| Technical Maturity and Cost:The cost of the elevated narrow beam guideway system has
          been estimated at $10-$12 million per mile for a double track
          built on a single pier system. This cost is for the guideway
          and components only built on flat, stable ground and does not
          include civil works, right of way or unusual topographical conditions.
          Planar guideway sections at grade are even less expensive. These
          costs are about one-quarter to one-third of the guideway costs
          for foreign maglev systems and are somewhat less than conventional
          rail infrastructure in those places where the two can be meaningfully
          compared. The low unit cost of the Maglev 2000 system makes it
          uniquely attractive for high-speed, long distance transportation
          in North America. With appropriate technological adaptations
          oriented toward lower speed urban/suburban applications, the
          MAGLEV 2000 system can also provide low cost transit services
          in that operating environment as well. In fact, MAGLEV 2000 vehicles
        can be operated on both high-speed and urban routes.
 THE DEMONSTRATION PROGRAM:A jointly funded program involving state and federal agencies
          and private companies is being conducted at the company's Maglev
          Operations Center (MOC) near Cape Canaveral, Florida. This program
          has been underway for several years and the first phase will
          be completed in early 20003. Currently, system components are
          being manufactured, fabricated and assembled at the MOC. These
          include a 50' vehicle shell and chassis; guideway coil panels
          that contain the levitation, propulsion and stability coils;
          superconducting magnets that will be attached to the vehicle
          chassis; cryogen systems to cool the magnets; and various operating
          control, monitoring, and measurement mechanisms. In early 2003
          the basic levitation, stability and propulsion systems will be
          demonstrated using the vehicle chassis only inside the MOC on
          a section of planar guideway. At the conclusion of these tests
          and demonstrations, the MAGLEV 2000 system components can be
          produced and the full vehicle assembled for final demonstration
          on the outside test guideway.
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