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General Elec. (GEC)

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Friday 09 July, 2004

General Elec.

2nd Quarter Results

General Electric
                  

  GE Reports Second-Quarter Earnings of $3.9 Billion with 11% Revenue
             Growth and 61% Year-to-Date Cash Flow Growth
  
GE's second quarter 2004 earnings were $3.9 billion, 3% higher than
second quarter 2003, the Company announced today. Excluding non-cash
earnings from GE's principal pension plans, earnings increased 9%.

'Our earnings per share for the second quarter of 38 cents exceeded
our previous guidance of 37 cents, as nine of 11 businesses
contributed double-digit improvements to earnings and first-half cash
from operating activities grew 61% over last year,' said GE Chairman
and CEO Jeff Immelt. 'Orders continue to be strong, growing at 13%,
with services orders up 29%. This is the best economy we've seen in
years.

'We completed major portfolio moves during the quarter, closing the
Amersham acquisition, the NBC Universal merger and the successful
initial public offering of Genworth Financial. These changes, along
with the continued build-out of our growth platforms, give GE a great
set of businesses for the future. We continue to execute on our growth
initiatives, with technology advances such as the GEnx jet engine and
Jenbacher's co-generation systems; strong services growth across the
board; global infrastructure and financial services wins in countries
ranging from China to Kazakhstan to Latvia; and wins with customers as
diverse as the U.S. Transportation Security Administration, Virgin
America, and viewers of NBC, Bravo and Telemundo.

'We're on track to deliver excellent operating performance this year,
and as such we are further narrowing our full-year guidance to
$1.55-$1.60 per share. We are building strong momentum for 2005 and
remain confident of 10-15% earnings per share growth for next year.'

GE will discuss second quarter results on a conference call and
webcast at 8:30 a.m. EDT today. Call information and related charts
are available at www.ge.com/investor.

Second Quarter 2004 Financial Highlights

-- Earnings were $3.924 billion, up 3% over last year's $3.794
billion. Earnings per share (EPS) were $.38, the same as last year.
Nine of GE's 11 businesses -- Advanced Materials, Commercial Finance,
Consumer Finance, Consumer & Industrial, Equipment & Other Services,
Healthcare, Infrastructure, NBC Universal and Transportation --
contributed double-digit improvements to earnings. A variance analysis
of second quarter EPS follows the text of this release.

-- Revenues of $37.0 billion increased 11% from last year's $33.4
billion. Industrial sales increased 13% to $20.0 billion. Excluding GE
Energy, which is in the final year of declining gas turbine sales,
industrial sales were up 22%, reflecting the combined impact of the
Amersham and NBC Universal transactions as well as the stronger
economy. Financial services revenues of $17.1 billion were up 8% over
last year.

-- Cash generated from GE's operating activities (CFOA) in the first
half of 2004 was $6.8 billion, up 61% over last year's $4.2 billion.
This improvement reflects $1.8 billion of dividends from GE Capital
Services (GECS), principally proceeds from the Genworth IPO.
Industrial CFOA in the first half increased 27% over last year. The
company's continuing focus on working capital and cash management
leads GE to expect 10-15% growth in CFOA for the full year.

'Over the past three years of tough economic conditions and strategic
repositioning, we've increased revenues and earnings every year,
generated strong CFOA, and maintained our triple-A ratings; above all,
we invested back into GE and made it a better company,' Immelt said.

'We now have a GE with leading technology, great service franchises,
global breadth and depth, and a tremendous team of people who are
passionate about helping our customers succeed. We are using all of
GE's resources to identify and drive new organic growth with
incremental returns on invested capital. We are very confident about
our future.'

Second Quarter 2004 Business Highlights

Healthcare

-- Completed the acquisition of Amersham plc, creating a $14 billion
U.K.-based global leader in healthcare diagnostics.

