GE to Acquire Vetco Gray, Accelerating Growth across Oil & Gas Sector

Acquisition Expands GEs Global Offering, Strengthens Infrastructure Portfolio

FLORENCE, Italy--()--GE today announced a major expansion of its presence in the global oil and gas industry, entering into an agreement to acquire Vetco Gray for $1.9B from Candover, 3i & JP Morgan Partners.

The move further strengthens GEs Infrastructure portfolio and its ability to meet customers needs around the globe. The closing of the transaction, which is subject to conditions including the receipt of governmental, regulatory and other approvals, is expected in early 2007.

Vetco Gray is one of the worlds leading suppliers of drilling, completion and production equipment for on- and offshore oil and gas fields, including subsea applications. The business, which is expected to generate over $1.6B of sales in 2006, employs 5,000 people in more than 30 countries, with key centers in Houston (USA), Aberdeen (UK), Stavanger (N), Oslo (N) and Singapore. Major products include flow control valves (known as Christmas trees), control systems, wellheads, manifolds, risers and associated after-market services.

This acquisition enables GE to seize faster growth in a rapidly expanding global business, said Claudi Santiago, CEO of GE Oil & Gas. Vetco Gray expands the portfolio of products, services and solutions available to one of the worlds most dynamic industries.

We believe this agreement will be great news for our employees and customers, commented Peter Goode, CEO of Vetco International. The combination of GEs recognized technical expertise and financial resources and Vetco Grays industry know-how and domain knowledge will allow the business and its employees to continue to prosper as it meets our customers most difficult challenges.

We are tremendously excited about this transaction and look forward to welcoming the Vetco Gray team into our business, concluded Claudi Santiago. Their technology track record, depth and breadth of talent are well known and are strong differentiators in this industry. We are extremely confident about the prospects of growth accorded by the combination of our two businesses."

Upon completion of the transaction, Candover, 3i & JP Morgan Partners will continue to own Vetco Aibel, which is engaged in the business of design, engineering, construction and maintenance of oil and natural gas production facilities, process systems and related products.

About GE's Oil & Gas

GE Oil & Gas is a world leader in advanced technology turbomachinery products and services, with engineering and manufacturing centers of excellence throughout Europe and the United States. Based in Florence, Italy, the company offers complete solutions for oil and gas production, LNG, transportation, storage, refineries and petrochemicals, as well as pipeline integrity solutions.

Caution Concerning 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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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
Oil & Gas
Gabriele Peri, +39 055 423 8280
gabriele.peri@ge.com
or
Corporate
Peter OToole, +1 203-373-2547
Mobile: +1 203-912-3233
peter.otoole@ge.com
or
Masto Public Relations
Ken Darling, +1 518-786-6488
kenneth.darling@ge.com
or
Howard Masto, +1 518-786-6488
howard.masto@ge.com

Contacts

GE
Oil & Gas
Gabriele Peri, +39 055 423 8280
gabriele.peri@ge.com
or
Corporate
Peter OToole, +1 203-373-2547
Mobile: +1 203-912-3233
peter.otoole@ge.com
or
Masto Public Relations
Ken Darling, +1 518-786-6488
kenneth.darling@ge.com
or
Howard Masto, +1 518-786-6488
howard.masto@ge.com