Rail Equipment Finance Conference 2010

La Quinta, CA / March 7-10, 2010

Conference Q&A’s

Railroad Financial Corporation has sponsored Rail Equipment Finance for 23 years and is often asked questions concerning the Conference by individuals who are considering attending. Here are some of those questions and the appropriate answers.

Conference Related Questions:

Question #1: What is REF designed to accomplish?

Each year, REF presents newly-compiled unpublished data on the North American railcar and locomotive fleets reflecting current fleet compositions, new additions to and retirements from the fleets and predictions for the fleets’ status in the coming year(s). This information is presented by industry insiders responsible for compiling and interpreting the information presented. Individual panel discussions on various railcar and locomotive types include manufacturers, owners and operators as well as valuation experts and appraisers.

Year-to-year, the predictions made by REF’s presenters concerning likely production levels for new equipment as well as pricing and valuations for existing equipment and equipment lease rates have been consistently proven to be accurate as the year progresses. REF’s organizers have been told repeatedly that REF is the “best and most valuable equipment conference.......in any industry.”

Question #2: Are there other major components of REF?

In addition to equipment presentations, keynote speakers analyze the overall rail industry as well as the industries served by rail in North America. The financial strengths and weaknesses of various industry segments and the plans and expectations of various market participants such as equipment lessors, lessees, manufacturers and suppliers are also reviewed in presentations and panel discussions

Question #3: Are there other reasons to attend REF?

In addition to providing an early “look” at 2010 industry issues (and beyond), REF has become a “destination” event, attracting significant numbers of sales, marketing and other customer contact professionals seeking to meet present and prospective rail industry customers at REF. Attendance has grown an average of more than 15% each year over the last three years. In the words of one corporate sponsor: “REF saves us at least 10 sales trips a year.&rdquo

Question #4: Who attends REF?

REF is attended by railroaders, manufacturers and suppliers, lessors, lenders, consultants, investors as well as financial and legal professionals. A significant number of our attendees are senior officers and decision makers.

240 people attended REF 2009. They came from throughout North America as well as from the UK, Europe, Japan, Australasia, and Mongolia.

Question #5: Are spouses/guests encouraged to attend?

REF welcomes spouses/guests. The La Quinta Resort & Club (www.laquintaresort.com) offers a significant variety of sporting and spa activities for both attendees and their guests. (Learn more about the Spa La Quinta.) 30 spouses/guests attended REF 2009. An additional fee of $150 is charged to help defray food and beverage charges for spouses at the public receptions. Properly registered spouses/guests are welcome at all REF functions and may also register for the Golf Outing.

Question #6: What about children?

Young Adults. Families have attended prior REF’s with adult children who were college students or recent graduates. Networking at REF helped them with careers in our industry. To support this lofty goal, in the case of attendees who register an adult son or daughter as a guest, we will waive our rules on guests not attending business sessions so that they can get a taste of our industry.

Kids. While La Quinta is a “Kid Friendly” resort (Check out “Camp La Quinta”), the REF Program is decidedly adult. Attendees taking advantage of all the educational and business development activities will be busy from early morning until late in the evenings during the Conference.

Question #7: What networking opportunities occur at REF?

REF includes three major receptions on Sunday, Monday and Tuesday evenings, as well as a well-attended golf outing on Tuesday afternoon. There are numerous breaks during each day’s presentations that allow for attendee interaction with speakers and others in attendance. While REF does not have organized dinner functions, a number of private dinner parties are sponsored by companies that are corporate sponsors of REF or which are otherwise in attendance. Railroad Financial Corporation sponsors a hospitality function at the Eisenhower Suite each evening from 9 p.m. until Midnight

Question #8: Does the REF format change year-to-year?

After running REF for 23 years, Railroad Financial and its collaborating presenters and panelists have fine tuned the conference format into a tight, informative program geared to the interests and needs of both the rail industry veteran and the newcomer.

While the data presented is current and up-to-the-minute, the bulk of the program format is unchanged from year-to-year. 10% to 15% of the program is devoted to emerging industry issues each year. More than 75% or REF’s presenters and panel leaders are veterans of prior REF conferences.

As a result, presenters and panel leaders are challenged each year to equal or exceed the quality of their prior year’s presentations. And they do.

Question #9: What differentiates REF from other industry functions?

