Press Release: 12. October 2012

HP and JSC TransTelecom Launch Large-scale Investment Project to Increase Energy Efficiency for Republic of Kazakhstan’s Railway

Project to help Kazakhstan Temir Zholy reduce energy use for country’s rail system

ALMATY, Kazakhstan, Oct. 11, 2012 — HP Kazakhstan today announced that JSC TransTelecom, a subsidiary of Kazakhstan Temir Zholy (KTZh), the Republic of Kazakhstan’s railway system operator, has signed a $62 million agreement to reduce the railway’s energy use.

Under the terms of the 13-year agreement, HP will serve as the prime contractor, working with JSC TransTelecom to deliver, implement and support the KTZh Traction Power Dispatch Automated Control System, which is an innovative automated railway energy management system (REMS).

Using the information available from REMS, which is designed to assist KTZh in reducing its energy usage, KTZh expects the potential savings to amount to 7 percent in electrical energy consumption and 13 percent in diesel fuel consumption.

The railway is one of the largest and most critical components of the Kazakhstan transportation infrastructure, so efficiency and reliability is of strategic importance to our government, businesses, citizens and surrounding nations,” said Askar Mamin, chief executive officer and vice president, JSC TransTelecom. “We are confident that HP’s expertise will help us take advantage of today’s innovative technologies, to have a positive impact on the railway operations and all who depend on KTZ.

HP will provide Applications Transformation and Integration Services to connect REMS to the existing systems, transforming the KTZh infrastructure into one that is more modern and better equipped to analyze available information and help reduce energy use. Once the system is implemented, HP will use its Applications Management Services to manage the system.

Additionally, HP will provide hardware, including HP ProLiant blade servers, HP Storage and HP Networking, to modernize the KTZh data center. Once the hardware is installed, HP will provide Infrastructure Outsourcing Services to efficiently manage the implemented system, allowing KTZh to concentrate on other innovative projects.

REMS is based on Ipesoft technology, with Ipesoft being a leader in the production systems segment of the Slovak market. As part of the project, KTZh will install Ipesoft devices to measure fuel usage, temperature, speed and other operational indicators on its 2,000 locomotives. This data will feed into REMS, which will analyze the data, produce reports and make recommendations to improve energy usage.

REMS will communicate real-time information to dispatchers, railway engineers and managers to enable them to respond to the emerging challenges immediately. For example, the system will allow KTZh to analyze the duration of the locomotive engine idle time in order to determine when to turn it off to conserve diesel fuel and electricity.

With these recommendations from REMS, KTZh will be able to make better decisions to enhance energy savings and operate more efficiently. This project is a part of KTZh’s innovation program intended to modernize a critical portion of Kazakhstan’s transportation infrastructure to help make the country more competitive globally.

Commerce across Europe, and between Europe and Asia, depends on KTZh’s operations, and the company—as well as the nation—is taking an active role in using information to improve and better serve its customers,” said Markus Ruff, vice president, HP Enterprise Services—Central and Eastern Europe. “HP will use its deep applications expertise to design and implement a system that enables KTZh to access and analyze previously unavailable data to help achieve the company’s innovation goals.

HP’s premier Europe, Middle East and Africa client event, HP Discover, takes place Dec. 4-6 in Frankfurt, Germany.

About Kazakhstan Temir Zholy National Company
Railway transport is a crucial part of the production infrastructure of the Republic of Kazakhstan. Kazakhstan Temir Zholy is the successor to JSC Kazakhstan Temir Zholy National Company republican state enterprise, which was established by the decree of the Government of the Republic of Kazakhstan in 1997, and to a number of other state subsidiaries. KTZ, which employs more than 160,000 people, functions as the operator of Kazakhstan’s main railway network, passenger and cargo transportation. Kazakhstan’s railway industry is a developing sector of its economy, the production and technical potential of which has been steadily increasing.

About JSC TransTelecom
JSC TransTelecom was founded on Sept. 1, 1999, to provide technical exploitation and modernization of the existing communication network of JSC Kazakhstan Temir Zholy.

Today JSC TransTelecom is one of the leading telecommunication operators in Kazakhstan, not only providing the services of international, long-distance and local telephony and Internet access, but also fiber-optic main communication channels. As a main-level operator which is confirmed by the ISO 9001:2008 international quality standard certificate, the company services private and corporate users, as well as state companies. Detailed information is available at www.ttc.kz.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers’ most complex challenges in every region of the world. More information about HP (NYSE: HPQ) is available at http://www.hp.com