Transportation A great example of a business that is demonstrating reliable execution and financial discipline is Transportation. In 2006, Transportation conducted 200 Lean workouts. Customers saw improved reliability and on-time delivery of GE products, while the Transportation business created additional manufacturing capacity. The team has reduced locomotive build time by 16% as it increases deliveries to emerging markets worldwide. Previously it took us 31 days to manufacture a locomotive. We are now at 26 days, with a target of 10 days. pictured left to right Todd Wyman, Brett BeGole, John Dineen, Julie DeWane, Steve Gray, Tina Donikowski, David Tucker LEAN: 10 DAY LOCOMOTIVE 31 Days 10 Days* A. Major components B. Assembly C. Paint D. Test *Goal ge 2006 annual report 25

Growth as a Process GE is extending its ability to deliver by adding new process capabilities to our operating rigor. Over the past several years we have developed a process that fuels our ability to generate consistent organic growth. We call it Growth as a Process, and it includes six capabilities: 1) Technology, 2) Customers, 3) Globalization, 4) Commercial Excellence, 5) Innovation and 6) Growth Leaders. Our investment in this process is delivering total assets and orders have grown signifi cantly, and we are generating organic revenue growth at twice our historic rate. Today, each of our six businesses is investing in this process. Energy is just one example of how Growth as a Process is delivering organic growth. Here is how this process is bringing value to this specifi c business. TOTAL CONTINUING ASSETS (In $ billions) 2005 480 2006 565 Growth 18% TOTAL ORDERS (In $ billions) 2005 74 2006 90 Growth 21% Sparking growth in our fi nancial services businesses … … as well as our industrial businesses. 2006 9 2005 8 History 4 2007* 2-3X GDP ORGANIC REVENUE GROWTH (V%) *Forecast Delivering consistent growth through the whole company. 26 ge 2006 annual report