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Guasare Upgrades to MasterLink® and ProVision™ Systems Tucson, Arizona – October 19, 2004 Carbones del Guasare, S.A. has placed an order to upgrade its Paso Diablo mine in Venezuela with three components from Modular's world-class IntelliMine® system: MasterLink® wireless communications network, ProVision™ High-Precision-GPS system, and PowerView™ reporting package. Guasare has successfully utilized Modular's DISPATCH® system since 1996 to provide automatic, optimized haul truck assignments and increase productivity throughout its fleet. The upgrade will further enhance the mine's current IntelliMine® DISPATCH® Rev D installation by expanding services to mine personnel through the MasterLink® self-configuring wireless communications backbone, 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 by allowing personnel to stay connected to the 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, by adding the MasterLink and ProVision systems, Guasare can reduce current rehandling costs and take advantage of further productivity increases—positioning the company for future growth." The ProVision™ High-Precision GPS system provides a continuous flow of high-level information and data transfer in real time to Operations and Planning on current projects and work conditions. Guasare will utilize the ProVision™ HP-GPS Drill system to improve blast-hole drill rig efficiency, utilization, drill hole position and depth. The ProVision™ HP-GPS Excavator system will provide Guasare shovel operators with up-to-date ore boundaries for improved resource management, including ultimate control of bench grade to minimize rework and better drilling performance on subsequent bench sequence. The site will also incorporate Modular's PowerView™ reporting system to create virtually any type of Windows®-based report on load, haul, or dump operations. Paso Diablo will employ the systems on a variety of equipment including: 10 trucks, six shovels, and two drills. Additionally, 11 MasterLink® access nodes will be installed and one foreman vehicle will be equipped with a ruggedized laptop that includes IntelliMine® and MasterLink® utilities for controlling and monitoring the operation. Installation is scheduled to begin January 2005. About Carbones del Guasare: Carbones del Guasare S.A. (CdG), a joint venture between Carbozulia, Anglo Coal and Peabody Energy, operates an open pit coal mine at Paso Diablo in the north part of the state of Zulia in Venezuela. The mine began operations in 1987 and has continuously produced high quality coal for the world market. Current production and logistics capacity of the Paso Diablo mine and Santa Cruz port facility is estimated at 7 million metric tons per annum. 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 the ProVision™ High-Precision GPS Systems: The ProVision™ Dozer System improves the productivity of both track and wheel dozers. Its primary function is to allow operators to work precisely to plan, eliminating rework. Real-time operator feedback and productivity tools enable operators to work effectively and efficiently without the use of flags, stakes, and other survey activities. The ProVision™ Drill System provides dramatically improved blast-hole drill rig efficiency, utilization, drill hole position and depth. Integration with mine planning systems provides the drill operator with up-to-date blast designs to improve drill and blast management. The ProVision™ Excavator System for shovels and excavators integrates with mine planning systems to provide the shovel operator with up-to-date ore boundaries for improved resource management. It also provides ultimate control of bench grade to minimize grading rework and improve drilling performance on the subsequent bench sequence. 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.
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