GE Announces GE Capital Board Declared a Dividend of $475 million to its Parent GE

2012 Dividends Planned at 30% of GE Capital’s total 2012 Earnings

GE Capital Also Plans $4.5 billion Special Dividend to GE in 2012

FAIRFIELD, Conn.--()--GE [NYSE: GE] announced today that the Board of Directors of GE Capital Corporation (GECC) has declared a quarterly dividend of $475 million payable to its parent GE in the second quarter 2012. 2012 dividend payments, which are subject to GECC Board approval, are planned at 30% of GECC’s total 2012 earnings. In addition, GECC plans a $4.5 billion special dividend to GE in 2012, subject to GECC Board approval. The historical dividend was suspended in 2009 during the financial crisis.

“As we have stated, our goal has been to resume the GE Capital dividend to GE in 2012,” GE Chairman and CEO Jeff Immelt said. “With this announcement, GE Capital will return cash to GE beginning this quarter. This action demonstrates the strength of GE Capital and the significant actions taken to strengthen its liquidity, capital, asset quality and profitability. These actions have included increasing liquidity to $76 billion, increasing Tier 1 capital to 10.4%, reducing ending net investment to $436 billion and increasing net income in 2011 to $6.6 billion.”

GE plans to accelerate its common stock buyback starting in the second quarter, depending on market conditions.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

Forward-Looking Statements

This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (Grey Zone); pending and threatened litigation against WMC, including increased activity by securitization trustees; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Contacts

GE
Investors
Trevor Schauenberg, 203.373.2424 (office)
trevor.a.schauenberg@ge.com
or
Media:
Deirdre Latour, 203.383.0160 (cell)
deirdre.latour@ge.com

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Contacts

GE
Investors
Trevor Schauenberg, 203.373.2424 (office)
trevor.a.schauenberg@ge.com
or
Media:
Deirdre Latour, 203.383.0160 (cell)
deirdre.latour@ge.com