DELLNER COUPLERS Sp. z o.o.

DELLNER COUPLERS Sp. z o.o.

DELLNER COUPLERS IN POLAND FORMED IN AUTUMN 1997 AS A SUBSIDIARY FOR DELLNER COUPLERS AB MOST OF PRODUCTS ARE EXPORTED TO DC AB, DCI AND DKUPPLUNGEN SINCE 2002 DC SP HAS BEEN PRODUCING IN A NEW PLANT, LOCATED IN GDYNIA, CHWASZCZYŃSKA STREET.

DELLNER COUPLERS SP COMPANY PROFILE PRODUCTION OF PARTS AND SUB-ASSEMBLIES FOR MECHANICAL AND ELECTRICAL COUPLERS PRODUCTION OF TRAM COUPLERS WITH ALBERT HEAD (stiff and foldable) ASSEMBLING OF COMPLETE ELECTRICAL AND MECHANICAL COUPLERS REBUIDING, MODERNIZATION AND OVERHAUL OF COUPLERS SALES OF COMPLETE COUPLERS, ACCESSORIES AND SPARE PARTS

DELLNER COUPLERS SP COMPANY PROFILE 91 EMPLOYEES, INCLUDING 15 IN THE OFFICE 79% OF EMPLOYES HAVE SECONDARY OR HIGHER EDUCATION HIGH INVESTMENTS IN STAFF S QUALIFICATIONS AND MANUFACTURING EQUIPMENT INTERNATIONAL QUALITY ACCREDITATION ISO 9001:2000, ISO14001, DIN6700-2 (WELDIND CERTIFICATE OF GERMAN INSTITUTE SLV) THE GDYNIA CITY AWARD FOR THE BEST CONSTRUCTION IN 2002 GAZELA BIZNESU IN 2004 AND 2005 AN AWARD GRANTED BY A POLISH LEADING BUSINESS NEWSPAPER FOR RELIABLE AND FAST GROWING COMPANIES

EMPLOYMENT 90 80 70 60 50 40 30 20 10 0 '98/'99 '99/'00 '00/'01 '01/'02 '02/'03 '03/'04 '04/'05

PRODUCTION CAPACITY DEPARTMENT: MECHANICAL, MECHANICAL ASSEMBLING, ELECTRICAL, ELECTRICAL ASSEMBLING, PRODUCTION OF ISOLATION BLOCKS, ASSEMBLING OF CABLINGS 2-3 WORKING SHIFTS MODERN MACHINES: 6-TABLED CN CENTER MITSUSEIKI, CNC COMBINATION OPERATION MACHINES STAR, OKUMA, FAT, WELDING CENTERS WITH METHOD TIG, MAG / MIG

DELLNER COUPLERS SP. ZO.O.- WORKSHOP

REFERENCES - DELLNER COUPLERS SP. Z O.O. METRO BUCAREST, METRO WARSAW, FINLAND RAILCAR, DD PRAG TRAM COUPLERS: GOTEBORG, ESHISIHIR, LOZANNE, ŁÓDŹ, GDAŃSK, WARSAW OVERHAUL OF VOGTLANDBAHN, PKP SKM

2004/2005 2003/2004 SALES RECORDS (KPLN) 30 000 25 000 20 000 15 000 10 000 5 000 0 1998/1999 1999/2000 2000/2001 20001/2002 2002/2003

SALES CLIENTS 2004/2005. 5% 7% 3% 2% DC AB DCI Dkupplungen Export (ATM, BRESCO) Sales Poland 83%

POLISH MARKET PKP Group (Polish State Railways), 179864passengersin Jan-Sept.2005, partly dotated by State and local authorities (government), loss of 700mln of PLN in 2005, debt of 9,6mld of PLN Some companies exluded from PKP Group are profitable, f.e. Koleje Mazowieckie Tram couplers: over 30cities and towns have tram lines, the main are Tramwaje Warszawskie, Tramwaje Sląskie, MPK Łódź, MPK Kraków Plans for investments for railways: both infrastructure and cars Main competitor: Voith Short delivery time!

POLISH CLIENTS AND POTENTIAL CLIENTS PESA Bydgoszcz builder of rail vehicles ( 2couplers+22couplers for rail buses, tram couplers Warszawa-14, Elbląg-7), now in cooperation with SKODA TRANSPORTATION ALSTOM KONSTAL car builder for METRO WARSAW ( automatic couplers, short couplers + spares) TRAMWAJE WARSZAWSKIE-Albert couplers (50-sold in 2005, 60-S in 2006, 50- AS in 2006), MPK KRAKÓW ( 50, ZKM GDAŃSK(14 in 2006) - Albert couplers BOMBARDIER WROCŁAW ( former PAFAWAG-ADTRANZ) ZNTK Poznań( builder for rail buses and trams)- 50- S in 2006 PKP SKM, ZNTK MIŃSK MAZOWIECKI ( co-operation with MetroWagonmash), NEWAG client for spare parts KOLZAM- went bankrupt

Sales report 2005 Sales of 1,7MSEK (PESA, TRAMWAJE WARSZAWSKIE) Marketing activities ( TRAKO 2005, conference in Poznań for tram authorities ) Tendering for METRO WARSAW, PKP Przewozy Regionalne (STADLER) Contacts with Polish clients» TRAKO 2005

ACTIVITIES and PLAN FOR YEAR 2006 Sales goal for year 2006: 5 MSEK Develop and strengten co-operation and contacts with Polish clients ( frequent visits, personal approach, technical consulting) Start more agressive marketing: invest in marketing materials, participation in Polish trade fairs TRAKO 2006, sponsorship of conference and exhibition for tram authorities Co-operation with STADLER, SIEMENS, througth DC Focus on PESA, Albert couplers, Metro Warsaw, PKP Przewozy regionalne ( also aftersales) Develop contacts in east Europe countries, such as Ukraine, Slovakia, Romania, Baltic republics, with DC assistance Polish readiness for participation in Dellner s activities in Russia

STRATEGIC PLAN FOR 2006-2009 Active presence at Polish market, agressive activities to built up strong contacts with car builders and railway authorities Gaining all necesarry Railway certificates and references Set sales at the level 15MSEK/year with growing tendency Sign long term agreement with car builder Create strong, good sales team- employ technical representative with technical or railway backround/ experience Involve Polish constructors in some sales activities