PARRY PEOPLE MOVERS Ltd OBTAINS FUNDING FOR DEVELOPMENT

EGM planned for April to approve expanded share issue

At a meeting on 26th March 2007, the board of transport innovator Parry People Movers Ltd decided to proceed with raising £150,000 to continue the development of lightweight railcars and trams using flywheel energy storage technology.  This follows an earlier decision on 5th March 2007 to proceed with preparations for the manufacture of two 60-passenger railcars as resources allow.

The agreement with Close Asset Finance Ltd is partially secured on the company's 50-passenger railcar that operated safe, reliable and economical public services on a branch of the national Network Rail system during 2005-06.  Over 4,000 journeys were run in passenger service by licensed train operator Pre Metro Operations Ltd during experimental Sunday operation on the Stourbridge Town branch, with 99% reliability and punctuality.

Following the conclusion of the experimental operation, support for Parry People Movers Ltd has been forthcoming from the West Midlands Passenger Transport Authority, national network owner Network Rail and technology licensor JPM Parry & Associates Ltd - in addition to the valued contributions of the company's shareholders, syndicate members and directors.  On 22nd January 2007, rail minister Tom Harris MP came to Stourbridge to experience the technology for himself.  Chris Grayling MP, the shadow secretary of state for transport, also visited in July 2006.

The arrangement involves the winding-up of the syndicate formed to finance the design and construction of PPM 50 railcar No. 999 900, and the transfer of full title to Close Asset Finance Ltd for a period of 36 months.  The overwhelming majority of syndicate members have opted to exchange their syndicate holding for Parry People Movers Ltd £1.00 ordinary shares offered at par.

Also agreed at the 26th March meeting was the intention to hold an Extraordinary General Meeting on 24th April in order to permit the issue of shares over and above the current discretionary level agreed at the company's AGM on 11th December 2006.

The new funding will permit the productionisation of the firm's four-wheel lightweight railcars, as well as design work on a range of larger vehicles sharing the people-, budget- and environment-friendly characteristics demonstrated on the Stourbridge Town branch.  The experimental operation showed operating cost savings of 45% and a carbon footprint of only 20% compared to conventional rail technology, while passengers judged the experience equivalent to a modern tram in terms of amenity and attractiveness.

Cost-effective local lightweight railways - linking communities that currently do not have passenger train services and feeding into the national rail network - are a green alternative to the growth of car commuting and road congestion.  Services can be implemented on existing heritage and freight-only lines, and new construction of track (including on-street tramways) will be much simpler and more affordable for self-powered, lightweight vehicles compared to conventional technologies requiring electrification.  Following the operational experience of Parry People Movers Ltd products to date, the company has received expressions of interest from around the UK, and export opportunities are expected to follow successful showcase application in the domestic market.

John P.M. Parry
Chairman

28 March 2007