<PAGE>
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  -------------
                                    FORM 10-Q
                                  -------------


       | X |   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 27, 1999

                                       OR

       |   |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from ___ to ___

                         ------------------------------
                         Commission file number 0-14804
                         ------------------------------

                     GENERAL ELECTRIC CAPITAL SERVICES, INC.
                    -----------------------------------------
             (Exact name of registrant as specified in its charter)

            DELAWARE                                          06-1109503
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                          Identification No.)

      260 LONG RIDGE ROAD,
     STAMFORD, CONNECTICUT                                      06927
(Address of principal executive offices)                     (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)

                         ------------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

At May 10, 1999, 101  shares of  common  stock  with a par value of $10,000 were
outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED  DISCLOSURE
FORMAT.

<PAGE>


                                TABLE OF CONTENTS



                                                                   PAGE
                                                                 --------

PART I - FINANCIAL INFORMATION.

Item 1.       Financial Statements ........................          1

Item 2.       Management's Discussion and Analysis of
              Results of Operations .......................          6

Exhibit 12.   Computation of Ratio of Earnings to Fixed
              Charges and Computation of Ratio of Earnings
              to Combined Fixed Charges and Preferred Stock
              Dividends ...................................          9


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K ............         10

Signatures ................................................         11

Index to Exhibits .........................................         12





<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS

                                   (Unaudited)

                                                            THREE MONTHS ENDED
                                                           --------------------
                                                          MARCH 27,   MARCH 28,
(In millions)                                                 1999        1998
                                                           --------    --------
<S>                                                       <C>         <C>
REVENUES
Revenues from services .................................   $ 10,743    $  9,525
Sales of goods .........................................      1,640       1,626
                                                           --------    --------
                                                             12,383      11,151
                                                           --------    --------
EXPENSES
Interest ...............................................      2,113       2,025
Operating and administrative ...........................      3,638       3,158
Cost of goods sold .....................................      1,511       1,482
Insurance losses and policyholder and annuity benefits .      2,619       2,213
Provision for losses on financing receivables ..........        379         332
Depreciation and amortization of buildings and
 equipment and equipment on operating leases ...........        685         656
Minority interest in net earnings of consolidated
 affiliates ............................................         38          33
                                                           --------    --------
                                                             10,983       9,899
                                                           --------    --------
EARNINGS
Earnings before income taxes ...........................      1,400       1,252
Provision for income taxes .............................       (368)       (371)
                                                           --------    --------

NET EARNINGS ...........................................      1,032         881
Dividends ..............................................       (386)       (503)
Retained earnings at beginning of period ...............     15,075      12,951
                                                           --------    --------
RETAINED EARNINGS AT END OF PERIOD .....................   $ 15,721    $ 13,329
                                                           ========    ========
</TABLE>



See Notes to Condensed, Consolidated Financial Statements.

                                       1
<PAGE>

ITEM 1. FINANCIAL STATEMENTS (Continued).

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                    CONDENSED STATEMENT OF FINANCIAL POSITION

                                                             MARCH    DECEMBER
                                                                27,         31,
(In millions)                                                 1999        1998
                                                           --------    --------
<S>                                                       <C>         <C>
                                                         (Unaudited)
ASSETS
Cash and equivalents ...................................   $  3,780    $  3,342
Investment securities ..................................     78,124      78,458
Financing receivables:
  Time sales and loans, net of deferred income .........     76,357      77,283
  Investment in financing leases, net of deferred income     46,829      47,571
                                                           --------    --------
                                                            123,186     124,854
  Allowance for losses on financing receivables ........     (3,245)     (3,288)
                                                           --------    --------
    Financing receivables - net ........................    119,941     121,566
Other receivables - net ................................     30,056      25,973
Inventories ............................................        613         744
Equipment on operating leases (at cost), less
 accumulated amortization of $7,282 and $7,021 .........     21,192      20,941
Intangible assets ......................................     13,382      13,639
Other assets ...........................................     40,642      38,634
                                                           --------    --------
      TOTAL ASSETS .....................................   $307,730    $303,297
                                                           ========    ========

