Corporate presentation for CSRE Limited, UK. February 2011

1. CSRE Approach tothe UK Market Presentation to: LinkedIn.com February 2011 by: David Shipley, Managing Director, CSRE Limited.

3. World’s third largest rolling stock group;

4. Sixteen manufacturing facilities, 80,000 staff;

5. Publicly listed company, on both Hong Kong & Shanghai stock markets;

6. Produces the world’s fastest commercially operated passenger trains – 380 km/hr;

8. DMU design for Tunisian State Railways to be nominally TSI compliant, in preparation for mainland European opportunities;

9. Design commenced in earnest on TSI compliant UK product range, comprising: -

10. Polaris High Speed Express;

11. Pacesetter Regional DMU/EMU;

13. Polaris High Speed Express

14. Polaris High Speed Express

16. Mk III coach compatibility at launch;

17. Electric / diesel power source, or both;

18. Compatible with Potenta loco for haulage;

19. Conventional interior arrangement;

20. Concentrated power – distributed drive;

21. Operational routes – Mk III cleared routes;

22. Target route availability RA3;

24. The Polaris Product

25. The Polaris Product Each power car fitted with: two x c. 800 kW diesel engines one x 3 MW traction system Each train set fitted with: eight motor bogies eight trailer bogies

26. The Polaris Product PANTOGRAPH PANTOGRAPH TRACTION SYSTEM TRACTION SYSTEM GPSRECEIVER TRACTIONALTERNATOR x 2 TRACTIONALTERNATOR x 2 DRIVER INTERFACE TRACTION MOTORS x 8 TRACTION MOTORS x 8 1. Route data from Driver Interface 2. Train position from GPS Receiver Power Demand Calculation Engines Started / Stopped as required

27. Proposed Test Train

29. Re-use of T4 bogies;

30. Re-use of control equipment;

31. New crash-worthy Polaris body shell;

32. Accessible toilet if required;

33. Wheelchair location/s if required;

34. Scope for catering galley at cab end if req’d;

35. Scope for generator set to provide ETH if req’d;

37. Low Cost Driving Trailer Pilot

38. Pacesetter Regional DMU / EMU

40. Inter-regional comfort level;

41. Air conditioned passenger areas / cabs;

42. 23 metre car body, sliding plug doors;

43. Under-floor MAN / Voith drive train on DMU;

44. Toshiba VVVF traction system on EMU;

45. Operational routes – main UK inter-regional corridors;

47. The Pacesetter Product

48. The Pacesetter Product

49. Pulsar Metro EMU / Rural DMU

51. DMU rural – low cost the main objective;

52. EMU metro – mass transit the main objective;

53. Air conditioned driving cabs;

54. 20 metre car body, sliding pocket doors;

55. Under-floor MAN / Voith drive train on DMU;

56. Toshiba VVVF traction system on EMU;

57. Operational routes – nominally network-wide;

59. The Pulsar Product Inspiration

60. How to Make a Win-Win Situation? Chinese manufacturers are now seen as a threat by European manufacturers; Essential to: - Highlight advantages to stakeholders; Build relationships with local companies; Consultants; Suppliers; After Sales Support organisations; Maximise the opportunities for localisation; Introduce finance solutions.

61. Pilot projects and prototypes Chinese rolling stock not yet present in European market; Fear of the unknown; Europe regarded as “special” market; Need to target opportunities that offer ways to show off products, starting with small numbers and prototypes; Focussing on Polaris Driving Trailer Pilot and 12 car Low Cost DMU Trial as a springboard.

62. Technology Transferring & Sharing Huge resource in China; Thousands of highly motivated engineering graduates and experienced engineers; Well equipped research institutes & test facilities; R & D opportunities throughout Europe; Opportunity to develop products and brands, which combine UK expertise & Chinese manufacturing / testing facilities; e.g. Polaris; Pacesetter; Pulsar.

63. Summary CSRE acts as the “bridge” between European customer and Chinese train manufacturer; Advised Chinese partners regarding the best products to offer, supported by brand identity; Working with a number of EU technology partners, in order to offer comprehensive product range in a co-ordinated way; Committed to introducing Chinese built trains to the European market.

64. CSRE Approach tothe UK Market Thank you for listening.