[PTEC REPORT GRAPHIC]

                              Report Prepared for:
                        Safe Transportation Systems Inc.
                        Suite 400, 409 Granville Street,
                          Vancouver, British Columbia,
                                 Canada, V6C 1T2

                             Testing Conducted At:
                        Pacific Traffic Education Centre
                            Delta, British Columbia,
                                     Canada

                             Testing Supervised By:
                                 Norman Coridor
                             Road Safety Specialist
                     Phase I: September 17, 18 and 21, 1999
                     Phase II: October 20 and 24, 1999

                        Report Prepared October 28, 1999


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                              [PTEC REPORT GRAPHIC]
                        PACIFIC TRAFFIC EDUCATION CENTRE

                                 Test Objectives

1. Evaluate the effectiveness of the System for limiting the
   articulation  angle and preventing the  tractortrailer  from losing  control,
jackknifing or rolling over, particularly under conditions of high velocity.

2. Evaluate the System for possible harmful side effects.

                                  Test Results

3. This System  prevented  loss of control,  jackknifing  and or rollover of the
   tractor-trailer in all the permutations of the test matrix.

4. This System  enhances the driver's  ability to maintain  steering  control by
   limiting articulation angle during the jackknifing incident.

5. The restriction of the  articulation  angle by this System does not interfere
   with  normal  highway  operations  such  as  passing  maneuvers  or  obstacle
   avoidance.

6. The  buffering  effect on the lateral  movement of the  engaging  arm of this
   System limits  angular  rebound and prevents  sharp impacts that could damage
   the device, fifth wheel or pivot pin.

7. This System caused no apparent harmful side effects to driver or vehicle.

                                 Recommendations

1. Employment  of this System  should not be used to justify the  acceptance  of
   driving procedures or road conditions that increase the risk of Jackknifing.

2. Further testing should be initiated to evaluate  reduced  stopping  distances
   using this System.

3. The proper  engagement  of this System and the operation of the signal lights
   and audio warning should be part of the regular safety inspection of each rig
   equipped with this System.

4. After any serious incident,  this System,  the fifth wheel, the pivot pin and
   the steering axle wheels should be inspected for damage from the large forces
   generated by restricting the angle of articulation.

5. Further testing will be required for double and triple trailer applications.

6. Further testing will be required for off road and some military  applications
   where greater twisting forces are encountered at the fifth wheel.





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The System  consists of a high  tensile  steel  engaging  arm,  (attached to the
underside  of the trailer  behind the pivot pin),  that is inserted  between the
tapered legs of the fifth wheel.  When activated the arm engages the side of the
leg of the fifth wheel to limit the articulation angle in either direction.  The
Systems  effect  allows  the driver to apply full  braking  without  the fear of
loosing control, rollover of jackknifing.

The System is totally  driver  controlled  and is  engaged  or  disengaged  by a
control  switch in the cab of the  tractor.  The  engaging  arm is inserted  and
retracted from the operating  position by a pneumatic  actuating  motor rotating
the arm 90 degrees.

The System is  controlled by the driver from a switch in the cab of the tractor.
A green light  indicates  the System is not engaged and the driver can  maneuver
the trailer at greater  degrees of  articulation,  such as may be  required  for
parking a trailer  etc. A red light  indicates  the  System is  engaged  and the
tractortrailer  is  protected  or  stopped  from  jackknifing.  If the System is
engaged  and the driver  wishes to  maneuver  the  trailer  beyond  the  limited
articulation  angle  allowed  by the  System,  he will be warned  the  System is
engaged by the red light  flashing.  If he does not disengage he will be further
warned by a loud audio alarm.

                                  Test Surfaces

The  weather  for Phase I was warm and sunny with  temperatures  in excess of 25
degrees celsius. Dry tests were performed on dry warm pavement.

The weather for Phase II was warm and sunny with  temperatures in the 16 degrees
celsius range. Dry tests were performed on dry warm pavement.

The surface  used for the wet test was an asphalt  skid pad  thoroughly  watered
down and with drillers mud applied on top of the water  producing a low wet skid
number similar to real life signs "Slippery When Wet".

The wet tests we conducted  both in line and with the rig entering the skid area
from a counter  clockwise  angle.  The brakes were applied while the driver held
the  steering  angle.  He took no  other  action  to  increase  or  relieve  the
jackknifing effect.



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                                 Test Narrative

The   test   rig,   truck   (tractor   -  1982   International   51900,   Serial
2HTAA1957CCA16429), trailer (1996 Great Dane 48-foot tandem axle flatbed, Serial
48F099) was delivered to the PTEC test facility with the System installed.

PTEC staff safety inspected the  tractor-trailer and System before beginning the
test matrix.  Addition safety measures  instituted for the maximum GVW ballasted
tests were;

        o  Ballast brackets welded to the trailer
        o  Forward bulkhead mounted on the trailer
        o  Headache rack mounted on the tractor
        o  Anti-jackknife cables mounted on the tractor and trailer

Note;  The Anti  jackknife  cables were  mounted to permit a 30 degree  angle of
articulation   to   allow full   testing  of  the  STS   Accident   Control  and
Anti-Jackknife System.

All tests we  conducted  at PTEC's  vehicle  dynamics  test  facility  in Delta,
British Columbia.  The PTEC Supervising Manager was Norman Coridor,  assisted by
Driving Trainer Specialist Grant Kinney.

Project  Manager  was  Dick  Craig,  Project  Engineer  was  Patrick  Riebalkin,
Electrical and Technical  Manager was Kevin Kerr and Facilities  Coordinator was
Ian Patton. The photographer was Mark Rohmann.

Friday, September 17th was dedicated to slalom and obstacle avoidance tests.

