Modular

Tucson, Arizona – June 23, 2003

The Cerrejón Coal Company—the largest coal mining operation in Latin America—has placed an order to upgrade its mine with Modular's MasterLink™ wireless communications system.

Located approximately 210 km east of Barranquilla in northeast Colombia's Guajira Peninsula region, Cerrejón's integrated open pit mining operations represent one of the world's biggest earthmoving productions with approximately one million tons moved annually. Integrated operations include the planning, management, production, handling, transportation, and shipment of coal. All operations, from the mine to the railroad, port, and support facilities, operate round the clock, 365 days a year. Round the clock usage can test the strength of any system, and when coupled with a rugged mining environment and Cerrejón's commitment to excellence, it is crucial that onsite systems maintain high standards of reliability and integrity, and be able to integrate seamlessly. The IntelliMine^® system provides the perfect solution. With its dynamic state of the art software modules for communication, dispatching, and high-precision, systems can be integrated with high-level confidence, maintaining reliability while increasing productivity and improving quality control throughout the fleet.

The upgrade will further enhance Cerrejón's current IntelliMine^® DISPATCH^® Rev D installation by expanding services to mine personnel through the MasterLink™ wireless communications system, which extends the corporate network into the pit and allows supervisors and managers to continue working while in the field.

"The MasterLink™ system increases productivity because personnel can stay connected to their corporate LAN using PDAs, wireless laptops, and other mobile devices while out in the pit. Any Windows^®-based work normally done in the office can now be done in the field," stated Scott Baker, General Manager of Modular's Latin American Division. "And, as an added benefit, Cerrejón will be able to expand its vital signs capabilities by utilizing the increased bandwidth to send considerably more vital signs data to the mine's maintenance servers for real-time analysis."

Cerrejón will employ the MasterLink™ wireless system throughout its operation on a variety of equipment including: 64 trucks, 27 shovels, 2 high-precision dozers, 2 front-end loaders, and 2 foreman vehicles. Installation is schedule to begin at Cerrejón in August/September 2003.

About Cerrejón Coal Company:

Cerrejón, located in Colombia's northeast Guajira Peninsula, is jointly owned by Anglo American plc (LSE:AAL); BHP Billiton plc (NYSE:BHP); and Glencore International AG. Cerrejón is the leading coal producer in Colombia and one of the largest export coal operations in the world. Current production capacity is estimated at 22 million metric tons per annum with a direct labor force of 4,000 employees (80% technical personnel and 20% professionals) and an additional 4,000 contractors. Cerrejón has achieved ISO 9002 certification for three of its maintenance and reconstruction processes on major mining equipment.

About the MasterLink™ System Network:

The MasterLink™ system, 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, the IntelliMine^® system, or 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