Modular

Tucson, Arizona – July 13, 2005

Modular Mining Systems, the world leader in computer-based solutions for maximizing mine productivity, has received an order from Pilbara Iron to install its IntelliMine^® system at the West Angelas mine.

"We are pleased to be working with Pilbara again," stated Eric Davidson, General Manager for Modular's Australasian operations. "This order furthers Pilbara Iron's goal of standardizing mine management platforms across its Western Australian iron ore operations. West Angelas will join Tom Price, Paraburdoo, Marandoo, Brockman, and Yandi mines with a state-of-the art IntelliMine system to provide reliable integrated dispatching and reporting across each site."

The IntelliMine^® system selected by West Angelas includes:

The MasterLink^® self-configuring wireless network that improves transmission speed and data capacity, and automatically reconfigures to ensure communication and coverage are not interrupted
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

West Angelas will employ the system on a variety of equipment including: 22 trucks, 6 dozers, 5 shovels, 4 loaders, and 7 pieces of auxiliary equipment. A foreman unit will be equipped with a ruggedized laptop that includes IntelliMine^® and MasterLink^® utilities for controlling and monitoring the operation. Installation is scheduled to begin in September 2005, with startup anticipated in October 2005.

About Pilbara Iron West Angelas:

Pilbara Iron, a member of the Rio Tinto Group, is a world-class asset manager that operates and maintains mining, rail and export facilities in the northwest of Western Australia on behalf of asset owners, Hamersley Iron and Robe River Iron Associates. The company was established in 2004 to facilitate closer cooperation between Hamersley Iron and Robe River Iron Associates — two independent Rio Tinto Group iron ore operations with operations in the Pilbara. West Angelas, an open cut iron ore mine, is located approximately 112 km west northwest of Newman in Western Australia. The mine has a total production of approximately 25 million tonnes per annum of saleable ore and 110 million tonnes of total movement.

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