San Francisco

Patterson Ord Minnett email to clients:

Stock: ERG $0.35
> Current Valuation/Price Target:
> Recommendations: ST: LT: SPECULATIVE BUY
> Event: Media Release
>
> Details:
> * The Metropolitan Transportation Commission has put out a media
> release on the pilot trial in San Francisco.
> * The trial has been underway since February 1st, 2002 on a small part
> of the metro system including ferries, streetcars, buses and commuter
> rail. In total 5,000 volunteers are trialing the system.
> * The scope of the trial has now been expanded with 18 rail stations,
> 31 bus lines, 3 ferry terminals and 6 light-rail lines equipped to take
> the card system
> * Data collection for the trial ends July 31st, 2002 with the Phase 1
> evaluation report scheduled for completion by September 1st.
> * MTC are expected to make their decision regarding the implimentation
> by the end of 2002.
>
> Impact:
> * The report is positive on the performance of the trial to date and
> provides a definitive timetable for further news.
> * Another small step forward which should be positively received once
> known to the broader market.
> * Maintain Speculative Buy recommendation.