LIABILITIES AND SHARE OWNERS' EQUITY
Short-term borrowings ..................................   $114,488    $113,162
Long-term borrowings:
  Senior ...............................................     58,882      58,042
  Subordinated .........................................        996         996
Insurance liabilities, reserves and annuity benefits ...     80,271      77,259
Other liabilities ......................................     20,021      21,062
Deferred income taxes ..................................      9,353       9,590
                                                           --------    --------
      Total liabilities ................................    284,011     280,111
                                                           --------    --------
Minority interest in equity of consolidated affiliates .      3,862       3,459
                                                           --------    --------

Accumulated unrealized gains on investment
 securities - net ......................................      1,932       2,376
Accumulated foreign currency translation adjustments ...       (287)       (215)
                                                           --------    --------
Accumulated non-owner changes in share owners' equity ..      1,645       2,161
Capital stock ..........................................         11          11
Additional paid-in capital .............................      2,480       2,480
Retained earnings ......................................     15,721      15,075
                                                           --------    --------
      Total share owners' equity .......................     19,857      19,727
                                                           --------    --------
      TOTAL LIABILITIES AND SHARE OWNERS' EQUITY .......   $307,730    $303,297
                                                           ========    ========
</TABLE>



See Notes to Condensed, Consolidated Financial Statements.


                                       2
<PAGE>

ITEM 1. FINANCIAL STATEMENTS (Continued).

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                        CONDENSED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                            THREE MONTHS ENDED
                                                           --------------------
                                                          MARCH 27,   MARCH 28,
(In millions)                                                 1999        1998
                                                           --------    --------
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................   $  1,032    $    881
Adjustments to reconcile net earnings to cash provided
 from operating activities:
  Provision for losses on financing receivables ........        379         332
  Depreciation and amortization of buildings and
   equipment and equipment on operating leases .........        685         656
  Other - net ..........................................        459         810
                                                           --------    --------
      Cash from operating activities ...................      2,555       2,679
                                                           --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................    (19,236)    (18,844)
Principal collections from customers - loans ...........     18,480      19,249
Investment in equipment for financing leases ...........     (3,509)     (3,596)
Principal collections from customers - financing leases       3,251       2,856
Net change in credit card receivables ..................        763          89
Buildings and equipment and equipment on
 operating leases:
    - additions ........................................     (1,368)     (1,560)
    - dispositions .....................................        871       1,427
Payments for principal businesses purchased, net of
 cash acquired .........................................     (4,125)       (686)
Purchases of securities by insurance and
 annuity businesses ....................................     (5,594)     (5,608)
Dispositions and maturities of securities by
 insurance and annuity businesses ......................      5,495       4,698
Other - net ............................................       (740)     (1,229)
                                                           --------    --------
      Cash used for investing activities ...............     (5,712)     (3,204)
                                                           --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..      3,489       6,477
Newly issued debt  - short-term (maturities 91-365 days)      1,354       1,556
                   - long-term (longer than one year) ..      6,206       3,853
Proceeds - non-recourse, leveraged lease debt ..........        165         156
Repayments and other reductions:
                   - short-term (maturities 91-365 days)     (6,512)     (8,221)
                   - long-term (longer than one year) ..       (774)     (2,630)
Principal payments - non-recourse, leveraged lease debt        (206)       (184)
Proceeds from sales of investment contracts ............      1,548       1,067
Redemption of investment contracts .....................     (1,589)     (1,280)
Dividends paid .........................................       (386)       (503)
Issuance of variable cumulative preferred stock by
 consolidated affiliate ................................        300        --
                                                           --------    --------
      Cash from financing activities ...................      3,595         291
                                                           --------    --------

INCREASE (DECREASE) IN CASH AND EQUIVALENTS ............        438        (234)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............      3,342       4,904
                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................   $  3,780    $  4,670
                                                           ========    ========
</TABLE>


See Notes to Condensed, Consolidated Financial Statements.

                                       3
<PAGE>

ITEM 1. FINANCIAL STATEMENTS (Continued).

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.        The accompanying  condensed quarterly financial  statements  represent
          the adding together of General Electric Capital Services, Inc. and all
          majority-owned  and controlled  affiliates  (collectively  called "the
          Corporation" or "GECS"). All significant transactions among the parent
          and consolidated affiliates have been eliminated. Certain prior period
          data  have  been   reclassified  to  conform  to  the  current  period
          presentation.

