Chairman's Statement

General Electric Company
12 December 2000


GE ON TRACK TO DELIVER RECORD YEAR; 
WELL POSITIONED FOR UNCERTAIN ECONOMY

NEW YORK, NY - 11 December 2000 - GE remains on target to deliver
earnings of about $12.7 billion and earnings per share of $1.27 in
2000, both up about 19% over 1999 and in-line with analysts'
consensus estimates, GE Chairman and CEO John F Welch told
analysts in a meeting here tonight.


Mr Welch also said that the company expected to report about $130
billion in revenues, up 17% from last year, and an operating
margin rate of about 18.5%. He noted that the company was on track
to report more than $14 billion of free cash flow, up more than
20% over 1999, and an increase in return on total capital by 150
basis points to nearly 27%.


'We're on pace to conclude another year of record results,' Mr
Welch said. Final results are expected to be reported in mid-
January.


Mr Welch said that GE is comfortable with analysts' earnings per
share estimates of around $1.50 in 2001, in a reasonable economy.
Mr Welch also discussed events in the fourth quarter 2000 that
have led to some economic uncertainty.  However, he expressed
confidence that should there be a moderate recession, GE would
expect to grow earnings per share double-digit, in part due to the
strength of its longer-cycle businesses and the resilience of its
business model.  'The robustness of the GE model really shines
during slower parts of the business cycle - our global diversity,
service growth, quality efforts and e-Business transformation have
reduced GE's sensitivity to the business cycle, ' Mr Welch said.
These numbers exclude the impact of Honeywell.


Mr Welch also reviewed the significant opportunities the
acquisition of Honeywell provides GE shareowners and customers.
The strong technology base at Honeywell and its attractive product
and service positions are complementary to four of GE's businesses
- Aircraft Engines, Industrial Systems, Plastics and Power
Systems.  As Honeywell announced, its fourth quarter results will
fall below Honeywell analyst expectations.  However, it appears
from GE's preliminary integration planning efforts that the long-
term opportunities for synergies between the two companies could
be more than 50% higher than earlier expectations - approaching
$2.5 billion annually when the integration is complete.


Mr Welch stated that the companies are in the process of seeking
regulatory and Honeywell shareholder approvals and hope to close
the transaction in the first quarter next year.  Following
completion of the transaction, GE expects to recognize pre-tax
charges of as much as $4 billion for costs arising from the
transaction and designed to improve the combined performance of
the businesses.  Mr Welch confirmed the transaction should
increase GE's ongoing earnings by at least 10 cents in the first
full year of combined operations and would add 1-2 points to GE's
earnings growth rate within two years.


This document includes certain 'forward-looking statements' within
the meaning of the Private Securities Litigation Reform Act of
1995.  These statements are based on management's expectations and
are subject to uncertainty and changes in circumstances.  Actual
results may differ materially from these expectations due to
changes in global economic, business, competitive, market and
regulatory factors, or failure of the Honeywell transaction to be
completed for any reason.  More detailed information about these
factors is contained in GE's filings with the Securities and
Exchange Commission.


General Electric and Honeywell filed a proxy statement/prospectus
and other relevant documents concerning the proposed merger
transaction with the SEC on 4 December 2000.  INVESTORS ARE URGED
TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ON THE PROPOSED TRANSACTION.  You may obtain the
documents free of charge at the website maintained by the SEC at
www.sec.gov.  In addition, you may obtain documents filed with the
SEC by General Electric free of charge by requesting them in
writing from General Electric Company, 3135 Easton Turnpike,
Fairfield, CT 06431.  Attention: INVESTOR RELATIONS, or by
telephone at [phone].