GE [NYSE:GE] announced today acquisition-related charges of $0.02 per share associated with its previously announced acquisition of Avio Aero, which closed August 1, 2013. These charges will be taken in GE’s corporate segment. The charges include the impact of effectively settling Avio’s contractual relationships with GE, which prior to the acquisition was more than 50% of Avio’s aviation sector revenue. Avio has been a supplier to GE Aviation for many years and had a number of pre-existing contractual arrangements with GE. US GAAP requires GE to record the fair value impact of effectively settling the pre-existing contracts. GE will subsequently benefit from assuming these lower manufacturing costs which have been generated by efficiencies that Avio has achieved over time. There is no incremental cash outlay related to this one-time charge. The third quarter charges also include standard acquisition-related adjustments, primarily for the fair valuation of inventory, as required by US GAAP. Avio Aero is an Italy-based manufacturer of aviation propulsion equipment and was purchased for $4.3 billion, a multiple of 8.5x based on 2012 earnings before interest, taxes, depreciation and amortization. Avio has supplied components to GE Aviation since 1984 and has content on engines, components and systems for civil and military aircraft. The acquisition furthers GE’s participation in jet propulsion, one of the most attractive sectors of the aviation industry, and strengthens GE’s global supply chain capabilities as its engine production rates continue to rise to meet growing customer demand. GE’s total-year framework remains unchanged. GE is ahead of plan in its simplification efforts and expects to exceed $1 billion in cost reductions this year. About GE GE (NYSE:GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com. Caution Concerning Forward-Looking Statements: This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; our ability to realize anticipated simplification cost savings, which may affect our total-year framework; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.