Tokyo (June 2, 1998) --GE and Japan's Toshiba Corporation today announced that they have signed a risk and revenue sharing agreement covering all future sales of the H System,^TM the world's largest advanced combined-cycle power block. Financial terms of the agreement were not disclosed.

The H System is an advanced combined-cycle power block designed to break the 60% thermal-efficiency barrier while generating up to 480 megawatts of electricity. Combined-cycle systems generate electricity from both a gas turbine and a steam turbine driven by the gas turbine's exhaust. The H System will provide power generators with electricity at the most competitive cost available and with lower emissions than current technology.

Under the terms of the agreement, GE and Toshiba will extend their manufacturing alliance formed in 1956 and draw on their respective technological strengths to cooperate in the development, production and design of the H System.

"This is an innovative way to leverage an existing relationship to bring new technology to market faster," said Robert L. Nardelli, president and CEO of GE Power Systems. "The alliance is a win for GE, a win for Toshiba and most of all, a win for our customers."

"The risk and revenue sharing agreement means we can make best use of the strengths and resources of both companies, and I am sure it will add to the competitiveness of the products we bring to market," said Toshiki Miyamoto, senior vice president and group executive of Toshiba's Energy Systems Group. "Toshiba and GE have cooperated in power generation technology for more than four decades. This new agreement elevates our relationship to an even higher level."

The H System will be sold worldwide by GE, while GE, Toshiba and other GE business associates will market power plants incorporating the H System in Japan and other designated markets.

GE will have H System integration and performance responsibility and will design and manufacture the gas turbine and supply the integrated system controls. Toshiba will manufacture the GE-designed compressor, along with a Toshiba-designed generator and steam turbine. GE retains the rights to the enabling technologies which it developed and the resulting components which are sourced in the U.S. GE will assemble and test the complete gas turbine unit including the assembled compressor in its Gas Turbine Center of Excellence in Greenville, South Carolina.

The first H System gas turbine is now undergoing extensive factory tests in Greenville, where it successfully operated under full-speed no-load test conditions in mid-May. Full-load power plant tests are planned for 2000, with the first commercial power plant expected to be operational in 2001.

"One of the largest single markets for H System technology is in Japan," said Nardelli. "Toshiba's presence will further strengthen our market position there, as well as throughout Asia."

"There is a very promising market waiting for us in Japan and Asia, and the market in North America is expected to grow rapidly in the near future. We are excited to play a role in innovating the combined-cycle market as GE's partner in H System technology, " remarked Miyamoto.

About H System Combined-cycle power blocks
H System combined-cycle power blocks are based on a unique technology platform in which the gas turbine buckets and nozzles are steam-cooled by an integrated steam system. Other gas turbines are air-cooled. Steam cooling of the turbine airfoils enables higher firing temperatures (1,430 / 2600F) and significant improvements in efficiency. In addition, advanced emission control systems enable the H System to meet the strictest environmental standards. GE will continue to design and manufacture both the steam cooled turbine components and the combustion system under this agreement with Toshiba, ensuring a continued, strong manufacturing base in the U.S. for key, advanced turbine technology components. By combining high efficiency, low emissions and the lowest cost of producing electricity available in the industry, the advanced technology of the H System will enable future power plants to operate at much lower costs.

About GE Power Systems
GE Power Systems is one of General Electric Company's major businesses and is the world's leading supplier of power generation technology, energy services and energy management systems. GE Power Systems serves customers globally through a network of local offices and service centers.

About Toshiba
Founded in 1875, Toshiba is today one of the world's leading integrated energy & electronics companies, and a recognized leader in such key fields as energy, semiconductors, computers and communications. The company's work in power systems dates back more than 100 years, and today it is a leading producer of power generation, transmission & distribution equipment. Among its many achievements is development of ultra supercritical pressure steam turbines. Toshiba has more than 186,000 employees worldwide and annual sales of over US$41 billion.