2.        The  condensed   consolidated   quarterly  financial   statements  are
          unaudited.  These  statements  include all adjustments  (consisting of
          normal  recurring  accruals)  considered  necessary by  management  to
          present a fair  statement  of the  results  of  operations,  financial
          position  and cash  flows.  The results  reported  in these  condensed
          consolidated   financial   statements   should  not  be   regarded  as
          necessarily  indicative of results that may be expected for the entire
          year.

3.        In  June  1998,  the  Financial   Accounting  Standards  Board  issued
          Statement of Financial  Accounting  Standards No. 133,  Accounting for
          Derivative  Instruments and Hedging Activities (the "Statement").  The
          Statement  requires that,  upon adoption,  all derivative  instruments
          (including certain derivative instruments embedded in other contracts)
          be recognized in the balance sheet at fair value,  and that changes in
          such fair values be recognized  in earnings  unless  specific  hedging
          criteria are met. Changes in the values of derivatives that meet these
          hedging  criteria will ultimately  offset related  earnings effects of
          the  hedged items; effects  of  certain  changes  in  fair  value  are
          recorded in equity pending  recognition in earnings.  The  Corporation
          expects to adopt  the Statement  on  January 1, 2000.  The  impact  of
          adoption will be determined by several factors, including the specific
          hedging instruments in place and their  relationships to hedged items,
          as well as market conditions. Management has not estimated the effects
          of adoption  as  it  believes  that  such  determination  will  not be
          meaningful until closer to the adoption date.

4.        A summary  of  changes  in share owner's equity  that  do  not  result
          directly from transactions with share owners is provided below.

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED
                                                           --------------------
                                                          MARCH 27,   MARCH 28,
          (In millions)                                       1999        1998
                                                           --------    --------
          <S>                                             <C>         <C>
          Net earnings .................................   $  1,032    $    881
          Unrealized gains (losses) on investment
           securities - net ............................       (444)        261
          Foreign currency translation adjustments .....        (72)        (42)
                                                           --------    --------
          Total ........................................   $    516    $  1,100
                                                           ========    ========
</TABLE>



                                       4
<PAGE>

ITEM 1. FINANCIAL STATEMENTS (Continued).


5.        Revenues  and  net earnings of  the Corporation, by operating segment,
          for the first three months of 1999 and 1998 were as follows:

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED
                                                           --------------------
                                                          MARCH 27,   MARCH 28,
          (In millions)                                       1999        1998
                                                           --------    --------
         <S>                                              <C>         <C>
          REVENUES
          Consumer Services ............................   $  4,015    $  3,720
          Equipment Management .........................      3,543       3,303
          Mid-Market Financing .........................      1,014         808
          Specialized Financing ........................        800         751
          Specialty Insurance ..........................      2,978       2,431
          All other ....................................         33         138
                                                           --------    --------
          Total revenues ...............................   $ 12,383    $ 11,151
                                                           ========    ========

          NET EARNINGS
          Consumer Services ............................   $    211    $    154
          Equipment Management .........................        210         170
          Mid-Market Financing .........................        116         103
          Specialized Financing ........................        195         178
          Specialty Insurance ..........................        360         309
          All other ....................................        (60)        (33)
                                                           --------    --------
          Total net earnings ...........................   $  1,032    $    881
                                                           ========    ========
</TABLE>



                                       5
<PAGE>

ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.

OVERVIEW

Net  earnings  for the first three  months of 1999 were $1,032  million,  a $151
million  (17%)  increase  over the  first  three  months  of 1998.  The  results
reflected the globalization  and diversity of the  Corporation's  businesses and
were led by double-digit increases in each of its five segments. The improvement
in earnings was largely  attributable  to the effects of continued asset growth,
principally   from   acquisitions   of  businesses  and  portfolios  and  higher
origination volume.

OPERATING RESULTS

TOTAL  REVENUES  from all  sources  increased  $1,232  million  (11%) to $12,383
million for the first three months of 1999,  compared  with $11,151  million for
the first three months of 1998.  This  increase  was led by  acquisition-related
growth  in  the  Consumer  Services  and  Mid-Market  Financing  segments  and a
combination  of core and  acquisition  growth  in the  Specialty  Insurance  and
Equipment Management segments.

