Proposal to STM by Zhuzhou Electric Locomotive Company will include
assembling the new metro cars at the former Dominion bridge site

750 to 1 000 new jobs to be created in Montreal

MONTREAL, Feb. 8 /CNW Telbec/ - In its response to the international call to tenders made by the Société de Transport de Montréal on January 23 2010, Zhuzhou Electric Locomotive Company Ltd. (called ZELC) agrees to respect the 60 % Canadian content requirement by operating a manufacturing plant in Montreal where the metro cars will be assembled. ZELC, through its associate, CPCS Technologies Canada, has signed a memorandum of understanding with the owners of the former Dominion Bridge site in Lachine where recently the Toronto Pearson Airport people movers structures were built. ZELC estimates it will need to hire 750 to 1 000 workers to manufacture the metro cars in Lachine. High speed train equipment and electric passenger and freight locomotives may also be a future portion of the product line.

ZELC is also asking the STM for access to become familiar with the Montreal metro infrastructure, track and welded rail system. It is prepared to have its experts examine the tracks at its own expense, but up to now, the STM has refused to grant access despite numerous formal demands from the Company's representatives in Québec. ZELC needs this assessment to be able to prepare a thorough and comprehensive proposal, and will demand at all levels necessary to obtain this critical information.

"Based on opinions by international experts gathered to date, we strongly believe that the rail and track presently used in the Montreal metro can be easily adapted without service interruption to accommodate steel wheels cars," said Glen Fisher, President of CPCS Technologies who represents ZELC in Canada. "We hope to come quickly to an agreement with the STM to allow the steel wheel metro car, a proven technology, in its call for tenders and not only rubber tire cars."

Steel wheels metro cars built and used around the world are safer, present no risks of fire, use much less energy than rubber tires, are low maintenance, five times more durable and easier to recycle. The steel wheels technology used by ZELC also captures and reuses the energy generated from the braking system when the metro cars are stopping.

In its proposal to the STM, ZELC's priorities will be to offer to metropolitan Montreal commuters and Montreal taxpayers the best alternative and most efficient technology in the world market, built in Montreal within a two-year delivery time at a much lower price than the old cars. The intention is to replace aging Montreal metro cars with ones that are reliable and can provide significant savings to the STM and the City of Montreal, especially for new metro extensions at savings up to 95 percent for above-ground tracks.

About ZhuZhou Electric Locomotive Company

CSR Zhuzhou Electric Locomotive Company Ltd. was founded in 1936. In 1958, ZELC successfully developed and manufactured the first main line electric locomotive in China. The main business of ZELC, which employs nearly 8,000 people, is to develop, manufacture, maintain, retail and service after sale main line electric locomotives, electric multiple units (EMUs) and mass transit rail transportation equipment as well as associated parts and components. During the past eight years, ZELC has successively won many procurement contracts for electric metro vehicles, notably for the Shanghai and Guangzhou Metro Lines.

SOURCE CPCS TECHNOLOGIES CANADA INC.

For further information: For further information: Glen T. Fisher, President, CPCS Technologies Canada Inc., (514) 634-3116

Organization Profile

CPCS TECHNOLOGIES CANADA INC.

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ZHUZHOU ELECTRIC LOCOMOTIVE COMPANY LTD.

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