On September 20, 1976, a group of individuals on behalf of themselves and all other individuals who are property owners on, or derive an income from, the Coosa River, its tributaries and Lake Weiss (all of which are located in Georgia or Alabama), filed suit in the U.S. District Court for the northern District of Georgia, alleging that General Electric's plant in Floyd County, Georgia caused PCB's to be released into a stream that leads directly into the Coosa River. It is claimed that General Electric has been discharging PCB's into the stream knowing that this would cause a polluted and toxic condition in the waters and would make the fish therein poisonous and uneatable. Damages for loss of income relating to fishing activities and diminution in waterside property values are sought on behalf of the plaintiffs and the alleged class in the aggregate amount of $500 million. (On September 24, 1976, the plaintiffs in this action also filed a companion case in the Superior Court of Fulton County, Georgia, making substantially the same allegations and seeking the same relief). On September 20, 1976, another group of individuals filed a similar suit in the same Federal District Court on behalf of themselves and the same alleged class they purport to represent, seeking damages for loss of income and reduction in property values as the result of the alleged pollution, in the amount of $500,000. General Electric intends to vigorously defend these law suits. Due to the short time the cases have been pending General Electric is unable to express an opinion as to the ultimate outcome thereof, however, it would seem highly improbable that even if liability should be established the recovery would ever approach $500 million. In September, 1973 a series of Commissioner's charges were filed with the Equal Employment Opportunity Commission (EEOC) against four major United States companies, including General Electric, and their unions alleging a broad pattern of violation of the Civil Rights Act of 1964 by the respondent companies and unions. During the period to date, this matter has been and remains the subject of processing and investigation by the EEOC staff. MANAGEMENT OF GENERAL ELECTRIC Directors The following table sets forth certain information, as of September 20, 1976, concerning the directors of General Electric. If the Merger is consummated, General Electric's Board of Directors and counsel will reexamine the composition of the Board in the light of the business activities of Utah and of the enterprises with which members of the Board are associated. It is not anticipated that this re-examination will result in any significant change in Board membership. Except for this contingency, it is anticipated that the terms of all directors and principal executive officers of General Electric will continue after the effective date of the Merger and until General Electric's next annual statutory meeting of share owners, which is scheduled for April, 1977. Common Stock Beneficially Owned As of Principal Occupation and Director September 20, Name Positions with GE Since 1976 J. Paul Austin......................... Chairman of the Board and Director, 1964 500 The Coca-Cola Company, Atlanta, Georgia James G. Boswell, II.............. President, J. G. Boswell Company, 1971 200 farming and related businesses, Los Angeles, California Silas S. Cathcart*................... Chairman and Director, Illinois Tool 1972 1,800 Works, Inc., cutting tools, fasteners, packaging and other products, Chicago, Illinois Walter D. Dance.................... Vice Chairman of the Board, Director 1971 14,2072 and Executive Officer, General Electric Charles D. Dickey, Jr............ Chairman, President and Director, 1972 3,1743 Scott Paper Company, Philadelphia, Pennsylvania Henry H. Henley, Jr.*............ President and Director, Cluett, Pea- 1972 200 body & Co., Inc., manufacturing and retailing of apparel, New York, N. Y. 34 Common Stock Beneficially Owned As of Principal Occupation and Director September 20, Name Positions with GE Since 1976 Henry L. Hillman................... President and Director, The Hillman 1972 2,8484 Company, diversified operations and investments including real estate, coal lands, oil and gas properties, transportation and manufacturing, Pittsburgh, Pennsylvania Frederick L. Hovde................ President Emeritus, Purdue University, 1956 200 Lafayette, Indiana Gilbert W. Humphrey........... Chairman of the Board and Director, 1955 7,8005 The Hanna Mining Company, Cleveland, Ohio Reginald H. Jones.................. Chairman of the Board, Director and 1971 24,5696 Chief Executive Officer, General Electric John E. Lawrence*................ President, James Lawrence & Co. Inc., 1957 2,064 cotton merchants, Boston, Massachusetts Ralph Lazarus........................ Chairman of the Board and Director, 1962 4867 Federated Department Stores, Inc., Cincinnati, Ohio Edmund W. Littlefield........... Chairman of the Board and Director of 1964 2,500 8 Utah Jack S. Parker......................... Vice Chairman of the Board, Director 1968 27,7159 and Executive Officer, General Electric Samuel R. Pierce, Jr.*............ Partner, Battle, Fowler, Lidstone, Jaf- 1974 120 fin, Pierce & Kneel, law firm, New York, N. Y. Gilbert H. Scribner, Jr.*........ President and Director, Scribner & Co., 1962 1,000 real estate and insurance, Chicago, Illinois Walter B. Wriston*................ Chairman of the Board and Director, 1962 200 Citicorp, banking and financial services, New York, N. Y. _ * Member of the Audit Committee. Reference Notes Explaining Director's Share Holdings 1 The number of shares owned is the number of General Electric shares beneficially owned, directly or indirectly, as reported by each director. In the cases of Messrs. Jones, Dance and Parker, who are officers of General Electric, the number includes shares allotted on a deferred payment basis under General Electric's Incentive Compensation Plan. 2Includes 10,335 deferred shares. 3 Includes 474 shares held by Mr. Dickey's wife and 1,200 shares held in trust, as to all of which Mr. Dickey disclaims beneficial ownership. 4 Includes 348 shares held by Mr. Hillman's wife as to which he disclaims beneficial ownership. 5Includes 5,000 shares held by Mr. Humphrey's wife and 2,300 shares held in a trust in which a member of his immediate family has a beneficial interest, as to all of which Mr. Humphrey disclaims beneficial ownership. 6 Includes 16,045 deferred shares. 7 Includes 86 shares held by Mr. Lazarus' wife and 200 shares held in trust for members of his immediate family, as to all of which Mr. Lazarus disclaims beneficial ownership. 8 Includes 1,500 shares held in trusts for Mr. Littlefield's children, for which Mr. Littlefield serves as trustee and as to which he disclaims beneficial ownership. 9Includes 23,534 deferred shares. 35