Balance of 2008-09 Funding for High-Speed Train Confirmed

SACRAMENTO, Calif.--(Business Wire)--
California High-Speed Rail Authority officials confirmed today that the balance
of its funding for the 2008-09 fiscal year has been made available by the State
Treasurer`s Office.

The state`s High-Speed Rail Finance Committee approved the Authority`s $29.1
million bond loan request in January, but processing was stalled due to the
state`s Pooled Money Investment Board`s decision to freeze disbursements for
this and other projects until the successful sale of General Obligation bonds on
March 25.

Following the successful sale of the bonds, the State Treasurer`s Office
notified the High-Speed Rail Authority and confirmed at a meeting of the Pooled
Money Investment Board today that it had issued $29.1 million in commercial
paper (short-term loans) to meet the remainder of the Authority`s 2008-09
funding authorization.

"Today`s confirmation that funding for the project will continue as planned is
good news for California`s taxpayers who approved Proposition 1A last November
to help fund the construction of the high-speed train project and who rightfully
expect that progress will be swift and uninterrupted," said Mehdi Morshed,
executive director of the California High-Speed Rail Authority.

"It`s also an enormous relief to the dedicated and talented staff and the
engineers and planners that continued to work on the project over the past three
months without a commitment that they would be paid," said Morshed.

The High-Speed Rail Finance Committee is comprised of the Department of Finance
Director, State Controller, Business Transportation and Housing Agency
Secretary, and High-Speed Rail Authority Board Chair. The Pooled Money
Investment Board (PMIB) governs the state`s Pooled Money Investment Account,
which is used to invest taxpayers` money to manage the State`s cash flow. The
State Treasurer chairs the PMIB, which also includes the State Controller and
the State Director of Finance.

The California High-Speed Rail Authority is responsible for building high-speed
train service covering 800 miles at speeds up to 220 MPH. By linking all major
cities in California with a state-of-the-art new transportation option,
California's high-speed train system will increase mobility while cutting air
pollution and reducing the greenhouse gas emissions that cause global
warming.Building the high-speed train system will cost less than half the cost
of freeway and aviation alternatives. Operating the system will create an annual
surplus of over $1 billion.

For route information, visual simulations and more, please visit
www.cahighspeedrail.ca.gov.

For California High-Speed Rail Authority
Kris Deutschman, 916-444-8801
Cell: 916-425-7174

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