FOR RELEASE: July 4, 2002

EMD to provide locomotives to Norway

General Motors Electro-Motive Division (EMD) today announced the sale of six Series 66 (JT42CWR) locomotives for use in Norway. The sale is to leading European rail leasing company, HSBC Rail. The locomotives have been specially modified for use in the demanding conditions in Scandinavia. CargoNet AS will lease and operate the six locomotives, which will be delivered in February 2003.

The locomotives will mainly work in the extreme and rugged non-electrified northern part of Norway, operating between Trondheim and Bodo, inside the arctic circle, as freight traffic expands in this area of the country. The locomotives have been designed to operate in temperatures as low as -40c.

Rod Polacek, EMD Area Manager for Scandinavia said,

"We are delighted to have made this sale. The terrain in Norway demands a locomotive that is reliable, powerful and can operate in extreme conditions. We are pleased that the Series 66 meets all these requirements."

Kjell Froyslid Managing Director, of CargoNet commented,

"The choice in the end was easy. EMD offer a world class locomotive which they have tailored to meet our demanding standards and conditions. We look forward to working together over the coming months."

Peter Aldridge, head of HSBC Rail, said: "The European market is a natural extension for us as its rail networks are deregulated and seek private sector investment for new rolling stock. The presence of HSBC offices in Europe, and banking relationships with key players in transport, will be helpful in generating new business over the next few years."

FOR FURTHER INFORMATION:
Scott Garman
scott.garman@emdiesels.com
+1 (708) 387-5041