GE Oil & Gas. Oil & Gas. Business Imperatives. Winning in a strong market ~60%+ $3.0. Lead in technology $1.9. Capture robust market upturn ~80%+ $0.

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1 GE Oil & Gas Oil & Gas $3.0 ~60% Business Imperatives Lead in technology Revenue $1.9 $0.2 $0.3 ~80% Capture robust market upturn Integrate VetcoGray explore other adjacent opportunities Segment Profit 1H 06 1H 07 Grow installed base Continue Service expansion traditional / new Winning in a strong market 2

2 Getting closer to the source Oil & Gas VetcoGray Gas turbine drivers and generators Compression train packages Gas recovery systems Asset optimization Australia ~$0.2B project Surface & Subsea drilling packages Remote control systems Floating production modules Subsea equipment ~$1B project Providing 5X more value 3 Equipment portfolio transformation 04 sales 07E sales $4.9 $1.8 Sales Subsea & Drilling LNG Pipelines Downstream $1.7 $3.2 Sales Building platforms beyond strong LNG segment 4

3 Continuing market strength Increasing depletion rate Market implications in next 3Ys (M boe/d) 50 Existing reserves Required new production % world oil production from offshore by end of easy oil Non-conventional sources... Oil sands and sour/acid gas ME & Africa to provide 90% of gas trade by 12 Oil & gas prices remain high E/P CAPEX up 21% Sustained drilling activity 3,000 active rigs 1,000 Xmas Trees to be awarded 30% W. Africa LNG trade expansion 15 new trains 60,000 miles of new intercontinental pipelines 90 new greenfield/expansion refinery projects Market dynamics fueling growth 5 Visible opportunities Opportunity geography Key opportunities Asia N. America 19% 10% Latin America ~$14B Middle East opportunities Saudi: $200B spend, up and downstream India: $60B plan in oil & gas projects 15% 34% 22% Europe ~$15B Americas opportunities NA: focus on drilling and downstream Brazil: Petrobras to spend $87B MEA India ~$11B European opportunities North sea: strong sub-sea activity Russia: Arctic LNG and new gas pipelines ~$50B visible opportunities 6

4 Drilling & Subsea $1.7B 200MM Over plan Highlights $800MM 3Q Orders Growth synergies Services, regional presence & customer relationships Technology Subsea processing GE Turbocompression excellence Supply Chain Rooftops, G&A, Other synergies: $100MM annualized target 07 Sales Est Exploring adjacencies deep water drilling, subsea processing Vetco outperforming all expectations 7 Lean in Vetco first results Risers Drilling & production GE Manufacturing Technology Infusion GE Process Rigor Orbital welding Induction heating AUT & digital x-ray Blast & paint Standard work Engineering controls Production scheduling Lean 74% cycle reduction -38 to 10 days 4x additional output Improved deliveries Increased quality & safety Transferable 8

5 Technology differentiation ($ in millions) Key technologies Subsea processing Ultra-high reliability solutions Electrification NPI spending X ~$200 High speed electric motors drivers Compressor technology Advanced stage aerodynamics & seals $80 ~$120 Global services Power up-rates & lower emissions Gas turbines Increased fuel flexibility higher efficiency $33 '01 '04 '07E '10F Plus access to world-class R&D technology programs 9 Service growth Services sales growth Non-traditional traditional ~$1.9 Traditional & non-traditional Traditional: Mining a large installed base 2,730 global units & 65% penetration 350 sites with remote monitoring and diagnostics $ ~0.8 ~1.1 Regionalization closer to customers Expanding non-traditional service business Over $3B CSA backlog by YE Upgrade solutions orders $0.4B, up 46% 05 07E Investing in technology 4x 06 Growing non traditional service offering 10

6 Summary Strong market realities oil price, drilling activity, & CAPEX remain high Vetco complements the portfolio outperforming expectations Continuing portfolio transformation building new platforms Technology NPI spending 6X higher than 01 over $200MM in 10 Service expanding installed base and growing non-traditional offering Large emerging markets opportunities matched with best portfolio ever 11 GE Infrastructure