**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

|   |                           |   |
|--------|--------------------------------|--------|
|   | **FORM                  10-K** |   |

|                                                                                                                                                 |  **(Mark                One)** |                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                 |                                |                                                                                                                                            |
|                                                                                                                                                 | **þ**                          | **Annual                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934**     |
|                                                                                                                                                 |
| **For                  the fiscal year ended December 31, 2005**                                                                                     |
| **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 incorporation or organization)                                 |                                       | (I.R.S.                    Employer Identification No.)                                |
|                                                                                                              |                                       |                                                                                   |   |   |
| **260                    Long Ridge Road, Stamford, Connecticut**                                                 |                                       | **06927**                                                                              |   | **203/357-4000** |
| (Address                    of principal executive offices)                                                       | (Zip                    Code)              | (Registrant’s                    telephone number,                               |
|                                                                                                              |                                       | including                    area code)                                                |
|  **Securities                    Registered Pursuant to Section 12(b) of the                    Act: ** |
| **Title                    of each class**                                                                        |                                       | **Name                    of each exchange****on                    which registered** |
|                                                                                                              |                                       |                                                                                   |
| **7                    ½% Guaranteed Subordinated Notes Due August 21,                    2035**             |                                       | **New                    York Stock Exchange**                                         |
|  **Securities                    Registered Pursuant to Section 12(g) of the                    Act:**       |
|                                                                                                              | **Title                    of each class** |                                                                                   |
| **Common                    Stock, par value $1,000 per                    share**                                |

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**DOCUMENTS        INCORPORATED BY REFERENCE**

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

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| **TABLE                  OF CONTENTS** |
|----------------------------------------|
|                                   |   |
|                                   |   | Page |
|                                   |   |
| **PART                  I**            |   |   |
|                                   |   |   |
| Item                  1.               | Business | 3 |
| Item                  1A.              | Risk                  Factors | 8 |
| Item                  1B.              | Unresolved                  Staff Comments | 9 |
| Item                  2.               | Properties | 9 |
| Item                  3.               | Legal                  Proceedings | 9 |
| Item                  4.               | Submission                  of Matters to a Vote of Security Holders | 9 |
|                                   |   |   |
| **PART                  II**           |   |   |
|                                   |   |   |
| Item                  5.               | Market                  for the Registrant’s Common Equity and Related Stockholder Matters | 9 |
| Item                  6.               | Selected                  Financial Data | 10 |
| Item                  7.               | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations | 10 |
| Item                  7A.              | Quantitative                  and Qualitative Disclosures About Market Risk | 33 |
| Item                  8.               | Financial                  Statements and Supplementary Data | 34 |
| Item                  9.               | Changes                  in and Disagreements with Accountants on Accounting and Financial                  Disclosure | 77 |
| Item                  9A.              | Controls                  and Procedures | 77 |
| Item                  9B.              | Other                  Information | 78 |
|                                   |   |   |
| **PART                  III**          |   |   |
|                                   |   |   |
| Item                  10.              | Directors                  and Executive Officers of the Registrant | 78 |
| Item                  11.              | Executive                  Compensation | 78 |
| Item                  12.              | Security                  Ownership of Certain Beneficial Owners and Management and Related                  Stockholder Matters | 78 |
| Item                  13.              | Certain                  Relationships and Related Transactions | 78 |
| Item                  14.              | Principal                  Accounting Fees and Services | 78 |
|                                   |   |   |
| **PART                  IV**           |   |   |
|                                   |   |   |
| Item                  15.              | Exhibits                  and Financial Statement Schedules | 79 |
|                                   | Signatures  | 87 |

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**PART        I**

**Item        1. Business.**

**General        Electric Capital Services, Inc.**

**General        Electric Capital Corporation**

**Operating        Segments**

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**GE        Commercial Finance**

*Capital        Solutions*

*Real        Estate*

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**GE        Consumer Finance**

**GE        Industrial**

*Equipment        Services*

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**GE        Infrastructure**

*Aviation        Financial Services*

*Energy        Financial Services*

**Discontinued        Operations**

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**Regulations        and Competition**

**Business        and Economic Conditions**

**Forward-Looking        Statements**

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**Item          1A. **
**Risk          Factors****.**

**Our          global growth is subject to a number of economic, political and regulatory          risks**

**Our          credit ratings are important to our cost of capital**

**The            disposition of businesses that do not fit with our evolving strategy            can be            highly uncertain**

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**Item          1B. Unresolved Staff Comments.**

**Item        2. Properties.**

**Item        3. Legal Proceedings.**

**Item        4. Submission of Matters to a Vote of Security Holders.**

**PART        II**

**Item        5. Market for the Registrant’s Common Equity and Related Stockholder        Matters.**

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**Item        6. Selected Financial Data. **

| *(In                  millions)*                                                                                                                                                        | **2005** |    | **2004** |   | **2003** |   | **2002** |    | **2001** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|----------|---------|----------|--------|
|                                                                                                                                                                                    |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                | $        | 59,297  |     | $      | 52,894   |   | $        | 42,978  |     | $      | 40,345 |   | $ | 39,998 |   |
| Earnings                  from continuing operations                                                                                                                                    |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| before                  accounting changes                                                                                                                                              |     | 9,141   |     |   | 7,853    |   |     | 5,931   |     |   | 5,291 |   |   | 4,406 |   |
| Earnings                  (loss) from discontinued operations,                                                                                                                          |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| net                  of taxes                                                                                                                                                           |     | (1,922  | )        |   | 534      |   |     | 2,057   |     |   | (616 | ) |   | 1,130 |   |
| Earnings                  before accounting changes                                                                                                                                     |     | 7,219   |     |   | 8,387    |   |     | 7,988   |     |   | 4,675 |   |   | 5,536 |   |
| Cumulative                  effect of accounting changes                                                                                                                                |     | -       |     |   | -        |   |     | (339    | )        |   | (1,015 | ) |   | (12 | ) |
| Net                  earnings                                                                                                                                                           |     | 7,219   |     |   | 8,387    |   |     | 7,649   |     |   | 3,660 |   |   | 5,524 |   |
| Shareowner’s                  equity                                                                                                                                              |     | 50,815  |     |   | 54,292   |   |     | 45,759  |     |   | 37,302 |   |   | 28,766 |   |
| Minority                  interest                                                                                                                                                      |     | 2,248   |     |   | 4,902    |   |     | 5,115   |     |   | 4,445 |   |   | 4,267 |   |
| Short-term                  borrowings                                                                                                                                                  |     | 157,672 |     |   | 154,292  |   |     | 153,748 |     |   | 128,240 |   |   | 159,346 |   |
| Long-term                  borrowings                                                                                                                                                   |     | 204,397 |     |   | 201,209  |   |     | 162,845 |     |   | 138,774 |   |   | 77,103 |   |
| Return                  on average shareowner’s equity(a)                     |     | 19.66   | %        |   | 17.09    | %      |     | 14.45   | %        |   | 17.49 | % |   | 17.86 | % |
| GECS                  ratio of earnings to fixed charges                                                                                                                                |     | 1.70    |     |   | 1.83     |   |     | 1.68    |     |   | 1.61 |   |   | 1.51 |   |
| GECC                  ratio of debt to equity                                                                                                                                           |     | 7.09:1  |     |   | 6.46:1   |   |     | 6.63:1  |     |   | 6.46:1 |   |   | 7.21:1 |   |
| Financing                  receivables - net                                                                                                                                            | $        | 287,639 |     | $      | 282,699  |   | $        | 248,114 |     | $      | 198,060 |   | $ | 172,346 |   |
| Total                  assets of continuing operations                                                                                                                                  |     | 493,849 |     |   | 486,238  |   |     | 410,653 |     |   | 356,352 |   |   | 304,011 |   |
| Total                  assets                                                                                                                                                           |     | 540,605 |     |   | 618,504  |   |     | 554,871 |     |   | 489,820 |   |   | 425,473 |   |
|                                                                                                                                                                                    |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |

| (a) | Represents                  earnings from continuing operations before accounting changes divided                  by                  average total shareowner’s equity, excluding effects of discontinued                  operations (on an annual basis, calculated using a five-point average).                  Average total shareowner's equity, excluding effects of discontinued                  operations, as of the end of each of the years in the five-year                  period                  ended December 31, 2005, is described in the Supplemental Information                  section. |   |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Item        7. Management’s Discussion and Analysis of Financial Condition and Results of        Operations.**

**Operations**

**Overview        of Our Earnings from 2003 through 2005**

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**Insurance        Exit. **

| • | On                  November 18, 2005, GE announced that it had entered into an agreement                  with                  Swiss Reinsurance Company (Swiss Re) to sell the property and casualty                  insurance and reinsurance businesses and the European life and                  health                  operations of GE Insurance Solutions Corporation (GE Insurance                  Solutions).                  The transaction is expected to close in the second quarter of 2006,                  subject to regulatory approvals and customary closing conditions. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In                  May 2004, we completed the initial public offering of Genworth                  Financial,                  Inc. (Genworth), our formerly wholly-owned subsidiary that conducted                  most                  of our consumer insurance business, including life and mortgage                  insurance                  operations. Throughout 2005, we continued to reduce our ownership                  in                  Genworth, currently at 18%. We intend to continue to dispose of                  our                  remaining shares in 2006, subject to market conditions. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Interest        on borrowings**

**Income        taxes **

**Global        Risk Management**

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| **•** | Liquidity                  risk is the risk of being unable to accommodate liability maturities,                  fund                  asset growth and meet contractual obligations through access to                  funding at                  reasonable market rates. Additional information about our liquidity                  and                  how we manage this risk can be found in the Financial Resources                  and                  Liquidity section and in notes 11 and                  18. |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Credit                  risk is the risk of financial loss arising from a customer or counterparty                  failure to meet its contractual obligations. We face credit risk                  in our                  lending and leasing activities (see the Financial Resources and                  Liquidity                  and Critical Accounting Estimates sections and notes 1, 6, 7 and                  20) and                  derivative financial instruments activities (see note 18). |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Market                  risk is the potential loss in value of investment and other asset                  and                  liability portfolios, including financial instruments, caused by                  changes                  in market variables, such as interest and currency exchange rates                  and                  equity and commodity prices. We are exposed to market risk in the                  normal                  course of our business operations as a result of our ongoing investing                  and                  funding activities. We attempt to mitigate the risks to our various                  portfolios arising from changes in interest and currency exchange                  rates in                  a variety of ways that often include offsetting positions in local                  currencies or selective use of derivatives. Additional information                  about                  how we mitigate the risks to our various portfolios from changes                  in                  interest and currency exchange rates can be found in the Financial                  Resources and Liquidity section and in note                  18. |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Event                  risk is that body of risk beyond liquidity, credit and market risk.                  Event                  risk includes the possibility of adverse occurrences both within                  and                  beyond our control. Examples of event risk include natural disasters,                  availability of necessary materials, guarantees of product performance                  and                  business interruption. This type of risk is often insurable, and                  success                  in managing this risk is ultimately determined by the balance between                  the                  level of risk retained or assumed and the cost of transferring                  the risk to                  others. The decision as to the |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | appropriate                  level of event risk to retain or cede is evaluated in the framework                  of                  business decisions. Additional information about certain event                  risk can be                  found in note 20.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Segment        Operations**

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**Summary        of Operating Segments**

| *(In                  millions)*                                                    | **2005** |    | **2004** |   | **2003** |   |
|-------------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                                |     |    |     |   |     |   |
| **Revenues**                                                                        |     |    |     |   |     |   |   |   |   |
| GE                  Commercial Finance                                              | $        | 20,646  |     | $      | 19,524   |   | $ | 16,927 |   |
| GE                  Consumer Finance                                                |     | 19,416  |     |   | 15,734   |   |   | 12,845 |   |
| GE                  Industrial                                                      |     | 32,631  |     |   | 30,722   |   |   | 24,988 |   |
| GE                  Infrastructure                                                  |     | 41,803  |     |   | 37,373   |   |   | 36,569 |   |
| Total                  segment revenues                                             |     | 114,496 |     |   | 103,353  |   |   | 91,329 |   |
| GECS                  corporate items and eliminations(a)                           |     | 7,564   |     |   | 6,760    |   |   | 6,058 |   |
| Total                  revenues                                                     |     | 122,060 |     |   | 110,113  |   |   | 97,387 |   |
| Less                  portion of GE revenues not included in GECS                   |     | (62,763 | )        |   | (57,219  | )      |   | (54,409 | ) |
| Total                  revenues in GECS                                             | $        | 59,297  |     | $      | 52,894   |   | $ | 42,978 |   |
|                                                                                |     |    |     |   |     |   |   |   |   |
| **Segment                  profit**                                                 |     |    |     |   |     |   |   |   |   |
| GE                  Commercial Finance                                              | $        | 4,290   |     | $      | 3,570    |   | $ | 2,907 |   |
| GE                  Consumer Finance                                                |     | 3,050   |     |   | 2,520    |   |   | 2,161 |   |
| GE                  Industrial                                                      |     | 2,559   |     |   | 1,833    |   |   | 1,385 |   |
| GE                  Infrastructure                                                  |     | 7,769   |     |   | 6,797    |   |   | 7,362 |   |
| Total                  segment profit                                               |     | 17,668  |     |   | 14,720   |   |   | 13,815 |   |
| GECS                  corporate items and eliminations                              |     | 129     |     |   | 706      |   |   | 117 |   |
| Less                  portion of GE segment profit not included in GECS             |     | (8,656  | )        |   | (7,573   | )      |   | (8,001 | ) |
| Earnings                  in GECS from continuing operations before                 |     |    |     |   |     |   |   |   |   |
| accounting                  change                                                  |     | 9,141   |     |   | 7,853    |   |   | 5,931 |   |
| Earnings                  (loss) in GECS from discontinued operations, net of taxes |     | (1,922  | )        |   | 534      |   |   | 2,057 |   |
| Earnings                  in GECS before accounting change                          |     | 7,219   |     |   | 8,387    |   |   | 7,988 |   |
| Cumulative                  effect of accounting change                             |     | -       |     |   | -        |   |   | (339 | ) |
| Total                  net earnings in GECS                                         | $        | 7,219   |     | $      | 8,387    |   | $ | 7,649 |   |
|                                                                                |     |    |     |   |     |   |   |   |   |

| (a) | Primarily                  revenues associated with our insurance activities remaining in                  continuing                  operations that were previously reported in the GE Commercial Finance                  segment. |   |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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**GE        Commercial Finance**

| *(In                  millions)*    | **2005** |   | **2004** |   | **2003** |   |
|-------------------------------------|----------|--------|----------|--------|----------|--------|
|                                |     |   |     |   |     |   |   |   |   |
| **Revenues**                        | $        | 20,646 |     | $      | 19,524   |   | $ | 16,927 |   |
|                                |     |   |     |   |     |   |   |   |   |
| **Segment                  profit** | $        | 4,290  |     | $      | 3,570    |   | $ | 2,907 |   |

| *December                  31 (In millions)* | **2005** |    | **2004** |   |    |   |
|----------------------------------------------|----------|---------|----------|--------|---------|--------|
|                                         |     |    |     |   |    |   |   |   |   |
| **Total                  assets**            | $        | 190,546 |     | $      | 184,388 |   |   |   |   |

| *(In                  millions)*             | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                         |     |   |     |   |     |   |   |   |   |
| **Revenues                  in GE**          |     |   |     |   |     |   |   |   |   |
| Capital                  Solutions           | $        | 11,476 |     | $      | 11,503   |   | $ | 9,893 |   |
| Real                  Estate                 |     | 3,492  |     |   | 3,084    |   |   | 2,956 |   |
|                                         |     |   |     |   |     |   |   |   |   |
| **Segment                  profit in GE**    |     |   |     |   |     |   |   |   |   |
| Capital                  Solutions           | $        | 1,515  |     | $      | 1,325    |   | $ | 1,184 |   |
| Real                  Estate                 |     | 1,282  |     |   | 1,124    |   |   | 947 |   |
|                                         |     |   |     |   |     |   |   |   |   |
| *December                  31 (In millions)* | **2005** |   | **2004** |   |     |   |   |
|                                         |     |   |     |   |     |   |   |   |   |
| **Assets                  in GE**            |     |   |     |   |     |   |   |   |   |
| Capital                  Solutions           | $        | 87,306 |     | $      | 80,514   |   |   |   |   |
| Real                  Estate                 |     | 35,323 |     |   | 39,515   |   |   |   |   |

----

**GE        Consumer Finance**

| *(In                  millions)*                                     | **2005** |    | **2004** |   | **2003** |   |
|----------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                 |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                         | $        | 19,416  |     | $      | 15,734   |   | $ | 12,845 |   |
|                                                                 |     |    |     |   |     |   |   |   |   |
| **Segment                  profit**                                  | $        | 3,050   |     | $      | 2,520    |   | $ | 2,161 |   |
|                                                                 |     |    |     |   |     |   |   |   |   |
| *December                  31* *(In                  millions)* | **2005** |    | **2004** |   |     |   |   |
|                                                                 |     |    |     |   |     |   |   |   |   |
| **Total                  assets**                                    | $        | 158,829 |     | $      | 151,255  |   |   |   |   |

**GE        Industrial**

| *(In                  millions)*                                    | **2005** |    | **2004** |   | **2003** |   |
|---------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                        | $        | 32,631  |     | $      | 30,722   |   | $ | 24,988 |   |
| Less                  portion of GE Industrial not included in GECS |     | (26,004 | )        |   | (24,151  | )      |   | (21,631 | ) |
| Total                  revenues in GECS                             | $        | 6,627   |     | $      | 6,571    |   | $ | 3,357 |   |
|                                                                |     |    |     |   |     |   |   |   |   |
| **Segment                  profit**                                 | $        | 2,559   |     | $      | 1,833    |   | $ | 1,385 |   |
| Less                  portion of GE Industrial not included in GECS |     | (2,362  | )        |   | (1,751   | )      |   | (1,461 | ) |
| Total                  segment profit in GECS                       | $        | 197     |     | $      | 82       |   | $ | (76 | ) |
|                                                                |     |    |     |   |     |   |   |   |   |
| **Revenues                  in GE**                                 |     |    |     |   |     |   |   |   |   |
| Consumer                  & Industrial                          | $        | 14,092  |     | $      | 13,767   |   | $ | 12,843 |   |
| Equipment                  Services                                 |     | 6,627   |     |   | 6,571    |   |   | 3,357 |   |
| Plastics                                                            |     | 6,606   |     |   | 6,066    |   |   | 5,501 |   |
|                                                                |     |    |     |   |     |   |   |   |   |
| **Segment                  profit in GE**                           |     |    |     |   |     |   |   |   |   |
| Consumer                  & Industrial                          | $        | 871     |     | $      | 716      |   | $ | 577 |   |
| Equipment                  Services                                 |     | 197     |     |   | 82       |   |   | (76 | ) |
| Plastics                                                            |     | 867     |     |   | 566      |   |   | 503 |   |