Saturday, September 18th was dedicated to slalom and in line stopping tests.

On Tuesday, September 21st the entire test matrix was successfully completed.

In the afternoon of September 21st, with the System disengaged and while running
at low speed, on the wet skid pad surface to set up for the cameras,  the driver
braked  normally and the  tractor-trailer  jackknifed  causing damage to the cab
tractor and bending the landing gear crank  handle on the  trailer.  Neither the
driver nor passenger was injured.

The driver went on to complete all the  remaining  components of the test matrix
successfully.  This system  should give  drivers  the  confidence  to apply full
braking and steering capabilities in emergency stopping situations.

  On October 20th and 24th,  the entire test matrix was  completed  successfully
with the rig ballasted to maximum GVW.

  Norman Coridor,
  Road Safety Specialist,
  Pacific Traffic Education Centre

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                                 The Test Matrix

Phase I:
--------

Tests were run with the rig at curb weight,  all brakes  active and the Accident
Control

Test 1: The test rig maneuvered a slalom course  simulating a single lane change
across two lanes at 15, 30, 45 MPH on dry pavement.

Test 2: The test rig maneuvered a slalom course  simulating a double lane change
across three lanes at 15, 30, 45 MPH on dry pavement.

Test 3: The test  rig  performed  in line  stopping  at 15,  30 an 45 MPH on dry
pavement.

Test 4: The test rig  performed in line  stopping at 15, 30 an 45 MPH on the wet
pavement.

Test 5: The test rig performed  angle or "j-line" entry  stopping,  entering the
wet skid surface area from the north at a counter  clockwise angle at 15, 30 and
45 MPH.

Phase lI
--------

Tests were run with the rig ballasted  (45,000 LB) to GVW, all brakes active and
the Accident Control System engaged.

Test 1: The test rig maneuvered a slalom course  simulating a single lane change
across two lanes at 15, 30, 45 MPH on dry pavement.

Test 2: The test rig maneuvered a slalom course  simulating a double lane change
across three lanes at 15, 30, 45 MPH on dry pavement.

Test 3: The test rig  performed  in line  stopping  at 15,  30 and 45 MPH on dry
pavement.

Test 4: The test rig  performed in line stopping at 15, 30 and 45 MPH on the wet
pavement.

Test 5: The test rig performed  angle or "j-line" entry  stopping,  entering the
wet skid surface area from the north at a counter  clockwise angle at 15, 30 and
45 MPH.

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                              [PTEC REPORT GRAPHIC]
                        PACIFIC TRAFFIC EDUCATION CENTER

                      The Pacific Traffic Education Centre

'`
                The Pacific Traffic  Education  Centre is a joint venture of the
Justice  Institute  and  Insurance  Corporation  of  British  Columbia,  Canada.
Launched  in 1988,  PTEC was  established  to reduce the number and  severity of
traffic  accidents in B.C. It plays a leading role in traffic  related  training
and education by using advanced training technology, matched by a fresh approach
and philosophy  aimed at tangibly  transforming  driving  behaviour.  It aims to
train  drivers to operate  motor  vehicles in an expert manner under all driving
conditions.  The  following  are  some  examples  of the  kind of  training  and
expertise offered by the Centre:

                         o     Advanced Driver Training
                         o     Emergency Vehicle Operation
                         o     Accident Investigation

                 Traffic Research and Traffic Safety:

   PTEC  has  the  facilities  and  expertise  to meet  the  research  needs  of
   professionals  and  agencies  in  the  areas  of  driver  training,  accident
   investigation,  and traffic safety. It works in conjunction with Innovative ~
   Vehicle  Testing (IVT) in conducting  vehicle safety and  performance  tests,
   including  barrier  crashes at our Boundary Bay facility.  PTEC also promotes
   traffic  safety  through  its  affiliation  with  organizations  such  as the
   Institute of Police  Technology & Management  (University of North  Florida),
   The British Columbia Safety Council,  University of British Columbia Accident
   Research  Team,   Federal  and  Provincial  Crown  Corporations  and  private
   industry.  The PTEC course is available on a contract  basis to companies and
   various organizations.

                 Al Lund
                 Director




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                              [PTEC REPORT GRAPHIC]

                                 The Test Matrix

Phase I:
--------

Tests were run with the rig at curb weight,  all brakes  active and the Accident
Control System engaged.

Test 1: The test rig maneuvered a slalom course  simulating a single lane change
across two lanes at 15, 30, 45 MPH on dry pavement.

Test 2: The test rig maneuvered a slalom course  simulating a double lane change
across three lanes at 15, 30, 45 MPH on dry pavement.

Test 3: The test rig  performed  in line  stopping  at 15,  30 and 45 MPH on dry
pavement.

Test 4: The test rig  performed in line stopping at 15, 30 and 45 MPH on the wet
pavement.

Test 5: The test rig performed angle or " j-line" entry  stopping,  entering the
wet skid surface area from the north at a counter  clockwise angle at 15, 30 and
45 MPH.

Phase II
--------

Tests were run with the rig ballasted  (45,000 LB) to GVW, all brakes active and
the Accident Control System engaged.

Test 1: The test rig maneuvered a slalom course  simulating a single lane change
across two lanes at 15, 30, 45 MPH on dry pavement.

Test 2: The test rig maneuvered a slalom course  simulating a double lane change
across three lanes at 15, 30, 45 MPH on dry pavement.

Test 3: The test  rig  performed  in line  stopping  at 15,  30 an 45 MPH on dry
pavement.

Test 4: The test rig  performed in line  stopping at 15, 30 an 45 MPH on the wet
pavement.

Test 5: the north at a counter clockwise angle at 15, 30 and 45 MPH.

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