Railinc Successfully Completes SAS 70 Type II Audit; Railinc Meets International Standard for Protecting Customers' Financial Data and Transactions

Business Wire, Jan 20, 2005

CARY, N.C. -- Railinc today announced that it has successfully completed a Statement on Auditing Standards (SAS) 70 Type II examination. The Type II audit is much more stringent than Type I, because this audit includes detailed testing of the service organization's controls. The SAS 70 audit validates internal controls and operational procedures in securing and protecting data exchanges with Railinc customers.

"We subjected Railinc's operations to a rigorous, third-party audit and we passed with flying colors," said Richard Flynn, Railinc's Assistant Vice President of Marketing and Sales. "With the successful completion of this thorough audit, Railinc's customers can rest assured that our processes meet or exceed the highest standards for processing, protecting and securing their data."

The SAS 70 Type II Report examined the integrity and security of Railinc's systems, including an exhaustive assessment of control in operations over a six-month period. Railinc's systems, procedures and controls critical to processing information and millions of confidential financial transactions were evaluated. Specifically, the following seven systems were examined: the Railroad Clearinghouse (RCH), the Interline Settlement System (ISS), the Rate EDI Network (REN), the Liability Continuity System (LCS) and the RailSync suite of applications: Command, Concur and Control. Physical and logical security measures, network access and monitoring, systems development, change management and customer service were also included.

Receiving a favorable Type II result is a key requirement for customers and meets certain mandatory regulations, like the Sarbanes-Oxley Act. These regulations require credible proof that service providers possess effective internal controls, high security standards and tight quality controls. Customers can feel confident in Railinc's commitment to ensure the highest standards in the industry.

About Railinc

Railinc is the largest single source of real-time, accurate, interline rail data in the North American Transportation Industry. Railinc is the supplier of such well-known products as Steelroads, RailSight, RailSync and NextPath. These systems keep railroads, shippers, equipment owners and suppliers fully informed along every link of their supply chains. Class I, short line, regional railroads and transportation professionals alike use Railinc's tools and information to manage and analyze their rail traffic. www.Railinc.com.