----

**GE        Infrastructure**

| *(In                  millions)*                                        | **2005** |    | **2004** |   | **2003** |   |
|-------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                    |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                            | $        | 41,803  |     | $      | 37,373   |   | $ | 36,569 |   |
| Less                  portion of GE Infrastructure not included in GECS |     | (36,759 | )        |   | (33,068  | )      |   | (32,778 | ) |
| Total                  revenues in GECS                                 | $        | 5,044   |     | $      | 4,305    |   | $ | 3,791 |   |
|                                                                    |     |    |     |   |     |   |   |   |   |
| **Segment                  profit**                                     | $        | 7,769   |     | $      | 6,797    |   | $ | 7,362 |   |
| Less                  portion of GE Infrastructure not included in GECS |     | (6,294  | )        |   | (5,822   | )      |   | (6,540 | ) |
| Total                  segment profit in GECS                           | $        | 1,475   |     | $      | 975      |   | $ | 822 |   |
|                                                                    |     |    |     |   |     |   |   |   |   |
| **Revenues                  in GE**                                     |     |    |     |   |     |   |   |   |   |
| Aviation                                                                | $        | 11,904  |     | $      | 11,094   |   | $ | 9,808 |   |
| Aviation                  Financial Services                            |     | 3,504   |     |   | 3,159    |   |   | 2,881 |   |
| Energy                                                                  |     | 16,525  |     |   | 14,586   |   |   | 16,611 |   |
| Energy                  Financial Services                              |     | 1,349   |     |   | 972      |   |   | 805 |   |
| Oil                  & Gas                                          |     | 3,598   |     |   | 3,135    |   |   | 2,842 |   |
| Transportation                                                          |     | 3,577   |     |   | 3,007    |   |   | 2,543 |   |
|                                                                    |     |    |     |   |     |   |   |   |   |
| **Segment                  profit in GE**                               |     |    |     |   |     |   |   |   |   |
| Aviation                                                                | $        | 2,573   |     | $      | 2,238    |   | $ | 1,809 |   |
| Aviation                  Financial Services                            |     | 764     |     |   | 520      |   |   | 506 |   |
| Energy                                                                  |     | 2,665   |     |   | 2,543    |   |   | 3,875 |   |
| Energy                  Financial Services                              |     | 646     |     |   | 376      |   |   | 280 |   |
| Oil                  & Gas                                          |     | 411     |     |   | 331      |   |   | 264 |   |
| Transportation                                                          |     | 524     |     |   | 516      |   |   | 450 |   |

----

**Discontinued        Insurance Operations **

| *(In                  millions)*                                                    | **2005** |   | **2004** |   | **2003** |   |
|-------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                |     |   |     |   |     |   |   |   |   |
| Earnings                  (loss) in GECS from discontinued operations, net of taxes | $        | (1,922 | )        | $      | 534      |   | $ | 2,057 |   |

----

**Global        Operations**

----

**Financial        Resources and Liquidity**

**Overview        of Financial Position**

| • | In                  the fourth quarter of 2005, GE announced the planned sale of most                  of GE                  Insurance Solutions and completed a Genworth secondary public offering,                  which reduced our ownership in Genworth from 27% to 18%. We have                  separately reported the assets and liabilities related to these                  discontinued operations for all periods                  presented. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Our                  discontinued operations assets and liabilities decreased by $83.4                  billion                  on September 27, 2005, when we reduced our ownership of Genworth                  to 27%, a                  level of investment that is reported as an associated company.                  As an                  associated company, our ongoing interest in Genworth operating                  results                  were presented on a one-line basis. This deconsolidation had a                  significant                  effect on our assets and liabilities of discontinued operations. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | During                  2005, we completed acquisitions of the Transportation Financial                  Services                  Group of CitiCapital, the Inventory Finance division of Bombardier                  Capital, Antares Capital Corp., a unit of Massachusetts Mutual                  Life                  Insurance Co., and ING’s portion of Heller                  AG. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                  U.S. dollar was stronger at December 31, 2005, than it was at December                  31,                  2004, reducing the translated levels of our non-U.S. dollar assets                  and                  liabilities. However, on average, the U.S. dollar in 2005 has been                  weaker                  than during the comparable 2004 period, resulting in increases                  in reported                  levels of non-U.S. dollar operations as noted in the preceding                  Operations                  section. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Minority                  interest in equity of consolidated affiliates decreased $2.7 billion                  during 2005 principally from the redemption of preferred stock                  at GECC                  ($2.5 billion). See note 14. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement        of Financial Position**

**Investment        securities**

----

**Financing        receivables **

----

| *December                  31*         | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------|----------|--------|----------|--------|----------|--------|
|                                   |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance |     | 1.31   | %        |   | 1.40     | %      |   | 1.38 | % |
| GE                  Consumer Finance   |     | 5.08   |     |   | 4.85     |   |   | 5.62 |   |

----

**Other        receivables**

**Buildings        and equipment**

**Borrowings**

**Exchange        rate and interest rate risks **

| • | It                  is our policy to minimize exposure to interest rate changes. We                  fund our                  financial investments using debt or a combination of debt and hedging                  instruments so that the interest rates and terms of our borrowings                  match                  the expected yields and terms on our assets. To test the effectiveness                  of                  our positions, we assumed that, on January 1, 2006, interest rates                  increased by 100 basis points across the yield curve (a “parallel shift”                  in that curve) and further assumed that the increase remained in                  place for                  2006. We estimated, based on that year-end 2005 portfolio and holding                  everything else constant, that our 2006 net earnings would decline                  by $0.2                  billion. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | It                  is our policy to minimize currency exposures and to conduct operations                  either within functional currencies or using the protection of                  hedge                  strategies. We analyzed year-end 2005 consolidated currency exposures,                  including derivatives designated and effective as hedges, to identify                  assets and liabilities denominated in other than their relevant                  functional                  currencies. For such assets and liabilities, we then evaluated                  the effects                  of a 10% shift in exchange rates between those currencies and the                  U.S.                  dollar. This analysis indicated that there would be an inconsequential                  effect on 2006 earnings of such a shift in exchange                  rates. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement        of Changes in Shareowner’s Equity **

**Overview        of Our Cash Flow from 2003 through 2005 **

----

**Contractual        Obligations**

|                                                                      | **Payments                  due by period** |
|---------------------------------------------------------------------------|---------------------------------------------|
| *(In                  billions)*                                          | **Total**                                   |   | **2006** |   | **2007-2008** |   | **2009-2010** |   | **2011                  and****thereafter** |
|                                                                      |                                        |   |   |   |   |   |   |   |   |
| Borrowings                  (note 11)                                     | $                                           | 362.1 |   | $ | 157.7 |   | $ | 83.9 |   |   | $ | 45.6 |   |   | $ | 74.9 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  on borrowings                                   |                                        | 64.0 |   |   | 12.0 |   |   | 17.0 |   |   |   | 10.0 |   |   |   | 25.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  lease obligations (note 4)                     |                                        | 4.0 |   |   | 0.8 |   |   | 1.3 |   |   |   | 0.9 |   |   |   | 1.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                  obligations(a)(b)                               |                                        | 22.0 |   |   | 15.0 |   |   | 6.0 |   |   |   | 1.0 |   |   |   | - |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance                  liabilities (note                  12)(c) |                                        | 28.0 |   |   | 5.0 |   |   | 6.0 |   |   |   | 4.0 |   |   |   | 13.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  liabilities(d)                                     |                                        | 13.0 |   |   | 10.0 |   |   | 1.0 |   |   |   | - |   |   |   | 2.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractual                  obligations of                               |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations(e)                               |                                        | 12.0 |   |   | 1.0 |   |   | 1.0 |   |   |   | 1.0 |   |   |   | 9.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                  all take-or-pay arrangements, capital expenditures, contractual                  commitments to purchase equipment that will be classified as equipment                  leased to others, software acquisition/license commitments and                  any                  contractually required cash payments for acquisitions.                                                                                                                                                                       |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Excluded                  funding commitments entered into in the ordinary course of business.                  Further information on these commitments and other guarantees is                  provided                  in note 20.                                                                                                                                                                                                                                                                                              |   |
| (c)  | Included                  guaranteed investment contracts (GICs), structured settlements                  and single                  premium immediate annuities based on scheduled payouts, as well                  as those                  contracts with reasonably determinable cash flows such as deferred                  annuities, universal life, term life, long-term care, whole life                  and other                  life insurance contracts.                                                          |   |
| (d)       | Included                  an estimate of future expected funding requirements related to                  our pension                  benefit plans. Because their future cash outflows are uncertain,                  the                  following non-current liabilities are excluded from the table above:                  deferred taxes, derivatives, deferred revenue and other sundry                  items. See                  notes 13 and 18 for further information on certain of these                  items.  |   |
| (e)       | Included                  payments for borrowings and interest on borrowings of $3.6 billion,                  operating lease obligations of $0.2 billion, other liabilities                  of $2.8                  billion, and insurance liabilities of $5.4 billion. Insurance liabilities                  primarily included workers’ compensation tabular indemnity loan and                  long-term liability claims.                                                                                                 |   |

**Off-Balance        Sheet Arrangements**

----

**Debt        Instruments, Guarantees and Covenants**

| • | Earnings                  and profitability, revenue growth, the breadth and diversity of                  sources of                  income and return on assets, |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Asset                  quality, including delinquency and write-off ratios and reserve                  coverage, |
|---------|-------------------------------------------------------------------------------------------------------------------|

| • | Funding                  and liquidity, including cash generated from operating activities,                  leverage ratios such as debt-to-capital, market access, back-up                  liquidity                  from banks and other sources, composition of total debt and interest                  coverage, and |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Capital                  adequacy, including required capital and tangible leverage                  ratios. |
|---------|--------------------------------------------------------------------------------------------------------------|

| • | Franchise                  strength, including competitive advantage and market conditions                  and                  position, |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Strength                  of management, including experience, corporate governance and strategic                  thinking, and |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

| • | Financial                  reporting quality, including clarity, completeness and transparency                  of all                  financial performance                  communications. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *December                  31*                          | **2005** |   | **2004** |
|---------------------------------------------------------|----------|--------|----------|
|                                                    |     |   |     |   |   |   |   |
| Senior                  notes and other long-term debt  |     | 57     | %        |   |   | 58 | % |
| Commercial                  paper                       |     | 26     |     |   |   | 25 |   |
| Current                  portion of long-term debt      |     | 12     |     |   |   | 11 |   |
| Other                  - bank and other retail deposits |     | 5      |     |   |   | 6 |   |
| Total                                                   |     | 100    | %        |   |   | 100 | % |

----

**Principal        debt conditions**

| • | Swap,                  forward and option contracts are required to be executed under                  master-netting agreements containing mutual down-grade provisions                  that                  provide the ability of the counterparty to require assignment or                  termination if the long-term credit rating of GECS were to fall                  below                  A-/A3. Had this provision been triggered at December 31, 2005,                  we could                  have been required to disburse $2.0                  billion. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                  GE Capital’s ratio of earnings to fixed charges, which was 1.66:1 at the                  end of 2005, were to deteriorate to 1.10:1 or, upon redemption                  of certain                  preferred stock, its ratio of debt to equity, which was 7.09:1                  at the end                  of 2005, were to exceed 8:1, GE has committed to contribute capital                  to GE                  Capital. GE also has guaranteed certain issuances of our subordinated                  debt                  with a face amount of $1.0 billion at December 31, 2005 and 2004. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                  the short-term credit rating of GE Capital or certain consolidated,                  liquidating securitization entities discussed further in note 19                  were to                  fall below A-1/P-1, GE Capital would be required to provide substitute                  liquidity for those entities or provide funds to retire the outstanding                  commercial paper. The maximum net amount that GE Capital would                  be required                  to provide in the event of such a downgrade is determined by contract,                  and                  amounted to $12.8 billion at January 1, 2006. Amounts related to                  non-consolidated SPEs were $1.7                  billion. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                  the long-term credit rating of GE Capital were to fall below AA/Aa2,                  GE                  Capital would be required to provide substitute credit support                  or                  liquidate the consolidated, liquidating securitization entities.                  The                  maximum amount that GE Capital would be required to substitute                  in the                  event of such a downgrade is determined by contract, and amounted                  to $0.6                  billion at December 31, 2005. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | For                  certain transactions, if the long-term credit rating of GE Capital                  were to                  fall below A/A2 or BBB+/Baa1 or its short-term credit rating were                  to fall                  below A-2/P-2, GE Capital could be required to provide substitute                  credit                  support or fund the undrawn commitment. GE Capital could be required                  to                  provide up to $2.0 billion in the event of such a downgrade based                  on terms                  in effect at December 31,                  2005.  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Critical        Accounting Estimates**

**Losses        on financing receivables **

**Asset        impairment **

**Investments.**

**Long-lived        assets.**

----

**Goodwill        and other identified intangible assets.**

**Derivatives        and Hedging. **

----

**Other        loss contingencies**

**Supplemental        Information**

**Financial        Measures that Supplement Generally Accepted Accounting        Principles**

| • | Average                  total shareowner’s equity, excluding effects of discontinued                  operations |
|---------|-------------------------------------------------------------------------------------------------------------------------|

| • | Delinquency                  rates on certain financing receivables of the GE Commercial Finance                  and GE                  Consumer Finance segments for 2005, 2004 and 2003 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Average        Total Shareowner’s Equity, Excluding Effects of Discontinued        Operations**

| *December                  31 (In millions)*                        | **2005** |         | **2004** |    | **2003**     |   | **2002** |         | **2001** |    |
|---------------------------------------------------------------------|----------|--------------|----------|---------|--------------|--------|----------|--------------|----------|---------|
|                                                                |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |
| Average                  total shareowner’s equity(b)         |  $  | 54,206  |     |  $ | 48,938  |   |  $  | 41,979  |     | $  | 31,256  |   |  $ | 24,896  |   |
| Less:                                                               |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |
| Cumulative                  effect of earnings from            |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |
| discontinued                  operations(c)                         |     | 3,094        |     |    | 2,980        |   |     | 925          |     |    | 1,007 |   |   | 226 |   |
| Average                  net investment in discontinued             |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |
| operations(d)                                                       |     | 4,620        |     |    | -            |   |     | -            |     |    | - |   |   | - |   |
| Average                  total shareowner’s equity, excluding |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |
| effects                  of discontinued operations(a)              | $   | 46,492  |     |  $ | 45,958  |   | $   | 41,054  |     | $  | 30,249  |   | $  | 24,670  |   |
|                                                                |     |         |     |    |         |   |     |         |     |    |   |   |   |   |   |

| (a)  | Used                  for computing return on average shareowner’s equity shown in the Selected                  Financial Data section.                                                                        |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | On                  an annual basis, calculated using a five-point average.                                                                                                                                           |   |
| (c)  | Represented                  the average cumulative net earnings effects of discontinued operations                  from 2001 to 2005 (on an annual basis, calculated using a five-point                  average).  |   |
| (d)       | Represented                  the average net investment in discontinued operations for the second                  half                  of 2005 only - see below.                                                         |   |

----

**Delinquency        Rates on Certain Financing Receivables**

**GE        Commercial Finance**

| *December                  31*  | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------|----------|--------|----------|--------|----------|--------|
|                                 |     |   |     |   |     |   |
| Managed                              | 1.31     | %      | 1.40     | %      | 1.38     | %      |
| Off-book                             | 0.76     |   | 0.90     |   | 1.27     |   |
| On-book                              | 1.53     |   | 1.58     |   | 1.41     |   |

**GE        Consumer Finance**

| *December                  31*  | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------|----------|--------|----------|--------|----------|--------|
|                                 |     |   |     |   |     |   |
| Managed                              | 5.08     | %      | 4.85     | %      | 5.62     | %      |
| Off-book                             | 5.28     |   | 5.09     |   | 5.04     |   |
| On-book                              | 5.07     |   | 4.84     |   | 5.67     |   |

**Item        7A. Quantitative and Qualitative Disclosures About Market        Risk.**

----

**Item        8. Financial Statements and Supplementary Data.**

**Report        of Independent Registered Public Accounting Firm**

*To        the Board of Directors of*

*General        Electric Capital Services, Inc.:*

*Internal        Control—Integrated Framework*

----

*Internal        Control—Integrated Framework*
*Internal        Control—Integrated Framework*

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Statement        of Earnings**

| *For                  the years ended December 31 (In millions)*                                              | **2005** |   | **2004** |   | **2003** |   |
|---------------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Revenues**                                                                                                  |     |   |     |   |     |   |   |   |   |
| Revenues                  from services (note 3)                                                              | $        | 56,769 |     | $      | 50,054   |   | $ | 40,750 |   |
| Sales                  of goods                                                                               |     | 2,528  |     |   | 2,840    |   |   | 2,228 |   |
| Total                  revenues                                                                               |     | 59,297 |     |   | 52,894   |   |   | 42,978 |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Costs                  and expenses**                                                                       |     |   |     |   |     |   |   |   |   |
| Interest                                                                                                      |     | 14,308 |     |   | 11,121   |   |   | 9,897 |   |
| Operating                  and administrative (note 4)                                                        |     | 16,621 |     |   | 15,972   |   |   | 12,508 |   |
| Cost                  of goods sold                                                                           |     | 2,369  |     |   | 2,741    |   |   | 2,119 |   |
| Investment                  contracts, insurance losses and insurance annuity                  benefits  |     | 5,674  |     |   | 3,800    |   |   | 3,069 |   |
| Provision                  for losses on financing receivables (note 7)                                       |     | 3,841  |     |   | 3,888    |   |   | 3,752 |   |
| Depreciation                  and amortization (note 8)                                                       |     | 6,037  |     |   | 5,816    |   |   | 4,587 |   |
| Minority                  interest in net earnings of consolidated affiliates                                 |     | 202    |     |   | 190      |   |   | 127 |   |
| Total                  costs and expenses                                                                     |     | 49,052 |     |   | 43,528   |   |   | 36,059 |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Earnings                  from continuing operations before income taxes**                                  |     |   |     |   |     |   |   |   |   |
| **and                  accounting change**                                                                    |     | 10,245 |     |   | 9,366    |   |   | 6,919 |   |
| Provision                  for income taxes (note 13)                                                         |     | (1,104 | )        |   | (1,513   | )      |   | (988 | ) |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Earnings                  from continuing operations before accounting                  change**            |     | 9,141  |     |   | 7,853    |   |   | 5,931 |   |
| Earnings                  (loss) from discontinued operations, net of taxes (note 2)                          |     | (1,922 | )        |   | 534      |   |   | 2,057 |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Earnings                  before accounting change**                                                        |     | 7,219  |     |   | 8,387    |   |   | 7,988 |   |
| Cumulative                  effect of accounting change (note 1)                                              |     | -      |     |   | -        |   |   | (339 | ) |
| **Net                  earnings**                                                                             | $        | 7,219  |     | $      | 8,387    |   | $ | 7,649 |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| **Statement                  of Changes in Shareowner’s Equity**                                        |     |   |     |   |     |   |   |   |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |
| *(In                  millions)*                                                                              | **2005** |   | **2004** |   | **2003** |   |
| **Changes                  in shareowner’s equity**                  (note 15)                          |     |   |     |   |     |   |   |   |   |
| Balance                  at January 1                                                                         | $        | 54,292 |     | $      | 45,759   |   | $ | 37,302 |   |
| Dividends                  and other transactions with shareowner                                             |     | (7,800 | )        |   | (3,003   | )      |   | (3,438 | ) |
| Changes                  other than transactions with shareowner                                              |     |   |     |   |     |   |   |   |   |
| Increase                  attributable to net earnings                                                        |     | 7,219  |     |   | 8,387    |   |   | 7,649 |   |
| Investment                  securities - net                                                                  |     | (591   | )        |   | 481      |   |   | 651 |   |
| Currency                  translation adjustments - net                                                       |     | (2,817 | )        |   | 2,538    |   |   | 3,359 |   |
| Cash                  flow hedges - net                                                                       |     | 541    |     |   | 239      |   |   | 255 |   |
| Minimum                  pension liabilities - net                                                            |     | (29    | )        |   | (109     | )      |   | (19 | ) |
| Total                  changes other than transactions with shareowner                                        |     | 4,323  |     |   | 11,536   |   |   | 11,895 |   |
| Balance                  at December 31                                                                       | $        | 50,815 |     | $      | 54,292   |   | $ | 45,759 |   |
|                                                                                                          |     |   |     |   |     |   |   |   |   |

