Modular

Tucson, Arizona – February 10, 2004

Revista Ferroviária, the largest and most prestigious railroad magazine in Brazil, chose Modular Mining Systems (Modular) as the recipient of its 2003 Award for Best IT Creator. This award, presented only when a truly outstanding technological advancement occurs, celebrates the achievements of the best and brightest IT innovators in the rail industry.

Modular was selected for this award based on its accomplishments in the area of real-time rail management systems. The SmarTrain™ Rail Management system, developed and deployed by Modular, was inaugurated at the Operational Control Center of Ferro Carajás Railroad (EFC), a division of Companhia Vale do Rio Doce (CVRD). The system currently monitors and dispatches over 90 locomotives and 70 pieces of auxiliary track maintenance equipment on a 900-km single-track rail line between the Carajás Mining Complex and the Itaqui Port in São Luis. The Control Center and Modular's new technology were the key components in maximizing the railroad's performance last year, increasing the total volume transported, and reducing the transportation cycle of the cars. This is a significant improvement for the railroad, which anticipates transporting 75 million tons in 2004—a 19% increase over last year.

"We are pleased that Revista Ferroviária has recognized the groundbreaking nature of SmarTrain™ and its potential to revolutionize control room operations," said Les Zoschke, VP of Product Development for Modular. "This award attests to the strong innovative partnership between CVRD and Modular, and the dedication of the development team, which culminated in an award winning rail management solution. Being recognized by this community of rail experts is a real honor."

The event, held in São Paulo at the Grand Hyatt Hotel on February 10, 2004, featured several other awards including "2003 Railroader of the Year" presented to Roger Agnelli, CEO of CVRD.

Modular and CVRD are long time partners in the successful deployment of mine management systems. CVRD's Carajás site has been utilizing Modular mine management products to increase productivity and efficiently manage its operations for the past 10 years. In addition to Carajás, Modular products also manage operations at Itabira; Mina-Fabrica (previously Ferteco); and Serra do Sossego.

About Companhia Vale do Rio Doce Carajás:

Companhia Vale do Rio Doce (CVRD), headquartered in Rio de Janeiro, is the largest diversified mining company in the Americas. Its core businesses include mining, cargo transportation, and power generation. CVRD shares are traded in the BOVESPA (VALE3; VALE5), NYSE (RIO; RIOPR), and LATIBEX (XVALO; XVALP). The Carajás Railroad has 900 km of track, over 90 locomotives and more than 4,800 railcars. It links the interior of Para to one of the main maritime ports in the Northeast of the country, São Luís, in Marahão and transports pig iron, soy, fuel, vehicles, and beverages. Stockyards along the track allow for rapid unloading and loading in secure conditions.

About the SmarTrain™ System:

The SmarTrain™ system helps plan, supervise, and dispatch train movements. By applying the same technologies used in mine management (GPS, wireless communications, and information management), Modular has developed a state-of-the-art integrated control center system—one of the first to be successfully deployed anywhere in the world—that utilizes GPS tracking to significantly improve the railroad operation. The system includes a communications network to ensure radio coverage along the entire rail line, including hot backup equipment and field-proven, data-radio components to provide maximum network reliability. The latest touch-screen color graphics consoles and ruggedized computer processors for mobile equipment and locomotives provide sophisticated operator interfaces, on-board data communications, and fleet monitoring. Modular designed the computer network for centralized control to virtually eliminate downtime and employed GPS technology for train position monitoring. Differential GPS (DGPS) ground stations are used at strategic locations along the rail line to provide GPS corrections for accurate tracking of all mobile equipment. The SmarTrain™ system brings the same productivity gains achieved by the mining industry to railway companies across the globe.

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 the company's new, revolutionary systems for rail management and equipment automation, visit the Modular website at http://www.modularmining.com.

Email: products@mmsi.com

Phone: 520.746.9127