September 3, 2002 — GE Power Systems will provide both equipment and long-term services for La Laguna II, an independent power plant in the state of Durango, Mexico that will produce nearly 500 megawatts of electricity for Comision Federal de Electricidad (CFE), GE announced recently at Power-Gen Latin America.

The new combined-cycle plant will be built, owned and operated by Iberdrola, one of the largest Spanish electric utilities and a leading global energy company. The Iberdrola group has a strong presence in Latin America, serving 6.5 million customers in the region. CFE, a Mexican utility, has a 25-year power purchase agreement with Iberdrola for La Laguna II.

GE will supply an engineered equipment package including two MS7001FA (Frame 7FA) gas turbines, two heat recovery steam generators, one steam turbine-generator and the plant control system. Under a separate contractual service agreement

(CSA), GE will provide a full range of power plant services for 15 years.

The GE Frame 7FA gas turbines are the most experienced engines in their class. GE’s fleet of F technology machines has exceeded 5.8 million fired hours worldwide, while achieving the highest availability and reliability standards in the industry.

The gas turbines will be manufactured at GE’s gas turbine facility in Greenville, SC and the steam turbine and generators will be built in GE’s Schenectady, NY plant. Equipment will be shipped to accommodate the plant’s commercial startup scheduled for April, 2005.

With La Laguna II, Iberdrola will reach 1.5 gigawatts of power output in Mexico using GE technology. “We are very pleased to support Iberdrola’s projects worldwide with our technology and services, and look forward to maintaining a long-term relationship with this leading player in the global energy industry,” said Gilbert Amengual, Latin American Global Regional Executive for GE Power Systems.

About GE Power Systems

GE Power Systems (www.gepower.com) is a supplier of power generation technology, energy services and management systems with 2001 revenues exceeding $20 billion. The business has the largest installed base of power generation equipment in the global energy industry. Based in Atlanta, Georgia, GE Power

Systems provides equipment, services and management solutions across the power generation, oil and gas, distributed power and energy rental industries.