| The                  notes to consolidated financial statements are an integral part                  of these                  statements. |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Statement        of Financial Position**

| *At                  December 31 (In millions, except share amounts)*                                                                                                                                                       | **2005** |    | **2004** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|---------|----------|--------|
|                                                                                                                                                                                                                        |     |    |     |   |   |   |
| **Assets**                                                                                                                                                                                                                  |     |    |     |   |   |   |
| Cash                  and equivalents                                                                                                                                                                                       | $        | 7,316   |     | $      | 9,191 |   |
| Investment                  securities (note 5)                                                                                                                                                                             |     | 52,706  |     |   | 56,539 |   |
| Inventories                                                                                                                                                                                                                 |     | 159     |     |   | 189 |   |
| Financing                  receivables - net (notes 6 and 7)                                                                                                                                                                |     | 287,639 |     |   | 282,699 |   |
| Other                  receivables                                                                                                                                                                                          |     | 19,060  |     |   | 14,965 |   |
| Buildings                  and equipment - net (note 8)                                                                                                                                                                     |     | 51,024  |     |   | 46,347 |   |
| Intangible                  assets - net (note 9)                                                                                                                                                                           |     | 23,887  |     |   | 23,736 |   |
| Other                  assets (note 10)                                                                                                                                                                                     |     | 52,058  |     |   | 52,572 |   |
| Assets                  of discontinued operations (note 2)                                                                                                                                                                 |     | 46,756  |     |   | 132,266 |   |
| Total                  assets                                                                                                                                                                                               | $        | 540,605 |     | $      | 618,504 |   |
|                                                                                                                                                                                                                        |     |    |     |   |   |   |
| **Liabilities                  and equity**                                                                                                                                                                                 |     |    |     |   |   |   |
| Borrowings                  (note 11)                                                                                                                                                                                       | $        | 362,069 |     | $      | 355,501 |   |
| Accounts                  payable                                                                                                                                                                                           |     | 13,133  |     |   | 11,374 |   |
| Investment                  contracts, insurance liabilities and insurance annuity benefits                  (note                  12)                                                                                     |     | 45,722  |     |   | 48,393 |   |
| Other                  liabilities                                                                                                                                                                                          |     | 17,453  |     |   | 19,300 |   |
| Deferred                  income taxes (note 13)                                                                                                                                                                            |     | 12,597  |     |   | 11,669 |   |
| Liabilities                  of and minority interest in discontinued operations (note                  2)                                                                                                                  |     | 36,568  |     |   | 113,073 |   |
| Total                  liabilities                                                                                                                                                                                          |     | 487,542 |     |   | 559,310 |   |
|                                                                                                                                                                                                                        |     |    |     |   |   |   |
| Minority                  interest in equity of consolidated affiliates (note 14)                                                                                                                                           |     | 2,248   |     |   | 4,902 |   |
|                                                                                                                                                                                                                        |     |    |     |   |   |   |
| Cumulative                  preferred stock, $10,000 par value (80,000 shares authorized;51,000                  shares issued and held primarily by consolidatedaffiliates                  at December 31, 2005 and 2004) |     | 10      |     |   | 10 |   |
| Common                  stock, $1,000 par value (1,260 shares authorized at December                  31, 2005 and 2004, and 1,064 shares issued and outstanding                  at December 31, 2005 and 2004)            |     | 1       |     |   | 1 |   |
| Accumulated                  gains (losses) - net                                                                                                                                                                           |     |    |     |   |   |   |
| Investment                  securities                                                                                                                                                                                      |     | 1,754   |     |   | 2,345 |   |
| Currency                  translation adjustments                                                                                                                                                                           |     | 2,287   |     |   | 5,104 |   |
| Cash                  flow hedges                                                                                                                                                                                           |     | (813    | )        |   | (1,354 | ) |
| Minimum                  pension liabilities                                                                                                                                                                                |     | (179    | )        |   | (150 | ) |
| Additional                  paid-in capital                                                                                                                                                                                 |     | 12,376  |     |   | 12,360 |   |
| Retained                  earnings                                                                                                                                                                                          |     | 35,379  |     |   | 35,976 |   |
| Total                  shareowner’s equity (note 15)                                                                                                                                                                  |     | 50,815  |     |   | 54,292 |   |
| Total                  liabilities and equity                                                                                                                                                                               | $        | 540,605 |     | $      | 618,504 |   |
|                                                                                                                                                                                                                        |     |    |     |   |   |   |

| The                  sum of accumulated gains (losses) on investment securities, currency                  translation adjustments, cash flow hedges and minimum pension liabilities                  constitutes “Accumulated nonowner changes other than earnings,” as shown                  in note 15, and was $3,049 million and $5,945 million at December                  31, 2005                  and 2004, respectively.  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                  notes to consolidated financial statements are an integral part                  of this                  statement.                                                                                                                                                                                                                                                                                                              |   |

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Statement        of Cash Flows**

| *For                  the years ended December 31 (In millions)*                                        | **2005** |    | **2004** |   | **2003** |   |
|---------------------------------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                                                    |     |    |     |   |     |   |   |   |   |
| **Cash                  flows - operating activities**                                                  |     |    |     |   |     |   |   |   |   |
| Net                  earnings                                                                           | $        | 7,219   |     | $      | 8,387    |   | $ | 7,649 |   |
| Loss                  (earnings) from discontinued operations                                           |     | 1,922   |     |   | (534     | )      |   | (2,057 | ) |
| Adjustments                  to reconcile net earnings to cash provided                                 |     |    |     |   |     |   |   |   |   |
| from                  operating activities                                                              |     |    |     |   |     |   |   |   |   |
| Cumulative                  effect of accounting change                                                 |     | -       |     |   | -        |   |   | 339 |   |
| Depreciation                  and amortization of buildings and equipment                               |     | 6,037   |     |   | 5,816    |   |   | 4,587 |   |
| Deferred                  income taxes                                                                  |     | (834    | )        |   | 3        |   |   | 817 |   |
| Decrease                  (increase) in inventories                                                     |     | 30      |     |   | (9       | )      |   | (35 | ) |
| Increase                  in accounts payable                                                           |     | 596     |     |   | 2,927    |   |   | 96 |   |
| Increase                  (decrease) in insurance liabilities                                           |     | 1,034   |     |   | 1,959    |   |   | (729 | ) |
| Provision                  for losses on financing receivables                                          |     | 3,841   |     |   | 3,888    |   |   | 3,752 |   |
| All                  other operating activities (note 16)                                               |     | 1,065   |     |   | (2,312   | )      |   | (360 | ) |
| Cash                  from operating activities - continuing operations                                 |     | 20,910  |     |   | 20,125   |   |   | 14,059 |   |
| Cash                  from operating activities - discontinued operations                               |     | 3,854   |     |   | 6,002    |   |   | 7,389 |   |
| **Cash                  from operating activities**                                                     |     | 24,764  |     |   | 26,127   |   |   | 21,448 |   |
|                                                                                                    |     |    |     |   |     |   |   |   |   |
| **Cash                  flows - investing activities**                                                  |     |    |     |   |     |   |   |   |   |
| Additions                  to buildings and equipment                                                   |     | (11,629 | )        |   | (10,665  | )      |   | (7,593 | ) |
| Dispositions                  of buildings and equipment                                                |     | 6,027   |     |   | 5,838    |   |   | 4,918 |   |
| Net                  increase in financing receivables (note 16)                                        |     | (16,954 | )        |   | (15,280  | )      |   | (4,687 | ) |
| Payments                  for principal businesses purchased                                            |     | (7,167  | )        |   | (13,888  | )      |   | (10,482 | ) |
| All                  other investing activities (note 16)                                               |     | 4,644   |     |   | 8,386    |   |   | 6,103 |   |
| Cash                  used for investing activities - continuing operations                             |     | (25,079 | )        |   | (25,609  | )      |   | (11,741 | ) |
| Cash                  used for investing activities - discontinued operations                           |     | (4,718  | )        |   | (7,962   | )      |   | (5,945 | ) |
| **Cash                  used for investing activities**                                                 |     | (29,797 | )        |   | (33,571  | )      |   | (17,686 | ) |
|                                                                                                    |     |    |     |   |     |   |   |   |   |
| **Cash                  flows - financing activities**                                                  |     |    |     |   |     |   |   |   |   |
| Net                  increase (decrease) in borrowings (maturities of 90 days or                  less) |     | (4,044  | )        |   | 33       |   |   | (13,487 | ) |
| Newly                  issued debt (maturities longer than 90 days) (note 16)                           |     | 65,054  |     |   | 58,143   |   |   | 60,113 |   |
| Repayments                  and other reductions (maturities longer                                     |     |    |     |   |     |   |   |   |   |
| than                  90 days) (note 16)                                                                |     | (49,709 | )        |   | (45,538  | )      |   | (43,202 | ) |
| Dividends                  paid to shareowner                                                           |     | (7,816  | )        |   | (3,105   | )      |   | (3,435 | ) |
| All                  other financing activities (note 16)                                               |     | (1,191  | )        |   | (3,397   | )      |   | 286 |   |
| Cash                  from financing activities - continuing operations                                 |     | 2,294   |     |   | 6,136    |   |   | 275 |   |
| Cash                  from (used for) financing activities - discontinued                  operations   |     | 478     |     |   | 2,402    |   |   | (682 | ) |
| **Cash                  from (used for) financing activities**                                          |     | 2,772   |     |   | 8,538    |   |   | (407 | ) |
|                                                                                                    |     |    |     |   |     |   |   |   |   |
| **Increase                  (decrease) in cash and equivalents during year**                            |     | (2,261  | )        |   | 1,094    |   |   | 3,355 |   |
| Cash                  and equivalents at beginning of year                                              |     | 12,367  |     |   | 11,273   |   |   | 7,918 |   |
| Cash                  and equivalents at end of year                                                    |     | 10,106  |     |   | 12,367   |   |   | 11,273 |   |
| Less                  cash and equivalents of discontinued operations at end of                  year   |     | 2,790   |     |   | 3,176    |   |   | 2,734 |   |
| **Cash                  and equivalents of continuing operations at end of                  year**      | $        | 7,316   |     | $      | 9,191    |   | $ | 8,539 |   |
|                                                                                                    |     |    |     |   |     |   |   |   |   |
| **Supplemental                  disclosure of cash flows information**                                  |     |    |     |   |     |   |   |   |   |
| Cash                  paid during the year for interest                                                 | $        | (15,518 | )        | $      | (11,304  | )      | $ | (10,662 | ) |
| Cash                  recovered (paid) during the year for income taxes                                 |     | (1,425  | )        |   | 922      |   |   | 1,146 |   |
|                                                                                                    |     |    |     |   |     |   |   |   |   |

| The                  notes to consolidated financial statements are an integral part                  of this                  statement. |
|-------------------------------------------------------------------------------------------------------------------------------------------|

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Notes        to Consolidated Financial Statements**

**Note        1. Summary of Significant Accounting Policies**

**Accounting        principles**

**Consolidation**

**Financial        statement presentation **

**Operating        Segments **

----

**Sales        of goods **

**Revenues        from services (earned income) **

----

**Depreciation        and amortization **

**Losses        on financing receivables **

----

**Sales        of stock by affiliates**

**Cash        and equivalents **

**Investment        securities **

----

**Inventories        **

**Intangible        assets **

**Investment        contracts, insurance liabilities and insurance annuity        benefits**

----

**Accounting        change **

*Consolidation        of Variable Interest Entities, *

**Note        2. Discontinued Operations**

**Planned        sale of GE Insurance Solutions**

**Sale        of Genworth **

**Discontinued        operations**

----

|                                          | **Total** |   | **Genworth** |   | **GE                  Insurance Solutions** |   |
|-----------------------------------------------|-----------|--------|--------------|--------|---------------------------------------------|--------|
| *(In                  millions)*              | **2005**  |   | **2004**     |   | **2003**                                    |   | **2005** |   | **2004** |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                  Operations**  |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Before                  Disposal**          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                  from services       | $         | 15,359 |         | $      | 18,773                                      |   | $ | 21,755 |   | $ | 7,908 |   | $ | 10,148 |   | $ | 11,790 |   | $ | 7,451 |   | $ | 8,625 |   | $ | 9,965 |   |
|                                          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) from         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations      |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                  minority interest     |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                  income taxes             | $         | (1,748 | )            | $      | 1,479                                       |   | $ | 2,682 |   | $ | 1,388 |   | $  | 1,546 |   | $ | 2,039 |   | $ | (3,136 | ) | $ | (67 | )  | $  | 643 |   |
| Minority                  interest            |      | 394    |         |   | 200                                         |   |   | 2 |   |   | 394 |   |   | 200 |   |   | 2 |   |   | - |   |   | - |   |   | - |   |
| Earnings                  (loss) from         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations      |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                  income taxes          |      | (2,142 | )       |   | 1,279                                       |   |   | 2,680 |   |   | 994 |   |   | 1,346 |   |   | 2,037 |   |   | (3,136 | )  |   | (67 | )  |   | 643 |   |
| Income                  tax benefit (expense) |      | 602    |         |   | (409                                        | )      |   | (623 | ) |   | (618 | ) |   | (566 | ) |   | (640 | ) |   | 1,220 |   |   | 157 |   |   | 17 |   |
| Earnings                  (loss) from         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations      |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                  disposal,             |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of taxes                 | $         | (1,540 | )            | $      | 870                                         |   | $ | 2,057 |   | $ | 376 |   | $ | 780 |   | $ | 1,397 |   | $ | (1,916 | ) | $ | 90 |   | $ | 660 |   |
|                                          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Disposal**                                  |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                  (loss) on disposal      |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                  income taxes          | $         | 629    |         | $      | (570                                        | )      | $ | - |   | $ | 932 |   | $ | (570 | ) | $ | - |   | $ | (303 | ) | $ | - |   | $ | - |   |
| Income                  tax benefit (expense) |      | (1,011 | )            |   | 234                                         |   |   | - |   |   | (380 | ) |   | 234 |   |   | - |   |   | (631 | ) |   | - |   |   | - |   |
| Gain                  (loss) on disposal,     |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of taxes                 | $         | (382   | )            | $      | (336                                        | )      | $ | - |   | $ | 552 |   | $ | (336 | ) | $ | - |   | $ | (934 | ) | $ | - |   | $ | - |   |
|                                          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) from         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations,     |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of taxes                 | $         | (1,922 | )            | $      | 534                                         |   | $ | 2,057 |   | $ | 928 |   | $ | 444 |   | $ | 1,397 |   | $ | (2,850 | ) | $ | 90 |   | $ | 660 |   |

|                                                         | **Total** |   | **Genworth** |   | **GE                  Insurance Solutions** |   |
|--------------------------------------------------------------|-----------|--------|--------------|--------|---------------------------------------------|--------|
| *December                  31 (In millions)*                 | **2005**  |   | **2004**     |   | **2005**                                    |   | **2004** |   | **2005** |   | **2004** |   |
|                                                         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  and equivalents                        | $         | 2,790  |         | $      | 3,176                                       |   | $ | - |   | $ | 1,407 |   | $ | 2,790 |   | $ | 1,769 |   |
| Investment                  securities                       |      | 26,637 |         |   | 78,613                                      |   |   | 2,981 |   |   | 54,064 |   |   | 23,656 |   |   | 24,549 |   |
| Other                  receivables                           |      | 13,480 |         |   | 25,140                                      |   |   | - |   |   | 11,684 |   |   | 13,480 |   |   | 13,456 |   |
| Other                                                        |      | 3,849  |         |   | 25,337                                      |   |   | - |   |   | 20,642 |   |   | 3,849 |   |   | 4,695 |   |
| Assets                  of discontinued operations           | $         | 46,756 |         | $      | 132,266                                     |   | $ | 2,981 |   | $ | 87,797 |   | $ | 43,775 |   | $ | 44,469 |   |
|                                                         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  contracts, insurance liabilities |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                  insurance annuity benefits              | $         | 31,043 |         | $      | 92,509                                      |   | $ | - |   | $ | 61,857 |   | $ | 31,043 |   | $ | 30,652 |   |
| Other                                                        |      | 5,525  |         |   | 16,784                                      |   |   | - |   |   | 11,437 |   |   | 5,525 |   |   | 5,347 |   |
| Minority                  interest                           |      | -      |         |   | 3,780                                       |   |   | - |   |   | 3,780 |   |   | - |   |   | - |   |
| Liabilities                  of and minority interest        |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                  discontinued operations                  | $         | 36,568 |         | $      | 113,073                                     |   | $ | - |   | $ | 77,074 |   | $ | 36,568 |   | $ | 35,999 |   |
|                                                         |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated                  gains (losses) - net            |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  securities                       | $         | 532    |         | $      | 869                                         |   | $ | 465 |   | $ | 707 |   | $ | 67 |   | $ | 162 |   |
| Currency                  translation adjustments            |      | (48    | )            |   | 591                                         |   |   | - |   |   | 332 |   |   | (48 | ) |   | 259 |   |
| Cash                  flow hedges                            |      | -      |         |   | 189                                         |   |   | - |   |   | 191 |   |   | - |   |   | (2 | ) |
| Total                  accumulated nonowner changes          |      |   |         |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other                  than earnings                         | $         | 484    |         | $      | 1,649                                       |   | $ | 465 |   | $ | 1,230 |   | $ | 19 |   | $ | 419 |   |

----

**Note        3. Revenues from Services **

| *(In                  millions)*                         | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                     |     |   |     |   |     |   |   |   |   |
| Interest                  on loans                       | $        | 20,096 |     | $      | 17,314   |   | $ | 15,448 |   |
| Operating                  lease rentals                 |     | 11,582 |     |   | 10,744   |   |   | 7,199 |   |
| Investment                  income                       |     | 4,278  |     |   | 2,801    |   |   | 1,628 |   |
| Fees                                                     |     | 4,180  |     |   | 3,254    |   |   | 2,494 |   |
| Financing                  leases                        |     | 3,990  |     |   | 4,160    |   |   | 4,206 |   |
| Premiums                  earned by insurance activities |     | 2,951  |     |   | 2,428    |   |   | 3,432 |   |
| Other                  income                            |     | 9,692  |     |   | 9,353    |   |   | 6,343 |   |
| Total(a)                                                 | $        | 56,769 |     | $      | 50,054   |   | $ | 40,750 |   |
|                                                     |     |   |     |   |     |   |   |   |   |

| (a) | Included                  $1,295 million, $962 million and $867 million from consolidated,                  liquidating securitization entities in 2005, 2004 and 2003, respectively.                  Of these amounts, $634 million in 2005 related to Australian Financial                  Investments Group (AFIG), a December 2004 acquisition. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note        4. Operating and Administrative Expenses**

| *(In                  millions)*        | **2005** |   | **2004** |   | **2003** |   |
|-----------------------------------------|----------|--------|----------|--------|----------|--------|
|                                    |     |   |     |   |     |   |
| Equipment                  for sublease | $        | 385    |     | $      | 383      |   | $ | 338 |   |
| Other                  rental expense   |     | 609    |     |   | 548      |   |   | 489 |   |

| *(In                  millions)* |   |     |   |     |   |     |   |     |   |
|----------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                             |   |     |   |     |   |     |   |     |   |
| **2006**                         |   | **2007** |   | **2008** |   | **2009** |   | **2010** |   |
| $                                | 778    |     | $      | 679      |   | $        | 582    |     | $      | 521 |   | $ | 388 |   |

