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Ceramic Matrix Composites Background: High temperature materials are vital to GE’s turbomachinery, from gas turbines to jet engines. When you have materials that can handle higher temperatures, you can run your engine hotter or reduce the amount of cooling that you need to keep these materials from melting. These factors translate into higher engine efficiency and less fuel burn for our customers. In the late 1980s, GE scientists began exploring ceramic matrix composites as an alternative to metal parts in its turbo machinery. The thought was simple: Ceramics inherently can handle hotter temperatures than metal and much lighter, but traditional ceramics are brittle by nature. What if you could engineer the ceramic in such a way that it had metal-like damage tolerance? Then you would truly have a watershed material that could set a new standard for engine efficiency and performance. GE business applications: Initially, the focus of GE’s CMC program was to develop parts for power generation gas turbines. In fact, much of the early validation testing was done on gas turbines that we had already installed with customers. But with a more urgent need for the technology evolving in aviation, the program shifted to jet engines. A first for jet engines: In 2016, GE’s CFM LEAP engine for narrow body aircraft will go into service with the world’s first CMC parts on a jet engine. Soon afterwards, GE’s largest engine platform, GE9X for Boeing 777Xs, will go into service with multiple CMC components. As we continue to build more CMCs into our future jet engine platforms, attention has turned back again to gas turbines in our Power & Water business. Before too long, new generations of our gas turbine products will come with CMCs. The GE Store difference: It pays to have both the Power Generation and Aviation businesses make the investment and share in the development. Our Aviation business will run over 60 LEAP test engines and will conduct millions of hours of material testing. Our Power Generation business complements the test campaign by performing long-term engine tests with gas turbine customers. After logging over 30,000 hours of operation and generating more than 5 billion kWhr of electricity for residential and commercial use, we were convinced that we have a winning technology. 4

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