-- Increased total orders 42% over second quarter 2003 to $3.5
billion; excluding Amersham, orders grew 16% to $2.9 billion, driven
by 55% growth in PET (positron emission tomography) orders to more
than $120 million, and 21% services growth to nearly $1.4 billion.

-- Increased China orders 25% over last year to $166 million, with
strength in most modalities.

-- Realized strong synergies with key customers between GE diagnostic
imaging and Amersham contrast agents, and achieved double-digit growth
in all Biosciences businesses.

Transportation

-- Received aircraft engine, locomotive and services orders in the
quarter totaling $3.4 billion, with 33% growth in services orders over
last year driven by strong spare parts orders for commercial and
military engines and aeroderivatives.

-- Selected by Boeing as one of two companies to power its new 7E7
Dreamliner with the new GEnx engine, positioning GE for placement on
as many as 2,000-3,000 aircraft over the next 20 years.

-- Through CFM International (CFMI), a 50/50 joint company between GE
and Snecma Moteurs of France, was selected by Virgin America to
provide engines for its 33-aircraft launch fleet.

-- Through CFMI, was selected by the U.S. Navy to power 109
multi-mission maritime aircraft that will replace its P-3 fleet.

-- Received a $150 million order from KTZ, Kazakhstan's national
railroad, for 200 locomotive modernization kits, to be shipped through
2006.

-- Shipped nine GE Evolution Series(TM) locomotives during the
quarter, bringing the total pre-production fleet to 49 locomotives,
which have logged nearly 2 million miles and 22 locomotive-years of
experience with 96% reliability.

Energy

-- Signed new contractual service agreements during the quarter
totaling more than $750 million, increasing the number of gas turbines
and sites covered at the end of the quarter by 12% over the end of
second quarter 2003.

-- Agreed to acquire ChevronTexaco's gasification technology business,
expanding GE's capabilities in the 'cleaner coal' segment of power
generation.

-- Received a contract for GE Jenbacher to provide 22 complete gas
engine cogeneration systems for a Ukrainian project, the largest of
its kind in the world in terms of total power output, to convert coal
mine gas into energy and help reduce methane emissions.

-- Received orders for 100 1.5-megawatt wind turbines, including 33
for the Fuesanta project in Spain.

-- Continued to win business in China, receiving a contract to supply
three hydro turbines and additional equipment for the Sinanjiang River
Hydropower Station in Yunnan Province, as well as an order from the
China Southern Power Grid Co. for systems to increase the power
transfer capability of one of its transmission corridors.

-- Shipped 29 heavy-duty gas turbines from Greenville, S.C. and
Belfort, France, compared with 42 in second quarter 2003.

-- Agreed to acquire BHA Group Holdings, Inc., a leading provider of
air quality control products, and the assets of three business units
of S.D. Myers, Inc., to enhance Energy's transformer services
offerings.

Commercial Finance

-- Acquired more than $2 billion in assets from Boeing Capital Corp.,
enabling broader financial solutions to be offered to more than 170
new customers.

-- Acquired Haslemere NV, a major U.K.-based multi-sector commercial
property company with $700 million of assets located primarily in
London.

-- Acquired IKON Office Solutions' U.S. leasing portfolio, adding $2.0
billion in equipment leasing assets.

-- Completed the largest-ever aircraft engine financing deal in China
with China Eastern Airlines, leased 15 new Airbus A320s to Virgin
America, and ended the quarter with none of Aviation Services'
1,300-plus aircraft on the ground.

-- Increased Commercial Finance's presence in the Japanese real estate
market by $500 million by acquiring Alte Co., an Osaka, Japan-based
real estate company.

-- Acquired Ace Sogo Lease from Nissan Diesel Motor, the
fourth-largest Japanese truck/bus manufacturer, adding more than $400
million in assets and expanding Ace's equipment finance offerings.

Consumer Finance

-- Teamed with eBay and its subsidiary PayPal Inc. to launch new
consumer and commercial credit programs that help U.S. online buyers
fund their purchases through PayPal and provide online sellers with
access to lines of credit and working capital for growth.