----

**Note        5. Investment Securities**

|                                           | **Estimated                  fair value** |   |
|------------------------------------------------|-------------------------------------------|--------|
| *December                  31 (In millions)*   | **2005**                                  |   | **2004** |   |
|                                           |                                      |   |   |   |   |   |
| Available-for-sale                  securities | $                                         | 44,564 |   | $ | 48,193 |   |
| Trading                  securities            |                                      | 8,142  |   |   | 8,346 |   |
| Total                                          | $                                         | 52,706 |   | $ | 56,539 |   |

**Available-for-sale        securities**

| *December                  31 (In millions)*         | **Amortized****cost** |   | **Gross****unrealized****gains** |   | **Gross****unrealized****losses** |   | **Estimated****fair                  value** |   |
|------------------------------------------------------|-----------------------|--------|----------------------------------|--------|-----------------------------------|--------|----------------------------------------------|--------|
|                                                 |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| **2005**                                             |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| Debt:                                                |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| U.S.                  corporate                      | $                     | 20,578 |                             | $      | 1,317                             |   | $                                            | (339   | ) | $ | 21,556 |   |
| State                  and municipal                 |                  | 810    |                             |   | 47                                |   |                                         | (2     | ) |   | 855 |   |
| Mortgage-backed(a)                                   |                  | 5,677  |                             |   | 44                                |   |                                         | (56    | ) |   | 5,665 |   |
| Asset-backed                                         |                  | 8,434  |                             |   | 205                               |   |                                         | (19    | ) |   | 8,620 |   |
| Corporate                  - non-U.S.                |                  | 4,796  |                             |   | 404                               |   |                                         | (11    | ) |   | 5,189 |   |
| Government                  - non-U.S.               |                  | 694    |                             |   | 92                                |   |                                         | -      |   |   | 786 |   |
| U.S.                  government and federal agency  |                  | 803    |                             |   | 61                                |   |                                         | (5     | ) |   | 859 |   |
| Equity                                               |                  | 838    |                             |   | 229                               |   |                                         | (33    | ) |   | 1,034 |   |
| Total                  available-for-sale securities | $                     | 42,630 |                             | $      | 2,399                             |   | $                                            | (465   | ) | $ | 44,564 | (b) |
|                                                 |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| **2004**                                             |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| Debt:                                                |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |
| U.S.                  corporate                      | $                     | 22,703 |                             | $      | 1,596                             |   | $                                            | (362   | ) | $ | 23,937 |   |
| State                  and municipal                 |                  | 802    |                             |   | 63                                |   |                                         | -      |   |   | 865 |   |
| Mortgage-backed(a)                                   |                  | 5,983  |                             |   | 78                                |   |                                         | (25    | ) |   | 6,036 |   |
| Asset-backed                                         |                  | 7,610  |                             |   | 251                               |   |                                         | (46    | ) |   | 7,815 |   |
| Corporate                  - non-U.S.                |                  | 5,309  |                             |   | 405                               |   |                                         | (7     | ) |   | 5,707 |   |
| Government                  - non-U.S.               |                  | 1,423  |                             |   | 100                               |   |                                         | -      |   |   | 1,523 |   |
| U.S.                  government and federal agency  |                  | 759    |                             |   | 59                                |   |                                         | (1     | ) |   | 817 |   |
| Equity                                               |                  | 1,194  |                             |   | 314                               |   |                                         | (15    | ) |   | 1,493 |   |
| Total                  available-for-sale securities | $                     | 45,783 |                             | $      | 2,866                             |   | $                                            | (456   | ) | $ | 48,193 | (b) |
|                                                 |                  |   |                             |   |                              |   |                                         |   |   |   |   |   |

| (a)  | Substantially                  collateralized by U.S. residential mortgages.                                                                                                                                       |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                  $16 million in 2005 and $684 million in 2004 of debt securities                  related to                  consolidated, liquidating securitization entities. See note                  19. |   |

----

|                                                | **Less                  than 12 months**     |   | **12                  months or more** |   |
|-----------------------------------------------------|----------------------------------------------|--------|----------------------------------------|--------|
| *December                  31 (In millions)*        | **Estimated****fair                  value** |   | **Gross****unrealized****losses**      |   | **Estimated****fair                  value** |   | **Gross****unrealized****losses** |   |
|                                                |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| **2005**                                            |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| Debt:                                               |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| U.S.                  corporate                     | $                                            | 3,640  |                                   | $      | (131 | ) | $ | 2,584 |   | $ | (208 | ) |
| State                  and municipal                |                                         | 77     |                                   |   | (2 | ) |   | - |   |   | - |   |
| Mortgage-backed                                     |                                         | 1,859  |                                   |   | (22 | ) |   | 1,190 |   |   | (34 | ) |
| Asset-backed                                        |                                         | 1,495  |                                   |   | (10 | ) |   | 383 |   |   | (9 | ) |
| Corporate                  - non-U.S.               |                                         | 286    |                                   |   | (9 | ) |   | 73 |   |   | (2 | ) |
| U.S.                  government and federal agency |                                         | 297    |                                   |   | (5 | ) |   | - |   |   | - |   |
| Equity                                              |                                         | 76     |                                   |   | (24 | ) |   | 31 |   |   | (9 | ) |
| Total                                               | $                                            | 7,730  |                                   | $      | (203 | ) | $ | 4,261 |   | $ | (262 | ) |
|                                                |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| **2004**                                            |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| Debt:                                               |                                         |   |                                   |   |   |   |   |   |   |   |   |   |
| U.S.                  corporate                     | $                                            | 3,198  |                                   | $      | (88 | ) | $ | 1,346 |   | $ | (274 | ) |
| Mortgage-backed                                     |                                         | 2,465  |                                   |   | (19 | ) |   | 197 |   |   | (6 | ) |
| Asset-backed                                        |                                         | 1,586  |                                   |   | (15 | ) |   | 429 |   |   | (31 | ) |
| Corporate                  - non-U.S.               |                                         | 2,512  |                                   |   | (2 | ) |   | 168 |   |   | (5 | ) |
| U.S.                  government and federal agency |                                         | 116    |                                   |   | (1 | ) |   | - |   |   | - |   |
| Equity                                              |                                         | 135    |                                   |   | (13 | ) |   | 32 |   |   | (2 | ) |
| Total                                               | $                                            | 10,012 |                                   | $      | (138 | ) | $ | 2,172 |   | $ | (318 | ) |

----

**Contractual        Maturities of our Investment in Available-for-Sale Debt Securities (Excluding        Mortgage-Backed and Asset-Backed Securities)**

| *(In                  millions)* | **Amortized****cost** |   | **Estimated****fair                  value** |   |
|----------------------------------|-----------------------|--------|----------------------------------------------|--------|
|                             |                  |   |                                         |   |   |   |
| Due                  in          |                  |   |                                         |   |   |   |
| 2006                             | $                     | 2,447  |                                         | $      | 2,444 |   |
| 2007-2010                        |                  | 4,603  |                                         |   | 4,601 |   |
| 2011-2015                        |                  | 4,786  |                                         |   | 4,874 |   |
| 2016                  and later  |                  | 15,845 |                                         |   | 17,326 |   |

| *(In                  millions)*               | **2005** |   | **2004** |   | **2003** |   |
|------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                           |     |   |     |   |     |   |   |   |   |
| Gains                                          | $        | 514    |     | $      | 413      |   | $ | 522 |   |
| Losses,                  including impairments |     | (133   | )        |   | (209     | )      |   | (317 | ) |
| Net                                            | $        | 381    |     | $      | 204      |   | $ | 205 |   |

**Trading        securities**

**Note        6. Financing Receivables (investments in loans and financing        leases)**

| *December                  31 (In millions)*                            | **2005** |    | **2004** |   |
|-------------------------------------------------------------------------|----------|---------|----------|--------|
|                                                                    |     |    |     |   |   |   |
| Loans,                  net of deferred income                          | $        | 227,923 |     | $      | 220,593 |   |
| Investment                  in financing leases, net of deferred income |     | 64,309  |     |   | 67,754 |   |
|                                                                    |     | 292,232 |     |   | 288,347 |   |
| Less                  allowance for losses (note 7)                     |     | (4,593  | )        |   | (5,648 | ) |
| Financing                  receivables - net                            | $        | 287,639 |     | $      | 282,699 |   |

----

| *December                  31 (In millions)*                            | **2005** |   | **2004** |   |
|-------------------------------------------------------------------------|----------|--------|----------|--------|
|                                                                    |     |   |     |   |   |   |
| Loans,                  net of deferred income                          | $        | 15,868 |     | $      | 20,728 |   |
| Investment                  in financing leases, net of deferred income |     | 769    |     |   | 2,125 |   |
|                                                                    |     | 16,637 |     |   | 22,853 |   |
| Less                  allowance for losses                              |     | (22    | )        |   | (5 | ) |
| Financing                  receivables - net                            | $        | 16,615 |     | $      | 22,848 |   |

| *December                  31 (In millions)*               | **2005** |    | **2004** |   |
|------------------------------------------------------------|----------|---------|----------|--------|
|                                                       |     |    |     |   |   |   |
| **GE                  Commercial Finance**                 |     |    |     |   |   |   |
| Equipment                  and leasing                     | $        | 70,851  |     | $      | 64,540 |   |
| Commercial                  and industrial                 |     | 41,402  |     |   | 39,481 |   |
| Real                  estate                               |     | 19,555  |     |   | 20,470 |   |
|                                                       |     | 131,808 |     |   | 124,491 |   |
|                                                       |     |    |     |   |   |   |
| **GE                  Consumer Finance**                   |     |    |     |   |   |   |
| Non-U.S.                  residential mortgages            |     | 46,205  |     |   | 42,201 |   |
| Non-U.S.                  installment and revolving credit |     | 31,849  |     |   | 33,889 |   |
| Non-U.S.                  auto                             |     | 22,803  |     |   | 23,517 |   |
| U.S.                  installment and revolving credit     |     | 21,963  |     |   | 21,385 |   |
| Other                                                      |     | 7,286   |     |   | 6,771 |   |
|                                                       |     | 130,106 |     |   | 127,763 |   |
|                                                       |     |    |     |   |   |   |
| **GE                  Infrastructure**(a)(b)               |     | 19,124  |     |   | 20,991 |   |
|                                                       |     |    |     |   |   |   |
| **Other**(c)                                               |     | 11,194  |     |   | 15,102 |   |
|                                                       |     | 292,232 |     |   | 288,347 |   |
| Less                  allowance for losses                 |     | (4,593  | )        |   | (5,648 | ) |
| Total                                                      | $        | 287,639 |     | $      | 282,699 |   |
|                                                       |     |    |     |   |   |   |

| (a)   | Included                  loans and financing leases of $11,192 million and $13,562 million                  at                  December 31, 2005 and 2004, respectively, related to commercial                  aircraft                  at Aviation Financial Services and loans and financing leases of                  $5,419                  million and $4,659 million at December 31, 2005 and 2004, respectively,                  related to Energy Financial Services.  |   |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)        | Included                  only portions of the segment that are financial services                  businesses.                                                                                                                                                                                                                                                                                                                                                                       |   |
| (c)             | Included                  loans and financing leases of $10,160 million and $13,759 million                  at                  December 31, 2005 and 2004, respectively, related to certain consolidated,                  liquidating securitization entities.                                                                                                                                                                                                                          |   |

----

**Net        Investment in Financing Leases**

|                                                | **Total                  financing leases** |    | **Direct                  financing leases**(a) |   | **Leveraged                  leases**(b) |   |
|-----------------------------------------------------|---------------------------------------------|---------|-------------------------------------------------|--------|------------------------------------------|--------|
| *December                  31 (In millions)*        | **2005**                                    |    | **2004**                                        |   | **2005**                                 |   | **2004** |   | **2005** |   | **2004** |   |
|                                                |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  minimum lease payments       |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| receivable                                          | $                                           | 86,436  |                                            | $      | 91,840                                   |   | $ | 60,594 |   | $ | 63,733 |   | $ | 25,842 |   | $ | 28,107 |   |
| Less                  principal and interest on     |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| third-party                  nonrecourse debt       |                                        | (19,061 | )                                               |   | (20,992                                  | )      |   | - |   |   | - |   |   | (19,061 | ) |   | (20,992 | ) |
| Net                  rentals receivable             |                                        | 67,375  |                                            |   | 70,848                                   |   |   | 60,594 |   |   | 63,733 |   |   | 6,781 |   |   | 7,115 |   |
| Estimated                  unguaranteed residual    |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                  of leased assets             |                                        | 9,379   |                                            |   | 10,323                                   |   |   | 6,260 |   |   | 6,898 |   |   | 3,119 |   |   | 3,425 |   |
| Less                  deferred income               |                                        | (12,445 | )                                               |   | (13,417                                  | )      |   | (9,305 | ) |   | (9,966 | ) |   | (3,140 | ) |   | (3,451 | ) |
| Investment                  in financing leases,    |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of deferred income             |                                        | 64,309  |                                            |   | 67,754                                   |   |   | 57,549 |   |   | 60,665 |   |   | 6,760 |   |   | 7,089 |   |
| Less                  amounts to arrive at net      |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| investment                                          |                                        |    |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                  for losses               |                                        | (525    | )                                               |   | (1,090                                   | )      |   | (380 | ) |   | (903 | ) |   | (145 | ) |   | (187 | ) |
| Deferred                  taxes                     |                                        | (8,037  | )                                               |   | (9,767                                   | )      |   | (3,495 | ) |   | (5,099 | ) |   | (4,542 | ) |   | (4,668 | ) |
| Net                  investment in financing leases | $                                           | 55,747  |                                            | $      | 56,897                                   |   | $ | 53,674 |   | $ | 54,663 |   | $ | 2,073 |   | $ | 2,234 |   |
|                                                |                                        |

| (a)   | Included                  $475 million and $489 million of initial direct costs on direct                  financing                  leases at December 31, 2005 and 2004, respectively.                                                                                                                |   |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)             | Included                  pre-tax income of $248 million and $340 million and income tax                  of $96                  million and $131 million during 2005 and 2004, respectively. Net                  investment credits recognized during 2005 and 2004 were                  inconsequential. |   |

**Contractual        Maturities**

| *(In                  millions)* | **Total****loans** |    | **Net                  rentals****receivable** |   |
|----------------------------------|--------------------|---------|------------------------------------------------|--------|
|                             |               |    |                                           |   |   |   |
| Due                  in          |               |    |                                           |   |   |   |
| 2006                             | $                  | 74,232  |                                           | $      | 17,812 |   |
| 2007                             |               | 30,610  |                                           |   | 14,320 |   |
| 2008                             |               | 23,696  |                                           |   | 10,756 |   |
| 2009                             |               | 13,812  |                                           |   | 7,261 |   |
| 2010                             |               | 14,306  |                                           |   | 4,164 |   |
| 2011                  and later  |               | 71,267  |                                           |   | 13,062 |   |
| Total                            | $                  | 227,923 |                                           | $      | 67,375 |   |

----

| *December                  31 (In millions)*              | **2005** |   | **2004** |   |
|-----------------------------------------------------------|----------|--------|----------|--------|
|                                                      |     |   |     |   |
| Loans                  requiring allowance for losses     | $        | 1,479  |     | $      | 1,689 |   |
| Loans                  expected to be fully recoverable   |     | 451    |     |   | 520 |   |
|                                                      | $        | 1,930  |     | $      | 2,209 |   |
|                                                      |     |   |     |   |   |   |
| Allowance                  for losses                     | $        | 627    |     | $      | 749 |   |
| Average                  investment during year           |     | 2,118  |     |   | 2,403 |   |
| Interest                  income earned while impaired(a) |     | 46     |     |   | 26 |   |
|                                                      |     |   |     |   |   |   |

| (a)  | Recognized                  principally on cash basis. |   |
|-----------|--------------------------------------------------------|--------|

**Note        7. Allowance for Losses on Financing Receivables**

| *(In                  millions)*                     | **2005** |   | **2004** |   | **2003** |   |
|------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                 |     |   |     |   |     |   |
| **Balance                  at January 1**            |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance               | $        | 1,562  |     | $      | 1,952    |   | $ | 2,407 |   |
| GE                  Consumer Finance                 |     | 3,473  |     |   | 3,984    |   |   | 2,782 |   |
| GE                  Infrastructure(a)                |     | 583    |     |   | 293      |   |   | 258 |   |
| Other                                                |     | 30     |     |   | 27       |   |   | 53 |   |
|                                                 |     | 5,648  |     |   | 6,256    |   |   | 5,500 |   |
|                                                 |     |   |     |   |     |   |   |   |   |
| **Provision                  charged to operations** |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance               |     | 293    |     |   | 327      |   |   | 874 |   |
| GE                  Consumer Finance                 |     | 3,337  |     |   | 3,219    |   |   | 2,808 |   |
| GE                  Infrastructure(a)                |     | 210    |     |   | 325      |   |   | 28 |   |
| Other                                                |     | 1      |     |   | 17       |   |   | 42 |   |
|                                                 |     | 3,841  |     |   | 3,888    |   |   | 3,752 |   |
|                                                 |     |   |     |   |     |   |   |   |   |
| **Other                  additions (reductions)**    |     | (487   | )        |   | (74      | )      |   | 679 |   |
|                                                 |     |   |     |   |     |   |   |   |   |
| **Gross                  write-offs**                |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance               |     | (892   | )        |   | (928     | )      |   | (1,312 | ) |
| GE                  Consumer Finance(b)              |     | (4,447 | )        |   | (4,423   | )      |   | (3,114 | ) |
| GE                  Infrastructure(a)                |     | (572   | )        |   | (27      | )      |   | (24 | ) |
| Other                                                |     | (48    | )        |   | (74      | )      |   | (73 | ) |
|                                                 |     | (5,959 | )        |   | (5,452   | )      |   | (4,523 | ) |

----

| *(In                  millions)*            | **2005** |   | **2004** |   | **2003** |   |
|---------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                        |     |   |     |   |     |   |   |   |   |
| **Recoveries**                              |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance      |     | 180    |     |   | 161      |   |   | 124 |   |
| GE                  Consumer Finance        |     | 1,359  |     |   | 846      |   |   | 710 |   |
| GE                  Infrastructure(a)       |     | -      |     |   | 2        |   |   | 2 |   |
| Other                                       |     | 11     |     |   | 21       |   |   | 12 |   |
|                                        |     | 1,550  |     |   | 1,030    |   |   | 848 |   |
|                                        |     |   |     |   |     |   |   |   |   |
| **Balance                  at December 31** |     |   |     |   |     |   |   |   |   |
| GE                  Commercial Finance      |     | 1,110  |     |   | 1,562    |   |   | 1,952 |   |
| GE                  Consumer Finance        |     | 3,234  |     |   | 3,473    |   |   | 3,984 |   |
| GE                  Infrastructure(a)       |     | 220    |     |   | 583      |   |   | 293 |   |
| Other                                       |     | 29     |     |   | 30       |   |   | 27 |   |
| Total                                       | $        | 4,593  |     | $      | 5,648    |   | $ | 6,256 |   |
|                                        |     |   |     |   |     |   |   |   |   |

| (a) | Included                  only portions of the segment that are financial services                  businesses.     |   |
|-----|---------------------------------------------------------------------------------------------------------------------|--------|
| (b) | Included                $889 million in 2004 related to the standardization of our write-off                policy. |   |

