Kawasaki to Supply M-8 Passenger Rail Car for Metro-North and State of Connecticut.

KAWASAKI TO SUPPLY M-8 PASSENGER RAIL CARS FOR CONNECTICUT AND NEW YORK

Kawasaki Rail Car, Inc. (KRC) has been selected as the preferred carbuilder to supply 210 M-8 passenger rail cars with an option for 170 additional rail cars jointly procured by the State of Connecticut and MTA Metro-North Railroad. The contract will be $713 million for the 210 base and 90 option order. It will extend to $883 million when all the options are executed.

The new M-8 passenger rail car will be used on Metro-North`s New Haven Line and Connecticut Department of Transportation`s Shore Line East Service. The first set of cars are scheduled for delivery in 2009.

In addition, to the 380 rail cars, including options, Metro-North will have options to purchase spare parts, test equipments as well as the Cafe Cars, which will all be proposed at a later date.

KRC, together with its corporate parent Kawasaki Heavy Industries, Ltd. (KHI) has delivered more than 2,800 transit cars to major U.S. transit authorities, including the MTA New York City Transit (NYCT), MTA Long Island Railroad, Massachusetts Bay Transportation Authority, Port Authority of New York and New Jersey (PA-NY&NJ) and so forth, in its over 27 years of rail car business in the U.S.

In addition, Kawasaki also specializes in repair, rehabilitation, reconditioning and overhaul work of existing rail cars. In March 2006, Kawasaki was awarded a contract to repair 33 passenger rail cars from the State of Connecticut.

Kawasaki, a leading global rolling stock manufacturer of Japan, began its rail car business a century ago in 1906. Since then, 86,000 rolling stock have been delivered worldwide.

Kawasaki is well recognized in the global rail industry, including the U.S., for its quality, high reliability, on-time delivery and customer oriented and cooperative business approach. With this reputation, Kawasaki has also been selected as the Contractor for the PA-NY&NJ`s new PA-5 PATH trains. Also, Kawasaki is heavily involved in the procurement of NYCT`s R160 program. Under a Joint Venture with another rail car manufacturer, Kawasaki plays the important role as the engineering leader and a manufacturer of 40% of the new R160 subway cars and 100% of the R160 trucks, or the undercarriages.

In addition to KRC`s Yonkers Plant, Kawasaki also has a state-of-the-art rail car manufacturing facility at Kawasaki Motors Manufacturing Corp., U.S.A. (KMM) in Lincoln, NE. Established in 1974 as a motorcycle manufacturing plant, Kawasaki invested in a new 437,000ft2 rail car plant in 2002. With the facility at KMM, which has the capability to complete carshells as well as the final assembles of rail cars, Kawasaki can build a truly "Made in the U.S.A." rail car.