INTEREST  EXPENSE  for the first  three  months of 1999 was $2,113  million,  4%
higher than for the first  three  months of 1998.  The  increase  reflected  the
effects of higher  average  borrowings  used to finance asset growth,  partially
offset by the effects of lower average  interest rates.  The composite  interest
rate on the  Corporation's  borrowings  for the first  three  months of 1999 was
5.33% compared with 6.12% in the first three months of 1998.

OPERATING AND  ADMINISTRATIVE  EXPENSES were $3,638  million for the first three
months of 1999, a 15% increase over the first three months of 1998. The increase
primarily  reflected costs  associated  with businesses and portfolios  acquired
over  the past  year,  higher  investment  levels  and  increases  in  insurance
commissions and other costs that vary directly with increased revenues.

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $406 million to
$2,619 million for the first three months of 1999, compared with the first three
months of 1998.  The  increase  primarily  reflected  the  effects  of  business
acquisitions  and growth in premium  volume  throughout  the  period,  partially
offset by improved market conditions in the mortgage insurance business.

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES increased to $379 million for the
first three months of 1999 from $332 million for the first three months of 1998.
These provisions  principally  related to credit cards,  personal loans and auto
loans and auto leases in the  Consumer  Services  segment,  which are  discussed
below under Portfolio Quality.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $29  million to $685  million  for the first three
months of 1999  compared  with $656  million for the first three months of 1998.
The  increase  was  principally  the  result of higher  levels of  equipment  on
operating leases, primarily reflecting acquisition growth.

PROVISION  FOR INCOME  TAXES was $368 million for the first three months of 1999
(an effective tax rate of 26.3%), compared with $371 million for the first three
months of 1998 (an effective tax rate of 29.6%).  The lower provision for income
taxes  and  effective  tax rate  primarily reflected decreased taxes on non-U.S.
earnings.



                                       6
<PAGE>
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS (Continued).

OPERATING SEGMENTS

Revenues and net earnings of the  Corporation,  by  operating  segment,  for the
first three months of 1999 and 1998 are summarized and discussed below.

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED
                                                           --------------------
                                                          MARCH 27,   MARCH 28,
          (In millions)                                       1999        1998
                                                           --------    --------
         <S>                                              <C>         <C>
          REVENUES
          Consumer Services ............................   $  4,015    $  3,720
          Equipment Management .........................      3,543       3,303
          Mid-Market Financing .........................      1,014         808
          Specialized Financing ........................        800         751
          Specialty Insurance ..........................      2,978       2,431
          All other ....................................         33         138
                                                           --------    --------
          Total revenues ...............................   $ 12,383    $ 11,151
                                                           ========    ========

          NET EARNINGS
          Consumer Services ............................   $    211    $    154
          Equipment Management .........................        210         170
          Mid-Market Financing .........................        116         103
          Specialized Financing ........................        195         178
          Specialty Insurance ..........................        360         309
          All other ....................................        (60)        (33)
                                                           --------    --------
          Total net earnings ...........................   $  1,032    $    881
                                                           ========    ========
</TABLE>

Consumer Services revenues  increased 8% and net earnings  increased 37% for the
first three  months of 1999,  compared to the first  three  months of 1998.  The
increase in revenues was led by  acquisition-related  growth at Global  Consumer
Finance and GE  Financial  Assurance,  the  Corporation's  consumer  savings and
insurance business,  partially offset by the effects of planned asset reductions
in U.S. consumer credit card and automobile financing  activities.  The increase
in net  earnings  was led by a  combination  of core and  acquisition  growth at
Global Consumer Finance.

Equipment  Management  revenues  grew 7% and net earnings grew 24% for the first
three months of 1999, compared to the corresponding  period in 1998,  reflecting
asset  growth  and gains  recognized  on sales of  assets.  Increased  volume at
Information  Technology  Solutions also  contributed to the revenue increase and
improved asset quality contributed to the increase in net earnings.

Mid-Market  Financing  revenues grew 25% and net earnings  increased 13% for the
first  three  months  of 1999,  compared  to the  corresponding  period in 1998,
primarily as a result of acquisition growth.

Specialized  Financing  revenues  rose 7% and net earnings  increased 10% in the
first three  months of 1999,  compared to the first  three  months of 1998.  The
increases  in revenues and net earnings  principally  reflected  asset growth as
well as the effects of asset gains, including securitizations.

