GE Consumer Finance Enters into Strategic Alliance with Hyundai Card in South Korea; Second Investment in Korea in Last 12 Months Expands Relationship with Hyundai

Business Wire, August 10, 2005

SEOUL, Korea -- GE Consumer Finance (GECF), the global consumer lending unit of General Electric Company announced today that it has signed an agreement with Hyundai Card, one of South Korea's leading credit card providers, to form a strategic alliance in Korea.

Under the terms of the agreement, GE Consumer Finance will acquire a 43% stake in Hyundai Card through a purchase of shares valued at $305 million, and participate in a rights issue in the amount of $162 million. In addition, GE will purchase subordinated debt in the amount of $196 million, bringing its total investment in Hyundai Card to $663 million. The investment is GE Consumer Finance's second in South Korea in the last 12 months. In August 2004, GECF purchased an initial 38% stake in Hyundai Capital Services (HCS), forming a joint venture under which the two companies have been providing a variety of financial services products to Korean consumers, including auto financing and personal loans.

"This additional investment underscores GE's long-term commitment to the fast-growing Korean market, and is an important strategic element of our overall Asian growth strategy," said Charles M. Crabtree, Senior Vice President and Chief Operating Officer of GECF, who was in Seoul for the announcement. "Our leading global experience in financial services and risk management, combined with Hyundai's strong brand and experience in the Korean market gives us the ability to significantly accelerate growth opportunities in an economy with exciting potential."

Tae-young Chung, President & CEO of Hyundai Capital & Hyundai Card stated, "The strategic partnership between Hyundai Capital and GE Consumer Finance has been significantly strengthened with GE Consumer Finance's successful alliance with Hyundai Card. We look forward to cooperating closely with our partners at GE Consumer Finance in developing new innovative products and business models based on the secure financial structure, that will better serve the Korean consumer's financial needs," he added.

Hyundai Card, is the third largest credit card company in Korea, with 3.4 million members and assets of more than $2.8 billion.

ABOUT GE CONSUMER FINANCE

With more than $150 billion in assets, GE Consumer Finance, a unit of General Electric Company, is a leading provider of credit services to consumers, retailers, and auto dealers in 47 countries around the world. GE Consumer Finance, based in Stamford, Connecticut (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at http://geconsumerfinance.com.

ABOUT GE

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.