Finmeccanica's Ansaldo Signal To Build Smart System for Managing Rail Traffic in US; Union Pacific Adopts Innovative Rail Traffic Planning Technology

ROME--()--Sept. 19, 2005--Finmeccanica company Ansaldo Signal is to build a smart system (Optimizing Traffic Planner(TM) (OTP) and Next Generation Computer Aided Dispatch System (CAD)) that can guide trains based on real-time information received, and react to unexpected events such as tracks going out of service or trains running more slowly than expected.

Ansaldo Signal will build this innovative security system for the US market via its subsidiary Union Switch & Signal (US&S), which today signed an agreement with Union Pacific Railroad (NYSE:UNP) to provide OTP and CAD for the company's entire rail network, stretching more than 32,913 miles across the whole of North America.

The OTP system was designed especially to optimize train movement in a way that satisfies a railway's complex logistics and operating needs. Once installed, OTP can manage traffic, creating ideal routes for all trains scheduled to be traveling during a given period of time. Thanks to its ability to respond in real time, OTP can always select the best route. OTP will also increase rail capacity significantly and enable companies to reduce their operating costs.

The system is the most recent innovation from US&S and represents a quantum leap in rail traffic planning technology. The company built the first traffic management system for commercial use at the end of the 1980s, using Auto Routing (ART) equipment, and remains at the forefront in the development of rail transport optimization systems.

"US&S is committed to delivering the latest technologies to the railroad industry, and we are pleased to announce the first OTP contract with the largest railroad in North America," said Roberto Gagliardi, CEO of Ansaldo Signal. "With the OTP system in place, Union Pacific will be in a position to greatly increase operational efficiency while reducing costs."

About Union Switch & Signal Inc.

Based in Pittsburgh, Pa., Union Switch & Signal Inc. (US&S) is an industry leader in the design and manufacture of signaling, automation and control systems for rail networks and public transport manufacturers all over the world, and in after-sales assistance. US&S is 100% owned by the Finmeccanica subsidiary Ansaldo Signal NV. Founded in 1881, the company will celebrate its 125th anniversary next year. For further information, please visit www.switch.com.

About Finmeccanica

Finmeccanica is Italy's leading high-tech company, operating in the design and manufacture of helicopters, aerostructures, satellites, space infrastructure, missiles and defense electronics. It plays a leading role in the European aerospace and defense industry, and participates in some of the biggest international programs in the sector through well-established alliances with European and American partners. Finmeccanica also boasts significant manufacturing assets and skills in the transport, energy and IT sectors. The group is listed on the Milan stock exchange, and operates in Italy and abroad through 16 companies and 6 joint ventures. It employs around 51,000 staff in total. As part of its drive to maintain and build on its technological expertise, Finmeccanica spends the equivalent of over 16% of its revenues on research and development.

Contacts

Dentsu Communications Inc.
Enrique Briz, 212-660-6759
ebriz@dcinyc.com
-or-
Finmeccanica
Press Office, + 39-06-32473313
ufficiostampa@finmeccanica.it

Contacts

Dentsu Communications Inc.
Enrique Briz, 212-660-6759
ebriz@dcinyc.com
-or-
Finmeccanica
Press Office, + 39-06-32473313
ufficiostampa@finmeccanica.it