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GE and Volvo Expand Cooperation Into F414 Engine

January 19, 2000

EVENDALE, OHIO - GE Aircraft Engines (GEAE) and Volvo Aero Corporation of Sweden have reached a long-term agreement under which Volvo will manufacture designated components for GEAE's F414-GE-400 fighter engine.

The F414 powers the U.S. Navy's F/A-18E/F Super Hornet, mainstay of the Navy's aircraft carrier fleet into the 21st century. GEAE is currently on contract to build 176 F414 engines, but production is anticipated to exceed 2,000 engines over the next 20 to 30 years.

The agreement with Volvo covers structural and rotating components in the engine's fan and compressor area.

This agreement marks another important step in the long-standing cooperative relationship between the companies in both military and commercial aircraft engines - a relationship which contributes directly to the sales success of GEAE engines in the world marketplace.

For example, GEAE and Volvo jointly produce the RM12 engine, which powers the JAS39 Gripen fighter for the Swedish Air Force. Recently, this Swedish aircraft was purchased by the government of South Africa.

The RM12 is derived from GEAE's highly successful F404 engine, the predecessor of the F414 in the F/A-18 family. The F414 is a prime candidate for future upgrades to the Gripen and other aircraft upgrade programs.

Volvo's involvement in the F414 program also strengthens GE's position in the European fighter engine market. The F414 is being evaluated by Germany's DASA for its MAKO light fighter.

"International cooperative agreements are critical to GEAE's success in the world arena," said Russell Sparks, vice president of GEAE's Military Engines Operation. "The RM12 is a model for successful international cooperation. Volvo's presence on the F414 program clearly improves the engine's strategic position in the world."