OFFERING MEMORANDUM STRICTLY CONFIDENTIAL

U.S.$464,000,000
BRT Escrow Corporation SpA
expected to be combined with and into
Inversiones Alsacia S.A.
8.00% Senior Secured Notes due 2018
expected to be unconditionally guaranteed
by Inversiones Alsacia S.A.s affiliates,
Express de Santiago Uno S.A.,
Inversiones Eco Uno S.A.
and
Panamerican Investments Ltd.
BRT Escrow Corporation SpA (the Initial Temporary Issuer) is a special purpose company established to facilitate the issuance by
Inversiones Alsacia S.A., a company holding a concession to provide bus transportation services in the Santiago, Chile metropolitan area (Alsacia or
the Issuer), of U.S.$464,000,000 aggregate principal amount of 8.00% Senior Secured Notes due 2018 (the Notes). Upon consummation of the
transactions described herein (which is expected to occur on or prior to February 28, 2011) Alsacia will assume the Notes and certain of its affiliates will
provide guarantees as described herein. Thereafter, principal will be payable on February 18 and August 18 of each year, beginning on February 18, 2012,
and interest on the Notes will be payable on February 18 and August 18 of each year, beginning on August 18, 2011. Unless redeemed or amortized prior
thereto, the final payment on the Notes is expected to be made on August 18, 2018. The Issuer will be able to redeem the Notes at any time or from time
to time, in whole or in part, under certain circumstances. See Description of Notes and Finance AgreementsRedemptionOptional Redemption. In
addition, the Notes can be redeemed at any time, in whole (but not in part), at 100% of their principal amount, plus accrued and unpaid interest, if any,
and any Additional Amounts (as defined herein) then due and payable if certain events occur involving withholding taxes. The Notes, under certain
circumstances, will also be subject to mandatory redemption of the principal amount of the Notes plus accrued and unpaid interest and Additional
Amounts, if any. There is no sinking fund for the Notes. See Description of Notes and Finance Agreements.
Proceeds from the sale of the Notes by the Initial Temporary Issuer will be held in escrow (the Escrow) by The Bank of New York Mellon,
as escrow agent (the Escrow Agent) as described herein pending (i) the consummation of specified acquisition transactions described under Use of
Proceeds, (ii) the repayment out of the proceeds from the sale of the Notes of all of the outstanding indebtedness of Alsacia and Express specified herein
(the Existing Indebtedness), and (iii) the combination of the Initial Temporary Issuer with and into Alsacia, including the assumption by Alsacia of the
Notes and certain of its affiliates providing guarantees as described herein. See Use of Proceeds and The Escrow. The proceeds from the sale of the
Notes offered hereby will be used to facilitate the transactions described herein, which will require various actions to be taken subsequent to the date
hereof, including the furnishing of prepayment notices to lenders holding the Existing Indebtedness (the Existing Lenders), the release of specified
items of collateral held by the Existing Lenders and certain acquisition transactions, all expected to occur on or prior to February 28, 2011. See
Description of Notes and Finance Agreements. If the Escrow is not released on or prior to February 28, 2011, then three business days thereafter the
Escrow shall be terminated and the Escrow Agent shall use funds on deposit in the Escrow to repay the issue price of the Notes in full, together with
accrued interest and any Additional Amounts payable in respect thereof through and excluding the date of any such repayment. Thereafter, the Notes shall
be deemed to have been repaid in full and no longer be outstanding or having any effect or liability attached thereto.
If transactions described herein are consummated on or prior to February 28, 2011, then the Escrow shall be released and funds shall be
used as contemplated under Use of Proceeds. In such event, the Initial Temporary Issuer will immediately be combined with and into Alsacia, and
the Notes will become (i) senior secured obligations of Alsacia and (ii) unconditionally guaranteed (the Guarantees) on a senior secured basis by
Alsacias affiliated companies, Express de Santiago Uno S.A. (Express), Inversiones Eco Uno S.A. (Eco Uno) and Panamerican Investments Ltd.
(Panamerican, and collectively with Express and Eco Uno, the Guarantors). Express, like Alsacia, is a company holding a concession to provide
bus transportation services in the Santiago, Chile metropolitan area and, following the transactions contemplated under Use of Proceeds, will be
under common control with Alsacia by Alsacias principal shareholder, Global Public Services GPS, S.A. (GPS Group or the Principal
Shareholder). For a description of our Principal Shareholder, see BusinessOur HistoryGPS Group. Eco Uno and Panamerican will at such time
become intermediate holding companies that will own Express and be under common control by Alsacias Principal Shareholder upon completion of
the acquisition transactions contemplated under Use of Proceeds. In addition to the Guarantees of the Guarantors, when the Notes become senior
secured obligations of Alsacia, the Notes will also become secured on a first-priority basis by pledges, liens, charges and encumbrances on specified
items of collateral described herein, including pledges of all of the Alsacia and Express shares held by our Principal Shareholder, rights of Alsacia and
Express to payment under their respective concession agreements described herein, the bus fleet and substantially all of the owned real property used in
connection with the concessions and certain transaction accounts to be maintained in connection with the Notes, subject in all cases to certain permitted
exceptions, including a pledge of one of our bus terminals to another creditor extending a subordinate loan to us in connection with the issuance of the
Notes. Certain other creditors that extend credit to Alsacia or any of the Guarantors after the issuance of the Notes will also be entitled to share in the
collateral for the Notes on an equal basis with the Notes on specified terms and conditions. Alsacia and the Guarantors may also incur subordinated
indebtedness on certain conditions described herein. See Description of Notes and Finance AgreementsCollateral and Description of Notes and
Finance AgreementsCollateral Trust Agreement.
The Notes and Guarantees will rank equally with any other senior secured indebtedness, and senior to any subordinated indebtedness, of the
Issuer or the Guarantors existing now or in the future. The Notes and Guarantees will be structurally subordinated to the indebtedness and trade
payables of any of the Issuers non-guarantor subsidiaries or affiliates. See Description of Notes and Finance Agreements.
See Risk Factors beginning on page 58 for a discussion of certain risks that you should consider in connection with an investment
in the Notes.
Issue price: 100% plus accrued interest, if any, from February 18, 2011
The Notes and the Guarantees have not been registered, and the Issuer does not intend to register the Notes or the Guarantees, under the
U.S. Securities Act of 1933, as amended (the Securities Act), or the securities laws of any other jurisdiction. The Notes are being offered only to
qualified institutional buyers within the meaning of Rule 144A under the Securities Act, and in offshore transactions to persons other than U.S. persons
as defined in Regulation S under the Securities Act. For a description of certain restrictions on transfer of the Notes, see Transfer Restrictions.
The Issuer will apply to admit the Notes for listing on the Official List of the Luxembourg Stock Exchange and to trading on the Euro MTF
market of the Luxembourg Stock Exchange. Currently, there is no public market for the Notes.
Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities
or determined whether this Offering Memorandum is accurate or complete. Any representation to the contrary is a criminal offense. The Notes may not
be offered or sold, directly or indirectly, in Chile or to any resident of Chile, except as permitted by applicable Chilean law.
Delivery of the Notes will be made to investors in book-entry form only through the facilities of The Depository Trust Company for the
accounts of its participants, including Euroclear Bank S.A./N.V., as operator of the Euroclear System, and Clearstream Banking, socit anonyme, on
or about February 18, 2011.
Joint Book-Running Managers
BofA Merrill Lynch J.P. Morgan
The date of this Offering Memorandum is February 14, 2011
Alsacia and Express together are the largest operator of bus transportation services in the Santiago, Chile
metropolitan area, as measured by their available bus capacity and concession route length.
Collectively, we operate two of the five trunk lines in Transantiago, the rapid transit system of
Santiago managed by the Chilean Government.