**Selected        Financing Receivables Ratios**

| *December                  31*                                                                        | **2005** |   |   | **2004** |   |
|-------------------------------------------------------------------------------------------------------|----------|--------|--------|----------|--------|
|                                                                                                  |     |   |   |     |   |
| **Allowance                  for losses on financing receivables as a percentage of total financing** |     |   |   |     |   |
| **receivables**                                                                                       |     |   |   |     |   |
| GE                  Commercial Finance                                                                | 0.84     | %      |   | 1.25     | %      |
| GE                  Consumer Finance                                                                  | 2.49     |   |   | 2.72     |   |
| GE                  Infrastructure(a)                                                                 | 1.15     |   |   | 2.78     |   |
| Other                                                                                                 | 0.26     |   |   | 0.20     |   |
| Total                                                                                                 | 1.57     |   |   | 1.96     |   |
|                                                                                                  |     |   |   |     |   |
| **Nonearning                  and reduced earning financing receivables as a percentage of total**    |     |   |   |     |   |
| **financing                  receivables**                                                            |     |   |   |     |   |
| GE                  Commercial Finance                                                                | 1.0      | %      |   | 1.1      | %      |
| GE                  Consumer Finance                                                                  | 2.1      |   |   | 2.0      |   |
| GE                  Infrastructure(a)                                                                 | 0.1      |   |   | 0.8      |   |
| Other                                                                                                 | 0.7      |   |   | 1.2      |   |
| Total                                                                                                 | 1.4      |   |   | 1.5      |   |
|                                                                                                  |     |   |   |     |   |

| (a) | Included                  only portions of the segment that are financial services                  businesses. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

**Note        8. Buildings and Equipment**

| *December                  31 (Dollars in millions)* | Estimatedusefullives-new(years) |   | **2005** |   | **2004** |   |
|------------------------------------------------------|---------------------------------|--------|----------|--------|----------|--------|
|                                                 |                            |   |     |   |     |   |   |   |
| **Original                  cost**(a)                |                            |   |     |   |     |   |   |   |
| Buildings                  and equipment             | 2-40                            |   | $        | 5,547  |     | $      | 5,684 |   |
| Equipment                  leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft                                             | 20                              |   |     | 32,941 |     |   | 26,837 |   |
| Vehicles                                             | 1-14                            |   |     | 23,208 |     |   | 23,056 |   |
| Railroad                  rolling stock              | 3-30                            |   |     | 3,327  |     |   | 3,390 |   |
| Mobile                  and modular space            | 12-18                           |   |     | 2,889  |     |   | 2,965 |   |
| Construction                  and manufacturing      | 5-25                            |   |     | 1,609  |     |   | 1,772 |   |
| All                  other                           | 2-33                            |   |     | 2,834  |     |   | 3,021 |   |
| Total                                                |                            |   | $        | 72,355 |     | $      | 66,725 |   |
|                                                 |                            |   |     |   |     |   |   |   |
| **Net                  carrying value**(a)           |                            |   |     |   |     |   |   |   |
| Buildings                  and equipment             |                            |   | $        | 3,116  |     | $      | 3,295 |   |
| Equipment                  leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft(b)                                          |                            |   |     | 27,116 |     |   | 21,991 |   |
| Vehicles                                             |                            |   |     | 14,064 |     |   | 14,062 |   |
| Railroad                  rolling stock              |                            |   |     | 2,188  |     |   | 2,193 |   |
| Mobile                  and modular space            |                            |   |     | 1,496  |     |   | 1,636 |   |
| Construction                  and manufacturing      |                            |   |     | 1,088  |     |   | 1,157 |   |
| All                  other                           |                            |   |     | 1,956  |     |   | 2,013 |   |
| Total                                                |                            |   | $        | 51,024 |     | $      | 46,347 |   |
|                                                 |                            |   |     |   |     |   |   |   |

| (a)  | Included                  $1,935 million and $2,243 million of original cost of assets leased                  to GE                  with accumulated amortization of $298 million and $377 million                  at December                  31, 2005 and 2004, respectively.                                                                                                                                                            |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | The                  Aviation Financial Services business of GE Infrastructure recognized                  impairment losses of $295 million in 2005 and $148 million in 2004                  recorded in the caption “Depreciation and amortization” in the Statement                  of Earnings to reflect adjustments to fair value based on current                  market                  values from independent appraisers. |   |

| *(In                  millions)* |   |   |   |
|----------------------------------|--------|--------|--------|
|                             |   |   |   |
| Due                  in          |   |   |   |
| 2006                             | $      | 7,615  |   |
| 2007                             |   | 6,099  |   |
| 2008                             |   | 4,743  |   |
| 2009                             |   | 3,375  |   |
| 2010                             |   | 2,642  |   |
| 2011                  and later  |   | 7,840  |   |
| Total                            | $      | 32,314 |   |

----

**Note        9. Intangible Assets**

| *December                  31 (In millions)*               | **2005** |   | **2004** |   |
|------------------------------------------------------------|----------|--------|----------|--------|
|                                                       |     |   |     |   |   |   |
| Goodwill                                                   | $        | 21,337 |     | $      | 21,590 |   |
| Intangible                  assets subject to amortization |     | 2,550  |     |   | 2,146 |   |
| Total                                                      | $        | 23,887 |     | $      | 23,736 |   |

|                                                | **2005**                        |   |
|-----------------------------------------------------|---------------------------------|--------|
| *(In                    millions)*                  | **GE****Commercial****Finance** |   | **GE****Consumer****Finance** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   |   | **Total** |   |
|                                                |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    January 1                | $                               | 10,141 |   |   | $ | 9,860 |   |   | $ | 1,459 |   |   | $ | 130 |   |   | $ | 21,590 |   |
| Acquisitions/purchase                    accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                         |                            | 766    |   |   |   | (24 | ) |   |   | (2 | ) |   |   | (4 | ) |   |   | 736 |   |
| Currency                    exchange and other      |                            | (286   | ) |   |   | (652 | ) |   |   | (51 | ) |   |   | - |   |   |   | (989 | ) |
| Balance                    December 31              | $                               | 10,621 |   |   | $ | 9,184 |   |   | $ | 1,406 |   |   | $ | 126 |   |   | $ | 21,337 |   |

|                                                | **2004**                        |   |
|-----------------------------------------------------|---------------------------------|--------|
| *(In                    millions)*                  | **GE****Commercial****Finance** |   | **GE****Consumer****Finance** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   |   | **Total** |   |
|                                                |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    January 1                | $                               | 9,145  |   |   | $ | 8,163 |   |   | $ | 380 |   |   | $ | 114 |   |   | $ | 17,802 |   |
| Acquisitions/purchase                    accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                         |                            | 929    |   |   |   | 1,275 |   |   |   | (11 | ) |   |   | 9 |   |   |   | 2,202 |   |
| Currency                    exchange and other      |                            | 67     |   |   |   | 422 |   |   |   | 1,090 | (b) |   |   | 7 |   |   |   | 1,586 |   |
| Balance                    December 31              | $                               | 10,141 |   |   | $ | 9,860 |   |   | $ | 1,459 |   |   | $ | 130 |   |   | $ | 21,590 |   |
|                                                |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                    only portions of the segment that are financial services                    businesses.                                            |   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                    $1,055 million of goodwill associated with the consolidation                    of Penske                    effective January 1, 2004. |   |

----

**Intangible        Assets Subject to Amortization**

|                                         | **2005**                        |   | **2004**                        |   |
|----------------------------------------------|---------------------------------|--------|---------------------------------|--------|
| *December                  31 (In millions)* | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   |
|                                         |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized                  software        | $                               | 1,478  |                            |   | $ | (799 | ) |   | $ | 679 |   | $ | 1,268 |   |   | $ | (672 | ) |   | $ | 596 |   |
| Patents,                  licenses and       |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| trademarks                                   |                            | 497    |                            |   |   | (272 | ) |   |   | 225 |   |   | 438 |   |   |   | (226 | ) |   |   | 212 |   |
| All                  other                   |                            | 2,661  |                            |   |   | (1,015 | ) |   |   | 1,646 |   |   | 2,226 |   |   |   | (888 | ) |   |   | 1,338 |   |
| Total                                        | $                               | 4,636  |                            |   | $ | (2,086 | ) |   | $ | 2,550 |   | $ | 3,932 |   |   | $ | (1,786 | ) |   | $ | 2,146 |   |

----

**Note        10. Other Assets**

| *December                  31 (In millions)* | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|
|                                         |     |   |     |   |   |   |
| Investments                                  |     |   |     |   |   |   |
| Associated                  companies        | $        | 13,481 |     | $      | 10,644 |   |
| Real                  estate(a)              |     | 16,467 |     |   | 19,163 |   |
| Assets                  held for sale(b)     |     | 8,574  |     |   | 6,501 |   |
| Cost                  method(c)              |     | 2,280  |     |   | 2,392 |   |
| Other                                        |     | 3,072  |     |   | 3,876 |   |
|                                         |     | 43,874 |     |   | 42,576 |   |
|                                         |     |   |     |   |   |   |
| Deferred                  acquisition costs  |     | 1,541  |     |   | 1,619 |   |
| Derivative                  instruments      |     | 1,622  |     |   | 3,052 |   |
| Advances                  to suppliers       |     | 1,762  |     |   | 1,754 |   |
| Other                                        |     | 3,259  |     |   | 3,571 |   |
| Total(d)                                     | $        | 52,058 |     | $      | 52,572 |   |
|                                         |     |   |     |   |   |   |

| (a)  | Our                  investment in real estate consisted principally of two categories:                  real                  estate held for investment and equity method investments. Both                  categories                  contained a wide range of properties including the following at                  December                  31, 2005: office buildings (52%), apartment buildings (20%), retail                  facilities (7%), industrial properties (6%), parking facilities                  (5%),                  franchise properties (3%) and other (7%). At December 31, 2005,                  investments were located in Europe (46%), North America (35%) and                  Asia                  (19%).                                                                                                                                                                                                                              |   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Assets                  were classified as held for sale on the date a decision was made                  to                  dispose of them through sale, securitization or other means. Such                  assets                  consisted primarily of real estate properties and mortgage and                  credit card                  receivables, and were accounted for at the lower of carrying amount                  or                  estimated fair value less costs to sell.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| (c)  | The                  fair value of and unrealized loss on those investments in a continuous                  loss position for less than 12 months in 2005 were $100 million                  and $31                  million, respectively. The fair value of and unrealized loss on                  those                  investments in a continuous loss position for 12 months or more                  in 2005                  were $22 million and $9 million, respectively. The fair value of                  and                  unrealized loss on those investments in a continuous loss position                  for                  less than 12 months in 2004 were $56 million and $25 million,                  respectively. The fair value of and unrealized loss on those investments                  in a continuous loss position for 12 months or more in 2004 were                  $55                  million and $42 million, respectively.  |   |
| (d)       | Included                  $1,235 million in 2005 and $2,384 million in 2004 related to consolidated,                  liquidating securitization entities. See note 19.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |

----

**Note        11. Borrowings**

**Short-Term        Borrowings**

|                                                     | **2005** |    | **2004**     |   |
|----------------------------------------------------------|----------|---------|--------------|--------|
| *December                  31 (Dollars in millions)*     | Amount   |    | Averagerate  | (a)    | Amount |   | Averagerate | (a) |
|                                                     |     |    |         |   |   |   |   |   |
| Commercial                  paper                        |     |    |    |   |   |   |   |   |   |   |
| U.S.                                                     |     |    |         |   |   |   |   |   |   |   |
| Unsecured                                                | $        | 67,643  |         | 4.30   | % | $ | 62,195 |   | 2.24 | % |
| Asset-backed(b)                                          |     | 9,267   |         | 4.21   |   |   | 13,842 |   | 2.17 |   |
| Non-U.S.                                                 |     | 20,456  |         | 3.47   |   |   | 20,835 |   | 2.97 |   |
| Current                  portion of long-term debt(c)(d) |     | 41,792  |         | 4.05   |   |   | 37,530 |   | 4.11 |   |
| Other                                                    |     | 18,514  |         |   |   |   | 19,890 |   |   |   |
| Total                                                    | $        | 157,672 |         |   |   | $ | 154,292 |   |   |   |
|                                                     |     |    |         |   |   |   |   |   |

| (a)  | Based                  on year-end balances and year-end local currency interest rates.                  Current                  portion of long-term debt included the effects of interest rate                  and                  currency swaps, if any, directly associated with the original debt                  issuance.   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Entirely                  obligations of consolidated, liquidating securitization entities.                  See note                  19.                                                                                                                                                                                              |
| (c)       | Included                  short-term borrowings by consolidated, liquidating securitization                  entities                  of $697 million and $756 million at December 31, 2005 and 2004,                  respectively. See note 19.                                                                                      |
| (d)       | Included                  $250 million of subordinated notes guaranteed by GE at December                  31,                  2005.                                                                                                                                                                                                        |

**Long-Term        Borrowings**

|                                                 |  2005  |   |       |    |
|------------------------------------------------------|-------------|--------|------------|---------|
| *December                  31 (Dollars in millions)* | Averagerate | (a)    | Maturities |    | **2005** |   | **2004** |   |
|                                                 |        |   |       |    |   |   |   |   |
| Senior                  notes                        |        |   |       |    |   |   |   |   |   |   |
| Unsecured                                            | 4.45        | %      | 2007-2055  |    | $ | 180,546 |   | $ | 174,893 |   |
| Asset-backed(b)                                      | 4.66        |   | 2007-2035  |    |   | 6,845 |   |   | 10,939 |   |
| Extendible                  notes(c)                 | 4.38        |   | 2007-2009  |    |   | 14,022 |   |   | 14,258 |   |
| Subordinated                  notes(d)               | 6.00        |   | 2009-2037  |    |   | 2,984 |   |   | 1,119 |   |
| Total                                                |        |   | $          | 204,397 |   | $ | 201,209 |   |
|                                                 |        |   |       |    |   |   |   |   |

| (a)  | Based                  on year-end balances and year-end local currency interest rates,                  including                  the effects of interest rate and currency swaps, if any, directly                  associated with the original debt issuance.      |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Asset-backed                  senior notes were all issued by consolidated, liquidating securitization                  entities. See note 19.                                                                                                                          |
| (c)  | Included                  obligations of consolidated, liquidating securitization entities                  in the                  amount of $38 million and $267 million at December 31, 2005 and                  2004,                  respectively. See note 19.  |
| (d)       | Included                  $750 million and $1,000 million of subordinated notes guaranteed                  by GE at                  December 31, 2005 and 2004,                  respectively.                                                                             |

----

**Liquidity        **

| *(In                  millions)* |   |     |   |     |   |     |   |     |   |
|----------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                             |   |     |   |     |   |     |   |     |   |
| **2006**                         |   | **2007** |   | **2008** |   | **2009** |   | **2010** |   |
|                             |   |     |   |     |   |     |   |     |   |
| $                                | 41,792 | (a)      | $      | 41,409   | (b)    | $        | 42,512 |     | $      | 26,994 |   | $ | 18,647 |   |
|                             |   |     |   |     |   |     |   |     |   |   |   |   |   |   |

| (a)  | Floating                  rate extendible notes of $297 million are due in 2006, but are                  extendible                  at the option of the investors to a final maturity in 2008. Fixed                  and                  floating rate notes of $1,059 million contain put options with                  exercise                  dates in 2006, but have final maturity dates in 2007 ($250 million),                  2008                  ($350 million) and beyond 2010 ($459 million).  |   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Floating                  rate extendible notes of $14,022 million are due in 2007, of which                  $2,000                  million are extendible at the option of the investors to a final                  maturity                  in 2009.                                                                                                                                                                                                                                                               |   |

**Interest        rate and currency risk**

**Effective        Borrowings (Including Swaps)**

|                                                   | **2005** |    | **2004**    |   |
|--------------------------------------------------------|----------|---------|-------------|--------|
| *December                  31 (Dollars in millions)*   | Amount   |    | Averagerate |   | Amount |   |
|                                                   |     |    |        |   |   |   |   |   |   |
| Short-term(a)                                          | $        | 97,202  |        | 3.95   | % | $ | 90,754 |   |
| Long-term                  (including current portion) |     |    |        |   |   |   |   |   |   |
| Fixed                  rate(b)                         | $        | 161,771 |        | 4.65   | % | $ | 142,510 |   |
| Floating                  rate                         |     | 103,096 |        | 4.32   |   |   | 122,237 |   |
| Total                  long-term                       | $        | 264,867 |        |   |   |   | $ | 264,747 |   |
|                                                   |     |    |        |   |   |   |   |   |   |

| (a) | Included                  commercial paper and other short-term debt.                                                                                                                                                                                                                                      |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b) | Included                  fixed-rate borrowings and $16,868 million ($23,642 million in 2004)                  notional long-term interest rate swaps that effectively convert                  the                  floating-rate nature of short-term borrowings to fixed rates of                  interest. |   |

----

*Accounting        for Derivative Instruments and Hedging Activities*

**Derivative        Fair Values by Activity/Instrument**

| *December                  31 (In millions)* | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|
|                                         |     |   |     |   |   |   |
| Cash                  flow hedges            | $        | 96     |     | $      | (1,134 | ) |
| Fair                  value hedges           |     | (39    | )        |   | 1,864 |   |
| Total                                        | $        | 57     |     | $      | 730 |   |
|                                         |     |   |     |   |   |   |
| Interest                  rate swaps         | $        | (1,053 | )        | $      | (1,464 | ) |
| Currency                  swaps              |     | 1,110  |     |   | 2,194 |   |
| Total                                        | $        | 57     |     | $      | 730 |   |

**Note        12. Investment Contracts, Insurance Liabilities and Insurance Annuity        Benefits**

| *December                  31 (In millions)*                  | **2005** |   | **2004** |   |
|---------------------------------------------------------------|----------|--------|----------|--------|
|                                                          |     |   |     |   |
| Investment                  contracts                         | $        | 16,039 |     | $      | 18,268 |   |
| Guaranteed                  investment contracts of SPEs      |     | 11,685 |     |   | 11,648 |   |
| Total                  investment contracts                   |     | 27,724 |     |   | 29,916 |   |
|                                                          |     |   |     |   |   |   |
| Life                  insurance benefits(a)                   |     | 15,538 |     |   | 15,398 |   |
| Unpaid                  claims and claims adjustment expenses |     | 1,690  |     |   | 1,729 |   |
| Unearned                  premiums                            |     | 430    |     |   | 405 |   |
| Universal                  life benefits                      |     | 340    |     |   | 945 |   |
| Total                                                         | $        | 45,722 |     | $      | 48,393 |   |
|                                                          |     |   |     |   |   |   |

| (a)  | Life                  insurance benefits are accounted for mainly by a net-level-premium                  method                  using estimated yields generally ranging from 3.0% to 8.5% in both                  2005                  and 2004.  |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**Note        13. Income Taxes**

| *(In                  millions)*                                           | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                       |     |   |     |   |     |   |
| Current                  tax expense                                       | $        | 1,938  |     | $      | 1,510    |   | $ | 171 |   |
| Deferred                  tax expense (benefit) from temporary differences |     | (834   | )        |   | 3        |   |   | 817 |   |
|                                                                       | $        | 1,104  |     | $      | 1,513    |   | $ | 988 |   |