Specialty  Insurance  revenues  grew 23% and net earnings  grew 16% in the first
three  months of 1999,  compared  to the  corresponding  period  in 1998.  These
increases  resulted from increased premium and investment income associated with
acquisitions,   origination  volume  and  continued  growth  in  the  investment
portfolios,  as  well  as  a  higher  level  of  realized  gains  on  investment
securities.  Net earnings were also favorably affected by improved conditions in
the Mortgage Insurance business, the result of improvements in loss experience.

PORTFOLIO QUALITY

FINANCING  RECEIVABLES are the financing segment's largest asset and its primary
source of revenues. The portfolio of financing receivables, before allowance for
losses,  decreased to $123.2  billion at  March 27, 1999,  from  $124.9  billion


                                       7
<PAGE>

ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS (Continued).

at the end of  1998,  primarily  reflecting  the  effects  of  foreign  currency
translation  on  European  financing  receivables,  partially  offset  by higher
origination volume and acquisition  growth. The related allowances for losses at
March 27, 1999  amounted to $3.2 billion  ($3.3 billion at the end of 1998) and,
in  management's  judgment,  are  appropriate  given  the  risk  profile  of the
portfolio.  A discussion  about the quality of certain elements of the portfolio
of financing receivables follows. "Nonearning" receivables are those that are 90
days or more delinquent (or for which  collection has otherwise become doubtful)
and  "reduced-earning"  receivables are commercial  receivables whose terms have
been  restructured  to a  below-market  yield.  The following  discussion of the
nonearning  and  reduced-earning   receivable  balances  and  write-off  amounts
excludes amounts related to Montgomery Ward Holding Corp. and affiliates,  which
are separately discussed below.

CONSUMER  FINANCING  RECEIVABLES,  primarily  credit card and personal loans and
auto loans and leases,  were $51.1 billion at March 27, 1999, a decrease of $0.5
billion from the end of 1998. Nonearning  receivables were $1.2 billion at March
27, 1999,  2.3% of total  consumer  financing  receivables,  compared  with $1.3
billion, 2.4% of total consumer receivables, at December 31, 1998. Write-offs of
consumer  receivables  decreased  to $286  million for the first three months of
1999,  compared  with $356  million  for the first  three  months of 1998.  This
decrease  was  primarily  attributable  to  lower  average  receivable  balances
resulting  from  securitization  and other  sales of  portfolios  as well as the
effects of lower delinquencies during the first three months of 1999.

OTHER  FINANCING  RECEIVABLES,  totaling  $72.1 billion at March 27, 1999 ($73.3
billion at December 31, 1998), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables were less than 1% of total other financing  receivables at March 27,
1999 and December 31, 1998.

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December 31, 1998,  Montgomery  Ward Holding Corp.  ("MWHC")  filed a bankruptcy
petition for  reorganization in 1997. The Corporation's  recorded  investment in
MWHC and  affiliates at March 27, 1999 was $576 million ($622 million at the end
of 1998). Subsequent to the filing of the petition, the Corporation committed to
provide MWHC up to $1.0 billion in debtor-in-possession financing, a majority of
which has been syndicated:  the Corporation's loans under this facility at March
27,  1999  were  approximately  $149  million.  The  Corporation  also  provides
revolving  credit card financing  directly to customers of MWHC and  affiliates;
such receivables totaled $3.0 billion at March 27, 1999,  including $1.8 billion
that have been sold with recourse.  The obligations of customers with respect to
these receivables are not affected by the bankruptcy  filing. On April 30, 1999,
MWHC filed a plan of  reorganization  that,  if  approved,  would  allow MWHC to
emerge from bankruptcy in August 1999. As part of the restructuring provided for
in the plan, the Corporation will acquire The Signature Group,  which was not in
bankruptcy, as well as the equity of the reorganized retailer.

The Corporation held loans and leases to commercial  airlines amounting to $10.4
billion at March 27, 1999, up from $10.2 billion at the end of 1998.

