ORR Launches Additional Investigation into EWS

CONFIDENTIAL

On Friday the Office of the Rail Regulator initiated a further investigation
stemming from our complaint about abuse of dominance by EWS Railways. In
addition our allegations of discrimination and refusing to deal, ORR are now
also investigating EWS's locomotives contract with General Motors (under
which we believe EWS receives a payment when GM sells locos to third-party
rail freight operators).

ORR had been discussing jurisdiction with the Department of Justice in the US
and with the EC, however, both have now declined jurisdiction. ORR is
therefore taking the investigation forward via a request for information from
EWS. This is one of the clearest abuses outlined in our complaint and it is
therefore very encouraging to see ORR take the matter forward. Further
details are set out in the attached fax below.

Paul