WMATA Orders Series 7000 Rail Cars

Tokyo, May 28, 2010 — Kawasaki Heavy Industries, Ltd. announced today that its American subsidiary, Kawasaki Rail Car, Inc. (KRC: Yonkers, New York), received an order for 428 subway cars (Series 7000) from Washington Metropolitan Area Transit Authority (WMATA), the transport authority operating the third largest number of subway cars in America. The $880 million contract covers the manufacture, outfitting, assembly and testing of the subway cars at the company’s Lincoln Plant (Nebraska), with delivery scheduled between 2013 and 2016.

The contract includes an option for up to an additional 320 cars which, if all 748 cars are manufactured, could be worth $1.48 billion and run until 2018 – one of the biggest Kawasaki has won. The Series 7000 will replace the existing subway cars (Series 1000 and Series 400) after delivery of the optional cars, by which time more than half of WMATA’s transit cars being manufactured by Kawasaki.

The Series 7000 are being introduced as part of a new phase of customer service, and will be used in the expansion project to Dulles International Airport, replace some of the oldest rail cars in the existing fleet, and help ease congestion. The first stainless steel cars in use by WMATA, the Series 7000 also increases passenger capacity over existing designs by eliminating one operator compartment every two cars. State-of-the-art systems that are unavailable in the existing fleet, including monitors for displaying digital content, CCTV cameras and a communications network, are also incorporated into the design.

To date, Kawasaki has received orders for over 3,000 rail cars from a number of major US transit authorities, including New York City Transit. A proven track record in North America for delivery schedule, technical adequacy, high reliability and after-sales servicing are all valued highly in the country.

The outlook for the US rail market looks bright as the American Recovery and Reinvestment Act of 2009 (ARRA) enables transit authorities across the country to build or upgrade inter-state railways. Orders for transit cars are expected to increase in the foreseeable future.

Kawasaki is looking to build new credibility with its technological expertise as it provides environmentally friendly modes of transportation to the US and markets around the world.