GECAS Expands Cargo Conversion Program To Include 747-400s

-- EVA Airways Signed As First Customer for Converted 747-400F
-- Israel Aircraft Industries to Perform Conversions
-- GECAS Sees Continued Growth in Existing 737 and 767 Conversion Programs

13 June 2005

PARIS, June 13, 2005 -- GE Commercial Aviation Services (GECAS), a unit of GE Commercial Finance, today announced an expansion of its passenger-to-freighter conversion program to include four Boeing 747-400 freighters. Israel Aircraft Industries (IAI) will convert the aircraft.

EVA Airways will lease the first three aircraft from GECAS operations in Singapore following a purchase and leaseback transaction with GECAS and conversion by IAI. EVA has an option to convert the fourth, which they expect to exercise shortly. Delivery of the first converted aircraft is scheduled for the spring of 2007.

"We now offer more aircraft options to air freight operators, ranging from 20-ton 737Fs to the larger 120-ton 747-400Fs," said Henry Hubschman, president of GECAS. "The growth in air freight traffic and the need to replace older, less efficient freighters is driving demand for leased freighters we are converting from passenger use."

GECAS estimates that roughly 60 percent of air freighters in use today will be replaced over the next 20 years. Converted aircraft leased to airlines offer attractive operating costs to meet increasing cargo demand.

GECAS currently leases a converted MD-11 freighter to EVA as well as eight Airbus A330-200 passenger aircraft.

"The selection again of IAI as GECAS's conversion service provider is another vote of confidence in the high value product of IAI/Bedek's cargo conversions program, and reflects the ongoing successful relationship on the IAI 737 and 767 conversions programs," said David Arzi, IAI Corp. VP and Bedek Aviation GM.

GECAS Program
The GECAS cargo program is one of GE's "Imagination Breakthrough" projects, a process that connects innovation directly to customer needs and translates imagination into distinctive GE solutions for customers.

In 2001, GECAS announced plans to convert 15 737s from its current portfolio to freighter and quick-change configuration. Since then, GECAS has placed 32 converted 737Fs with freight carriers including Kitty Hawk, TNT, Bluebird Cargo, China Postal Airlines and an undisclosed airline.

In 2002, GECAS expanded the conversion program to include 10 767-200 conversions. Placements of 767Fs total 15 with Tampa Cargo and Star Air, a wholly owned subsidiary of Maersk Air A/S.

"The operating economics of 737F and 767F models are compelling compared to older, less fuel efficient 727 and DC8 freighters, " said Chris Damianos, senior vice president and manager, cargo programs for GECAS.

GECAS provides a variety of aircraft financing to airfreight operators around the world. GECAS currently maintains a fleet of approximately 85 owned and managed freighters it leases to airlines, including 737-300SF/QC, 767-200/300/SF/ERF, 747-200F, 747-400F, DC8-71/73F, and MD-11F models. In addition, GECAS provides debt financing through its PK AirFinance unit on 737-300F, 747-400F and MD-11F aircraft.

About IAI
IAI, Bedek Aviation Group, is a leading worldwide provider of aviation maintenance, repair, overhaul and conversion services, on a variety of commercial and military aircraft, engines and components.

About GECAS
GE Commercial Aviation Services (GECAS), a unit of GE Commercial Finance, is the commercial aircraft financing and leasing business of General Electric Co. GECAS has a fleet of more than 1,300 owned aircraft and offers a full range of aircraft fleet, financing and productivity solutions including operating leases, secured debt financing, engine leasing, spare parts financing and management, and pilot training. GECAS has offices in 22 cities worldwide serving more than 200 airlines in some 60 countries.

GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.

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