----

**Reconciliation        of U.S. Federal Statutory Income Tax Rate to Actual Income Tax        Rate**

|                                                        | **2005** |   | **2004** |   | **2003** |   |
|-------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                        |     |   |     |   |     |   |
| U.S.                  federal statutory income tax rate     | 35.0     | %      | 35.0     | %      | 35.0     | %      |
| Reduction                  in rate resulting from:          |     |   |     |   |     |   |
| Tax-exempt                  income                          | (0.5     | )      | (0.6     | )      | (1.2     | )      |
| Tax                  on global activities including exports | (22.2    | )      | (15.3    | )      | (13.5    | )      |
| Fuels                  credits                              | (1.5     | )      | (1.4     | )      | (1.6     | )      |
| Sale                  of ERC Life Reinsurance Corporation   | -        |   | -        |   | (3.2     | )      |
| All                  other - net                            | -        |   | (1.5     | )      | (1.2     | )      |
|                                                        | (24.2    | )      | (18.8    | )      | (20.7    | )      |
| Actual                  income tax rate                     | 10.8     | %      | 16.2     | %      | 14.3     | %      |

| *December                  31 (In millions)*           | **2005** |   | **2004** |   |
|--------------------------------------------------------|----------|--------|----------|--------|
|                                                   |     |   |     |   |   |   |
| **Assets**                                             |     |   |     |   |   |   |
| Allowance                  for losses                  | $        | 2,025  |     | $      | 2,149 |   |
| Cash                  flow hedges                      |     | 354    |     |   | 961 |   |
| Other                  - net                           |     | 3,938  |     |   | 3,652 |   |
| Total                  deferred income tax assets      |     | 6,317  |     |   | 6,762 |   |
|                                                   |     |   |     |   |   |   |
| **Liabilities**                                        |     |   |     |   |   |   |
| Financing                  leases                      |     | 8,037  |     |   | 9,767 |   |
| Operating                  leases                      |     | 4,024  |     |   | 3,716 |   |
| Intangible                  assets                     |     | 1,195  |     |   | 892 |   |
| Other                  - net                           |     | 5,658  |     |   | 4,056 |   |
| Total                  deferred income tax liabilities |     | 18,914 |     |   | 18,431 |   |
|                                                   |     |   |     |   |   |   |
| Net                  deferred income tax liability     | $        | 12,597 |     | $      | 11,669 |   |

**Note        14. Minority Interest in Equity of Consolidated Affiliates**

| *December                  31 (In millions)*                     | **2005** |      | **2004** |    |
|------------------------------------------------------------------|----------|-----------|----------|---------|
|                                                             |     |      |     |    |   |   |
| Minority                  interest in consolidated affiliates(a) | $   | 864  |     | $  | 984  |   |
| Minority                  interest in preferred stock(b)         |     |      |     |    |   |   |
| GE                  Capital                                      |     | 70        |     |    | 2,600 |   |
| GE                  Capital affiliates                           |     | 1,314     |     |    | 1,318 |   |
|                                                             | $        | 2,248     |     | $       | 4,902 |   |
|                                                             |     |      |     |    |   |   |

| (a)  | Included                  minority interest in consolidated, liquidating securitization entities,                  partnerships and common shares of consolidated affiliates.                                                                                                             |   |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | The                  preferred stock primarily pays cumulative dividends at variable                  rates.                  Dividend rates in local currency on the preferred stock ranged                  from 1.94%                  to 5.38% during 2005 and 0.99% to 5.46% during 2004. |   |

----

**Note        15. Shareowner’s Equity**

| *(In                  millions)*                                          | **2005** |   | **2004** |   | **2003** |   |
|---------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Cumulative                  preferred stock issued**                    | $        | 10     |     | $      | 10       |   | $ | 10 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Common                  stock issued**                                  | $        | 1      |     | $      | 1        |   | $ | 1 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Accumulated                  nonowner changes other than earnings**     |     |   |     |   |     |   |   |   |   |
| Balance                  at January 1                                     | $        | 5,945  |     | $      | 2,796    |   | $ | (1,450 | ) |
| Investment                  securities - net of deferred taxes            |     |   |     |   |     |   |   |   |   |
| of                  $(301), $537 and $566                                 |     | (240   | )        |   | 746      |   |   | 916 |   |
| Currency                  translation adjustments - net of deferred taxes |     |   |     |   |     |   |   |   |   |
| of                  $691, $(1,271) and $(1,399)                           |     | (2,817 | )        |   | 2,538    |   |   | 3,355 |   |
| Cash                  flow hedges - net of deferred taxes                 |     |   |     |   |     |   |   |   |   |
| of                  $420, $(241) and $(416)                               |     | 696    |     |   | (339     | )      |   | (775 | ) |
| Minimum                  pension liabilities - net of deferred taxes      |     |   |     |   |     |   |   |   |   |
| of                  $2, $(42) and $(9)                                    |     | (29    | )        |   | (109     | )      |   | (19 | ) |
| Reclassification                  adjustments                             |     |   |     |   |     |   |   |   |   |
| Investment                  securities - net of deferred taxes            |     |   |     |   |     |   |   |   |   |
| of                  $(189), $(142) and $(143)                             |     | (351   | )        |   | (265     | )      |   | (265 | ) |
| Currency                  translation adjustments                         |     | -      |     |   | -        |   |   | 4 |   |
| Cash                  flow hedges - net of deferred taxes                 |     |   |     |   |     |   |   |   |   |
| of                  $(69), $312 and $577                                  |     | (155   | )        |   | 578      |   |   | 1,030 |   |
| Balance                  at December 31(a)                                | $        | 3,049  |     | $      | 5,945    |   | $ | 2,796 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Additional                  paid-in capital**                           |     |   |     |   |     |   |   |   |   |
| Balance                  at January 1                                     | $        | 12,360 |     | $      | 12,258   |   | $ | 12,261 |   |
| Contributions(b)                                                          |     | 16     |     |   | 102      |   |   | (3 | ) |
| Balance                  at December 31                                   | $        | 12,376 |     | $      | 12,360   |   | $ | 12,258 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Retained                  earnings**                                    |     |   |     |   |     |   |   |   |   |
| Balance                  at January 1                                     | $        | 35,976 |     | $      | 30,694   |   | $ | 26,480 |   |
| Net                  earnings                                             |     | 7,219  |     |   | 8,387    |   |   | 7,649 |   |
| Dividends(b)                                                              |     | (7,816 | )        |   | (3,105   | )      |   | (3,435 | ) |
| Balance                  at December 31                                   | $        | 35,379 |     | $      | 35,976   |   | $ | 30,694 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |
| **Total                  shareowner’s equity at December 31**       | $        | 50,815 |     | $      | 54,292   |   | $ | 45,759 |   |
|                                                                      |     |   |     |   |     |   |   |   |   |

| (a)  | Included                  accumulated nonowner changes related to discontinued operations                  of $484                  million, $1,649 million and $1,820 million at December 31, 2005,                  2004 and                  2003, respectively.  |   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Total                  dividends and other transactions with shareowner reduced equity                  by $7,800                  million, $3,003 million and $3,438 million in 2005, 2004 and 2003,                  respectively.                                      |   |

----

**Note        16. Supplemental Cash Flows Information**

| *December                  31 (In millions)*                                       | **2005** |     | **2004** |   | **2003** |   |
|------------------------------------------------------------------------------------|----------|----------|----------|--------|----------|--------|
|                                                                               |     |     |     |   |     |   |   |   |   |
| **All                  other operating activities**                                |     |     |     |   |     |   |   |   |   |
| Net                  change in assets held for sale                                | $        | 2,192    |     | $      | 84       |   | $ | 1,168 |   |
| Amortization                  of intangible assets                                 |     | 459      |     |   | 519      |   |   | 618 |   |
| Realized                  gains on sale of investment securities                   |     | (381     | )        |   | (204     | )      |   | (205 | ) |
| Other                                                                              |     | (1,205   | )        |   | (2,711   | )      |   | (1,941 | ) |
|                                                                               | $        | 1,065    |     | $      | (2,312   | )      | $ | (360 | ) |
|                                                                               |     |     |     |   |     |   |   |   |   |
| **Net                  increase in financing receivables**                         |     |     |     |   |     |   |   |   |   |
| Increase                  in loans to customers                                    | $        | (315,697 | )        | $      | (342,357 | )      | $ | (263,815 | ) |
| Principal                  collections from customers - loans                      |     | 267,728  |     |   | 305,846  |   |   | 238,518 |   |
| Investment                  in equipment for financing leases                      |     | (23,508  | )        |   | (22,649  | )      |   | (22,825 | ) |
| Principal                  collections from customers - financing leases           |     | 21,770   |     |   | 19,715   |   |   | 18,909 |   |
| Net                  change in credit card receivables                             |     | (21,391  | )        |   | (20,651  | )      |   | (11,483 | ) |
| Sales                  of financing receivables                                    |     | 54,144   |     |   | 44,816   |   |   | 36,009 |   |
|                                                                               | $        | (16,954  | )        | $      | (15,280  | )      | $ | (4,687 | ) |
|                                                                               |     |     |     |   |     |   |   |   |   |
| **All                  other investing activities**                                |     |     |     |   |     |   |   |   |   |
| Purchases                  of securities by insurance activities                   | $        | (9,264   | )        | $      | (7,474   | )      | $ | (7,942 | ) |
| Dispositions                  and maturities of securities by insurance activities |     | 10,892   |     |   | 9,305    |   |   | 9,509 |   |
| Proceeds                  from principal business dispositions                     |     | 209      |     |   | 472      |   |   | 3,337 |   |
| Other                                                                              |     | 2,807    |     |   | 6,083    |   |   | 1,199 |   |
|                                                                               | $        | 4,644    |     | $      | 8,386    |   | $ | 6,103 |   |

----

| *December                  31 (In millions)*                                   | **2005** |    | **2004** |   | **2003** |   |
|--------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                           |     |    |     |   |     |   |   |   |   |
| **Newly                  issued debt having maturities longer than 90 days**   |     |    |     |   |     |   |   |   |   |
| Short-term                  (91 to 365 days)                                   | $        | 4,675   |     | $      | 3,940    |   | $ | 3,661 |   |
| Long-term                  (longer than one year)                              |     | 60,176  |     |   | 53,641   |   |   | 55,661 |   |
| Proceeds                  - nonrecourse, leveraged lease                       |     | 203     |     |   | 562      |   |   | 791 |   |
|                                                                           | $        | 65,054  |     | $      | 58,143   |   | $ | 60,113 |   |
|                                                                           |     |    |     |   |     |   |   |   |   |
| **Repayments                  and other reductions of debt having maturities** |     |    |     |   |     |   |   |   |   |
| **longer                  than 90 days**                                       |     |    |     |   |     |   |   |   |   |
| Short-term                  (91 to 365 days)                                   | $        | (38,132 | )        | $      | (41,443  | )      | $ | (38,756 | ) |
| Long-term                  (longer than one year)                              |     | (10,746 | )        |   | (3,443   | )      |   | (3,664 | ) |
| Principal                  payments - nonrecourse, leveraged lease             |     | (831    | )        |   | (652     | )      |   | (782 | ) |
|                                                                           | $        | (49,709 | )        | $      | (45,538  | )      | $ | (43,202 | ) |
|                                                                           |     |    |     |   |     |   |   |   |   |
| **All                  other financing activities**                            |     |    |     |   |     |   |   |   |   |
| Proceeds                  from sales of investment contracts                   | $        | 15,743  |     | $      | 11,079   |   | $ | 766 |   |
| Redemption                  of investment contracts                            |     | (16,934 | )        |   | (14,476  | )      |   | (480 | ) |
|                                                                           | $        | (1,191  | )        | $      | (3,397   | )      | $ | 286 |   |

**Note        17. Operating Segments **

**Revenues**

|                                   | **Total                  revenues** |   | **Intersegment                  revenues** |   | **External                  revenues** |   |
|----------------------------------------|-------------------------------------|--------|--------------------------------------------|--------|----------------------------------------|--------|
| *(In                  millions)*       | **2005**                            |   | **2004**                                   |   | **2003**                               |   | **2005** |   | **2004** |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                   |                                |   |                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance | $                                   | 20,646 |                                       | $      | 19,524                                 |   | $ | 16,927 |   | $ | 204 |   | $ | 279 |   | $ | 197 |   | $ | 20,442 |   | $ | 19,245 |   | $ | 16,730 |   |
| GE                  Consumer Finance   |                                | 19,416 |                                       |   | 15,734                                 |   |   | 12,845 |   |   | 52 |   |   | 33 |   |   | 23 |   |   | 19,364 |   |   | 15,701 |   |   | 12,822 |   |
| GE                  Industrial(a)      |                                | 6,627  |                                       |   | 6,571                                  |   |   | 3,357 |   |   | 17 |   |   | 13 |   |   | 15 |   |   | 6,610 |   |   | 6,558 |   |   | 3,342 |   |
| GE                  Infrastructure(a)  |                                | 5,044  |                                       |   | 4,305                                  |   |   | 3,791 |   |   | - |   |   | 2 |   |   | 1 |   |   | 5,044 |   |   | 4,303 |   |   | 3,790 |   |
| GECS                  corporate items  |                                |   |                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                  eliminations      |                                | 7,564  |                                       |   | 6,760                                  |   |   | 6,058 |   |   | (273 | ) |   | (327 | ) |   | (236 | ) |   | 7,837 |   |   | 7,087 |   |   | 6,294 |   |
| Total                                  | $                                   | 59,297 |                                       | $      | 52,894                                 |   | $ | 42,978 |   | $ | - |   | $ | - |   | $ | - |   | $ | 59,297 |   | $ | 52,894 |   | $ | 42,978 |   |
|                                   |                                |   |                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                  only portions of the segment that are financial services                  businesses. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

|                                                   | **Depreciation                  and amortization****For                  the years ended December 31** |   | **Provision                  for income taxes** |   |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| *(In                  millions)*                       | **2005**                                                                                               |   | **2004**                                        |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                   |                                                                                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance                 | $                                                                                                      | 2,648  |                                            | $      | 2,772 |   | $ | 2,444 |   | $ | 971 |   | $ | 1,144 |   | $ | 493 |   |
| GE                  Consumer Finance                   |                                                                                                   | 393    |                                            |   | 334 |   |   | 276 |   |   | 529 |   |   | 449 |   |   | 458 |   |
| GE                  Industrial(a)                      |                                                                                                   | 1,912  |                                            |   | 1,876 |   |   | 996 |   |   | 64 |   |   | (124 | ) |   | (165 | ) |
| GE                  Infrastructure(a)                  |                                                                                                   | 1,439  |                                            |   | 1,122 |   |   | 1,074 |   |   | (202 | ) |   | 62 |   |   | 243 |   |
| GECS                  corporate items and eliminations |                                                                                                   | 86     |                                            |   | 146 |   |   | 241 |   |   | (258 | ) |   | (18 | ) |   | (41 | ) |
| Total                                                  | $                                                                                                      | 6,478  |                                            | $      | 6,250 |   | $ | 5,031 |   | $ | 1,104 |   | $ | 1,513 |   | $ | 988 |   |
|                                                   |                                                                                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                  only portions of the segment that are financial services                  businesses. |
|-----|-----------------------------------------------------------------------------------------------------------------|

|                                                   | **Interest                  on loans** |   | **Interest                  expense** |   |
|--------------------------------------------------------|----------------------------------------|--------|---------------------------------------|--------|
| *(In                  millions)*                       | **2005**                               |   | **2004**                              |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                   |                                   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance                 | $                                      | 6,032  |                                  | $      | 5,704 |   | $ | 5,240 |   | $ | 5,893 |   | $ | 4,720 |   | $ | 4,630 |   |
| GE                  Consumer Finance                   |                                   | 13,086 |                                  |   | 10,619 |   |   | 9,114 |   |   | 5,443 |   |   | 3,564 |   |   | 2,696 |   |
| GE                  Industrial(a)                      |                                   | 10     |                                  |   | 12 |   |   | 61 |   |   | 536 |   |   | 526 |   |   | 601 |   |
| GE                  Infrastructure(a)                  |                                   | 541    |                                  |   | 391 |   |   | 433 |   |   | 1,706 |   |   | 1,436 |   |   | 1,236 |   |
| GECS                  corporate items and eliminations |                                   | 427    |                                  |   | 588 |   |   | 600 |   |   | 730 |   |   | 875 |   |   | 734 |   |
| Total                                                  | $                                      | 20,096 |                                  | $      | 17,314 |   | $ | 15,448 |   | $ | 14,308 |   | $ | 11,121 |   | $ | 9,897 |   |
|                                                   |                                   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                  only portions of the segment that are financial services                  businesses. |
|-----|-----------------------------------------------------------------------------------------------------------------|

|                                                   | **Assets**(b)(c)**At                  December 31** |    | **Buildings                  and equipment****additions**(d)**For                  the years ended December 31** |   |
|--------------------------------------------------------|-----------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------|--------|
| *(In                  millions)*                       | **2005**                                            |    | **2004**                                                                                                         |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                   |                                                |    |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance                 | $                                                   | 190,546 |                                                                                                             | $      | 184,388 |   | $ | 172,471 |   | $ | 5,426 |   | $ | 4,573 |   | $ | 5,141 |   |
| GE                  Consumer Finance                   |                                                | 158,829 |                                                                                                             |   | 151,255 |   |   | 106,530 |   |   | 189 |   |   | 217 |   |   | 191 |   |
| GE                  Industrial(a)                      |                                                | 17,438  |                                                                                                             |   | 17,888 |   |   | 16,774 |   |   | 3,366 |   |   | 3,060 |   |   | 1,001 |   |
| GE                  Infrastructure(a)                  |                                                | 53,852  |                                                                                                             |   | 50,921 |   |   | 45,617 |   |   | 2,874 |   |   | 3,121 |   |   | 2,345 |   |
| GECS                  corporate items and eliminations |                                                | 119,940 |                                                                                                             |   | 214,052 |   |   | 213,479 |   |   | 13 |   |   | 40 |   |   | 72 |   |
| Total                                                  | $                                                   | 540,605 |                                                                                                             | $      | 618,504 |   | $ | 554,871 |   | $ | 11,868 |   | $ | 11,011 |   | $ | 8,750 |   |
|                                                   |                                                |    |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                  only portions of the segment that are financial services                  businesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Total                  assets of the GE Commercial Finance, GE Consumer Finance, GE Industrial                  and GE Infrastructure segments at December 31, 2005, include investments                  in and advances to associated companies of $3,990 million, $5,902                  million,                  $163 million and $3,447 million, respectively, which contributed                  approximately $284 million, $295 million, $(13) million and $342                  million,                  respectively, to segment pre-tax income for the year ended December                  31,                  2005.  |
| (c)  | Assets                  of discontinued operations are included in GECS corporate items                  and                  eliminations for all periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (d)       | Additions                  to buildings and equipment include amounts relating to principal                  businesses purchased.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

**Basis        for presentation**

**Note        18. Derivatives and Other Financial Instruments**

**Derivatives        and hedging**

**Cash        flow hedges**

----

**Fair        value hedges**

**Net        investment hedges**

**Derivatives        not designated as hedges**

----

**Earnings        effects of derivatives**

**Pre-tax        Gains (Losses)**

| *December                  31 (In millions)*                        | **2005** |   | **2004** |   | **2003** |   |
|---------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                |     |   |     |   |     |   |   |   |   |
| **Cash                  flow hedges**                               |     |   |     |   |     |   |   |   |   |
| Ineffectiveness                                                     | $        | (31    | )        | $      | 3        |   | $ | (18 | ) |
| Amounts                  excluded from the measure of effectiveness |     | (5     | )        |   | (6       | )      |   | - |   |
|                                                                |     |   |     |   |     |   |   |   |   |
| **Fair                  value hedges**                              |     |   |     |   |     |   |   |   |   |
| Ineffectiveness                                                     |     | 4      |     |   | 13       |   |   | 1 |   |
| Amounts                  excluded from the measure of effectiveness |     | (8     | )        |   | 3        |   |   | - |   |