OTHER MATTERS

YEAR 2000

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December 31, 1998, the  Corporation is applying a Six Sigma quality  approach to
identify and mitigate Year 2000 issues in  its   information  systems,  products
and services, facilities and suppliers, as well as to assess the extent to which
Year 2000 issues will affect its customers.  That approach includes a fourth and
final  phase - the control  phase - for the  completion,  testing and  continued
monitoring of Year 2000  readiness and the  completion of necessary  contingency
plans. The Corporation is developing, testing and implementing contingency plans
to ameliorate any potential internal or external disruption of critical business
processes.  The specific  actions  identified in such  contingency  plans differ
depending  on  circumstances,   but  most  often  include  manual  work-arounds,
deployment of backup or secondary technologies,  rearranging work schedules, and
substitution of suppliers, as appropriate. While the Corporation does not expect
significant  disruptions of critical business  processes caused by internal Year
2000 issues, the likelihood of externally-caused  disruptions and the ability of
the  contingency  plans to ameliorate the effects of any such  externally-caused
disruptions is not determinable.  The total estimate of Year 2000  expenditures,
adjusted for increases related to acquired  companies,  is in line with previous
projections.  The activities  related to Year 2000 efforts  necessarily  involve
estimates and  projections  of activities and resources that will be required in
the future. These estimates and projections could change as work progresses.

                                       8
<PAGE>

                                                                     EXHIBIT 12

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                       AND
           COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                          AND PREFERRED STOCK DIVIDENDS

                        THREE MONTHS ENDED MARCH 27, 1999

                                   (Unaudited)

                                                                       RATIO OF
                                                                       EARNINGS
                                                                          TO
                                                                       COMBINED
                                                                         FIXED
                                                           RATIO OF     CHARGES
                                                           EARNINGS       AND
                                                              TO      PREFERRED
                                                             FIXED       STOCK
(Dollar amounts in millions)                                CHARGES   DIVIDENDS
                                                           --------    --------
<S>                                                        <C>         <C>
Net earnings ...........................................   $  1,032    $  1,032
Provision for income taxes .............................        368         368
Minority interest in net earnings of consolidated
 affiliates ............................................         38          38
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest .....................................      1,438       1,438
                                                           --------    --------
Fixed charges:
  Interest .............................................      2,168       2,168
  One-third of rentals .................................         88          88
                                                           --------    --------
Total fixed charges ....................................      2,256       2,256
                                                           --------    --------

Less interest capitalized, net of amortization .........         22          22
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest, plus fixed charges .................   $  3,672    $  3,672
                                                           ========    ========

Ratio of earnings to fixed charges .....................       1.63
                                                           ========


Preferred stock dividend requirements ..................               $   --
Ratio of earnings before provision for income taxes to
 net earnings ..........................................                   1.36
Preferred stock dividend factor on pre-tax basis .......                   --
Fixed charges ..........................................                  2,256
                                                                       --------
Total fixed charges and preferred stock dividend
 requirements ..........................................               $  2,256
                                                                       ========
Ratio of earnings to combined fixed charges and
 preferred stock dividends .............................                   1.63
                                                                       ========
</TABLE>



For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.


                                       9
<PAGE>

                           PART II--OTHER INFORMATION


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     a.  EXHIBITS.

         Exhibit 12.  Computation  of  ratio  of  earnings to fixed  charges and
                      computation  of  ratio  of earnings   to  combined   fixed
                      charges and  preferred stock dividends.

         Exhibit 27.  Financial Data Schedule (filed electronically only).


     b.  REPORTS ON FORM 8-K.

         None.



                                       10
<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                   GENERAL ELECTRIC CAPITAL SERVICES, INC.
                                   ---------------------------------------
                                                (Registrant)


Date:  May 11, 1999                By:           /s/ J.A. Parke
                                        ----------------------------------
                                                   J.A. Parke,
                                            Executive Vice President
                                           and Chief Financial Officer
                                          (Principal Financial Officer)



Date:  May 11, 1999                By:          /s/ J.C. Amble
                                        -----------------------------------
                                                   J.C. Amble,
                                          Vice President and Controller
                                          (Principal Accounting Officer)




                                       11
<PAGE>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                                INDEX TO EXHIBITS


EXHIBIT NO.                                                            PAGE
-----------                                                          --------

    12        Computation of ratio of earnings to fixed charges
              and computation of ratio of earnings to combined
              fixed charges and preferred stock dividends .......        9


    27        Financial Data Schedule (filed electronically only)




                                       12