Portec Rail Products, Inc., breakthrough in China

Portec Rail Products, Inc., said that it has increased its expansion into China as the company recently received new customer orders for its Fault Detection and Friction Management product groups from China. Portec Rail has had a steadily‐growing presence in China for its Friction Management products, and has now penetrated the Chinese market with its Fault Detection product group.

Portec
Rail is a leader in the North American heavy‐haul rail freight
markets for friction management with its Total Friction Management^TM program and
Salient Systems’ Class I dominance in Wheel Impact Load Detector (WILD) systems.
The company is focused on matching this expertise to the Chinese market, which
provides tremendous growth opportunity for Portec Rail.

The
Friction Management product group has increased its market presence through a significant
increase in Chinese market sales in 2009 from the prior year for the train‐mounted
Kelsan LCFTM Solid‐Stick lubrication products and HPFTM Solid ‐Stick
tread friction modifier while new orders were also received for friction
management wayside application systems that included both gage face lubrication
and the KELTRACK® top of rail friction control product.

Portec
Rail’s Salient Systems entered the Chinese market by receiving orders from
Shenhua Energy Company Limited for new WILD systems that include optional Weigh‐In‐Motion
(WIM) and Hunting Truck Detection (HTD) capabilities, as well as orders for the
Rail Stress Monitor (RSM) product. These systems are to be installed on a coal-carrying
heavy‐haul rail line.

Richard
Jarosinski, President and Chief Executive Officer, stated, "These orders for a
variety of our products reflect the success of our efforts to enter the
expanding Chinese rail infrastructure system. Our dedicated employees, along
with our sales agents in China, have worked diligently to understand this unique
customer base of our Chinese business partners. We have focused our efforts on
participating in key industry forums and in‐country trade shows and
in the publication of research papers and promotion of customer visits to North
America. All of these activities have resulted in significant progress towards
making Portec Rail Products a meaningful brand name in the Chinese rail system
marketplace, which we hope will continue to grow in stature as our products and
services become more widely used."

Jarosinski
continued, "The Chinese rail service market offers significant growth potential
in both heavy‐haul freight and passenger service. It has been
recently announced that the Chinese will be spending a new record of $120.6
billion in rail expansion efforts this year. It also has been reported that the
period from 2010 to 2012 will be a key period for the rail modernization effort
in China according to the Ministry of Railways. Rail transportation investment
includes major capacity expansions for some of the country’s existing coal
railways as well as the planned construction of several new coal railways by
companies such as Shenhua Energy Company Limited. In addition, major expansion
is also set for high-speed passenger rail service lines. Our growth in China’s
rail industry should position us well as China continues to expand and
modernize its railways. We are focused and dedicated to increasing the use of
both our friction management and wayside data collection systems in China and
other key international markets."