We have a modern fleet of 1,861 buses as of September 30, 2010

We own or lease nine terminals for dispatching, servicing,

inspecting and storing buses as of September 30, 2010
 TABLE OF CONTENTS

Page

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
United Kingdom Selling Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Chilean Selling Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Notice to New Hampshire Residents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Cautionary Statement Regarding Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Introductory Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi
Presentation of Financial and Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Enforcement of Civil Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x
Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Exchange Controls in Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Selected Financial Information of Alsacia on a Consolidated Basis and Express on a Consolidated Basis . . 89
Managements Discussion and Analysis of Financial Condition and Results of Operations for Alsacia and
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Transantiago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
The Concessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Principal Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
The Escrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Exchange Rate Hedge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Description of Notes and Finance Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Certain ERISA Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Transfer Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Validity of Notes and Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Index to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1
Appendix A: Significant Differences Between Chilean GAAP and IFRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
Appendix B: Alsacia Outstanding Indebtedness to be Repaid In Connection with the Offering of Notes . . . B-1
Appendix C: Express Outstanding Indebtedness to be Repaid In Connection with the Offering of Notes . . . . . C-1
Appendix D: Certain Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1

i
 For the sale of the Notes in the United States, we are relying upon an exemption from registration under
the Securities Act for an offer and sale of securities that do not involve a public offering. By purchasing Notes,
you will be deemed to have made certain acknowledgments, representations and agreements as set forth under
Transfer Restrictions. We are not, and the initial purchasers are not, making an offer to sell the Notes in any
jurisdiction except where an offer or sale is permitted. You should understand that you will be required to bear
the financial risks of your investment for an indefinite period of time.