**Counterparty        credit risk**

----

**Counterparty        Credit Criteria**

|                                                                                | **Credit                  rating** |
|-------------------------------------------------------------------------------------|------------------------------------|
|                                                                                | Moody’s                      |   | S&P |
|                                                                                |                               |   |   |
| Foreign                  exchange forwards and other derivatives less than one year | P-1                                |   | A-1 |
| All                  derivatives between one and five years                         | Aa3(a)                             |   | AA-(a) |
| All                  derivatives greater than five years                            | Aaa(a)                             |   | AAA(a) |
|                                                                                |                               |   |   |

| (a) | Counterparties                  that have an obligation to provide collateral to cover credit exposure                  in                  accordance with a credit support agreement must have a minimum                  A3/A-                  rating. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Exposure        Limits**

| *(In                  millions)*    |   |            |
|-------------------------------------|--------|-----------------|
|                                |   |            |
| **Minimum                  rating** |   | **Exposure**(a) |   |
| Moody’s                       |   | S&P         |   | With                  collateral arrangements |   | Without                  collateral arrangements |   |
|                                |   |            |   |   |   |   |   |
| Aaa                                 |   | AAA             |   | $ | 100 |   | $ | 75 |   |
| Aa3                                 |   | AA-             |   |   | 50 |   |   | 50 |   |
| A3                                  |   | A-              |   |   | 5 |   |   | - |   |
|                                |   |            |   |   |   |

| (a) | For                  derivatives with maturities less than one year, counterparties                  are                  permitted to have unsecured exposure up to $150 million with a                  minimum                  rating of A-1/P-1. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**Financial        Instruments**

|                                          | **2005**       |   | **2004**                              |
|-----------------------------------------------|----------------|--------|---------------------------------------|
|                                          |           |   | Assets                  (liabilities) |   |   |   |   | Assets                  (liabilities) |
| *December                  31 (In millions)*  | Notionalamount |   | Carryingamount                  (net) |   | Estimatedfair                  value |   | Notionalamount |   |   | Carryingamount                  (net) |   | Estimatedfair                  value |
| Assets                                        |           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                         | $              | (a)    |                                  | $ | 223,855 |   | $ | 224,259 |   | $ | (a) |   | $ | 216,035 |   | $ | 217,155 |   |
| Other                  commercial and         |           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| residential                  mortgages        |           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| held                  for sale                |           | (a)    |                                  |   | 6,696 |   |   | 6,696 |   |   | (a) |   |   | 5,143 |   |   | 5,113 |   |
| Other                  financial instruments  |           | (a)    |                                  |   | 4,138 |   |   | 4,494 |   |   | (a) |   |   | 2,972 |   |   | 3,184 |   |
| Liabilities                                   |           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings(b)(c)                              |           | (a)    |                                  |   | (362,069 | ) |   | (369,972 | ) |   | (a) |   |   | (355,501 | ) |   | (362,851 | ) |
| Investment                  contract benefits |           | (a)    |                                  |   | (9,877 | ) |   | (9,862 | ) |   | (a) |   |   | (12,539 | ) |   | (12,520 | ) |
| Insurance                  - credit life(d)   |           | 2,365  |                                  |   | (8 | ) |   | (8 | ) |   | 2,210 |   |   | (13 | ) |   | (13 | ) |
|                                          |           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | These                  financial instruments do not have notional amounts.                                                                     |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Included                  effects of interest rate and cross-currency swaps.                                                                   |   |
| (c)  | See                  note 11.                                                                                                                  |   |
| (d)       | Net                  of reinsurance of $292 million and $105 million at December 31,                  2005 and                  2004, respectively. |   |

**Loans**

**Borrowings**

**Investment        contract benefits**

**All        other instruments**

----

**Residential        mortgages**

**Insurance        - credit life**

**Loan        Commitments**

|                                                             | **Notional                  amount** |    |
|------------------------------------------------------------------|--------------------------------------|---------|
| *December                  31 (In millions)*                     | **2005**                             |    | **2004** |   |
|                                                             |                                 |    |   |   |   |   |
| Ordinary                  course of business lending commitments |                                 |    |   |   |   |   |
| Fixed                  rate                                      | $                                    | 4,648   |   | $ | 2,260 |   |
| Variable                  rate                                   |                                 | 7,026   |   |   | 8,145 |   |
| Unused                  revolving credit lines(a)                |                                 |    |   |   |   |   |
| Commercial                                                       |                                 |    |   |   |   |   |
| Fixed                  rate                                      |                                 | 779     |   |   | 1,210 |   |
| Variable                  rate                                   |                                 | 20,779  |   |   | 21,411 |   |
| Consumer                  - principally credit cards             |                                 |    |   |   |   |   |
| Fixed                  rate                                      |                                 | 170,367 |   |   | 141,965 |   |
| Variable                  rate                                   |                                 | 281,113 |   |   | 200,219 |   |
|                                                             |                                 |    |   |   |   |   |

| (a) | Excluded                  inventory financing arrangements, which may be withdrawn at our                  option, of                  $11.4 billion and $8.9 billion as of December 31, 2005 and 2004,                  respectively. |   |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note        19. Securitization Entities**

----

| *December                  31 (In millions)* | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|
|                                         |     |   |     |   |
| Receivables                  secured by:     |     |   |     |   |   |   |
| Equipment                                    | $        | 12,949 |     | $      | 13,941 |   |
| Commercial                  real estate      |     | 13,010 |     |   | 14,626 |   |
| Residential                  real estate     |     | 8,882  |     |   | 9,094 |   |
| Other                  assets                |     | 12,869 |     |   | 9,880 |   |
| Credit                  card receivables     |     | 10,039 |     |   | 7,075 |   |
| Total                  securitized assets    | $        | 57,749 |     | $      | 54,616 |   |

| *December                  31 (In millions)* | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|
|                                         |     |   |     |   |
| Off-balance                  sheet(a)(b)     | $        | 39,845 |     | $      | 28,623 |   |
| On-balance                  sheet(c)         |     | 17,904 |     |   | 25,993 |   |
| Total                  securitized assets    | $        | 57,749 |     | $      | 54,616 |   |
|                                         |     |   |     |   |   |   |

| (a)  | At                  December 31, 2005 and 2004, liquidity support amounted to $2,000                  million                  and $2,300 million, respectively. These amounts are net of $3,800                  million                  and $4,300 million, respectively, participated or deferred beyond                  one                  year. Credit support amounted to $6,000 million and $6,600 million                  at                  December 31, 2005 and 2004, respectively.             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                  for recourse obligations related to off-balance sheet assets were                  $93                  million and $64 million at December 31, 2005 and 2004,                  respectively.                                                                                                                                                                                                                                                                                       |
| (c)       | At                  December 31, 2005 and 2004, liquidity support amounted to $10,000                  million                  and $14,400 million, respectively. These amounts are net of $100                  million                  and $1,200 million, respectively, participated or deferred beyond                  one                  year. Credit support amounted to $4,800 million and $6,900 million                  at                  December 31, 2005 and 2004,                  respectively. |

| *December                  31 (In millions)*              | **2005** |   | **2004** |   |
|-----------------------------------------------------------|----------|--------|----------|--------|
|                                                      |     |   |     |   |   |   |
| Financing                  receivables - net (note 6)     | $        | 16,615 |     | $      | 22,848 |   |
| Other                  assets                             |     | 1,235  |     |   | 2,384 |   |
| Other,                  principally investment securities |     | 54     |     |   | 761 |   |
| Total                                                | $        | 17,904 |     | $      | 25,993 |   |

**Off-balance        sheet arrangements**

----

| *December                  31 (In millions)* | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|
|                                         |     |   |     |   |   |   |
| Retained                  interests          | $        | 3,905  |     | $      | 2,970 |   |
| Servicing                  assets            |     | 29     |     |   | 33 |   |
| Recourse                  liability          |     | (93    | )        |   | (64 | ) |
| Total                                        | $        | 3,841  |     | $      | 2,939 |   |

| • | **Retained                  interests.**                  When we securitize receivables, we determine fair value of retained                  interests based on discounted cash flow models that incorporate,                  among                  other things, assumptions about loan pool credit losses, prepayment                  speeds                  and discount rates. These assumptions are based on our experience,                  market                  trends and anticipated performance related to the particular assets                  securitized. We classify retained interests in securitized receivables                  as                  investment securities and mark them to fair value each reporting                  period,                  updating our models for current assumptions. These assets decrease                  as cash                  is received in payment. When the carrying amounts exceed fair value,                  we                  evaluate whether the unrealized loss is other than temporary and,                  if so,                  record any indicated loss in earnings currently. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Servicing                  assets.**                  Following a securitization transaction, we also may provide servicing                  for                  a market-based fee based on remaining outstanding principal balances.                  Servicing assets are primarily associated with residential mortgage                  loans.                  Their value is subject to credit, prepayment and interest rate                  risk. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Recourse                  liability.**                  Certain transactions involve credit support agreements. As a result,                  we                  provide for expected credit losses at amounts that approximate                  fair                  value. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *(Dollars                  in millions)*             | **Equipment** |   | **Commercial****real                  estate** |   | **Other                  assets** |   | **Credit                  card****receivables** |   |
|------------------------------------------------------|---------------|--------|------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------------------|--------|
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| **2005**                                             |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Cash                  proceeds from securitization   | $             | 3,702  |                                           | $      | 5,571                             |   | $                                               | 4,705  |   | $ | 6,985 |   |
| Proceeds                  from collections           |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| reinvested                  in new receivables       |          | -      |                                           |   | -                                 |   |                                            | 27,697 |   |   | 10,067 |   |
| Cash                  received on retained interests |          | 190    |                                           |   | 69                                |   |                                            | 10     |   |   | 1,644 |   |
| Cash                  received from servicing and    |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| other                  sources                       |          | 75     |                                           |   | 36                                |   |                                            | 91     |   |   | 155 |   |
| Weighted                  average lives (in months)  |          | 37     |                                           |   | 80                                |   |                                            | 35     |   |   | 8 |   |
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Assumptions                  as of sale date(a)      |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Discount                  rate                       |          | 8.8    | %                                              |   | 13.4                              | %      |                                            | 12.6   | % |   | 11.7 | % |
| Prepayment                  rate                     |          | 8.8    | %                                              |   | 6.5                               | %      |                                            | 21.2   | % |   | 12.6 | % |
| Estimate                  of credit losses           |          | 2.3    | %                                              |   | 0.8                               | %      |                                            | 0.6    | % |   | 7.5 | % |
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |

| (a) | Based                  on weighted averages. |   |
|-----|----------------------------------------------|--------|

----

| *(Dollars                  in millions)*             | **Equipment** |   | **Commercial****real                  estate** |   | **Other                  assets** |   | **Credit                  card****receivables** |   |
|------------------------------------------------------|---------------|--------|------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------------------|--------|
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| **2004**                                             |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Cash                  proceeds from securitization   | $             | 5,367  |                                           | $      | 4,578                             |   | $                                               | -      |   | $ | 8,121 |   |
| Proceeds                  from collections           |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| reinvested                  in new receivables       |          | -      |                                           |   | -                                 |   |                                            | 21,389 |   |   | 5,208 |   |
| Cash                  received on retained interests |          | 107    |                                           |   | 70                                |   |                                            | 128    |   |   | 1,788 |   |
| Cash                  received from servicing and    |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| other                  sources                       |          | 85     |                                           |   | 6                                 |   |                                            | 62     |   |   | 138 |   |
| Weighted                  average lives (in months)  |          | 37     |                                           |   | 68                                |   |                                            | -      |   |   | 7 |   |
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Assumptions                  as of sale date(a)      |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| Discount                  rate                       |          | 8.2    | %                                              |   | 13.0                              | %      |                                            | -      |   |   | 12.2 | % |
| Prepayment                  rate                     |          | 9.1    | %                                              |   | 11.2                              | %      |                                            | -      |   |   | 14.9 | % |
| Estimate                  of credit losses           |          | 1.9    | %                                              |   | 1.1                               | %      |                                            | -      |   |   | 8.9 | % |
|                                                 |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |

| (a) | Based                  on weighted averages. |   |
|-----|----------------------------------------------|--------|

| *(Dollars                  in millions)*          | **Equipment** |   | **Commercial****real                  estate** |   | **Other                  assets** |   | **Credit                  card****receivables** |   |
|---------------------------------------------------|---------------|--------|------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------------------|--------|
|                                              |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| **Discount                  rate**(a)             |          | 6.4    | %                                              |   | 11.0                              | %      |                                            | 5.5    | % |   | 11.1 | % |
| Effect                  of:                       |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| 10%                  Adverse change               | $             | (12    | )                                              | $      | (14                               | )      | $                                               | (4     | ) | $ | (10 | ) |
| 20%                  Adverse change               |          | (24    | )                                              |   | (26                               | )      |                                            | (8     | ) |   | (23 | ) |
| **Prepayment                  rate**(a)           |          | 9.7    | %                                              |   | 1.8                               | %      |                                            | 8.4    | % |   | 12.8 | % |
| Effect                  of:                       |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| 10%                  Adverse change               | $             | (6     | )                                              | $      | (5                                | )      | $                                               | (7     | ) | $ | (40 | ) |
| 20%                  Adverse change               |          | (12    | )                                              |   | (10                               | )      |                                            | (12    | ) |   | (77 | ) |
| **Estimate                  of credit losses**(a) |          | 2.0    | %                                              |   | 1.1                               | %      |                                            | 0.5    | % |   | 7.1 | % |
| Effect                  of:                       |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| 10%                  Adverse change               | $             | (11    | )                                              | $      | (7                                | )      | $                                               | (5     | ) | $ | (39 | ) |
| 20%                  Adverse change               |          | (22    | )                                              |   | (13                               | )      |                                            | (9     | ) |   | (81 | ) |
| Remaining                  weighted               |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |
| average                  lives (in months)        |          | 27     |                                           |   | 51                                |   |                                            | 15     |   |   | 7 |   |
| Net                  credit losses                | $             | 63     |                                           | $      | -                                 |   | $                                               | 8      |   | $ | 588 |   |
| Delinquencies                                     |          | 93     |                                           |   | 5                                 |   |                                            | 59     |   |   | 374 |   |
|                                              |          |   |                                           |   |                              |   |                                            |   |   |   |   |   |

| (a) | Based                  on weighted averages. |   |
|-----|----------------------------------------------|--------|

**Guarantee        and reimbursement contracts.**

----

**Note        20. Commitments and Guarantees**

**Commitments,        including guarantees**

| • | **Liquidity                  support.**                  Liquidity support provided to holders of certain variable rate                  bonds                  issued by municipalities amounted to $2,510 million at December                  31, 2005.                  If holders elect to sell supported bonds that cannot be remarketed,                  we are                  obligated to repurchase them at par. If called upon, our position                  would be                  secured by the repurchased bonds. While we hold any such bonds,                  we would                  receive interest payments from the municipalities at a rate that                  is in                  excess of the stated rate on the bond. To date, we have not been                  required                  to perform under such arrangements and our existing liquidity support                  will                  decrease $1,437 million in 2006 and the remaining $1,073 million                  by the                  end of 2008 as the underlying variable rate bonds reach their maturity                  date. We are currently not providing any such new liquidity facilities. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Credit                  support.**                  We have provided $6,030 million of credit support on behalf of                  certain                  customers or associated companies, predominantly joint ventures                  and                  partnerships, using arrangements such as standby letters of credit                  and                  performance guarantees. These arrangements enable our customers                  and                  associated companies to execute transactions or obtain desired                  financing                  arrangements with third parties. Should the customer or associated                  company                  fail to perform under the terms of the transaction or financing                  arrangement, we would be required to perform on their behalf. Under                  most                  such arrangements, our guarantee is secured, usually by the asset                  being                  purchased or financed, but possibly by certain other assets of                  the                  customer or associated company. The length of these credit support                  arrangements parallels the length of the related financing arrangements                  or                  transactions. The liability for such credit support was $101 million                  at                  December 31, 2005. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Indemnification                  agreements.**                  These are agreements that require us to fund up to $503 million                  under                  residual value guarantees on a variety of leased equipment and                  $206                  million of other indemnification commitments arising primarily                  from sales                  of businesses or assets. Under most of our residual value guarantees,                  our                  commitment is secured by the leased asset at termination of the                  lease. The                  liability for these indemnification agreements was $39 million                  at December                  31, 2005. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Contingent                  consideration.**                  These are agreements to provide additional consideration in a business                  combination to the seller if contractually specified conditions                  related to                  the acquired entity are achieved. At December 31, 2005, we had                  recognized                  no liabilities for our total exposure of $245                  million. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Note        21. Quarterly Information (Unaudited)**

|                                         | **First                  quarter** |   | **Second                  quarter** |   | **Third                  quarter** |   | **Fourth                  quarter** |   |
|----------------------------------------------|------------------------------------|--------|-------------------------------------|--------|------------------------------------|--------|-------------------------------------|--------|
| *(In                  millions)*             | **2005**                           |   | **2004**                            |   | **2005**                           |   | **2004**                            |   | **2005** |   | **2004** |   | **2005** |   | **2004** |   |
|                                         |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  revenues              | $                                  | 14,227 |                                | $      | 11,994                             |   | $                                   | 14,375 |   | $ | 12,749 |   | $ | 15,570 |   | $ | 13,030 |   | $ | 15,125 |   | $ | 15,121 |   |
| Earnings                  from continuing    |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                  before income    |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| taxes                  and accounting change | $                                  | 2,075  |                                | $      | 1,999                              |   | $                                   | 2,234  |   | $ | 1,675 |   | $ | 3,057 |   | $ | 2,672 |   | $ | 2,879 |   | $ | 3,020 |   |
| Provision                  for income taxes  |                               | (210   | )                                   |   | (426                               | )      |                                | (210   | ) |   | (245 | ) |   | (480 | ) |   | (549 | ) |   | (204 | ) |   | (293 | ) |
| Earnings                  from continuing    |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                   |                               | 1,865  |                                |   | 1,573                              |   |                                | 2,024  |   |   | 1,430 |   |   | 2,577 |   |   | 2,123 |   |   | 2,675 |   |   | 2,727 |   |
| Earnings                  (loss) from        |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations,    |                               |   |                                |   |                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of taxes                |                               | 403    |                                |   | 398                                |   |                                | 275    |   |   | 93 |   |   | 108 |   |   | 130 |   |   | (2,708 | ) |   | (87 | ) |
| Net                  earnings                | $                                  | 2,268  |                                | $      | 1,971                              |   | $                                   | 2,299  |   | $ | 1,523 |   | $ | 2,685 |   | $ | 2,253 |   | $ | (33 | ) | $ | 2,640 |   |

**Item        9. Changes in and Disagreements with Accountants on Accounting and Financial        Disclosure.**

**Item        9A. Controls and Procedures. **

**Management’s        Annual Report on Internal Control Over Financial        Reporting**

*Internal        Control - Integrated Framework*

----

| /s/                  Jeffrey R. Immelt                                     |   | /s/                  Keith S. Sherin                                     |
|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|
| Jeffrey                  R. ImmeltChief                  Executive Officer |   | Keith                  S. SherinChief                  Financial Officer |
|                                                                       |
| March                  3, 2006                                             |

**Item        9B. Other Information.**

**PART        III**

**Item        10. Directors and Executive Officers of the Registrant.**

**Item        11. Executive Compensation.**

**Item        12. Security Ownership of Certain Beneficial Owners and Management and Related        Stockholder Matters.**

**Item        13. Certain Relationships and Related Transactions.**

**Item        14. Principal Accounting Fees and Services.**

| *(In                  millions)*    |   | **2005** |   |   | **2004** |   |
|-------------------------------------|--------|----------|--------|--------|----------|--------|
|                                |   |     |   |   |     |   |
| **Type                  of fees**   |   |     |   |   |     |   |
| Audit                  fees         | $      | 35.1     |   | $      | 32.8     |   |
| Audit-related                  fees |   | 3.7      |   |   | 7.5      |   |
| Tax                  fees           |   | 5.1      |   |   | 3.9      |   |
| All                  other fees     |   | -        |   |   | -        |   |
|                                | $      | 43.9     |   | $      | 44.2     |   |

