Market Opportunities – Industry Strategy

With passenger transportation problems at a worldwide critical stage, the demand for affordable high-speed rail systems and urban transit systems is more evident now than ever before. The recent issuance of a U.S. patent on the Company's intellectual property has stimulated Company management to step up its pursuit of funding to achieve its goal of global passenger transportation dominance. This will initially focus on satisfying the worldwide demand for urban systems (estimated at 100 miles per one million population) and capturing a significant share of the short-haul (less than 600 miles) airline passenger market.

There are numerous opportunities for Tubular Rail Technology.

Transit

Transit includes light rail and commuter rail – intra-city (or urban area) applications. It is one of the primary market segments that TRI will pursue. TRI estimates that the public transit market in the United States alone is sufficiently large - 556 local public transportation operators providing services in 319 urbanized areas with a population of over 50,000 and 1,260 organizations providing public transportation in rural areas - that it can generate 20-30,000 miles needed in this country alone.

Smaller transit or people moving opportunities include systems for airports, central business districts, amusement parks, and parking relief solutions at venues such as sports stadiums, business parks, universities, national parks, etc.

High Speed Passenger Rail

High Speed Rail is a state-of-the-art, world-class transportation system that seeks to provide efficient, reliable and comfortable inter-city travel at speeds of 120 mph or greater. High speed trains contain modern amenities and conveniences and are time and price competitive with other modes of transportation.

Although high speed rail systems operate around the world, the "closest" thing to high speed in the United States is Amtrak's Acela Express trains which can operate at speeds in excess of 135 mph between Boston, New York and Washington , DC . The problems of retrofitting high speed rail to Amtrak's existing infrastructure have proven very difficult; only twenty miles of its 400+ mile line is rated for high speed.

World-class high speed rail has involved the construction of a dedicated, grade separated, right-of-way between large population centers with a high density of business traveler traffic. The Shinkansen in Japan started between Tokyo and Osaka, and the TGV in France started between Paris and Lyon.

High-speed rail in the U.S. today remains largely in its early, conceptual stage. The U.S. efforts have been multi-pronged. Various states have promoted study and design of high-speed rail lines, and six corridors have been designated by U.S. Department of Transportation for study:

• The Midwest Regional Rail Initiative (Chicago connecting: Minneapolis, St. Louis and Detroit .)

• Florida High Speed Rail connecting Miami, Orlando and Tampa.

• Washington, DC to Richmond, Raleigh and Charlotte .

• California High Speed Rail connecting San Diego, Los Angeles , San Francisco and Sacramento.

• Pacific Northwest initiative connecting Oregon (Eugene and Portland ), Washington ( Olympia and Seattle ) with British Columbia ( Vancouver ).

• New York State connecting New York City, Albany and Buffalo. In 2006, the latest study - the 20th in the past 30 years - asserts that "this time" the work will begin.

The multi-billion dollar price tags and huge construction questions have made such initiatives merely debating points. However, a modified design of Tubular Rail Technology should capture this high speed passenger rail market with a much more economical outcome for the purchasing entities. Based upon the 1990's ridership numbers developed by the abandoned TexasTGV, which are generally believed to be valid (and pre-9/11 and pre-current gas prices), TRI can certainly be operated profitably. The TexasTGV was abandoned because, while the ridership numbers were good, its construction costs greatly exceeded original projections.