-- Completed the acquisition of WMC Finance Co., a leading U.S
wholesale lender, adding U.S. new-home financing solutions to Consumer
Finance's global mortgage capabilities.

-- Signed a five-year agreement with Drexel Heritage, one of the
world's premier furniture manufacturers, to provide a new retail
credit program for its U.S. customers.

-- Completed the acquisition of Latvian sales finance and auto loan
provider RD Lizinga Grupa, bringing Consumer Finance to a 40th country
and creating a new platform in the Baltic region.

-- Launched the Payroll Card, a debit-based MasterCard(R) product that
provides a simple, cost-saving and convenient alternative to payroll
checks for companies that pay millions of employees, contractors and
temporary workers in the U.S. who don't have a checking account.

NBC Universal

-- Completed the merger of NBC and Vivendi Universal Entertainment,
creating NBC Universal, one of the world's leading media companies.

-- Brought in total advertising commitments during May's 'upfront' ad
sales period of more than $5 billion, leading the major broadcast
networks and seeing strong gains at Bravo and Telemundo, the
fastest-growing cable and broadcast networks in the U.S.

-- Won the quarter in the key demographic of adults 18-49 by a margin
of nearly 10% over the nearest competitor, led by 'The Apprentice,'
television's No. 1 series of the quarter in that demographic.

-- Won the May sweeps among adults 18-49 for NBC's ninth May win in
the last 10 years, and drew the largest average audience (52.5
million) for any entertainment telecast in six years with the May 6
finale of 'Friends.'

-- Extended NBC's late-night leadership, with Jay Leno delivering a
47% margin of victory over his nearest competitor and Conan O'Brien
and Carson Daly setting second-quarter ratings records.

-- Doubled Telemundo's weekday prime-time ratings among adults 18-49
over last year, with the highest ratings in that demographic in a
decade.

-- Doubled Bravo's average audience among adults 18-49 over last year,
and increased USA Network's adults 25-54 audience by 13 percent.

Infrastructure

-- Successfully completed a 30-day passenger rail pilot with the U.S.
Transportation Security Administration (TSA) of the GE EntryScan3, a
walk-through explosives detector that detects microscopic traces of
explosives in seconds, and launched a similar pilot at five U.S.
metropolitan airports.

-- Introduced nearly 50 new high-technology products, including a
'ruggedized' fiber optic security camera that can withstand some of
the harshest environments and a factory automation software platform
that integrates with other original equipment manufacturers' systems.

-- Moved toward completing the acquisition of InVision Technologies,
Inc. with InVision shareowner approval; InVision's CT (computed
tomography) -based scanners will complement GE's trace explosives
detection systems.

-- Received a multi-year order from the U.S. Department of Defense for
an advanced jet fuel additive from Infrastructure's water and process
technologies unit that helps improve the quality of standard aircraft
fuel from any global source, thereby improving operability and
reducing costs.

Advanced Materials


-- Continued to expand into high-growth segments with 'wing-to-wing'
technologies, including the use of advanced GE Lexan(R) SLX(TM), Geloy
XTW(R) and Ultem(R) engineered resins in the global automobile segment
to reduce need for paint, eliminate secondary operations for
manufacturing efficiency and lower cost, and increase design freedom.

-- Launched new NXT(R) silane technology for tires, which lowers
manufacturers' production costs and improves fuel efficiency and
environmental emissions.

-- Introduced new Lexan Excel and Thermoclear(R) Solar Control
Infrared sheet UV protection products for the building and
construction segment that increase level of light transmission by up
to 60 percent and reduce interior heat build-up by up to 40 percent.

-- Announced new Lexan EXL(TM) resin applications with improved impact
strength, durability and design flexibility for China's mobile phone
and telecommunications segments.

-- Announced China Palette(R), an exclusive collection of Visualfx(R)
resins designed specifically for China's rapidly growing consumer
products segment.

