Talgo, Inc. Announces Washington State TrainManufacturing Partner; Washington State and Amtrak...

OLYMPIA, Wash.--(BUSINESS WIRE)--March 19, 1997--Talgo Inc., a Washington-based subsidiary of Patentes Talgo SA of Madrid, Spain, today awarded a train manufacturing subcontract to Seattle-based Pacifica, an International Association of Machinists and Aerospace Workers' company.

Pacifica

As part of the subcontract announcement, Talgo Inc. announced the initiative to build two additional trains (for a total of five) at the Washington site with plans to market the additional equipment in the U.S.

"More than 40 direct jobs will be created for the region and more than $5 million will be invested in U.S. components," said Gustavo Gonzalez executive vice president and CEO of Talgo Inc. in Bellevue, Wash. "Washington State has been an admirable friend and partner and we are excited about bringing our business here."

"This will be a first in the State of Washington and one of the very few in the country where the union has formulated a company to form a partnership with another company and we are very excited about the possibilities and the tremendous importance this will have on bringing family wage jobs to the state," said Washington Machinists Council President Larry Finneman.

The International Association of Machinist and Aerospace Workers started a company called Pacifica to bring family wage jobs for its members in the State of Washington. The company is structured around the Association's High Performance Work Organization program which is designed to have the employees involved in the operation of the company from the top down.

"This company is unique because its goal is to create family wage jobs for its workers, not the corporation. All of the profits from this company will be used to start other projects that will benefit working people and their families," added Finneman.

Gonzalez acknowledged that future U.S. orders for Talgo trains could further Washington state economic investment as the facility will already be in place.

"Talgo Inc.'s initiative to build additional train sets is not only a commitment to the future of passenger rail in the U.S., but also a valuable investment in the local economy," said Washington State Secretary of Transportation Sid Morrison.

The Washington State Department of Transportation and Amtrak participated in the subcontract announcement and also unveiled the exterior design of the new trains to be equipped with new, improved amenities, providing a new level of service. The trains will be placed in Amtrak service in summer 1998 under the brand Cascades, launching a new generation of passenger rail travel in the Pacific Northwest. Amtrak's Cascade service will feature custom-designed and specially painted and operating exclusively in the Northwest.

"Amtrak's Cascade service will look and feel like no other passenger train service currently offered in the U.S.," said Amtrak West President Gil Mallery. "The collaborative partnership between Talgo, IAM&AW, Washington State and Amtrak is poised to revolutionize transportation in the Northwest and demonstrates what strong state relationships can accomplish."

Each state-of-the art train set will feature reserved coach class seating for 206 customers and custom class seating for 45 customers -- both offering wheelchair accessibility, a Bistro Car serving lights snacks and beverages "to-go" or "at-counter" seating, a Dining Car featuring "at-table" service, a baggage car equipped with bicycle racks and storage space for skis and snow boards, and an End Service Car generating electrical, audio and video and air conditioning power.

Last May, WSDOT and Amtrak signed contracts to purchase the custom-built trains. WSDOT's two trains will operate on what is currently the Seattle-Vancouver, B.C. Mt. Baker International and the Seattle-Portland Mt. Adams. These routes are supported by the state and are presently equipped with leased Talgo trains that began operating in Pacific Northwest service in April 1994. Amtrak's new train will operate on the current Cascadia route between Seattle- Portland-Eugene, Ore. (Note: The Portland-Eugene segment of this train operates with funding, in part, from Oregon State. Service south of Portland will cease operation June 30, 1997 unless state support is approved by the Oregon legislature for the next biennium.)

In monthly surveys measuring customer satisfaction on Amtrak's trains nationally, Pacific Northwest trains consistently rank in the top 10 of Amtrak's 48 services. Over 426,000 customers -- resulting in an 8 percent increase in ridership over last year -- traveled in the corridor during 1996 despite service disruptions caused by severe weather.

For current schedule and fare information, visit any staffed Amtrak station, your local travel agent or call Amtrak at 1-800-USA-RAIL. Also visit the Amtrak world wide web site at www.amtrak.com . For more information on the new trains and service, visit the WSDOT web site at www.wsdot.gov/pubtran/rail/ .

CONTACT: Amtrak West

Dominick Albano, 510/238-4360

or

Talgo

Steve Lacey, 206/990-5180

or

IAM&AW

Linda Lanham, 206/764-0306

or

WSDOT

Stan Suchan, 360/705-7989