Farnborough, England, July 15, 2008 – GE-Aviation and SAFRAN today announced agreement on a new joint venture company to cooperatively develop, produce and support engine nacelles for the next-generation single-aisle commercial airliners.

The agreement covers complete nacelles and nacelle subsystems – providing highly competitive and innovative solutions based on the expertise and resources of Aircelle, a SAFRAN company, and GE’s Middle River Aircraft Systems subsidiary. It will consider new business opportunities with all engine and aircraft manufacturers involved in the single-aisle airliner category.

This cooperation builds on GE’s and SAFRAN’s more than 35 years of joint venture experience. The new company will have a joint management and operational structure, with 50 percent ownership held each by Middle River Aircraft Systems and Aircelle.

The agreement was unveiled this morning by SAFRAN and GE during a press conference at the 2008 Farnborough Airshow in England. Attending the press conference were David Joyce, President and Chief Executive Officer of GE- Aviation, Jean-Paul Herteman, SAFRAN’s Chief Executive Officer; Dr. John Ferrie, President of GE‘s Aviation Systems; Yves Leclère, SAFRAN Executive Vice President, Equipment; Michael N. Chanatry, President of Product Solutions for GE’s Aviation Systems, GE-Aviation; Jean-Pierre Cojan, Aircelle President & CEO, and Sagar Patel, President and General Manager of Middle River Aircraft Systems.

Formal creation of the new company will be completed later this year, after the details of its corporate identity, headquarters location and other details are finalized. The joint venture is to utilize the existing design, development and manufacturing capacities of Aircelle and Middle River Aircraft Systems – which have highly complementary engine nacelle product lines and technical capabilities. This joint venture will draw on the strength of GE’s and SAFRAN’s deep knowledge and associated systems products in avionics, electrical power and actuation systems, all of which can be drawn on to support engine nacelles for next-generation aircraft.

“The new joint venture will offer customers highly competitive solutions that benefit from the expertise of two industry leaders in integrated engine nacelles – Middle River Aircraft Systems and Aircelle,” said David Joyce, President and Chief Executive Officer of GE- Aviation. “This expands the successful three-decade GE/SAFRAN relationship into another key sector of aviation hardware.”

“Our new cooperative venture comes at a time when airlines are seeking more efficient, more environmentally-friendly solutions for their next generation of single-aisle airliners,” Jean-Paul Herteman, SAFRAN’s Chief Executive Officer, said. “The combined capabilities of Aircelle and Middle River Aircraft Systems will respond with engine nacelle products that improve aircraft performance, while also reducing weight and noise levels.”

Aircelle is a leading player in the worldwide nacelle market for aircraft engines. A member of the SAFRAN group, it employs approximately 3,500 persons at seven sites in France, the United Kingdom and Morocco. Aircelle is the only nacelle manufacturer in the world present on all market segments, from business and regional aircraft to the largest airliners, including the A380. Through its subsidiary SLCA, the company also is a major supplier in aerospace composites, with a growing presence in the design and manufacturing of complex composite aerostructures for aircraft, helicopters and other applications.

Middle River Aircraft Systems is one of the world's leading suppliers of jet engine thrust reversers and nacelle systems. The company also produces a variety of specialized structures for major aircraft manufacturers, including Boeing and Lockheed Martin, for commercial and military aircraft. Middle River employs a workforce of 1,000 employees at its Baltimore, Maryland site. In addition to design and manufacturing, Middle River Aircraft Systems provides technical support and spares services for a variety of aero-structures.

Together, Middle River Aircraft Systems and Aircelle have extensive capabilities in all aspects of nacelles, from engine inlet to exhaust nozzle – including thrust reversers, fan cowls, acoustic treatment, thermal protection and anti-icing, engine pylons and mounts.

“The next generation of engine nacelles will require new technologies and significant financial resources for their development,” Jean-Pierre Cojan, Aircelle’s Chairman and Chief Executive Officer, said. “The new joint venture of Aircelle and Middle River Aircraft Systems will bring together both of these elements, and will have a global footprint that allows customer proximity worldwide.”

“This partnership will allow us to design, integrate and produce a better nacelle system at reduced development and production cost and should ultimately benefit airlines and airframers,” said Sagar Patel, the President & General Manager of Middle River Aircraft Systems. “Both Aircelle and Middle River Aircraft Systems will benefit, since our partnership will enable us to participate in more programs."

Aircelle website: www.aircelle.com
Middle River Aircraft Systems website: www.mras-usa.com

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About GE-Aviation (www.ge.com/aviation)

GE-Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of jet engines and components as well as integrated systems and product solutions for commercial and military aircraft. GE has a global service network to support these offerings.

About SAFRAN (www.safran-group.com)

SAFRAN is an international high-technology group with four core businesses: Aerospace Propulsion, Aircraft Equipment, Defense Security and Communications. As of December 31, 2007, it had 63,000 employees in over 30 countries, and annual revenues of 12 billion euros. The SAFRAN Group comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets. SAFRAN is a public company listed on NYSE Euronext Paris.

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