Mitch Stogner, Executive Director Allan Hemphill, NCRA Chairman
ncra.mstogner@sbcglobal.net vinguru@comcast.net

NOVATO DROPS LAWSUIT

PRESS RELEASE - October 28, 2008 –Ukiah – The North Coast Railroad Authority (NCRA)
today announced that the city of Novato has agreed to drop the lawsuit it filed against the rail
authority last September. NCRA’s Cloverdale Chairman, Allan Hemphill, said the settlement
agreement, approved by the NCRA and the Novato City Council on Monday, enables NCRA to
immediately begin repairing bridges and trackbed along a 62 mile stretch of the Northwestern
Pacific (NWP) line from Lombard to Windsor.

“This settlement establishes an equitable balance between the region’s desire to restore train
service and Novato’s desire to minimize impacts,” said Hemphill.

Under the agreement, which must be ratified by Marin Superior Court Judge James R. Ritchie,
NCRA will be limited to the operation of 6 freight trains per week during daylight hours until
improvements to reduce noise and promote safety are complete.

Specifically, NCRA must install Federal Railroad Administration (FRA) – certified “Quiet
Zones” at 13 locations within Novato where public roads cross the tracks. The improvements to
the crossing gates and signage will permit trains to travel through the crossings without sounding
the train horn. Additionally, NCRA has agreed to install welded rail to further mitigate noise,
fencing to discourage trespassing, landscaping to minimize glare from train lights, and purchase
state–of-the-art locomotives to reduce greenhouse gas emissions.

“We want to be good neighbors, good corporate citizens, and work collaboratively with local
governments every step of the way,” said Hemphill.

Until the mitigations stipulated in the lawsuit settlement are complete, NCRA cannot increase the
level of service beyond 3 roundtrips per week. The cost of the mitigation measures is estimated
to be around $1 million. The settlement also requires NCRA to pay Novato’s legal costs of
$325,000.

NCRA plans to release its environmental report evaluating train operations from Willits to the
national rail interchange (Lombard) in early November. The report anticipates a maximum of 3
roundtrips per day by the second year of operations.

“With this Settlement, we will repair the first 62 miles, initiate limited service while the required
mitigation is underway, and hopefully reach the level of service called for in the EIR after Novato
certifies that the mitigation requirements have been satisfied,” Hemphill said.

Under the Settlement agreement, NCRA has until December 31, 2011 to complete the “Quiet
Zones”, fencing, and landscaping within the Novato City limits.

Hemphill said the NCRA hopes to complete repairs on the first 62 miles in 4-6 months and begin
limited freight service this spring.