Central California Traction Company Satisfied with Test of Ultra Low Emissions Locomotives from National Railway Equipment Co.

STOCKTON, Calif. -- National Railway Equipment Co. (NREC) today announced that Central California Traction Company (CCT) of Stockton, CA successfully performed an operational test earlier this spring at the Port of Stockton, CA and on its main line of an N-ViroMotive[TM] GenSet locomotive from NREC. The locomotive was a two-engine 1400 HP (2GS-14B) 4-axle unit that is EPA certified and CARB recognized as ultra-low emitting GenSet locomotive. CCT's objective in testing the new locomotive is fuel conservation, protecting the environment and operational efficiency which are vital to CCT's cost effective operations in the Port of Stockton and Stockton to Lodi, CA.

Dave Buccolo, CCT General Manager, said, "The CCT found that the locomotive's adhesion was very impressive. It consistently pulled very well, pulling the same tonnage as two of CCT's SW 1500 units up a 2% grade. And when CCT analyzed the fuel consumption, there was a 61% fuel saving per 8 hour shift compared to one of CCT's SW 1500s." Gen-Set locomotives will help the CCT and the Port of Stockton make reductions in emissions in the San Joaquin Valley and at the Port of Stockton.

Jim Wurtz, NREC's vice president marketing and sales, said, "Already proven in service, these efficient GenSet locomotives are years ahead of anticipated EPA emissions regulations for new switching locomotives."

The operational advantages the N-ViroMotive locomotives are dramatic:

* 80%+ reduction in nitrous oxide (NOx) and particulate matter (PM) emissions

* 50% to 65%+ improved in tractive effort adhesion efficiency

* Up to 60% fuel savings capability in switching and road switching service

* Microprocessor-based electronic controls and modularized mechanical platforms significantly decrease maintenance requirements

* Quiet operation that easily achieves the most stringent noise level requirements for off-road capital equipment

The Central California Traction Company (CCT) has twenty-seven employees and seven locomotives. It operates between Stockton and Lodi, and interchanges with BNSF, Union Pacific and Stockton Terminal & Eastern RR in Stockton. CCT provides all the railroad switching services to the Port of Stockton CA the 3rd largest Port in California with its interchanges with the BNSF and Union Pacific Railroads.

National Railway Equipment Co., headquartered in Mt. Vernon, IL, the designer, developer and manufacturer of the industry's first Ultra Low Emitting GenSet Locomotives. The world's largest independent locomotive rebuilder and remanufacturer, NREC is also a locomotive lessor. It has locomotive, diesel engine and parts facilities at fourteen locations throughout the United States and Canada.