Modular

Tucson, Arizona – August 22, 2003

Modular Mining Systems, Inc., the world leader in computer-based solutions for maximizing mine productivity, has received an order to install its IntelliMine^® integrated mine management system at the Companhia Vale do Rio Doce (CVRD) Sossego Mine, the first Brazilian world-class copper operation.

The Sossego mine is located near the town of Canaă dos Carajás in Pará, Brazil, 110 km south of CVRD's existing Carajás mine iron ore complex. Sossego is the first of several copper operations that CVRD will begin operating in the region over the next few years.

The IntelliMine^® system selected by Sossego consists of the following components:

The MasterLink™ wireless network communications backbone that significantly improves transmission speed, flexibility, and data capacity
The ProVision™ High-Precision GPS system for dozers, shovels, and drills that provides a continuous flow of high-level information and data transfer in real time to Operations and Planning on current projects and work conditions
The DISPATCH^® industry standard dispatching system designed to provide automatic, optimized haul truck assignments, GPS-based equipment positioning, equipment health monitoring, maintenance tracking, blending, production reporting, and more
The MineCare™ interactive maintenance management system that allows users to access up-to-the-minute operating information over the internet, thus integrating operation and maintenance data in real time to allow for optimal maintenance decisions
The PowerView™ reporting system that can be used to create virtually any type of Windows-based report on load, haul, or dump operations

As a fully integrated mine management system, the IntelliMine^® system provides mines of practically every size and type with a strategic, field-proven tool for helping them stay competitive in today's marketplace. Each IntelliMine^® module functions seamlessly to provide mine management tools that efficiently manage all aspects of mine operations and provide decision makers-from the pit supervisor to the corporate office-with critical information on key assets.

"Sossego was looking for a fully integrated system to improve efficiencies, ensure timely information sharing throughout its organization, and maximize use of its ore reserves while achieving optimum economic efficiency of its processing plant," stated Luiz Steinberg, General Manager of Modular's Brazil Division. "Sossego also wanted a long term partner—one committed to improvement and support. Modular and IntelliMine^® provide the perfect solution to assist Sossego in achieving its goals. The IntelliMine^® system delivers the key critical components Sossego requires and Modular's local presence, solid support team and dedication to long-term product improvement and customer support provide the commitment and reliability to make this a perfect match."

Sossego will employ the IntelliMine^® system throughout its operation on a variety of equipment including: 6 trucks, 5 dozers, 5 drills, 2 shovels, 1 front end loader, and 9 pieces of auxiliary equipment. Five foreman vehicles will be equipped with ruggedized laptops that include IntelliMine^® and MasterLink™ utilities for controlling and monitoring the operation, as well as browser and corporate client/server applications. This initial fleet is anticipated to grow significantly over the next four years with the number of trucks expected to reach approximately 26 units by the fourth year. Installation is scheduled to begin in November 2003. The system is expected to be fully operational by the end of January 2004.

About Sossego Mine:

Sossego, located in the Brazilian state of Para, is owned by Companhia Vale do Rio Doce (CVRD). One of 6 projects in the area currently under development by CVRD, Sossego is currently in the implementation phase, with start-up of the plant scheduled for the first half of 2004. Production capacity is estimated at 450,000 tons per annum copper concentrate with reserves of 196,000,000 tons.

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, IntelliMine^®, 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