.5 billion,
    driving total commitments for these multi-year agreements to $26.0 billion,
    up $8.3 billion or 47% over last year. GEPS completed three acquisitions in
    the quarter to enhance its technology base and expand its Oil and Gas
    businesses and services capabilities: Bently Nevada, Pipeline Integrity
    International and KVB-Enertec. GEPS also reached agreement to acquire the
    manufacturing and technology assets of Enron Wind Corp., establishing a
    presence in the renewable wind power segment of the industry.

  • GE Medical Systems (GEMS) built a global base for growth and continued its
    product development initiatives. Total orders were up 4%, with double-digit
    growth in MR (magnetic resonance), ultrasound, PET (positron emission
    tomography), outpatient monitoring and related clinical information systems;
    these were partially offset by a 6% decline in CT (computed tomography)
    orders as the market anticipated the introduction of GEMS new 16-slice
    technology in the second quarter. During the quarter, GEMS expanded its
    product lines and capabilities as it completed several acquisitions,
    including MedicaLogic, a developer of electronic records for outpatient
    care; iPath, a leader in surgery management software; Danica Biomedical A/S,
    a Denmark-based developer of wireless technology for secure intra-hospital
    transmission of patient information; and Surgical Insights, Inc., a pioneer
    in the development of image-guided orthopedic surgery software.

  • GE Aircraft Engines (GEAE), CFMI (its joint venture with Snecma Moteurs)
    and the GE-PW Engine Alliance won $2.5 billion in equipment orders during
    the first quarter from customers including Emirates Airline, Ryanair, South
    African Airways, Frontier Airlines and Continental Airlines. GEAE also added
    more than $2 billion in multi-year service agreements with customers
    including KLM and Continental Airlines. The CF34 Growth engine development
    program achieved a significant milestone with the successful first flight of
    the Embraer 170 regional jet. To date, GEAE has received over $7 billion in
    orders for CF34 regional jet engines, the fastest-growing sector of
    commercial aviation. In addition, GEAE received in excess of $600 million in
    contracts from the U.S. military during the quarter, including an order to
    provide engines for the initial phase of the Air Force's C-5 Galaxy
    Re-engining Program.

  • GE Capital Services (GECS) posted a strong performance through continued
    cost improvement and robust acquisition activity. GECS digitization and
    productivity enhancements reduced operating and administrative costs by $275
    million, which contributed $165 million to GECS earnings. Acquisition
    activity remained strong, as Real Estate and Commercial Finance completed
    the acquisition of Daimler Chrysler's real estate and asset-based lending
    portfolios. Global Consumer Finance completed the acquisition of Kingfisher
    plc's Time Retail Finance operations and also agreed to acquire the sales
    finance business of Kawai Instruments, while Commercial Equipment Finance
    and Healthcare Financial Services agreed to acquire leasing businesses and
    financing assets from Comdisco.

  • NBC continued its success in television's key demographic category, adults
    18-49, with first-quarter ratings 40 percent higher than its closest
    prime-time competitor's. In February, NBC telecast the second-most-viewed
    Winter Olympics ever, reaching a total of 187 million American viewers. The
    Olympics led the network to an eighth consecutive sweeps-month victory among
    adults 18-49, with the highest ratings for any network in a major sweeps
    month in eight years. NBC was also television's No. 1 network in key
    demographics for the quarter in late night, daytime, morning news, evening
    news and Sunday-morning public affairs programming. NBC saw increases in
    scatter pricing, which at the end of the quarter was 6% higher than upfront
    pricing.

  • GE Appliances (GEA) grew quarterly revenues 8% with a very strong
    performance in the U.S., where core product volumes were up 10%, outpacing
    the industry and gaining 0.6 points of market share. GEA products continued
    to win awards, as the Monogram AdvantiumO Speed Cook Oven was named a 'Top
    100 Pick' by Building Products magazine and Home magazine named the GE
    Profile ArcticaO Refrigerator one of its 'Products of the Year.' A leading
    consumer magazine named GE cooking products its top products in several
    categories. GEA also launched a new GE Profile Washer that meets the
    Department of Energy's stringent Energy Star guidelines.

  • GE Plastics (GEP) average daily order rates increased 18% over first
    quarter 2001, with order growth in the media, consumer and industrial, and
    automotive segments, but pricing remained difficult. GEP ended the quarter
    with an increase in its order backlog for the first time in more than a
    year. Although the backlog was 29% lower than at the end of first quarter
    2001, it was 36% higher than at the end of the year.

Immelt said, 'Our initiatives continue to yield impressive results in
productivity, product and services leadership and business development. These
initiatives, combined with GE's strong portfolio, will enable us to deliver
earnings of $1.65-$1.67 per share in 2002.'

GE (NYSE:GE) is a diversified technology, services and manufacturing company
with a commitment to achieving customer success. GE operates in more than 100
countries and employs approximately 310,000 people worldwide. For more
information, visit the company's Web site at http://www.ge.com.




Caution Concerning Forward-Looking Statements


This document includes certain 'forward-looking statements' within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. More detailed information about
those factors is contained in GE's filings with the Securities and Exchange
Commission.


Contact:  General Electric, Fairfield

          David Frail, 203/373-3387

          [e-mail]




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