Insurance

-- Completed the initial public offering of 30% of the equity of
Genworth Financial, Inc., releasing more than $2.5 billion in equity
capital for investment in growth initiatives and reduction of
'parent-supported debt.'

-- Focused Employers Reinsurance Corp. (ERC) on specialized market
segments for which it can provide differentiated services, including
regional property and casualty reinsurance, and completed five new
reinsurance treaties with regional companies in Australia and New
Zealand.

Consumer & Industrial


-- Increased unit sales of high-end Profile(R) and Monogram(R)
appliances 21% over second quarter 2003.

-- Launched several new products, including the new Profile(R)
ClimateKeeper2 dual-evaporator refrigerator, Monogram(R) undercounter
refrigeration modules, GE Xensation(TM) auto lighting and several
stainless steel appliance upgrades.

Equipment and Other Services

-- Announced five new sensor capabilities for GE's VeriWise(TM)
asset-tracking technology, which helps over-the-road trailer customers
better meet productivity and security goals, and formed an Asset
Intelligence business unit to develop additional markets for VeriWise
technology.

-- Signed a joint development agreement with Science Applications
International Corporation, a leading security technology firm with
commercial and government customers, to accelerate the application of
Veriwise to sea containers.

GE (NYSE:GE) is a diversified technology, media and financial services
company dedicated to creating products that make life better. From
aircraft engines and power generation to financial services, medical
imaging, television programming, and plastics, GE operates in more
than 100 countries and employs more than 300,000 people worldwide. For
more information, visit the company's Web site at http://www.ge.com.

Caution Concerning Forward-Looking Statements

This document contains 'forward-looking statements' within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as
'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' 'will' or words of similar meaning and include, but are
not limited to, statements about the expected future business and
financial performance of GE. Forward-looking statements are based on
management's current expectations and assumptions, which are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and
results may differ materially from these expectations and assumptions
due to changes in global political, economic, business, competitive,
market, regulatory and other factors. We undertake no obligation to
publicly update or review any forward-looking information, whether as
a result of new information, future developments or otherwise. This
presentation includes certain non-GAAP financial measures as defined
under SEC rules. As required by SEC rules, we have provided a
reconciliation of those measures to the most directly comparable GAAP
measures, which is available in this press release.

         General Electric Company and Consolidated Affiliates
         Second Quarter 2004 Earnings Per Share (EPS) Dynamics


                                     EPS
                                     ---

Second quarter 2003 reported      $    0.38

Ongoing operations (incl. Energy)      0.04   Solid growth (+11%)
Pension                               (0.02)  Non-cash and as expected
2003 Insurance dispositions           (0.01)  FGIC, Edison, U.S. Auto
                                  ----------
                                       0.39

Deal impact...Amersham, NBC           (0.01)  Earnings with more
 Universal, Genworth                           shares and lower
                                               Insurance earnings
                                  ----------
                                  $    0.38   ...Above Guidance

2Q Events
     - Genworth transaction impact            Worse than expected
       ($336mm)
     - Amersham deal-related costs            Slightly better than
       ($163mm)                                expected
     + Tax settlements $428mm                 Better than expected
Effect of 2Q events                      -

                                  ----------
Second quarter 2004 reported      $    0.38



                       GENERAL ELECTRIC COMPANY
                    Condensed Statement of Earnings


                                        Consolidated       
                                  ------------------------  
Second quarter                                
 ended June 30                      2004     2003     V%    
-----------------                 -------- -------- ------  
Revenues
  Sales of goods and services     $20,655  $18,118          
  Earnings of GECS                      -        -          
  GECS revenues from services      16,056   15,107          
  Other income                        324      148          
                                  -------- --------         
     Total revenues                37,035   33,373     11%  
                                  -------- --------         

Costs and expenses
  Cost of sales, operating and
   administrative expenses         24,610   20,374          
  Interest and other financial
   charges                          2,750    2,683          
  Insurance losses and
   policyholder and annuity
   benefits                         3,744    4,256          
  Provision for losses on
   financing receivables            1,004      978          
  Minority interest in net
   earnings of consolidated
   affiliates                         187       72          
                                  -------- --------         
     Total costs and expenses      32,295   28,363     14%  
                                  -------- --------         

