Modular

Tucson, Arizona – January 26, 2005

Modular Mining Systems, the market share leader in providing powerful information management solutions to mining operations worldwide, has been issued U.S. Patent 6799097 for its "Integrated Railroad System", the core technology within its SmarTrain™ Rail Management System.

This patented railroad traffic control system links each locomotive to a control center for communicating data and control signals. Using on-board computers, GPS and two-way communication hardware, rolling stock continuously communicates position, vital signs data, and other information into a comprehensive computerized control system and database. The database includes train schedules for real-time display on train monitors. The current position of each train is compared to its planned schedule online to provide immediate information to the dispatcher to determine whether corrective action is necessary. When a train's deviation from its planned schedule exceeds a predetermined parameter, the system automatically calculates alternative schedules for all trains in the system according to preselected operational constraints to minimize the effect of the deviation.

"By providing comprehensive management of train systems within a centralized computer network, significant operational improvements to rail operations, such as increase in tonnage transported and reduction in the transportation cycle of the cars, have been achieved," noted Les Zoschke, VP of Product Development for Modular.

The invention stems from Modular's 25 years of experience in managing real-time device information (dispatching) in the mining industry. The specific patented technologies have been field proven at customer installations for over 2 years. Additionally Modular was awarded "Best IT Creator in 2003" for its work on the SmarTrain™ system by Revista Ferroviaria, the largest and most prestigious railroad magazine in Brazil.

"We are pleased with the further recognition and protection afforded by this patent, which reflects pioneering innovation merged with state-of-the-art dispatching and train control systems," said James Wm. White, Chairman and COO of Modular Mining Systems. "We expect that this new patent protection will strengthen Modular's competitive position in the marketplace."

The technology was coauthored by: Marco Antonio Villarreal, Tucson, AZ (US); Luiz Steinberg, Recife (BR); and Tak Tong Chan, Tucson, AZ (US).

About the Patent:

Modular Mining System's U.S. Patent 6799097 describes the Company's unique integrated rail control center system that utilizes GPS tracking to significantly improve the railroad operation. The patent includes 32 claims and 8 drawings. Key components include:

Assign a travel schedule to each of a plurality of trains in a railroad system
Store the travel schedule for each such train in a computer memory
Dispatch the travel schedule to each train for display on an onboard monitor
Track the position of each train in real time and compare the current position with the assigned travel schedule to determine whether a schedule variation greater than a predetermined acceptable threshold exists
If a schedule variation for any train exceeds the acceptable threshold, calculate alternative prospective travel schedules for each train such that predetermined operating parameters are maintained within the railroad system.
If more than one set of acceptable alternative travel schedules exist, find an optimal set according to predetermined optimization objectives.
Implement the preferred alternative travel schedule prospectively by automatically changing the travel schedule in the computer memory to conform to the preferred alternative travel schedule
Automatically dispatch the preferred alternative travel schedule to each train

For additional information on the patent please visit the U.S. Patent website at http://patft.uspto.gov/netahtml/srchnum.htm and enter the patent number above.

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