Modular

Tucson, Arizona – November 15, 2002

Modular Mining Systems, Inc., the world leader in computer-based solutions for maximizing mine productivity, has received an order to install its IntelliMine^® MasterLink™ wireless communication network at Cia Minera Doña Inés de Collahuasi.

Collahuasi, one of the largest copper resources in the world, is located in the Andes Mountains approximately 180 km southeast of Iquique, Chile. The site contains two major porphyry copper deposits, Rosario and Ujina, which will utilize the MasterLink™ system.

Designed with a rugged environment in mind, the MasterLink™ system frees mine sites from the restrictions of a hard-wired network and allows mine personnel to stay connected while working in the field. Increased bandwidth and reduced telemetry congestion provide more data capacity, less interference, and faster synchronization on the network. This makes it easy for mines to transfer information quickly and accurately between operations offices, field equipment, and personnel.

"With this new MasterLink™ system upgrade, Collahuasi will be able to achieve its goal of improving its existing IntelliMine^® system by maximizing equipment vital signs information flow to maintenance personnel and management," noted Scott Baker, General Manager of Modular's South American Division. "The wireless extension to their mine-wide network is a perfect way to keep more staff connected and up-to-date while they perform their duties in the field."

Collahuasi will employ the MasterLink™ wireless system throughout its operation on a variety of equipment including: 45 trucks, 8 shovels, 7 dozers, 5 drills, and 22 pieces of auxiliary equipment. Installation is scheduled for early January 2003.

About Cia Minera Doña Inés de Collahuasi

Collahuasi, located in the First Region of Tarapacá in northern Chile, is one of the main copper producers in the world, with an annual production capacity of approximately 400,000 tons of fine copper, equivalent to 3% of worldwide production and 10% of national production. Interest in Collahuasi is held by Falconbridge Limited, Canada (44%); Anglo American PLC, UK (44%); and a partnership of Japanese companies led by Mitsui & Co. Ltd. (12%).

About the MasterLink™ System Network

MasterLink™, a part of Modular's world-class IntelliMine^® mine management system, is a 2.4-GHz spread spectrum wireless communications network designed to significantly increase the amount of information that can be sent over the radio channel. Based on Direct Sequence Spread Spectrum (DSSS) technology, the system dramatically speeds transmission rates to at least 50 times faster than conventional 9600-b/s narrow-band systems and 10 times faster than 900 MHz systems. Gains are even realized over conventional 2.4-GHz wireless-routing schemes due to Modular's embedded routing algorithms, which integrate the entire network and provide self-configuration and healing characteristics. Utilizing IEEE 802.3 (wired) and 802.11 (wireless) communications standards, the MasterLink™ wireless communications network was created to function in the harshest industrial environments and can operate either standalone or as part of an existing Local Area Network (LAN) to connect field stations to a central computer or backbone.

About Modular Mining Systems, Inc.

Modular, headquartered in Tucson, Arizona, is the market share leader in providing powerful information management solutions to meet the needs of both open pit and underground mining operations worldwide. The company's products range from fully automated, total mine management and control systems using the latest high-precision global positioning systems for surface applications, to proven mining cycle control, monitoring, and identification systems for underground mines. Modular has sales and support offices located in all key world-mining markets. For more information on Modular, MasterLink™, and its new, revolutionary systems for rail management and equipment automation, visit Modular's website at http://www.modularmining.com.

Email: products@mmsi.com

Phone: 520.746.9127