Chicago Transit Authority Chooses TieTek Composite Crossties

19 November 2007

The Chicago Transit Authority (CTA) has chosen to buy and install 7,000 TieTek composite railroad ties for transit installations.

TieTek will supply the crossties as part of Menard's Railroad Materials supply to CTA. The CTA operates more than 1,000 rapid transit cars over eight routes and provides 500,000 customer trips each day to 144 stations in Chicago and 40 surrounding suburbs. The TieTek ties will be used for maintenance and spot replacement along CTA's 222 miles of track.

""TieTek composite crossties deliver significant performance and financial benefits,"" says Bob Menard, Owner and President of Menard's Railroad Materials. ""They are a smart choice for transit rail applications and we look forward to working with them.""

The innovative crossties are made from 80% recycled materials and have a projected lifespan of more than 40 years. The resistance of TieTek ties to wear and harsh environmental conditions is a key factor in reducing rail maintenance costs by up to $48,000 per mile of track per year.

New York City Transit also recently purchased 11,000 TieTek composite crossties in what has been a busy year for the company. TieTek recently announced a 200% revenue growth for the second quarter of 2006. In addition, Union Pacific railroad expanded their agreements with TieTek.

""Our partnership with the CTA is another exciting development for TieTek,"" says TieTek CEO Neal Kaufman. ""TieTek professionally engineered composite crossties are a great choice for our transit customers who want to improve performance and reduce operating costs for their entire system.""

TieTek has also opened a new 50,000 square foot production plant in Houston, Texas. The new facility complements their flagship manufacturing facility in Marshall, Texas, adding both capacity and product flexibility.

TieTek expects the facility to increase the production of their innovative composite crossties by 50%. The improved manufacturing flexibility of the new plant allows for production of crossties and switch-ties up to 22 feet long. The new products are required to meet the need for both track maintenance and new construction.

With three lines in production, each week TieTek will consume 500 tons of recycled plastic and rubber from over 15,000 used tyres to produce high- performance ties for use in railroads across the country.

""TieTek is executing its strategy, expanding its flexible manufacturing capacity, and strengthening its customer relationships,"" said TieTek CEO, Neal Kaufman. He adds, ""The growth in our customers' businesses is leading to increased demand for high-value, high-performance, environmentally responsible TieTek composite crossties.""

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