Edison would be pleased

2 / Edison secured a spot in history, igniting a company built on innovation and leadership 1879 – Incandescent Lamp 1949 – Jet Engine 1963 – First Self-Cleaning Oven

3 / GE won the ENERGY STAR Partner of the Year award in household appliances for 2004, 2005, 2006, 2007 and Innovation ENERGY STAR ® Partner of the Year ENERGY STAR is a government-backed program helping people protect the environment through greater energy efficiency. GE creates products that help consumers use less energy, save money and protect the environment. Many of our products have earned the esteemed ENERGY STAR label from the U.S. Department of Energy and the Environmental Protection Agency.

4 / More ENERGY STAR ® choices than ever Today, GE has over 440 ENERGY STAR appliance models on the market, making it easy for you to take advantage of any rebates, tax credits or sales tax exemptions on energy-efficient products that your state and local utilities may offer.* With GE, you can choose from a greater selection of ENERGY STAR products than ever before. *U.S. Department of Energy Effective Jan. ’09, the hybrid electric water heater will meet ENERGY STAR qualifications.

Home Energy Usage – Water Heating 2 nd Highest Single Energy User Source: DOE Energy Star

6 / Protection and Savings  Save up to 50% on water heating cost  EF 2.0 compared to  Demand Response enabled  Save about $250 per year using only 2300 kwh vs 4800 kwh on a standard heater Convenience  Use existing water/electrical connections  Same foot print of existing 50 gal heater  50 gallon capacity Incentive  Federal tax incentive – 30% up to $1500  State & Utility Rebates  Energy Star 2009 – Will meet requirements Quality of Life  Electronic control to monitor system  Product of Ecomagination Hybrid Electric Water Heater Available 4 th Quarter 2009 *10 cents per kwh. (Design intent of 2.0 EF)

7 / How it works

8 /  Hybrid Mode – Default mode. Operates as a heat pump using 700 watts, can cycle on upper heating element (4500 w) for fast recovery of 10 gallons.  High Demand – Operates first as a heat pump (700 w), brings on upper heating element for fast recovery of 10 gallons. Can cycle on lower heating element for full tank recovery based on water used.  E-heat Mode – Operates using only the heat pump (700 w).  Standard Electric – Can operate as a standard electric water heater cycling upper and lower 4500 watt heating elements.  Vacation Mode – Lowers tank temperature to 50 degrees for 1-90 days. Returns to set temp on last day. How it works GE Confidential – Do not copy or distribute

9 / 4 - Signals  E-heat Mode – Operates using only the heat pump (700 w), maintains set tank temp.  E-Heat Mode – Drops tank temp to 110 degrees  Return – Goes back to customer setting Demand Response GE Confidential – Do not copy or distribute

10 / High Performing  EF.95  Uses 4,622 kwh per year  6 years parts warranty  Life time tank – non transferable  10 year tank - Lease  Not Demand Response enabled High Performing Electric vs Heat Pump GE Confidential – Do not copy or distribute GE Hybrid  EF 2.0  Uses 2,300 kwh per year.  10 year all parts warranty- Transferable  Demand Response enabled  Avoid up to 50% Co2 emissions  Energy Star  30% tax credit  Electronic Thermostat  Vacation Mode  Same footprint  Same Electric hook up $700-$800 $1500 (Design intent of 2.0 EF)

11 / Brand Demand Response Energy Efficiency/Savings Warranty Operating Modes/Flexibility Ease of Installation MSRP Reliability Energy Star Rated Capacity Control Panel Temperature Setting Heat Pump Operating Range Rheem Not 1.5 in Normal Mode Limited 1-yr labor, 6-yr parts 3 modes Side connections, 75” tall $1,620 Internal coils, recirc pump Yes, Pending 50 Gallons Basic touchpad Vacation-Normal-Hot F GE Demand Response Enabled 2.35 in Hybrid Mode Limited 1-yr labor, 10-yr parts 4 modes + Vacation Mode Same top connections as std water htr $1,499-$1,699 Coils external to tank, no recirc pump Yes, Pending 50 Gallons Deluxe membrane w/ digital readout Digital F, 1 degree increments F                g Heat Pump Water Heater Comparison

12 /  If just 10% of the nation’s 4.8 million electric water heater shipments were heat pump water heaters with an Energy Factor of 2.0 instead of conventional models with an Energy Factor at the Federal Standard, the aggregate energy savings would amount to nearly 1.3 billion kilowatt-hours per year. Source: Energy Star  A GE heat pump water heater saves about $250 per year. For every12 introduced into a market, you offset one new home.  1,000 heat pump water heaters produce enough energy savings to offset the energy use of 83 homes averaging $250 per month. Interesting Facts… *10 cents per kwh. GE Confidential – Do not copy or distribute