News Release National Railway Equipment Co.

NREC to provide US Army with Ultra-Low Emitting N-ViroMotive locomotives

Mt. Vernon, IL, September 25, 2007 – National Railway Equipment Co. (NREC) today announced it is providing two 3GS-21B 2100 HP four axle Ultra-Low Emitting N-ViroMotive GenSet locomotives under contract to the U.*. Army rail program within the Tank-automotive & Armaments Command (TACOM). The locomotives are being purchased by the Volpe National Transportation Systems Center, which manages such transportation equipment acquisitions for the U.*. Army. The acquisition is in accordance with the Army Rail Modernization Plan, under its director, Gordon Schwerzmann of the Department of the Army, Deputy Chief of Staff, Army G-4 at the Pentagon.
The new locomotives meet Texas emissions regulations and exceed EPA tier II regulations. They will operate with as much as 80% lower NOx emission levels and fuel efficiency 50% better than the older units they will replace. Delivery is scheduled for early to mid-2008.
George Gounley, Chairman of the Inter-Service Locomotive Management Committee within the U.*. Army’* Military Surface Deployment and Distribution Command, identifies the latest technologically advanced rail equipment and determines how this commercial equipment can benefit the Army installations in their training and deployment missions.
"This project supports the DOT'* Strategic Goal to promote transportation solutions that protect our national security," says Mr. Gounley.
Jim Wurtz, NREC’* vice president marketing and sales, said, “We are happy to be a part of the U.*. Army’* rail modernization, providing locomotives that are ahead of their time in technology and efficiency. They will serve the Army rail transportation needs very well for many years.”
Each of the three generator sets in the locomotives incorporates a 700 HP low noise, industrial grade QSK19L (19 liter) engine that is exclusive to the NREC N-Force electronic control system. In addition to ultra low emissions and dramatic fuel savings, the N-ViroMotive’* microprocessor based electronic control system helps to improve tractive effort adhesion efficiency by 60-65% and significantly reduce maintenance requirements by 40-50%.
The Army Rail Modernization Program is a 20-year long-range program to replace all of the installations’ aging locomotives with the latest commercial and environment friendly locomotives. The Army Rail Program within the United States Army TACOM, Life Cycle Management Office, under the direction of Bob Alexander provides acquisition and contract management to the Rail Transportation Modernization Program director. Mr. Alexander said, “The proposed work promotes public health and enhances communities and the natural environment affected by transportation.”
The Volpe National Transportation Systems Center is a federal, fee-for-service organization within the U.*. Department of Transportation (DOT) Research and Innovative Technology Administration that supports DOT'* goals: Safety, Reduced Congestion, Global Connectivity, Environmental Stewardship, Security Preparedness and Response, and Organizational Excellence as described in U.*. DOT'* Strategic Plan 2006-2011.
National Railway Equipment Co., headquartered in Mt. Vernon, IL, is a leading locomotive designer, developer and manufacturer of the industry’* first Ultra Low Emitting GenSet Locomotives. NREC has locomotive, diesel engine and related parts manufacturing facilities at fourteen locations throughout the United States and Canada.

Tacoma Rail tests show improved performance and dramatic emissions reduction from National Railway Equipment Co. locomotive

Tacoma, WA, September 18, 2007 — National Railway Equipment Co. (NREC) recently provided a demonstrator locomotive to Tacoma Rail to test its operational benefits over its older EMD four axle units. The NREC test locomotive is a two-engine 1400 HP GenSet (2GS-14B) 4-axle unit.
The operational test included normal yard operations over a two-week period. During that time, all Tacoma Rail management and maintenance staff operated or witnessed the unit in operation. Also present at the test were a Tacoma city councilman, representatives from the Washington Department of Ecology/Air quality, and Puget Sound Air Quality.
The demonstration provided the following results:
• For over 90% of the in-service time, only one of the two GenSets was needed
• Idle time was reduced by 80 %
• Estimated fuel consumption was reduced by 70 %
• Estimated emissions were significantly reduced by up to 85%.
• Due to tractive effort improvement, sand use was reduced by over 80%
• Due to improved tractive effort only a single unit was used vs. two units on certain operations
• Crew comfort improvements included dramatically reduced noise levels, a significant reduction in smoke emissions and better visibility due to the lower long hood and the inclusion of more rear cab windows
• On railroads where NREC Gen Sets are used, maintenance costs have been reduced by over 50%
NREC’* vice president marketing and sales, James M. Wurtz said, “Indeed these results are dramatic. I do not recall a newly released locomotive model ever achieving similar comparative results. We certainly are proud of the performance of the N-ViroMotive GenSets.”
National Railway Equipment Co., headquartered in Mt. Vernon, IL, the designer, developer and manufacturer of the industry’* first Ultra Low Emitting GenSet Locomotives. The world’* largest independent locomotive rebuilder and remanufacturer, NREC is also a locomotive lessor. It has locomotive, diesel engine and parts facilities in fourteen locations throughout the United States and Canada.