I may have been the only person who liked our commercial aviation leasing business for the two years after September 11. We experienced customer bankruptcies, global slowdowns and a variety of other challenges. But our team made diffi cult decisions to keep investing and supporting our customers. Ultimately, this created abundant returns for our investors and loyalty from our customers. Henry Hubschman, who runs this business, is the ultimate “builder.” Similarly, persistence paid off as we transformed our “old” rail business into a global “growth engine.” Dave Tucker, Transportation’s commercial leader, has worked in this business for 30 years. He has been working feverishly to globalize this North American business. In 2006, 40% of our orders came from outside the U.S. New customers in China, Brazil and Kazakhstan are buying our products. We have another $4 billion of global opportunities. Technical innovation, matched with Dave’s determination, has doubled the market for this great business. Dave, too, is a builder. We have a long-term commitment to training. This is how we transfer knowledge within GE. For the last two years we have trained our team on the growth leadership traits so that they could become high-performance builders. However, we recognized that building a culture to invest and deliver is a “team sport.” As a result, we launched a team-based training course called Leadership Innovation and Growth (LIG). We will take 50 business teams through LIG by the end of 2007. This is a weeklong process that drives improvement in a business’ growth culture and capability. In the end, the leader has a list of “quick hit actions” to achieve the team’s growth vision. Maryrose Sylvester led her Automation and Embedded Systems team through LIG. This is a $1 billion business that has the oppor- tunity for dramatic growth through technology and globalization. Maryrose used LIG to make resource allocation calls and launch new growth initiatives. This is a team that can drive explosive growth over the next few years. Steve Capus led his NBC News team through LIG. This team has had an outstanding year, with big wins in “Nightly News,” the “Today” show and MSNBC. However, they must find new ways to grow. Steve is using LIG to accelerate new programming ideas and increase focus on the Internet. Ultimately, we are trying to match a leader with a team with a mission. As we do this, we create a high-performance culture that can invest and deliver. We don’t want thematic leaders who move from subject to subject. They can’t build. All of our compensation and succession planning values long-term commitment. We believe in the impact of LIG and will make one-third of our executive education “team-based” in the future. We love high- performance people. But we have learned that building businesses over the long term takes a team. It also helps retention. Everyone likes hiring GE people. While our people are well paid, some private companies can pay them more. Sure it is tempting, but we rarely lose leaders who have a passion for building. These talented people recruit loyal teams and are driven to build dynamic businesses for the future. letter to investors GE teams get to see how the story comes to life. Can we effectively treat Alzheimer’s disease? Will nuclear power have a resurgence in the world? Will India be a leading economy? Will “The Office” be the next “Seinfeld”? Our teams will see it fi rst. They are the architects of the future. They sit in the front seat of history. Invest and Deliver GE is a reliable growth company. We have grown earnings 11% annually over the last 25 years. We have increased the dividend for 31 straight years. We will perform for you in uneven economic cycles. We have invested in the future and we will continue to do so. We have a valuable set of leadership businesses. They are posi- tioned to capitalize on global infrastructure investments, emerging market growth, environmental challenges, expanding and aging demographics, accelerating digitization and substantial liquidity. We deliver every day. Our organic growth rate has increased, margin rates are expanding and returns are approaching Company targets. The Company has high visibility on excellent fi nancial results. Your GE team is better than ever. They are more innovative … more global … more technical … than at any other time in our history. Most importantly, they are committed to work on your behalf. It is this desire to win that defines your team, one that will “Invest and Deliver” for the future. Just like after September 11, I am still buying GE stock. Our earnings have almost doubled, our portfolio strategy is complete and our initiatives are in place. We have worked hard to improve this Company. We have built a better GE. I know that our best days are ahead. Invest and deliver. Courage and discipline. Every quarter and every decade. This is your GE. Jeffrey R. Immelt Chairman of the Board and Chief Executive Offi cer February 9, 2007 ge 2006 annual report 9

Invest and Deliver Simply put, these are the two reasons to own GE. They are the measure of our history and our capacity for growth. GE’s ability to invest in the right people, technology and businesses ahead of market trends ensures our leadership through any economic cycle. Our foundation of operating rigor and disciplined action allows us to deliver on our commitment to compete and win. Our ability to invest and deliver enables GE to achieve reliable growth today, tomorrow — and for decades to come. 10 ge 2006 annual report DELIVERED PERFORMANCE 2001 107 2006 163 CONSOLIDATED REVENUES (In $ billions) 2001 12.6 2006 20.7 EARNINGS FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES (In $ billions) 2001 17 2006 25 CASH FROM OPERATING ACTIVITES (In $ billions)