Modular

Tucson, Arizona – September 15, 2005

Modular Mining's IntelliMine^® mine management system has been selected to maximize productivity at Powder River Coal Company's North Antelope Rochelle Mine (NARM), located 65 miles south of Gillette Wyoming USA. Last year the mine produced more than 82 million tons of coal, filling enough trains to stretch from Los Angeles to Boston and back.

The full complement of IntelliMine^® systems will be used to increase productivity, including:

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 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 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

Each component of the IntelliMine^® system works together to maximize mine productivity by integrating optimized haulage fleet assignments, high-precision GPS applications, reporting, and communications with existing business solutions. On site productivity is increased and operations information is easily shared throughout the site. Tactical and strategic processes already in place can be further optimized to achieve a fully integrated business solution.

To bring the system to peak productivity in the shortest amount of time, the mine also opted to add Implementation Services provided by Modular's Mine Services team. Implementation Services consist of Business Process Engineering to identify new processes, activities and roles within the mine site and Change Management Oversight to ensure that the technology and process changes prompted by these new systems are properly managed. Workshops are held on site to establish new processes and responsibilities for both maintenance (MineCare®) and production (DISAPTCH®) systems. Implementation Services reduce the amount of time required to realize benefits and maximizes advantages received from the technologies.

"Integration of data and information systems is key to achieving improved operational efficiency," stated Anthony Cook, Sales Manager Modular North America. "By utilizing Implementation Services during installation, NARM will achieve efficiencies—such as improved productivity and reduced operating costs—much faster."

The system will be employed on nearly 140 mobile units, including haul trucks, dozers excavators, graders, water trucks, drills, loaders, draglines and auxiliary equipment. A foreman vehicle will be equipped with a ruggedized laptop that includes IntelliMine^® and MasterLink^® utilities for controlling and monitoring the operation. The system will be implemented in three phases. Phase 1, currently in final commissioning, includes haulage and loading fleets as well as ProVision™ HP-GPS Shovel systems. During Phase 2 low-precision dozers and drills will be activated. Phase 3 includes graders, water trucks and other auxiliary equipment. Phases 2 and 3 began August 2005.

About Peabody Energy Corporation / North Antelope Rochelle Mine

Peabody Energy Corporation (NYSE: BTU), located in St. Louis, Missouri, is the world's largest private-sector coal company, with 2004 sales of 227 million tons and $3.6 billion in revenues. Its coal products fuel more than 10 percent of all U.S. electricity and 3 percent of worldwide electricity. Shipping more than seven tons of coal every second of every day, the company serves more than 300 customers in 16 countries from a global portfolio of operations on five continents.

Peabody promotes continuous environmental improvement in coal mining. In 2004, the company received seven awards for reclamation excellence. The company's environmental initiatives have been recognized by more than 30 awards in the past five years. Additionally, Peabody was recognized by the U.S. Department of Labor for operating the safest surface coal mine in the United States. The North Antelope Rochelle Mine, the largest mine in North America, completed an unprecedented 3 million employee hours without a lost-time accident, while shipping an industry record 82.4 million tons of coal in 2004.

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