Earnings before income taxes        4,740    5,010          
Provision for income taxes           (816)  (1,216)  
                                  -------- --------         
Net earnings                       $3,924   $3,794      3%
                                  ======== ========

Per-share amounts
  Diluted earnings per share        $0.38    $0.38      0%
  Basic earnings per share          $0.38    $0.38      0%

Dividends declared per share        $0.20    $0.19


                                            GE
                                  ------------------------
Second quarter
ended June 30                       2004     2003     V%
-----------------                 -------- -------- ------
Revenues
  Sales of goods and services     $19,995  $17,640
  Earnings of GECS                  1,696    1,602
  GECS revenues from services           -        -
  Other income                        328      147
                                  -------- --------
     Total revenues                22,019   19,389     14%
                                  -------- --------

Costs and expenses
  Cost of sales, operating and
   administrative expenses         17,480   14,414
  Interest and other financial
   charges                             49      215
  Insurance losses and
   policyholder and annuity
   benefits                             -        -
  Provision for losses on
   financing receivables                -        -
  Minority interest in net
   earnings of consolidated
   affiliates                         111       47
                                  -------- --------
     Total costs and expenses      17,640   14,676     20%
                                  -------- --------

Earnings before income taxes        4,379    4,713

Provision for income taxes           (455)    (919)
                                  -------- --------
Net earnings                       $3,924   $3,794      3%
                                  ======== ========


                                  Financial Services (GECS)
                                  ------------------------
Second quarter                          
 ended June 30                      2004     2003     V%
-----------------                 -------- -------- ------
Revenues
  Sales of goods and services        $728     $568
  Earnings of GECS                      -        -
  GECS revenues from services      16,405   15,319
  Other income                          -        -
                                  -------- --------
     Total revenues                17,133   15,887      8%
                                  -------- --------

Costs and expenses
  Cost of sales, operating and
   administrative expenses          7,370    6,196
  Interest and other financial
   charges                          2,818    2,533
  Insurance losses and
   policyholder and annuity
   benefits                         3,808    4,256
  Provision for losses on
   financing receivables            1,004      978
  Minority interest in net
   earnings of consolidated
   affiliates                          76       25
                                  -------- --------
     Total costs and expenses      15,076   13,988      8%
                                  -------- --------

Earnings before income taxes        2,057    1,899
Provision for income taxes           (361)    (297)
                                  -------- --------
Net earnings                       $1,696   $1,602      6%
                                  ======== ========

Dollar amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for 'GE' and 'Financial
Services (GECS).' Transactions between GE and GECS have been
eliminated from the 'consolidated' columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.



                       GENERAL ELECTRIC COMPANY
                    Condensed Statement of Earnings


                                        Consolidated       
                                  ------------------------  
Six months ended                              
 June 30                            2004     2003     V%    
-----------------                 -------- -------- ------  
Revenues
  Sales of goods and services     $37,765  $34,285          
  Earnings of GECS before
   accounting change                    -        -          
  GECS revenues from services      32,159   29,341          
  Other income                        461      203          
                                  -------- --------         
     Total revenues                70,385   63,829     10%  
                                  -------- --------         

Costs and expenses
  Cost of sales, operating and
   administrative expenses         46,302   39,170          
  Interest and other financial
   charges                          5,560    5,279          
  Insurance losses and
   policyholder and annuity
   benefits                         7,332    8,241          
  Provision for losses on
   financing receivables            1,959    1,738          
  Minority interest in net
   earnings of consolidated
   affiliates                         270      142          
                                  -------- --------         
     Total costs and expenses      61,423   54,570     13%  
                                  -------- --------         

