Shifting manufacturing of locomotive remote controlsystems; CANAC Targets US Market.

Business/Technology Editors

PITTSBURGH, Penn.--(BUSINESS WIRE)--May 17, 2000

CANAC Inc., North America's leading supplier of rail solutions, cut the ribbon today on a new 22,000- square-foot facility that houses the company's locomotive remote control (LRC) production for the

"With a first-class family of locomotive remote control products, a well-established U.S. market presence and a new base from which to improve and expand its LRC product offering, CANAC is poised to achieve an industry-leading market position in all segments of this rapidly growing market," said Frank Trotter, President and CEO. "In fact, today, CANAC is the only supplier of locomotive remote controls that has a successful implementation of its remote control equipment in Class I yard operations, with available data on safety and productivity improvements from 150 systems in use and over 1.5 million hours of safe operations."

CANAC also used the occasion to officially launch its CANTRAC(TM) Series, the company's new family of throttle and brake locomotive remote controls. The first product in the series, CANTRAC(TM) 550 will come off the assembly line later this summer. Fully upgradeable, CANTRAC(TM) 550 incorporates key, industry-leading features from Beltpack(R) - CANAC's flagship product and the industry gold standard when it comes to locomotive remote control systems. Inspired by previous models manufactured under the Vectran nameplate, a Pittsburgh-based company acquired by CANAC last year, the CANTRAC(TM) 550 offers not only greater safety and reliability, but also substantially improved workforce productivity and efficiency.

The CANTRAC(TM) Series of products is designed for industrial rail operations and common-carrier railroads of all sizes. All indications are that this market is going to significantly expand over the next few years. So with plenty of room in the new facility for increased expansion, CANAC is well positioned to supply this larger market, including Class 1 railroads, as it unfolds.

"It is our mission to provide our customers with the solutions that best suit their specific and evolving requirements," Trotter said. "At CANAC, we believe that LRC is a key ingredient in the formula: "technology with training will produce safety and efficiency", and that is what everyone wants. This new plant is a cornerstone of our commitment to this mission."

With clients, media, about 60 local employees, and other guests on-site, CANAC conducted a demonstration of the Beltpack(R) and CANTRAC(TM) 550 remote controls on two driverless locomotives on trackage near the new CANAC facilities in Pittsburgh.

Founded in 1971, Montreal-based CANAC provides knowledge-based products and services to railroads, rail-related industries, companies operating their own on-site railroads, investors, and governments. From offices in 16 cities across North America, CANAC provides training, engineering and mechanical services, asset management, technology products, and is an industry leader in railway operations and planning services.