GE Announces Completion of GE Oil & Gas and Baker Hughes Merger

BOSTON–(BUSINESS WIRE)–GE (NYSE:GE) announced today the completion of the previously announced
combination of GE’s oil and gas business with Baker Hughes. Baker
Hughes, a GE company (NYSE:BHGE) is the first and only company to bring
together industry-leading equipment, services and digital solutions
across the entire spectrum of oil and gas development.

BHGE provides differentiated services for customers by combining digital
solutions and technology from the GE Store with the domain expertise of
Baker Hughes and its culture of innovation in the oilfield services
sector. No other company brings together capabilities across the full
value chain of oil and gas activities—from upstream to midstream to
downstream. This fullstream portfolio positions BHGE to create new
sources of value, improving productivity and project economics through
integrated equipment and service offerings.

Jeff Immelt, Chairman and CEO of GE and Chairman of BHGE, said, “BHGE is
an industry leader positioned to deliver in any economic environment and
assist our customers in driving productivity. This deal capitalizes on
the current cycle in oil and gas while also strengthening our position
for the market recovery. I am extremely proud of the GE and Baker Hughes
teams for completing the combination in just eight months, which is a
testament to the team’s unwavering focus and dedication since the
announcement last October. As we go forward, the new fullstream offering
accelerates our ability to extend a digital framework to customers while
delivering world-class technical innovation and service execution. We
look forward to continuing a seamless integration for our customers.”

Under the terms of the transaction agreement, which was previously
announced on October 31, 2016, the transaction resulted in a partnership
structure, pursuant to which Baker Hughes was converted to a partnership
and GE contributed its Oil & Gas business into that partnership. GE has
a 62.5% interest in this partnership and legacy Baker Hughes
shareholders have a 37.5% interest through their ownership of BHGE.
Former Baker Hughes shareholders, whose shares converted into shares of
Class A common stock of BHGE in the transaction, are also entitled to
receive a special one-time cash dividend of $17.50 per share (to be paid
on July 6, 2017). $7.4 billion was contributed by GE to the new
partnership, which will be used to fund the cash dividend to legacy
Baker Hughes shareholders.

Baker Hughes, a GE company is dual headquartered in Houston, Texas and
London, UK.

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Stock Exchange Trading

Class A common stock of Baker Hughes, a GE company will begin trading on
the New York Stock Exchange (NYSE) under the symbol BHGE on the opening
of the NYSE on July 5, 2017. In connection with the completion of the
transaction, the shares of common stock of Baker Hughes Incorporated
(NYSE: BHI) will continue to trade on the NYSE until the close of the
NYSE today, July 3, 2017, at which point BHI will be delisted from the
NYSE.

About GE

GE is the world’s Digital Industrial Company, transforming industry with
software-defined machines and solutions that are connected, responsive
and predictive. GE is organized around a global exchange of knowledge,
the “GE Store,” through which each business shares and accesses the same
technology, markets, structure and intellect. Each invention further
fuels innovation and application across our industrial sectors. With
people, services, technology and scale, GE delivers better outcomes for
customers by speaking the language of industry. www.ge.com

Caution Concerning Forward-Looking Statements:

This document contains “forward-looking statements” – that is,
statements related to future events that by their nature address matters
that are, to different degrees, uncertain. For details on the
uncertainties that may cause our actual future results to be materially
different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements
as well as our annual reports on Form 10-K and quarterly reports on Form
10-Q. We do not undertake to update our forward-looking statements. This
document also includes certain forward-looking projected financial
information that is based on current estimates and forecasts. Actual
results could differ materially.

Contacts

GE
Investors:
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[email protected]
or
Media:
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Erickson, +1 646 682 5620
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