NYCT Orders Additional Subway Cars

Tokyo, November 10, 2008 — Kawasaki Heavy Industries, Ltd. announced today that it has received an additional order for 140 R160 subway cars from MTA New York City Transit (NYCT*). The order, worth approximately 275 million dollars (27 billion yen), is scheduled for delivery by March 2010.

Kawasaki and France’s Alstom Transportation Inc. were jointly awarded an order for 660 subway cars from NYCT in October 2002. Kawasaki has manufactured and delivered 260 of those cars. The contract included two options, one that has already been exercised for an additional 620 cars and a second option for another 382 cars. NYCT has now decided to exercise the second option and Kawasaki will manufacture 140 out of the total 382 cars. Combined with the additional order for 260 cars under the first option, Kawasaki has received a total of 660 R160 subway cars from NYCT. Under the R160 contract Kawasaki is responsible for designing and manufacturing all 660 cars as well as supplying bogies for the total 1,662 R160 cars including those manufactured by Alstom.

The R160 subway cars have a stainless steel body and are equipped with highly reliable controls, HVAC, as well as door operating and public address systems that guarantee optimum safety and passenger comfort. The carbodies are manufactured at Kawasaki’s railcar plant in Lincoln, Nebraska. Equipment installation, final assembly and testing are performed at its plant in Yonkers, New York prior to delivery to NYCT. More than 400 R160 cars manufactured by Kawasaki are currently used in NYCT subway operations. They have clocked three times as much mileage without the need for repair than required under the contract and have earned high marks for excellent reliability from NYCT as well as passengers.

Since receiving the first order for 325 R62 subway cars from NYCT in 1985, Kawasaki has been given orders for a total of 2,079 cars. Once all of its R160 cars are delivered, Kawasaki will have manufactured the lion’s share of NYCT’s entire subway car fleet.

*NYCT is a public railway company affiliated with the Metropolitan Transportation Authority (MTA). Other MTA-affiliated transit services include the Long Island Rail Road and Metro-North Railroad.