Thanks to the customers, partners and GE employees who appear in this annual report for contributing their time and support. This document was printed on paper that contains from 10% to 100% post-consumer material. The majority of the power utilized was renewable energy, produced with GE’s wind and biogas technologies, and powered by GE steam engines and turbine engines. The paper was supplied by participants of the Sustainable Initiative Programs. GE employed a printer that produces all of its own electricity and is a verifi ed totally enclosed facility that produces virtually no volatile organic compound emissions. Visit our interactive online annual report at www.ge.com/annual06 Design: VSA Partners, Inc. Principal Photography: Douglas Menuez, John Midgley, Jason Schmidt Printing: Cenveo Anderson L ithograph contents 3 Letter to Investors 12 Winning in the Future 20 Leadership Businesses 24 Execution & Financial Discipline 26 Growth as a Process 34 Our People 40 Governance 44 Citizenship 45 Financial Section 114 Corporate Management 116 Corporate Information CONSOLIDATED REVENUES 2002 2003 2004 2005 2006 (In $ billions) 163 148 134 112 113 DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES 2002 2003 2004 2005 2006 (In dollars) 1.99 1.76 1.59 1.46 1.40 GE CUMULATIVE CASH FLOWS 2002 2003 2004 2005 2006 (In $ billions) 84 60 A. Cash flows from 38 operating activities B. Dividends paid 23 C. Shares 10 repurchased ($) Performance Summary A B C Throughout the economic cycles, GE’s long-term financial goals are: organic revenue growth of 2–3X GDP greater than 10% annual earnings growth operating cash flow exceeding earnings growth and a return on average total capital of 20%. here is how ge performed in 2006: • Continuing revenues increased 10% to $163.4 billion. Organic revenue growth was 9%. • Earnings from continuing operations grew 11% to $20.7 billion. Earnings in four of six businesses grew by more than 10%. Industrial operating profi t expanded 40 basis points to 15.2%. • Cash flow from operating activities (CFOA) was $24.6 billion, up 14%. Industrial cash flow grew 7%. Return on average total capital (ROTC) was 18.4%, up 180 basis points from 2005. • The Board of Directors increased the dividend 12% for GE’s 31st consecutive annual increase. In addition, GE repurchased $8.1 billion of stock as part of its $25 billion program. At year end, GE’s dividend yield was 3%, a 50% premium to that of the S&P 500. In all, GE returned more than $18 billion to GE shareowners in 2006. • Total return for GE shareowners (stock price appreciation assuming reinvested dividends) was 9% versus the S&P 500’s total return of 16%. Over the last three years, GE’s total shareowner return was 30%, equivalent to that of the S&P 500. At year end, GE traded at a forward price/earnings ratio (PE) of 16.8X, a 10% premium to the S&P 500. • GE continued to earn the respect of the business world. GE was named FORTUNE magazine’s “Most Admired Company” for the second straight year, and GE ranked second in Barron’s annual survey of the world’s most respected companies. • GE has substantial fi nancial strength. The Company remained one of only six “Triple-A”-rated U.S. industrial companies. Our global pension plans have more than $60 billion in assets, a surplus of nearly $9 billion. The Company expects to meet its obligations to pensioners with no significant increase in funding for the foreseeable future. • GE invested $15 billion in its intellectual foundation including products, services, marketing and programming. The Company filed 2,650 patents, representing an increase of 19% versus 2001. The GE brand is one of the most valuable in the world.

GE is a reliable growth company. We have positioned ourselves to invest and deliver in the most challenging of global economic environments. We have valuable leadership businesses that are positioned to capitalize on global trends. Our organic growth capabilities and disciplined fi nancial execution prepare a strong leadership team to deliver each and every day. This is your GE. ge 2006 annual report 1