March 18, 2004

News Release: RailPower(R) announces two hybrid locomotives approved for California

RailPower Technologies Corp. (TSX: P) announced today that a Green Goat(R) and a Green Kid hybrid yard locomotive have been approved for funding under the Carl Moyer emissions reduction program.

The Green Goat(R) was granted funding under RailPower's own application and a Green Kid was approved for Railserve, Inc. Both locomotives will be used in the South Coast Air Quality Management District (SCAQMD). RailPower is finalizing end-user arrangements for the Green Goat and a customer is expected to be announced shortly. The locomotives cut smog-precursor oxides of nitrogen NOx and particulates 80-90% and greenhouse gases 50-80%, when compared to conventional yard locomotives.

RailPower(R) President and CEO, Jim Maier, said 'This is further validation of our technology in a very important US air shed. Our hybrid locomotives can make a real impact in state and federal strategies to reduce harmful emissions. For the railroads and yard operators there is the added benefits that hybrid locomotives bring: radically reduced diesel fuel consumption, maintenance costs, noise levels and significantly improved availability.'

The Carl Moyer Program is an incentive-based program which taps into available new environmental technologies to help California advance clean air goals. Through this program, California implements incentive-based reductions in diesel engine emissions that are called for in the State Implementation Plan (SIP), the state's 'roadmap'for meeting federal clean-air mandates. Together, with other incentive-based measures, the Carl Moyer Program has the potential to reduce NOx emissions, and can do so cost effectively for between US$5,000 and $12,000 per ton. By comparison, controls on stationary sources cost between $10,000 - $20,000 per ton.

Railserve is the leading provider of in-plant switching, track maintenance, and other rail services. It operates a total of 127 locomotives and is a member of the $5.7B Marmon Group.

RailPower's line of hybrid locomotives is aimed at the switcher replacement in North America. The Green Goat(R), at 2,000 equivalent horsepower, is for the largest rail yards, while the Green Kid, at 500-1,000 h.p., is for smaller industrial yards. The company is headquartered in Vancouver, Canada, and has a US office in Erie, Pennsylvania. Website is www.railpower.com.

For further information: Contacts - Nigel Horsley, Director,Communications, RailPower, (604) 904-0085 ext 215; Simon Clarke, ExecutiveVice President, RailPower, (604) 904-0085 ext 206; Sam Atwood, SCAQMD,(909) 396-3456; Jay Hussey, Investor Relations, The Equicom Group,(416) 815-0700 ext 225


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