Press Release

GE To Supply LM2500 Aeroderivative Gas Turbines For Five Royal Norwegian Navy F310-Class Frigates

October 30, 2001 -- EVENDALE, OHIO - GE Marine Engines reported that its LM2500 aeroderivative gas turbine will power five new Royal Norwegian Navy F310-class frigates. IZAR Construcciones Navales, S.A., will build the frigates at its naval shipyard in Ferrol, Spain.

This is the first naval Combined Diesel And Gas Turbine (CODAG) configuration to be installed by IZAR, and the Royal Norwegian Navy is only the second international navy to adopt this arrangement. The Germany Navy uses an LM2500-based CODAG configuration on its new F124-class frigates.

"This is a significant project for GE for several reasons," said Karl Matson, general manager of GE Marine Engines. "This is GE's first project with the Royal Norwegian Navy, bringing the total to 28 international navies to use GE's LM gas turbines aboard naval vessels."

"In fact, there are more than 1,115 LM2500 gas turbines operating in commercial and military marine applications the world over. What the Royal Norwegian Navy will gain by using the LM2500 is an experienced engine with a historical fleet availability and reliability of 98.66% and 99.4%, respectively," Matson added.

The CODAG configuration on each F310-class frigate will consist of one GE LM2500 gas turbine, rated at 21.5 megawatts/28,832 shaft horsepower, combined with the two diesel engines for a total propulsion system rating of 30.5 megawatts.

IZAR has selected GE gas turbines for other naval applications: Two LM2500s each power six FFG Santa Maria-class frigates, two LM2500s are aboard the aircraft carrier Principe de Asturias, and eight engines are used on four F100-class frigates - all for the Spanish Navy. IZAR also installed two LM2500 gas turbines aboard the Thailand Navy's 911 helicopter carrier in a Combined Diesel Or Gas turbine configuration.

The GE gas turbines for the F310-class frigates will be manufactured at GE's Evendale, Ohio facility. The contract provides that GE will deliver the first LM2500 to IZAR starting in December 2002 and another gas turbine will be shipped annually in December through 2006. The F310 frigates are scheduled for commissioning beginning in September 2005, with the remaining vessels to be launched annually in September through 2009.The merger of Bazan and Astilleros Espanoles gave birth to IZAR, a new Spanish leader and the ninth biggest shipbuilding group in the world. IZAR is made up by four main business areas that in turn run the production centers: Shipbuilding, Repair and Refit, Propulsion and Energy, and Systems and Weapons. The company can be found on the worldwide web at www.izar.es

GE Marine Engines is part of GE Aircraft Engines and is headquartered in Evendale, Ohio. GE Marine Engines is the world's largest designer, developer and manufacturer of aeroderivative gas turbines for a variety of commercial and military marine propulsion applications. Visit GE Marine Engines on the worldwide web at www.geae.com.