ELECTRO MOTIVE TRANSPORTATION THIRD PARTY LOGISTICS (3PL) IMPLEMENTATION

Electro-Motive Canada (EMC) will be implementing the new 3PL process on JUNE 1, 2006. Electro-Motive Diesel (USA) will be implementing the new 3PL process on JUNE 15,2006.

The scope of the Electro-Motive 3PL program effects all shipments in which Electro Motive has both the responsibility for the routing and payment of the transport costs. This includes all inbound movements to Electro-Motive facilities, and shipments to other locations as directed by EMD.

SLI will be the 3PL provider for North American Truck Load, LTL and Surface Expedite movements.

UPS-SCS will be the 3PL provider for North American Small Package and Air Freight shipments. UPS-SCS will also be responsible for all Electro-Motive International Freight Forwarder (offshore) and Import Custom House Broker activities worldwide,

Definitions: Electro-Motive defines North America as "all shipments within or between Canada, the United States, and Mexico. Offshore is defined as "all shipments from/to North America and all other Countries".

See following pages for new routing instructions

EMC
Disregard all hard copies of EMC Routing Instructions prior to May 31, 2006.
Please review the new EMC Routing Instructions and sign and return the acknowledgement letter.
Routing and Shipping Guide - EMC

EMD
The current routing instruction remain effective thru June 14, 2006.
Routing and Shipping Guide - USA Operations

Sincerely,