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Hong Kong, October 30, 2009 – IBM (NYSE: IBM) announced today that MTR Corporation (MTR) has joined IBM’s Global Rail Innovation Center (GRIC) in Beijing as a member of the Advisory Board, providing Hong Kong with a significant opportunity to contribute to and benefit from research and solutions developed for next-generation rail systems in China and around the world.

The GRIC, which opened in June 2009, brings together the world’s foremost industry leaders, researchers and universities to advance next-generation rail systems. As a member of the Center’s Advisory Board, MTR will be tasked with helping to define areas where business and technology solutions can be applied to solve passenger and rail freight problems.

Unprecedented demand is being driven for modernized rail systems as population growth, rapid urbanization, road congestion, fuel prices and concern about carbon emissions put pressure on the transport of passengers and freight. With energy efficiency two to five times that of road or air travel and three to ten times less CO2 emissions, railroads offer a clean, green and efficient mode of transportation for the 21st century. A new generation of “Smarter Railroads” is being developed that will be instrumented and intelligent, with millions of sensors and data driven insight that will increase capacity and utilization and reduce congestion.

Keith Dierkx, Director of the GRIC, said membership of the Advisory Board reflected MTR’s role as a global leader in rail systems.

“Hong Kong’s MTR is regarded as one of the world's leading railways for safety, reliability, customer service and cost efficiency. As a member of the Advisory Board, MTR will help to co-create solutions, industry standards, research and drive thought leadership for smarter rail systems with IBM and other global rail leaders,” Mr. Dierkx said.

“The GRIC draws upon IBM’s experience of more than 50 years of working with rail industry clients. In Hong Kong, IBM has worked with MTR since 2004, successfully integrating IT during the merger with KCRC resulting in significant IT cost savings and helping to deliver fare savings of 5-25 percent for 3.4 million passengers. Our goal is to help railroads increase capacity, network velocity, and efficiency while enhancing customer service.”

Andrew McCusker, Operations Director of MTR, said: “MTR welcomes the opportunity to work with IBM and other railway leaders and we look forward to contributing to the body of world-class research at the GRIC. This collaboration will be beneficial for both IBM and MTR in generating innovation for the global railway industry, and for bringing smarter railroad solutions to the people of Hong Kong.”

The GRIC is staffed by a global network of IBM solution specialists, software architects , researchers, consultants and rail subject matter experts. While the GRIC will leverage China’s commitment and investment in being a leader in rail, the GRIC is a global center, intended to foster collaboration and share innovation wherever it is developed. Since most railroads do not compete with each other across national borders, the GRIC provides a unique opportunity for the industry to research and develop best practices, assets, solutions and resources from around the world and adopt them. For example, a passenger service system for high speed rail developed in China might be adopted in California or in Europe.

Through collaboration, the GRIC and its members will co-create the high-value solutions, open industry standards, research and thought leadership that the rail industry needs to support the growing demands that are being placed on railroads.

Founding members of the Center’s Advisory Board include leading representatives and organizations in the railroad community including Judge Quentin L. Kopp, chairman of the California High Speed Rail Authority, Michigan Technological University, Motorola, Railinc, RMI, Sabre, Tsinghua University, and Professor Joseph M. Sussman of the Massachusetts Institute of Technology.

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