----

**PART        IV**

**Item          15. Exhibits and Financial Statement          Schedules.**

| (a) 1. | **Financial                  Statements**            |
|-------------|------------------------------------------------------|
|        |
|        | Included                  in Part II of this report: |
|        |
|        |                                                 | Report                  of Independent Registered Public Accounting FirmStatement                  of Earnings for each of the years in the three-year period ended                  December                  31, 2005Statement                  of Changes in Shareowner’s Equity for each of the years in the three-year                  period ended December                  31, 2005Statement                  of Financial Position at December 31, 2005 and 2004Statement                  of Cash Flows for each of the years in the three-year period ended                  December 31, 2005Notes                  to Consolidated Financial Statements |
|        |
|        | Incorporated                  by reference:          |
|        |
|        |                                                 | The                  consolidated financial statements of General Electric Company,                  set forth                  in the Annual Report on Form 10-K of General Electric Company (S.E.C.                  File                  No. 001-00035) for the year ended December 31, 2005 (pages 41 through                  109)                  and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General                  Electric                  Company. |
|        |
| (a) 2. | **Financial                  Statement Schedules**   |
|        |
|        | Schedule                  I                          | Condensed                financial information of registrant. |
|        |                                                 |   |
|        |                                                 | All                  other schedules are omitted because of the absence of conditions                  under                  which they are required or because the required information is                  shown in                  the financial statements or notes                  thereto. |

----

| (a) 3. | **Exhibit                  Index**                                                                                                                                                                                              |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |
|        | The                  exhibits listed below, as part of Form 10-K, are numbered in conformity                  with the numbering used in Item 601 of Regulation S-K of the Securities                  and Exchange Commission. |

|   | **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 3(i)                  |   | A                  complete copy of the Certificate of Incorporation of GECS as last                  amended                  on July 22, 1999, and currently in effect, consisting of the following:                  (a) the Certificate of Incorporation of GECS as in effect immediately                  prior to the filing of a Certificate of Amendment on July 22, 1999                  (Incorporated by reference to Exhibit 3(i) of the GECS’ Form 10-K Report                  for the year ended December 31, 1993); and (b) a Certificate of                  Amendment                  filed with the Office of the Secretary of State, State of Delaware                  on July                  22, 1999 (Incorporated by reference to Exhibit 3(i) of GECS’ Form 10-Q                  Report for the quarter ended June 26, 1999). |
|   |
|   | 3(ii)                 |   | A                  complete copy of the By-Laws of GECS as last amended on September                  19,                  2002, and currently in effect (Incorporated by reference to Exhibit                  3(ii)                  of GECS’ Form 10-K Report for the year ended December 31,                  2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |
|   | 4(a)                  |   | Amended                  and Restated General Electric Capital Corporation Standard Global                  Multiple                  Series Indenture Provisions dated as of February 27, 1997 (Incorporated                  by                  reference to Exhibit 4(a) to GECC’s Registration Statement on Form S-3,                  File No. 333-59707).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
|   | 4(b)                  |   | Third                  Amended and Restated Indenture dated as of February 27, 1997, between                  GECC                  and JPMorgan Chase Bank, N.A., (formerly known as The Chase Manhattan                  Bank) as successor trustee (Incorporated by reference to Exhibit                  4(c) to                  GECC’s Registration Statement on Form S-3, File No.                  333-59707).                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |
|   | 4(c)                  |   | First                  Supplemental Indenture dated as of May 3, 1999, supplemental to                  Third                  Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                  by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to                  Registration Statement on Form S-3, File No.                  333-76479).                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |
|   | 4(d)                  |   | Second                  Supplemental Indenture dated as of July 2, 2001, supplemental to                  Third                  Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                  by reference to Exhibit 4(f) to GECC’s Post-Effective Amendment No. 1 to                  Registration Statement on Form S-3, File No.                  333-40880).                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
|   | 4(e)                  |   | Third                  Supplemental Indenture dated as of November 22, 2002, supplemental                  to                  Third Amended and Restated Indenture dated as of February 27, 1997                  (Incorporated by reference to Exhibit 4(cc) to Post-Effective Amendment                  No. 1 to GECC’s Registration Statement on Form S-3, File No.                  333-100527).                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

|   |
|--------|
|   | 4(f) |   | Seventh                  Amended and Restated Fiscal and Paying Agency Agreement among GECC,                  GE                  Capital Australia Funding Pty Ltd, GE Capital European Funding,                  GE Capital                  Canada Funding Company, GE Capital UK Funding and JPMorgan Chase                  Bank,                  N.A. and J.P. Morgan Bank (Ireland) p.l.c. dated as of July 1,                  2005.* |

|   | 4(g)   |   | Form                  of Global Medium-Term Note, Series A, Fixed Rate Registered Note                  (Incorporated by reference to Exhibit 4(m) to GECC’s Registration                  Statement on Form S-3, File No. 333-100527).                                                                                                                                                    |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 4(h)   |   | Form                  of Global Medium-Term Note, Series A, Floating Rate Registered                  Note                  (Incorporated by reference to Exhibit 4(n) to GECC’s Registration                  Statement on Form S-3, File No. 333-100527).                                                                                                                                |
|   |
|   | 4(i)   |   | Form                  of Euro Medium-Term Note and Debt Security - Permanent Global Fixed                  Rate                  Bearer Note.*                                                                                                                                                                                                                                                   |
|   |
|   | 4(j)   |   | Form                  of Euro Medium-Term Note and Debt Security - Permanent Global Floating                  Rate Bearer Note.*                                                                                                                                                                                                                                                                 |
|   |
|   | 4(k)   |   | Form                  of Euro Medium-Term Note and Debt Security - Temporary Global Fixed                  Rate                  Bearer Note.*                                                                                                                                                                                                                                                   |
|   |
|   | 4(l)   |   | Form                  of Euro Medium-Term Note and Debt Security - Temporary Global Floating                  Rate Bearer Note.*                                                                                                                                                                                                                                                                 |
|   |
|   | 4(m)   |   | Form                  of Euro Medium-Term Note and Debt Security - Definitive Fixed Rate                  Bearer                  Note.*                                                                                                                                                                                                                                                         |
|   |
|   | 4(n)   |   | Form                  of Euro Medium-Term Note and Debt Security - Definitive Floating                  Rate                  Bearer Note.*                                                                                                                                                                                                                                                      |
|   |
|   | 4(o)   |   | Agreement                  to furnish to the Securities and Exchange Commission upon request                  a copy                  of instruments defining the rights of holders of certain long-term                  debt of                  the registrant and all subsidiaries for which consolidated or                  unconsolidated financial statements are required to be filed.* |
|   |
|   | 10(a)  |   | Transaction                  Agreement by and between Swiss Reinsurance Company and General                  Electric                  Company dated November 18, 2005 (Incorporated by reference to Exhibit                  10(gg) of General Electric Company’s Form 10-K Report for the year ended                  December 31, 2005).                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                             |
|   | 12(a)  |   | Computation                  of Ratio of Earnings to Fixed Charges.*                                                                                                                                                                                                                                                                                                                             |
|   |
|   | 12(b)  |   | Computation                  of Ratio of Earnings to Combined Fixed Charges and Preferred Stock                  Dividends.*                                                                                                                                                                                                                                                                     |
|   |
|   | 23(ii) |   | Consent                  of KPMG LLP.*                                                                                                                                                                                                                                                                                                                                                           |
|   |

----

|                                                               |
|--------------------------------------------------------------------|
|                                                               |  24 |   | Power                of Attorney.* |
|                                                               |   |   |   |
|                                                               | 31(a) |   | Certification                  Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities                  Exchange                  Act of 1934, as amended.* |
|                                                               |
|                                                               | 31(b) |   | Certification                  Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities                  Exchange                  Act of 1934, as amended.* |
|                                                               |
|                                                               | 32 |   | Certification                  Pursuant to 18 U.S.C. Section 1350.* |
|                                                               |   |   |   |
|                                                               | 99(a) |   | Income                  Maintenance Agreement dated March 28, 1991, between General Electric                  Company and General Electric Capital Corporation. (Incorporated                  by                  reference to Exhibit 99(h) to GECC’s Registration Statement on Form S-3,                  File No. 333-100527). |
|                                                               |
|                                                               | 99(b) |   | The                  consolidated financial statements of General Electric Company,                  set forth                  in the Annual Report on Form 10-K of General Electric Company (S.E.C.                  File                  No. 001-00035) for the year ended December 31, 2005, (pages 41                  through                  109) and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General                  Electric Company. |
|                                                               |
|                                                               | 99(c) |   | Letter,                  dated February 4, 1999, from Dennis D. Dammerman of General Electric                  Company to Denis J. Nayden of General Electric Capital Corporation                  pursuant to which General Electric Company agrees to provide additional                  equity to General Electric Capital Corporation in conjunction with                  certain                  redemptions by General Electric Capital Corporation of shares of                  its                  Variable Cumulative Preferred Stock. (Incorporated by reference                  to Exhibit                  99(g) to General Electric Capital Corporation’s Post-Effective Amendment                  No. 1 to Registration Statement on Form S-3, File No.                  333-59707). |
|                                                               |
|   * Filed                  electronically herewith. |

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Schedule        I - Condensed Financial Information of Registrant**

**General        Electric Capital Services, Inc.**

**Condensed        Statement of Current and Retained Earnings**

| *For                  the years ended December 31 (In millions)*               |   | **2005** |   |   | **2004** |   |   | **2003** |   |
|--------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                                                                           |   |     |   |   |     |   |   |     |   |
| **Revenues**                                                                   | $      | 284      |   | $      | 109      |   | $      | (47      | )      |
|                                                                           |   |     |   |   |     |   |   |     |   |
| **Expenses**                                                                   |   |     |   |   |     |   |   |     |   |
| Interest                                                                       |   | 400      |   |   | 212      |   |   | 183      |   |
| Operating                  and administrative                                  |   | 678      |   |   | 174      |   |   | 112      |   |
| Total                  expenses                                                |   | 1,078    |   |   | 386      |   |   | 295      |   |
|                                                                           |   |     |   |   |     |   |   |     |   |
| Loss                  before income taxes and equity in earnings of affiliates |   | (794     | )      |   | (277     | )      |   | (342     | )      |
| Income                  tax benefit (expense)                                  |   | (800     | )      |   | 45       |   |   | 79       |   |
| Equity                  in earnings of affiliates                              |   | 8,813    |   |   | 8,619    |   |   | 8,251    |   |
| Cumulative                  effect of accounting change                        |   | -        |   |   | -        |   |   | (339     | )      |
|                                                                           |   |     |   |   |     |   |   |     |   |
| **Net                  earnings**                                         |   | 7,219    |   |   | 8,387    |   |   | 7,649    |   |
| Dividends                                                                      |   | (7,816   | )      |   | (3,105   | )      |   | (3,435   | )      |
| Retained                  earnings at January 1                                |   | 35,976   |   |   | 30,694   |   |   | 26,480   |   |
|                                                                           |   |     |   |   |     |   |   |     |   |
| **Retained                  earnings at December 31**                     | $      | 35,379   |   | $      | 35,976   |   | $      | 30,694   |   |
|                                                                           |   |     |   |   |     |   |   |     |   |

| The                  notes to condensed financial statements are an integral part of                  this                  statement.  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Schedule        I - Condensed Financial Information of Registrant -        (Continued)**

**General        Electric Capital Services, Inc.**

**Condensed        Statement of Financial Position**

| *At                  December 31 (In millions, except share amounts)*                                      |   | **2005** |   |   | **2004** |   |
|------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                       |   |     |   |   |     |   |
| **Assets**                                                                                                 |   |     |   |   |     |   |
| Cash                  and equivalents                                                                      | $      | 743      |   | $      | 45       |   |
| Investment                  in and advances to affiliates                                                  |   | 59,047   |   |   | 62,375   |   |
| Other                  assets                                                                              |   | 418      |   |   | 517      |   |
| Total                  assets                                                                              | $      | 60,208   |   | $      | 62,937   |   |
|                                                                                                       |   |     |   |   |     |   |
| **Liabilities                  and equity**                                                                |   |     |   |   |     |   |
| Borrowings                                                                                                 | $      | 7,889    |   | $      | 7,756    |   |
| Other                  liabilities                                                                         |   | 1,004    |   |   | 389      |   |
| Total                  liabilities                                                                         |   | 8,893    |   |   | 8,145    |   |
|                                                                                                       |   |     |   |   |     |   |
| Cumulative                  preferred stock, $10,000 par value (80,000 shares                  authorized; |   |     |   |   |     |   |
| 51,000                  shares issued and held primarily by consolidated affiliates                  at    |   |     |   |   |     |   |
| December                  31, 2005 and 2004)                                                               |   | 510      |   |   | 510      |   |
| Common                  stock, $1,000 par value (1,260 shares authorized at                                |   |     |   |   |     |   |
| December                  31, 2005 and 2004, and 1,064 shares issued and outstanding                  at   |   |     |   |   |     |   |
| December                  31, 2005 and 2004)                                                               |   | 1        |   |   | 1        |   |
| Accumulated                  gains (losses) - net                                                          |   |     |   |   |     |   |
| Investment                  securities                                                                     |   | 1,754    |   |   | 2,345    |   |
| Currency                  translation adjustments                                                          |   | 2,287    |   |   | 5,104    |   |
| Cash                  flow hedges                                                                          |   | (813     | )      |   | (1,354   | )      |
| Minimum                  pension liabilities                                                               |   | (179     | )      |   | (150     | )      |
| Additional                  paid-in capital                                                                |   | 12,376   |   |   | 12,360   |   |
| Retained                  earnings                                                                         |   | 35,379   |   |   | 35,976   |   |
| Total                  shareowner’s equity                                                           |   | 51,315   |   |   | 54,792   |   |
| Total                  liabilities and equity                                                              | $      | 60,208   |   | $      | 62,937   |   |
|                                                                                                       |   |     |   |   |     |   |

| The                  sum of accumulated gains (losses) on investment securities, currency                  translation adjustments, cash flow hedges and minimum pension liabilities                  constitutes “Accumulated nonowner changes other than earnings,” and was                  $3,049 million and $5,945 million at December 31, 2005 and 2004,                  respectively.  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                  notes to condensed financial statements are an integral part of                  this                  statement.                                                                                                                                                                                                                                                                           |   |

----

**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Schedule        I - Condensed Financial Information of Registrant -        (Continued)**

**General        Electric Capital Services, Inc.**

**Condensed        Statement of Cash Flows**

| *For                  the years ended December 31 (In millions)*                                                                       | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                                                   |     |   |     |   |     |   |
| **Cash                  from operating activities**                                                                                    | $        | 7,324  |     | $      | 3,122    |   | $ | 4,114 |   |
| **Cash                  flows****-****investing activities**                                                                           |     |   |     |   |     |   |   |   |   |
| Decrease                  (increase) in investment in and advances to affiliates                                                       |     | 559    |     |   | (1,120   | )      |   | 388 |   |
| Net                  decrease in other assets                                                                                          |     | 489    |     |   | 124      |   |   | 457 |   |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
| **Cash                  from (used for) investing activities**                                                                         |     | 1,048  |     |   | (996     | )      |   | 845 |   |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
| **Cash                  flows****-****financing activities**                                                                           |     |   |     |   |     |   |   |   |   |
| Net                  increase (decrease) in borrowings                                                                                 |     | 142    |     |   | 499      |   |   | (1,013 | ) |
| Dividends                  paid to shareowner                                                                                          |     | (7,816 | )        |   | (3,105   | )      |   | (3,435 | ) |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
| **Cash                  used for financing activities**                                                                                |     | (7,674 | )        |   | (2,606   | )      |   | (4,448 | ) |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
| **Increase                  (decrease) in cash and equivalents during year**                                                           |     | 698    |     |   | (480     | )      |   | 511 |   |
| Cash                  and equivalents at beginning of year                                                                             |     | 45     |     |   | 525      |   |   | 14 |   |
| Cash                  and equivalents at end of year                                                                                   | $        | 743    |     | $      | 45       |   | $ | 525 |   |
|                                                                                                                                   |     |   |     |   |     |   |   |   |   |
|                                                                                                                                   |     |
| The                  notes to condensed financial statements are an integral part of                  this                  statement. |     |

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**General        Electric Capital Services, Inc. and consolidated        affiliates**

**Schedule        I - Condensed Financial Information of Registrant -        (Concluded)**

**General        Electric Capital Services, Inc.**

**Notes        to Condensed Financial Statements**

**Financial        statements presentation**

**Income        taxes**

**Dividends        from affiliates**

----

**Signatures**

|                           |   | General                  Electric Capital Services, Inc. |
|--------------------------------|--------|----------------------------------------------------------|
|                           |   |                                                |
| March                  3, 2006 |   | By: /s/                  Jeffrey R. Immelt          |  |
|                           |   | Jeffrey                  R. Immelt                       |
|                           |   | Chief                  Executive Officer                 |

----

| Signature                                             |                                              | Title                                                 |   | Date                           |
|-------------------------------------------------------|---------------------------------------------------|-------------------------------------------------------|--------|--------------------------------|
|                                             |                                              |                                                  |   |                           |
| /s/                  Jeffrey R. Immelt                |                                              | Chief                  Executive Officer              |   | March                  3, 2006 |
| Jeffrey                  R. Immelt                    |                                              | (Principal                  Executive Officer)        |   |                           |
|                                             |                                              |                                                  |   |                           |
| /s/                  Keith S. Sherin                  |                                              | Chief                  Financial Officer              |   | March                  3, 2006 |
| Keith                  S. Sherin                      |                                              | (Principal                  Financial Officer)        |   |                           |
|                                             |                                              |                                                  |   |                           |
| /s/                  Philip D. Ameen                  |                                              | Senior                  Vice President and Controller |   | March                  3, 2006 |
| Philip                  D. Ameen                      |                                              | (Principal                  Accounting Officer)       |   |                           |
|                                                  |                                              |                                                  |   |                           |
|                                                  |                                              |                                                  |   |                           |
| CHARLES                  E. ALEXANDER*                |                                              | Director                                              |   |                           |
| JEFFREY                  S. BORNSTEIN*                |                                              | Director                                              |   |                           |
| DAVID                  L. CALHOUN*                    |                                              | Director                                              |   |                           |
| KATHRYN                  A. CASSIDY*                  |                                              | Director                                              |   |                           |
| JAMES                  A. COLICA*                     |                                              | Director                                              |   |                           |
| PAMELA                  DALEY*                        |                                              | Director                                              |   |                           |
| BRACKETT                  B. DENNISTON*               |                                              | Director                                              |   |                           |
| JEFFREY                  R. IMMELT*                   |                                              | Director                                              |   |                           |
| JOHN                  H. MYERS*                       |                                              | Director                                              |   |                           |
| MICHAEL                  A. NEAL*                     |                                              | Director                                              |   |                           |
| DAVID                  R. NISSEN*                     |                                              | Director                                              |   |                           |
| RONALD                  R. PRESSMAN*                  |                                              | Director                                              |   |                           |
| DEBORAH                  M. REIF*                     |                                              | Director                                              |   |                           |
| JOHN                  G. RICE*                        |                                              | Director                                              |   |                           |
| JOHN                  M. SAMUELS*                     |                                              | Director                                              |   |                           |
| KEITH                  S. SHERIN*                     |                                              | Director                                              |   |                           |
| ROBERT                  C. WRIGHT*                    |                                              | Director                                              |   |                           |
|                                                  |                                              |                                                  |   |                           |
| A                  MAJORITY OF THE BOARD OF DIRECTORS |                                              |                                                  |
|                                             |                                              |                                                  |   |                           |
| *By:                                                  | /s/                  Philip D. Ameen              |                                                  |   | March                  3, 2006 |
|                                                  | Philip                  D. Ameen Attorney-in-fact |                                                  |   |                           |

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