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GM Agrees to Sell Electro-Motive Division

Posted on January 12, 2005

General Motors Corp., Greenbriar Equity Group LLC and Berkshire Partners LLC today announced that they have reached a definitive agreement in which GM will sell its Electro-Motive Division (EMD) to an investor group led by Greenbriar and Berkshire Partners. The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members. Terms of the transaction, which is expected to close in the first quarter of this year, will not be disclosed.

The sale agreement covers substantially all of the Electro-Motive businesses, including North American and international locomotives; power, marine and industrial products; the spare parts and parts rebuild business; and all of Electro-Motive’s locomotive maintenance contracts worldwide. The LaGrange, Illinois, U.S.A. and London, Ontario, Canada manufacturing facilities are included in the agreement.

"Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s. Electro-Motive has outstanding products, employees and a truly global franchise, and we believe the company’s prospects are bright," stated Reginald Jones, a managing partner of Greenbriar Equity Group.

Greenbriar Equity Group LLC is focused exclusively on making private equity investments in the global transportation industry, including companies in freight and passenger transport, commercial aerospace, automotive, logistics, and related sectors. Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately US$3.5 billion. Greenbriar and Berkshire Partners LLC have entered into a strategic joint venture and co-investment agreement to address transportation and related investment opportunities. Greenbriar manages US$700 million of committed limited partner capital and co-investment commitments and, together with Berkshire, has access to more than US$1 billion for investment in privately negotiated equity investments within the transportation industry.

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