ABC-NACO Technology Breakthrough Wins Major Order in Britain; Fuels European Expansion Strategy

    DOWNERS GROVE, Ill.--Feb. 1, 2001--ABC-NACO (ABCR) announced that its most advanced suspension system for freight cars, the Axle Motion III, has been accepted by Railtrack PLC (Railtrack) in the United Kingdom (UK) for application on 490 new European type freight wagons (freight cars). The wagons will be used by Railtrack in their track maintenance and renewal programs.
    Railtrack owns all of the track, superstructure (bridges and overpasses), signaling and rail stations in the UK and is responsible for the maintenance of the entire system. The £11 million ($16 million) order, which also includes coupling systems and other components, was awarded to ABC-NACO by wagon builders supplying Railtrack. It was placed after 18 months of testing that proved the Axle Motion III suspension system was "track friendly" and met all standards to ensure safety by preventing track fatigue and damage.
    Railtrack assessed the test results of a number of leading suspension systems in an effort to find the most advanced design that could haul the maximum allowable loads, at higher speeds, with significantly lower track forces and a high level of safety. Many European wagons which are outfitted with suspension systems from an earlier, less demanding rail shipping environment, do not sufficiently minimize destructive forces that lead to track damage, excessive wheel wear and subsequently high maintenance cost and wagon down time. The remedy is to haul less cargo or impose speed restrictions on the train which makes shipping by rail less efficient.
    For purposes of testing, the Axle Motion III suspension was applied to existing freight wagons that previously had exhibited poor performance characteristics. Their service had been restricted to speeds not to exceed 45 MPH due to safety concerns and the potential for damage to the track. During the test period the same wagons, retrofitted with Axle Motion III suspensions, carried the maximum allowable weight of 100 tonnes at 60 MPH and 90 tonnes at 75 MPH. The Axle Motion III suspensions, which were instrumented to gage direct forces on the track, recorded the lowest level or most "track friendly" readings ever measured by the testing authority. The measurements were then down loaded into a special computer model at Manchester University which simulated 100,000 axle passes over a track and, again, the Axle Motion III registered lower track forces than any other suspension system tested.
    ABC-NACO Chairman and Chief Executive Officer, Joseph A. Seher, stated, "This is the most significant order we have received to date in Europe and is certainly welcome in light of the dramatic slow down in rail spending we are presently experiencing in North America. The order is based on tests that prove our technologically advanced suspension system out performed all others under extremely challenging criteria. Of equal importance, Railtrack, a highly respected authority on the benefits of a track friendly environment, accepted it for service on their rail system. With these impressive new results in the UK and other successful tests throughout Europe, the Axle Motion III can now be called the world's most advanced, high performance, freight car suspension system."
    Railtrack's endorsement of the Axle Motion III suspension system in the UK is a positive indication to freight wagon operators and infrastructure management throughout Europe that there is now an accepted solution to increasing axle loads, while at the same time controlling track forces. Excessive forces not only damage rail and overpasses, they also cause vibrations that are destructive to buildings and bridges, many of which are historic in nature in Europe and must be protected.
    Jim Longton, President of ABC-NACO Europe, now expects a significant increase in orders for the Axle Motion III suspension system. "We have quoted on a number of new wagon projects that were waiting for Railtrack's decision on our suspension system before moving forward. Our excellent performance in the UK, coupled with the steady progress being made in Finland and Sweden and an anticipated breakthrough in the German market, will lead to the Axle Motion III suspension system becoming the standard for higher axle loads in Europe." said Longton.

    ABC-NACO is one of the world's leading suppliers of technologically advanced products to the railroad and flow control industries through its three business groups: Rail Products, Rail Services and Systems, and Flow and Specialty Products. With four technology centers around the world, ABC-NACO holds pre-eminent market positions in the design, engineering, and manufacture of high-performance freight rail car, locomotive and passenger rail suspension and coupler systems, wheels and mounted wheel sets. The Company also supplies railroad and transit infrastructure products and services, technology-driven specialty track products, as well as highly engineered valve bodies and components for industrial flow control systems worldwide. It has 32 offices and facilities in the United States, Canada, Mexico, Scotland, Portugal, and China.

    Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, may be deemed to be forward-looking statements that are subject to change based on various factors which may be beyond the control of ABC-NACO Inc. Accordingly, actual results could differ materially from those expressed or implied in any such forward-looking statement. Factors that could affect actual results are described more fully in the Company's Annual Report on 10-K for the transition period ended December 31, 1999, under the caption "Cautionary Statement Concerning Forward Looking Statements," and other risks described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.