Earnings before income taxes and
 accounting change                  8,962    9,259          
Provision for income taxes         (1,798)  (2,251)         
                                  -------- --------         
Earnings before accounting
 change                             7,164    7,008      2%  
Cumulative effect of accounting
 change                                 -     (215)         
                                  -------- --------         
Net earnings                       $7,164   $6,793      5%  
                                  ======== ========         

Per-share amounts before
 accounting change
  Diluted earnings per share        $0.69    $0.70     (1)%
  Basic earnings per share          $0.70    $0.70      0%

Per-share amounts after
 accounting change
  Diluted earnings per share        $0.69    $0.68      1%
  Basic earnings per share          $0.70    $0.68      3%

Dividends declared per share        $0.40    $0.38


                                            GE           
                                  ------------------------
Six months ended                  
 June 30                            2004     2003     V%  
-----------------                 -------- -------- ------
Revenues                                                  
  Sales of goods and services     $36,675  $33,398
  Earnings of GECS before
   accounting change                3,541    3,272
  GECS revenues from services           -        -
  Other income                        467      223
                                  -------- --------
     Total revenues                40,683   36,893     10%
                                  -------- --------
                              
Costs and expenses      
  Cost of sales, operating and                            
   administrative expenses         32,161   27,749
  Interest and other financial
   charges                            288      423
  Insurance losses and                                    
   policyholder and annuity                               
   benefits                             -        -
  Provision for losses on                                 
   financing receivables                -        -
  Minority interest in net
   earnings of consolidated                               
   affiliates                         148       79
                                  -------- --------
     Total costs and expenses      32,597   28,251     15%
                                  -------- --------
                                                          
Earnings before income taxes and                          
 accounting change                  8,086    8,642
Provision for income taxes           (922)  (1,634)
                                  -------- --------
Earnings before accounting                                
 change                             7,164    7,008      2%
Cumulative effect of accounting                           
 change                                 -     (215)
                                  -------- --------
Net earnings                       $7,164   $6,793      5%
                                  ======== ========


                                  Financial Services (GECS)
                                  ------------------------
Six months ended                    
 June 30                            2004     2003     V%
-----------------                 -------- -------- ------
Revenues
  Sales of goods and services      $1,304   $1,055
  Earnings of GECS before
   accounting change                    -        -
  GECS revenues from services      32,772   29,699
  Other income                          -        -
                                  -------- --------
     Total revenues                34,076   30,754     11%
                                  -------- --------

Costs and expenses
  Cost of sales, operating and
   administrative expenses         14,657   11,827
  Interest and other financial
   charges                          5,489    4,996
  Insurance losses and
   policyholder and annuity
   benefits                         7,432    8,241
  Provision for losses on
   financing receivables            1,959    1,738
  Minority interest in net
   earnings of consolidated
   affiliates                         122       63
                                  -------- --------
     Total costs and expenses      29,659   26,865     10%
                                  -------- --------

Earnings before income taxes and
 accounting change                  4,417    3,889
Provision for income taxes           (876)    (617)
                                  -------- --------
Earnings before accounting
 change                             3,541    3,272      8%
Cumulative effect of accounting
 change                                 -        -
                                  -------- --------
Net earnings                       $3,541   $3,272      8%
                                  ======== ========

Dollar amounts in millions; per-share amounts in dollars; unaudited.
Supplemental consolidating data are shown for 'GE' and 'Financial
Services (GECS).' Transactions between GE and GECS have been
eliminated from the 'consolidated' columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.