Railroad Financial Corporation’s President Tony Kruglinski is also Railway Age Magazine’s Financial Editor as well as an industry observer and veteran for more than 25 years. As a result, Tony knows the questions that should be asked of each presenter. If those questions are not asked...or if a presenter has left a point unexplained...or the audience has left a questionable claim unchallenged...Tony can be counted upon to ask the appropriate question or challenge the speaker’s views himself from the floor! In the end, 100% of the “story” gets to REF’s audience. Tony Kruglinski and his partners David Nahass (railcars) and David Scott (locomotives) represent decades of rail experience and are dedicated to making REF the best educational and business development experience.

Unlike commercial conference companies, Railroad Financial is an industry player in its own right, with its own body of experience and its own role in the rail industry...distinctly apart from its sponsorship of REF and other professional seminars. Railroad Financial manages an average of US$ 1 Billion each year in equipment transactions and Railroad Financial begins its year with REF.

Question #10: Does REF offer discounts?

REF works tirelessly to keep its Conference Fees as reasonable as possible. We feel we have achieved a tremendous “Value for Money” in this respect. Railroaders (employees of Class I, II, and III Railroads) receive a 50% discount on regular REF attendance fees. (If you are a railroader with managerial responsibilities in one or more of the areas targeted by REF’s Agenda, there may be a role for you as a member of our Faculty. REF’s Faculty attends without paying a fee.)

Question #11: Can attendance at REF qualify me for Continuing Education Credits?

In the past, a number of our attendees have succeeded in having their attendance at REF applied to required Continuing Education Credits with professional organizations of which they are members. REF’s staff will allocate a reasonable amount of time to work with bar associations, CPA organizations and others that manage CE credits. Having said this, the onus will fall on the attendee to manage this process of getting credit for his or her attendance.

Question #12: What conference materials are provided?

Attendees receive speaker and attendee information as well as final programs upon arrival at La Quinta. Approximately 95% of all data that is presented during REF is reproduced on a Data Disk that is mailed to each attendee after the conference is completed. (In the rare case that a presenter’s materials contain proprietary information that cannot be physically reproduced, we will attempt to announce that fact prior to the presentation.)

Question #13: How do I become a sponsor?

Most of REF’s “events” have corporate Event Sponsors. These sponsorships help Railroad Financial keep registration fees as low as possible. (Thanks to Event Sponsors' contributions, we have only had to raise our registration fees twice in the last 8 years.) In return for contributing a material part of the event’s cost (receptions, golf outing, breakfasts, lunches, breaks, etc.) the Event Sponsor receives program and signage credit for their sponsorship and early access to registration lists, as well as discounts on registration fees and identification as an Event Sponsor on the identification credentials of all of their attendees. Historically, REF’s Event Sponsors have also been involved with program input and development. Upon becoming an Event Sponsor, the corporation has first call on options to repeat the sponsorship of “its” event each year. Virtually all of REF 2010’s Event Sponsors were sponsors of REF 2009 and prior years. Event sponsorship ranges from $2,500 to $15,000. (The majority of event sponsorships are shared by more than one Event Sponsor.)

REF has created a new level of sponsorship.........Industry Partner. For $1,000 an Industry Partner receives 12 months of logo appearance on the REF website....linked to the Industry Partner's own website.... as well as identification on signage at the meeting and meeting materials and identification as an Industry Partner on the identification credentials of its attendees. Industry Partner funding is dedicated to subsidizing the attendance of railroaders to REF and to ameliorating increased costs being incurred at La Quinta.

To inquire about how your company can become a sponsor or partner of REF, contact Marjorie Silverman at: (312.222.1383) or (msilverman@railfin.com)

Question #14: Why do international attendees come to REF?

Some international attendees have investments in or are seeking business opportunities in North America. Other international attendees (we believe) have seen the nexus between the commercial structures and products that have developed in North America over the last 50 years and the likely development of similar structures in emerging rail markets in Europe and Asia.

Question #15: What is Railroad Financial Corporation?

Railroad Financial Corporation is a financial advisory firm focused solely on rail. It has nearly two decades of experience during which it has managed over US$ 18 Billion in rail equipment transactions...none of which has resulted in a loss for its participants. Railroad Financial’s clients and transactions have taken place in North America, the UK and Europe and Australasia. (Learn more about Railroad Financial Corporation)