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GE Acquires Control of Major Engine Overhaul Operation

September 30, 1996

EVENDALE, Ohio - GE Engine Services Inc. has acquired majority control of CELMA, a rapidly-growing jet engine overhaul and repair operation in Brazil.

Headquartered in Petropolis, Brazil, CELMA is projected to reach sales of more than $140 million in 1996. Privatized in 1991, CELMA employs about 1,400 people and services small and large commercial and military jet engines, with a customer base including the Brazilian Air Force, major airlines, and air cargo operators.

CELMA is a key strategic acquisition for GE Engine Services Inc., headquartered in Evendale, Ohio, which continues to experience rapid growth. In the first nine months of 1996, GE Engine Services has won orders exceeding $4 billion. GE, which previously owned 9.7 percent of CELMA, will now own approximately 74 percent of the company.

"CELMA is an excellent fit in our growth strategy," said Bill Vareschi, president of GE Engine Services Inc. "Not only does this provide GE with a new Center of Excellence in South America, but significantly improves our ability to provide a wider range of services to our customers who are looking for a single supplier to meet their needs."

Approximately half of CELMA's revenues are derived from overhauling Pratt & Whitney JT8 engines for major airline customers. Other engines serviced at CELMA include GE's J85 and CJ610, CFM International's CFM56, P&W's PT6, and Rolls-Royce's SPEY.

GE Engine Services, a wholly-owned subsidiary of the General Electric Co., produces comprehensive overhaul and repair of aircraft engines, components, and accessories at facilities located at: Wales, United Kingdom; Singapore; Ontario, California; Strother Field, Kansas; and Cincinnati, Ohio.