Summary of Operating Segments
-----------------------------
General Electric Company and Consolidated Affiliates


                             SECOND QUARTER           FIRST HALF
                          ---------------------  ---------------------
(Dollars in millions)       2004    2003    V%     2004    2003    V%

Revenues
  Advanced Materials      $ 2,048 $ 1,743   17   $ 3,933 $ 3,419   15
  Commercial Finance        5,732   5,180   11    11,123   9,956   12
  Consumer Finance          3,830   3,046   26     7,419   5,805   28
  Consumer & Industrial     3,490   3,282    6     6,587   6,174    7
  Energy                    4,118   4,655  (12)    7,983   9,031  (12)
  Equipment & Other                           
   Services                 2,017     869    F     4,027   1,833    F
  Healthcare                3,372   2,402   40     5,867   4,542   29
  Infrastructure              862     760   13     1,638   1,436   14
  Insurance                 5,554   6,792  (18)   11,507  13,160  (13)
  NBC Universal             2,867   1,955   47     4,449   3,426   30
  Transportation            3,903   3,389   15     7,308   6,368   15
  Corporate items and
   eliminations              (758)   (700)  (8)   (1,456) (1,321) (10)
                          ----------------       ----------------

Consolidated revenues     $37,035 $33,373   11   $70,385 $63,829   10
                          ================       ================

Segment profit (a)
  Advanced Materials      $   161 $   134   20   $   332 $   256   30
  Commercial Finance          975     832   17     1,930   1,702   13
  Consumer Finance            600     514   17     1,202   1,060   13
  Consumer & Industrial       204     173   18       353     301   17
  Energy                      634   1,057  (40)    1,284   1,955  (34)
  Equipment & Other                           
   Services                    68    (252)   F       (54)   (510)  89
  Healthcare                  584     440   33       923     746   24
  Infrastructure              134     105   28       247     199   24
  Insurance                    53     508  (90)      463   1,020  (55)
  NBC Universal               768     688   12     1,162   1,031   13
  Transportation              810     686   18     1,447   1,242   17
                          ----------------       ----------------
    Total segment profit    4,991   4,885    2     9,289   9,002    3

  GE corporate items and                     
   eliminations              (563)     43    U      (915)     63    U
  GE interest and other
   financial charges          (49)   (215)  77      (288)   (423)  32
  GE provision for income
   taxes                     (455)   (919)  50      (922) (1,634)  44
                          ----------------       ----------------

Earnings before accounting
 change                     3,924   3,794    3     7,164   7,008    2

  Cumulative effect of
   accounting change            -       -              -    (215)
                          ----------------       ----------------

Consolidated net earnings $ 3,924 $ 3,794    3   $ 7,164 $ 6,793    5
                          ================       ================

(a) Segment profit always excludes the effects of principal pension
    plans and accounting changes, and may exclude matters such as
    charges for restructuring; rationalization and other similar
    expenses; in-process research and development and certain other
    acquisition-related charges; certain gains/losses from
    dispositions; and litigation settlements or other charges,
    responsibility for which precedes the current management team.
    Segment profit excludes or includes interest and other financial
    charges and segment income taxes according to how a particular
    segment management is measured - excluded in determining operating
    profit for Advanced Materials, Consumer & Industrial, Energy,
    Healthcare, Infrastructure, NBC Universal, and Transportation, but
    included in determining net earnings for Commercial Finance,
    Consumer Finance, Equipment & Other Services, and Insurance.



Condensed Statement of Financial Position
General Electric Company and Consolidated Affiliates


(Dollars in                                         Financial Services
 billions)      Consolidated           GE                (GECS)
             ------------------ ------------------ -------------------
             6/30/04  12/31/03  6/30/04  12/31/03   6/30/04  12/31/03
             -------- --------- -------- --------- --------- ---------
Cash &
 marketable
 securities   $133.1    $135.0     $3.1      $2.0    $130.5    $133.2
Receivables     13.3      10.7     13.4      11.0         -         -
Inventories      9.6       8.8      9.4       8.6       0.2       0.2
GECS
 financing
 receivables   252.7     247.9        -         -     252.7     247.9
Plant &
 equipment      61.3      53.4     16.4      14.6      44.9      38.8
Investment in
 GECS              -         -     45.9      45.3         -         -
Goodwill &
 intangible
 assets         80.9      55.0     53.3      30.2      27.6      24.8
Other assets   146.2     136.7     37.7      30.4     113.0     109.6
             -------- --------- -------- --------- --------- ---------

