Order for 340 Commuter Train Cars from PATH

 Tokyo, April 1, 2005 – Kawasaki Heavy Industries, Ltd. today announced that it has unofficially received an order for 340 new PA-5 commuter train cars from PATH (Port Authority Trans-Hudson Corporation), a subsidiary of the Port Authority of New York and New Jersey The total amount of the order, which was awarded to Kawasaki's U.S. subsidiary Kawasaki Rail Car, Inc., based in Yonkers, New York, is US$500 million. Kawasaki plans to deliver the trains over a period between 2008 and 2011.

 The new stainless steel trains will be used for PATH commuter lines connecting New York and New Jersey. After the September 11 terrorist attacks, the role of PATH gained renewed recognition in New York and its vicinity, and it has been making continuous effort to improve its public transportation system.

 Kawasaki first received orders from PATH in 1984 to manufacture 94 train cars (PA-4) and to rehabilitate 248 existing train cars (PA-1, PA-2 and PA-3) in order to extend their operational life. This experience, together with Kawasaki's reputation for excellence in delivery, high reliable performance and service proven technical capabilities, were the main factors for selecting Kawasaki to award this order. As the new trains are delivered, the existing aging trains will gradually be removed from revenue service. When the final delivery is made in 2011, all PATH cars running in service will have been manufactured by Kawasaki.

&nbspDemand for transportation system in the US market is anticipated to increase during this decade. Plans to build new lines, replace existing cars as well as expand current fleets are expected to be announced. In addition, demand for double-decker passenger cars and subway cars are growing as a result of need to expand and improve existing subway systems and to increase comfort in suburban commuter trains.