Close
 
FOR RELEASE: September 7, 2005
 

Electro-Motive Diesel Inc. Announces Sale of 300 Diesel-Electric Locomotives
to Ministry of Railways in China


Beijing, China - Representatives from the Ministry of Railways (MoR), Dalian Locomotive Works (DLoco) and Electro-Motive Diesel Inc. (EMD) signed an agreement today for the supply of three hundred 6,000 horsepower locomotives, EMD's most powerful diesel-electric locomotive. The locomotives feature the latest heavy haul traction systems used on North America's major Class l railways and are being jointly designed and manufactured with DLoco under a technology license in Dalian, China.

The MoR has embarked on an extensive program to upgrade the rail system throughout China, and the application of these highly reliable, high powered diesel locomotives for mainline operations will enable the MoR to significantly increase the speed and throughput of its railways.

Mr. John S. Hamilton, President and CEO of EMD noted "This is a very important business development for our company. We have worked for many years in developing the right combination of technology with the ability to localize manufacturing capability to meet the needs of our partners and customers. We are confident this is the beginning of a long and fruitful cooperation among the MoR, DLoco and ourselves, and we will all benefit greatly from this contract."

Work has already started on the detailed design of the locomotives to make them applicable for use by the MoR. Teams are also developing the production plans for the portion of the locomotives that will be manufactured in China. These efforts will result in the first locomotives being available for testing in China in the latter half of 2007 with full production running over the following two years.

The locomotives will be powered by EMD's 16-cylinder 6,000 hp engine, will use the latest AC traction drive systems and will be capable of meeting USA EPA Tier 2 emissions regulations, making them some of the most environmentally friendly locomotives in the world.

Mr. Jerry Greenwald, Chairman of Electro-Motive Diesel, Inc. stated "We are very pleased with the award of this important business. This contract is a very important step in solidifying long-term cooperative relationships in China. The Chinese locomotive market has terrific opportunities for future growth and joint development, and we are delighted to be able to participate in it."
 
About Electro-Motive Diesel, Inc.:
Founded in 1922, Electro-Motive Diesel, Inc. is one of two U.S. original equipment manufacturers of diesel-electric locomotives. Headquartered in LaGrange, Illinois, with additional facilities in London, Ontario, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide. The Company is the only diesel-electric locomotive manufacturer to have produced more than 70,000 engines and has the largest installed base of diesel-electric locomotives in both North America and internationally. In addition to its locomotive manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts and a range of value-added services for its locomotives. The Company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. In April 2005, Greenbriar Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired EMD from General Motors Corporation. Additional information may be found at www.EMDiesels.com.
 
About Greenbriar Equity Group:
Greenbriar Equity Group LLC is focused exclusively on making private equity investments in the global transportation industry, including companies in freight and passenger transport, commercial aerospace, automotive, logistics, and related sectors. Greenbriar and Berkshire Partners have entered into a strategic joint venture and co-investment agreement to address certain transportation and related investment opportunities. Greenbriar manages $700 million of committed limited partner capital and co-investment commitments and, together with Berkshire, has access to more than $1 billion for investment in privately negotiated equity investments within the transportation industry. Additional information may be found at www.greenbriarequity.com.
 
About Berkshire Partners:
Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm's investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $13.0 billion of acquisition value and combined revenues in excess of $17.0 billion. Additional information may be found at www.berkshirepartners.com.
 
FOR FURTHER INFORMATION:
Contact: Scott Garman
+1 (708) 387-5041
scott.garman@EMDiesels.com