GE Oil & Gas Signs Minority Shareholding Agreement with Shenyang Turbo Machinery Corporation, China’s Leading Compressor Manufacturer

GE Oil & Gas today announced that it has entered into an agreement to acquire a minority equity interest in Shenyang Turbo Machinery Corporation, a large-scale Chinese state-owned enterprise dedicated to the design and manufacture of turbomachinery equipment and the main operating subsidiary of Shenyang Blower Works Group Company Ltd (SBW Group).

SBW Group, headquartered in Shenyang in China’s Liaoning Province, was first founded in 1934 to design, manufacture and commercialize centrifugal and reciprocating compressors and pumps for application in the domestic petrochemical, fertilizer, coal, natural gas transportation, and power industries.

The agreement was signed today in Shenyang by Mr. Su Yongqiang, Chairman of SBW Group and Fernando Bertoni, General Manager of Business Development for GE Oil & Gas in the presence of Mayor Chen Haibo and other senior government officials.

Mr. Su Yongqiang of SBW Group said: "We are delighted to have GE Oil & Gas, a global technology leader, join us as we enter a new phase of growth at SBW Group. The announcement consolidates a long-term partnership spanning 30 years, most recently invigorated by successful cooperation on the milestone West-to-East pipeline project. The equity holding formalizes GE’s track-record of reliable partnership, consistent delivery and long-term commitment to our business objectives in China.”

Fernando Bertoni of GE Oil & Gas said: "SBW Group is a key contributor to China’s domestic production of technology equipment and to the development of the national economy. This strategic alliance with SBW reflects our commitment to China and strengthens our local market presence. Working together, SBW Group and GE Oil & Gas will continue to support critical energy infrastructure projects in China with advanced technological innovation and world-leading engineering expertise.”

SBW Group’s domestic installed base includes over 1,850 large-scale centrifugal compressors, 1,059 large water pumps and 885 reciprocating compressors, and its customers include China Petrochemical Corporation, China National Petroleum Corporation, Linde, JSW Steel Limited, and China National Offshore Oil Corporation. The company, whose main shareholder is the Shenyang Government, operates 13 subsidiaries and has over 6,000 employees, including a core management team with more than 75 years of compressor design and manufacturing experience. SBW Group sales for 2008 stood at $700 million, reflecting a 14% growth on the previous year.

Working alongside SBW Group, GE Oil & Gas is a major supplier of turbomachinery equipment to Petrochina, owner and developer of the milestone West-to-East gas pipeline infrastructure project, which snakes through 13 provinces and autonomous regions, and is playing a vital role in supporting China’s energy security and economic development.

In addition to the West-to-East pipeline project, GE has been an equipment supplier for Sinopec's Sichuan-to-East China pipeline, which transports natural gas from the Puguang field in Sichuan to Shanghai in China's eastern region. Sinopec (China Petroleum and Chemical Corp.) is China's second-largest oil and gas producer.

GE Oil & Gas in China

GE Oil & Gas has been active in China for more than 30 years and has a strong presence in the refinery and petrochemical sectors of the country’s oil and gas business. With the growing demand for natural gas transmission, as illustrated by the two West-to-East pipeline projects, GE Oil & Gas greatly expanded its role as a supplier of pipeline compression equipment in the country and region.

About GE Oil & Gas

GE Oil & Gas (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. We also provide pipeline integrity solutions, including inspection and data management. As part of our 'Innovation Now' customer focus and commitment, GE Oil & Gas leverages technological innovation from other GE businesses, such as aviation and healthcare, to continuously improve oil and gas industry performance and productivity. GE Oil & Gas employs more than 12,000 people worldwide and operates in over 100 countries.

About GE

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com. GE is Imagination at Work.

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