GE Consumer Finance Enters Strategic Joint Venture Agreement with Hyundai Capital in South Korea

SEOUL, South Korea--Aug. 1, 2004--GE Consumer Finance, the global consumer lending unit of General Electric Company , today announced that it had entered a strategic joint venture agreement with Hyundai Capital Services, Inc., (HCS) Korea's leading consumer finance company.

The joint venture agreement creates a formal management structure for the two companies to jointly market and provide personal finance products to consumers in Korea, initially focusing on personal loans and auto financing. Under the terms of the agreement, GE Consumer Finance will acquire 38% of the outstanding common stock of HCS, valued at approximately $375 million, with an option to purchase an additional 5% of outstanding shares at a later date. In addition, at closing, GE Consumer Finance will purchase subordinated debt in the amount of $330 million, and make an additional capital contribution of up to $116 million.

The joint venture will operate and be governed under a distinct board of directors and management structure to which both companies will contribute. The agreement's closing is subject to certain conditions, including regulatory approvals.

"Korea represents a significant and strategic area of growth potential for GE Consumer Finance and this joint venture gives us immediate scale in partnership with one of the country's premier brands," said David R. Nissen, President and CEO of GE Consumer Finance, who was in Seoul for the signing of the agreement. "Our strong global experience combined with Hyundai Capital's demonstrated success in the Korean market creates a powerful and dynamic new vehicle to strategically grow in the Korean consumer finance segment."

Tae-young Chung, CEO of Hyundai Capital said, "With a strategic alliance with GECF, we expect higher international credit ratings and a decrease in supply interest rates which will pave the way for our jumping into the global financial service scene." He also stated, "In addition to our auto financing business, we will be able to provide our customers with best in class financial products and upgraded retail financial services by adopting best practices from GE's advanced management experience in financial businesses."

"Asia is GE Consumer Finance's fastest growing region, and an area which will be a key contributor to our future growth and development," said Mr. Nissen, "Our partnership with Hyundai Capital demonstrates both our commitment to the Korean market, and the potential we see for our business across the entire Asian region."

About Hyundai Capital

Hyundai Capital Services, Inc., is an affiliated company of Hyundai/Kia Motors Group and is Korea's leading consumer finance company, with more than KW 13 trillion in assets. With 48 branches and 4000 employees in Korea, it is the leader in the KW 10 trillion auto loan market. Hyundai Capital also provides auto leasing, mortgages, and a variety of other credit products. More information about Hyundai Capital can be found online at www.hyundaicapital.co.kr

About GE and GE Consumer Finance

GE Consumer Finance, a unit of General Electric Company, with $117 billion in assets, is a leading provider of credit services to consumers, retailers and auto dealers in 40 countries. GE Consumer Finance, based in Stamford, Conn., 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 about GE Consumer Finance can be found at www.geconsumerfinance.com

GE is a diversified technology, media and financial services company with operations worldwide. More information about GE can be found online at www.ge.com.