Better Economics, Better Environment 1 Oct. 23, 2008 East-West Gateway COG St. Louis, MO

Better Economics, Better Environment 2 Company Profile Engaged in the development, production, marketing and sales of efficient and environmentally-friendly specialized energy technology systems for rail transportation and derivative markets

Better Economics, Better Environment 3 Company Background From engineering to large scale production  Original hybrid design developed in 2000  First Green Goat © locomotive series hybrid yard switcher completed in 2002, generation 3 completed in 2006  New RP-series Road Switcher locomotive started development in 2005 and in service in 2006  Developed ECO Crane™ hybrid system for cranes in 2006; 1 unit delivered Q2 2007, 2 delivered Q  Obtained Clean Air Excellence Award from EPA in 2007  Produced 60 locomotives and 3 crane power plants in Geared for significant production increase.

Better Economics, Better Environment 4 Product Offering  Battery dominant hybrid yard switcher locomotive  Engine dominant hybrid yard and road switcher locomotive  Multi-engine road switcher locomotive  RTG crane hybrid power plant

Better Economics, Better Environment 5 Benefits of Railpower products Solutions to economic and environmental challenges  Significant fuel savings: 20% to 80% depending on application  Reduced operational costs  Reduced emissions  Less noise  Lower maintenance costs  Eligibility for emissions credits / government grants

Better Economics, Better Environment 6 Yard Switchers GG20B Battery Dominant Hybrid “Green Goat” RP14BD Genset Two Engines Tractive Horsepower2000 (intermittent)1360 Core LocomotivesGP9, GP30, GP35, GP38, GP40, B23, B30, B36 Fuel Savings 20-70% Emission Reduction Approximately 80% Type of Service light duty yard switching & specialty industrial applications Continuous duty yard switching; light road switching

Better Economics, Better Environment 7 Road Switchers

Better Economics, Better Environment 8 The Conversion Process Prepare Platform Overhaul Trucks Old Locomotive Recycle Top Deck Components “New” Locomotive Add New Cab, Power Plant & Accessories

Better Economics, Better Environment 9 Railpower Patented Locomotive Technology  Ability to efficiently control multiple power sources on one common platform (Experience on tracks since year 2000)  Design enables very precise individual control of each axle providing maximum adhesion level for track conditions Gen-sets Fuel Tank Battery or Engine Electrical Cabinet

Better Economics, Better Environment 10 Modular Approach – FWI Concept

Better Economics, Better Environment 11 Significant Environmental Benefits  Railpower’s locomotives surpass EPA Tier 2 locomotive regulations  80-90% reduction in NOx and diesel particulates  Significant reduction in greenhouse gas emissions  Quiet operation for noise sensitive areas  Improved perception of railroad environmental sensitivity RP20BD, RP20BH & RP20CD are EPA Part 92 certified

Better Economics, Better Environment 12 Hybrid/Multi-engine Switchers are Cleaner Switcher Locomotives (g/bhp-hr) UncontrolledTier 0Tier 2 Hybrid / Multi- Engine NOx PM HC

Better Economics, Better Environment 13 Cleaner Operating Engines Locomotive vs Nonroad Engine Standards (g/bhp-hr) Tier 2 Locomotives Tier 3 nonroad engines Tier 4 nonroad engines NOx PM HC

Better Economics, Better Environment 14 Eliminate or Reduce Idling  Railpower locomotives prevent ALL unnecessary idling Batteries provide power to auxiliary systems Short-term idling between pulls is also eliminated Software does it automatically  Conventional locomotives typically idle to provide power to the air compressor to maintain the air brake. provide power to the cab for heat, lights and other needs keep the engine block warm if temperatures dip below 40 degrees Restart rules

Better Economics, Better Environment 15 Typical NOx(e) Reductions * Based on EPA Switch Duty Cycle and NOx(e) = NOx + ROG + 20* PM

Better Economics, Better Environment 16 Railpower Technology Advantages  90% reduction in NOx and ROG  80% reduction in PM (with Tier 3 nonroad engines)  Do not idle unnecessarily  Quieter Operation  Green House Gas Emission Reductions: 35% or more  “Future proof”  Tier 3 nonroad engines can be replaced with Tier 4  Diesel Particulate Filters are more easily added

Better Economics, Better Environment 17 Emission Reduction & Cost-Effectiveness

Better Economics, Better Environment 18 Railpower Technologies Corp. HYBRID POWERED RTGs

Better Economics, Better Environment 19 Some challenges facing container terminal industry

Better Economics, Better Environment 20 The challenges…  Increasing capacity requirements  Cargo volumes growing dramatically  Rising fuel prices  Increasing environmental concerns  Growing CO 2 emissions market  Public awareness of environmental impact “With US international waterborne freight forecasted to double by 2020, one of the major issues port authorities are facing today is promoting economic development and protecting environmental quality ” US Environmental Protection Agency

Better Economics, Better Environment 21 Risks  Backlog at terminals  Escalating costs  Loss of competitiveness  Impact of regulations  Increasing public image and media coverage

Better Economics, Better Environment 22 Needs / challenges NEEDS  Higher throughput:  Increase productivity  Improve dispatching, tracking  Acquire bigger equipment CHALLENGES  Reduce:  Costs  Fuel consumption  Emissions Energy saving solutions

Better Economics, Better Environment 23 Opportunities Source : TSI, Vancouver, BC - Canada  RTG cranes poor inherent efficiency offers good opportunities for energy saving improvement

Better Economics, Better Environment 24 Existing diesel power for RTG

Better Economics, Better Environment 25 Hybrid power for RTG

Better Economics, Better Environment 26 : green and cost efficient : green and cost efficient “Railpower solution does it all, it saves energy by every available strategy/technique” – Terminal Systems Inc Average rating, top performance Optimizes power by shrinking genset size and trimming down fuel costs Recycled energy Spends energy when lifting, reclaims energy when dropping Payload pays back by turning weight into your best ally

Better Economics, Better Environment 27 installation – Plug & Play installation – Plug & Play  EcoCrane is installed as a replacement of the conventional generator set.  Same envelope  Equivalent weight

Better Economics, Better Environment 28 installation options installation options  Standard - underneath beam  Along transversal beam, generator below  Spread on both sides

Better Economics, Better Environment 29 – production and test – production and test  Manufacturing and test in our plant in Montreal, Canada  ECO Crane is all tested (incl. power tests) before shipment.  Tests for commissioning only to validate interface to crane.

Better Economics, Better Environment 30 meets the challenges meets the challenges  50+% fuel savings,  Cost effective, fast ROI on fuel and maintenance  Reduced operating and Life Cycle Cost  50%+ reduction of greenhouse gases  Tier 3 engine  Exceeds local government requirements  Availability of emissions credits / government grants  Quieter operation  Retrofit-able to existing cranes and applicable to new equipment

Better Economics, Better Environment 31 Contact Information Scott Carpenter Randy Slomski