Total assets  $697.1    $647.5   $179.2    $142.1    $568.9    $554.5
             ======== ========= ======== ========= ========= =========


Borrowings    $335.7    $329.7    $12.2     $10.9    $325.3    $320.3
Insurance
 reserves      137.8     136.3        -         -     138.1     136.3
Other
 liabilities
 and minority
 interest      125.3     102.3     68.7      52.0      59.6      52.6
Shareowners'
 equity         98.3      79.2     98.3      79.2      45.9      45.3
             -------- --------- -------- --------- --------- ---------

Total
 liabilities
 and equity   $697.1    $647.5   $179.2    $142.1    $568.9    $554.5
             ======== ========= ======== ========= ========= =========

Supplemental consolidating data are shown for 'GE' and 'Financial
Services (GECS).' Transactions between GE and GECS have been
eliminated from the 'consolidated' columns. See note 1 to the
consolidated financial statements in the 2003 Annual Report to
Shareowners for further information about consolidation matters.

Note: Certain balances have been reclassified to reflect the inclusion
of assets and liabilities of FIN 46 entities in their respective line
items, previously reported as 'Consolidated, liquidating
securitization entities.'



Financial Measures That Supplement GAAP
----------------------------------------------------------------------
General Electric Company and Consolidated Affiliates

We sometimes refer to data derived from consolidated financial
information but not required by GAAP to be presented in financial
statements. Certain of these data are considered 'non-GAAP financial
measures' under SEC regulations. Specifically, we have referred to:

--  Second quarter 2004 earnings growth, excluding the non-cash
    earnings from GE's principal pension plans in the second quarters
    of 2003 and 2004;

--  Second quarter 2004 industrial sales growth, excluding the Energy
    business in the second quarters of 2003 and 2004; and

--  Growth in Industrial CFOA in the first half of 2004.

Reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures - reported earnings,
industrial sales and cash from operating activities - follow.


                                        SECOND QUARTER ENDED JUNE 30
                                      --------------------------------
(Dollars in millions)                    2004        2003        V%
                                      ----------  ----------  --------

Net earnings                          $   3,924   $   3,794
Less: Non-cash earnings from GE's
 principal pension plans                     14         202
                                      ----------  ----------
Earnings excluding pension            $   3,910   $   3,592         9
                                      ==========  ==========

Industrial sales as reported          $  19,995   $  17,640
Less: GE Energy sales                     4,028       4,597
                                      ----------  ----------
Industrial sales excluding GE Energy  $  15,967   $  13,043        22
                                      ==========  ==========


                                          SIX MONTHS ENDED JUNE 30
                                      --------------------------------
                                         2004        2003        V%
                                      ----------  ----------  --------

Cash from GE's operating activities
 as reported                          $   6,817   $   4,244
Less: GECS dividends                      1,842         328
                                      ----------  ----------
Cash from GE's operating activities
 excluding dividends from GECS
 (Industrial CFOA)                    $   4,975   $   3,916        27
                                      ==========  ==========

We believe that meaningful analysis of our financial performance
requires an understanding of the factors underlying that performance
and our judgments about the likelihood that particular factors will
repeat. In some cases, short-term patterns and long-term trends may be
obscured by large factors or events. For example, events or trends in
a particular segment may be so significant as to obscure patterns and
trends of our industrial or financial services businesses in total.
For this reason, we believe that investors may find it useful to see
our second quarter 2004 earnings without the decline in non-cash
earnings from our principal pension plans. Similarly, we believe
presentation of second quarter 2004 growth in industrial sales without
the decline in gas turbine sales is useful to investors. We also
believe that investors would find it useful to compare our first half
2004 operating cash flow against our first half 2003 operating cash
flow without the impact of GECS dividends, principally proceeds from
the Genworth initial public offering in 2004.


    CONTACT: General Electric, Fairfield
             David Frail, 203-373-3387
             david.frail@corporate.ge.com