Electro-Motive Diesel, Inc. Announces Sale of 300 Diesel-Electric Locomotives to Ministry of Railways in China

Representatives from the Ministry of
Railways (MoR), Dalian Locomotive Works (DLoco) and Electro-Motive Diesel,
Inc. (EMD) signed an agreement today for the supply of three hundred 6,000
horsepower locomotives, EMD's most powerful diesel-electric locomotive. The
locomotives feature the latest heavy haul traction systems used on North
America's major Class l railways and are being jointly designed and
manufactured with DLoco under a technology license in Dalian, China.
The MoR has embarked on an extensive program to upgrade the rail system
throughout China, and the application of these highly reliable, high powered
diesel locomotives for mainline operations will enable the MoR to
significantly increase the speed and throughput of its railways.
Mr. John S. Hamilton, President and CEO of EMD noted, "This is a very
important business development for our company. We have worked for many years
in developing the right combination of technology with the ability to localize
manufacturing capability to meet the needs of our partners and customers. We
are confident this is the beginning of a long and fruitful cooperation among
the MoR, DLoco and ourselves, and we will all benefit greatly from this
contract."
Work has already started on the detailed design of the locomotives to make
them applicable for use by the MoR. Teams are also developing the production
plans for the portion of the locomotives that will be manufactured in China.
These efforts will result in the first locomotives being available for testing
in China in the latter half of 2007 with full production running over the
following two years.
The locomotives will be powered by EMD's 16-cylinder 6,000 hp engine, will
use the latest AC traction drive systems and will be capable of meeting USA
EPA Tier 2 emissions regulations, making them some of the most environmentally
friendly locomotives in the world.
Mr. Jerry Greenwald, Chairman of Electro-Motive Diesel, Inc. stated, "We
are very pleased with the award of this important business. This contract is a
very important step in solidifying long-term cooperative relationships in
China. The Chinese locomotive market has terrific opportunities for future
growth and joint development, and we are delighted to be able to participate
in it."

About Electro-Motive Diesel, Inc.:
Founded in 1922, Electro-Motive Diesel, Inc. is one of two U.S. original
equipment manufacturers of diesel-electric locomotives. Headquartered in
LaGrange, Illinois, with additional facilities in London, Ontario, EMD
designs, manufactures and sells diesel-electric locomotives for all commercial
railroad applications and has sold its products in more than 70 countries
worldwide. The Company is the only diesel-electric locomotive manufacturer to
have produced more than 70,000 engines and has the largest installed base of
diesel-electric locomotives in both North America and internationally. In
addition to its locomotive manufacturing activities, EMD has an extensive
aftermarket business offering customers replacement parts and a range of
value-added services for its locomotives. The Company is also a global
provider of diesel engines for marine propulsion, offshore and land-based oil
well drilling rigs, and stationary power generation. In April 2005, Greenbriar
Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired
EMD from General Motors Corporation. Additional information may be found at
http://www.EMDiesels.com .

About Greenbriar Equity Group:
Greenbriar Equity Group LLC is focused exclusively on making private
equity investments in the global transportation industry, including companies
in freight and passenger transport, commercial aerospace, automotive,
logistics, and related sectors. Greenbriar and Berkshire Partners have entered
into a strategic joint venture and co-investment agreement to address certain
transportation and related investment opportunities. Greenbriar manages
$700 million of committed limited partner capital and co-investment
commitments and, together with Berkshire, has access to more than $1 billion
for investment in privately negotiated equity investments within the
transportation industry. Additional information may be found at
http://www.greenbriarequity.com .

About Berkshire Partners:
Berkshire Partners has invested in mid-sized private companies for the
past twenty years through six investment funds with aggregate capital
commitments of approximately $3.5 billion. The firm's investment strategy is
to seek companies that have strong growth prospects and to partner with
talented management teams who are interested in being owners of the companies
they operate. Berkshire has developed specific industry experience in several
areas including consumer products, industrial manufacturing, transportation,
communications, business services, and retailing and related services.
Berkshire has been an investor in over 80 operating companies with more than
$13.0 billion of acquisition value and combined revenues in excess of
$17.0 billion. Additional information may be found at
http://www.berkshirepartners.com .

For further information: Don Riach of Electro-Motive Diesel, Inc.,
+1-708-387-6544, don.riach@emdiesels.com
/Web site: http://www.emdiesels.com
http://www.berkshirepartners.com
http://www.greenbriarequity.com

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