We have submitted this Offering Memorandum solely to qualified institutional buyers in the United
States and in offshore transactions to persons other than U.S. persons so they can consider a purchase of the
Notes. We have not authorized the use of this Offering Memorandum for any other purpose. This Offering
Memorandum may not be copied or reproduced in whole or in part. This Offering Memorandum may be
distributed and its contents disclosed only to prospective investors to whom it is provided and, if you do not
purchase the Notes, or the offering is terminated for any reason, this Offering Memorandum and other related
offering materials must be returned to the initial purchasers. This Offering Memorandum is personal to each
offeree and does not constitute an offer to any other person or to the public generally to subscribe for or
otherwise acquire the Notes. Distribution of this Offering Memorandum to any person other than the offeree and
any person retained to advise an offeree is unauthorized, and any disclosure of any of the contents hereof without
our prior written consent is prohibited. By accepting delivery of this Offering Memorandum, you agree to these
restrictions. See Transfer Restrictions.

This Offering Memorandum is based on information provided by us and other sources that we believe to
be reliable. The initial purchasers and we cannot assure you that the information provided by any other source is
accurate or complete. This Offering Memorandum summarizes certain documents and other information, and we
refer you to them for a more complete understanding of what we discuss in this Offering Memorandum. In
making an investment decision, you must rely on your own examination of us and the terms of the offering and
the Notes, including the merits and risks involved.

We are not making any representation to any purchaser regarding the legality of an investment in the
Notes by that purchaser under any legal investment or similar laws or regulations. You should not consider any
information in this Offering Memorandum to be legal, business, tax or other advice. You should consult your
own counsel, accountant, business advisor and tax advisor for legal, tax, business and financial advice regarding
any investment in the Notes.

You should rely only on the information contained in this Offering Memorandum. We have not, and the
initial purchasers have not, authorized any person to provide you with different information or to make any
representation not contained in this Offering Memorandum. If anyone provides you with different or inconsistent
information, you should not rely on it. You should assume that the information contained in this Offering
Memorandum is accurate only as of the date on the front cover of this Offering Memorandum. Our business,
financial conditions, results of operations and prospects may have changed since that date.

By purchasing any Notes, you will be deemed to have acknowledged that: (i) you have received a copy
of and have reviewed this Offering Memorandum; (ii) you have had an opportunity to review all financial and
other information considered by you to be necessary to make your investment decision and to verify the accuracy
of, or to supplement, the information contained in this Offering Memorandum and have been offered the
opportunity to ask us questions, and received answers, as you deemed necessary in connection with your
investment decision; (iii) you have not relied on the initial purchasers or any person affiliated with the initial
purchasers in connection with your investigation of the accuracy of the information or your investment decision;
(iv) the initial purchasers are not responsible for, and are not making any representation to you concerning us, our
future performance or the accuracy or completeness of this Offering Memorandum; (v) you are relying only on
the information contained in this Offering Memorandum in making your investment decisions; (vi) no person has
been authorized to give any information or to make any representation concerning us or the Notes or the offer
and sale of the Notes, other than as contained in this Offering Memorandum, and if given or made, any other

ii
information or representation should not be relied upon as having been authorized by us or the initial purchasers;
and (vii) the financial statements included elsewhere in this Offering Memorandum have been prepared as
described under Presentation of Financial and Other Information in accordance with Chilean generally
accepted accounting principles and the rules of the SVS (Chilean GAAP), which differ in certain significant
respects from International Financial Reporting Standards as adopted by the International Accounting Standards
Board (IFRS), and are subject to Chilean auditing standards and thus are not comparable to the financial
statements of an IFRS reporting company. See Appendix A for a description of the principal differences between
Chilean GAAP and IFRS as they relate to us and our consolidated subsidiaries.

We reserve the right to withdraw this offering of the Notes at any time, and we and the initial purchasers
reserve the right to reject any commitment to subscribe for the Notes in whole or in part and to allot to any
prospective investor less than the full amount of Notes sought by that investor. The initial purchasers and certain
related entities may acquire for their own account a portion of the Notes.

You must comply with all applicable laws and regulations in force in any jurisdiction in connection with
the possession or distribution of this Offering Memorandum and the purchase, offer or sale of the Notes and you
must obtain any consent, approval or permission required of you for the purchase, offer or sale of the Notes under
the laws and regulations applicable to you in force in any jurisdiction to which you are subject or in which you
make the purchase, offer or sale, and neither we nor the initial purchasers will have any responsibility therefor.

This Offering Memorandum has been prepared on the basis that any offer of Notes in any Member State
of the European Economic Area which has implemented the Prospectus Directive (2003/71/EC) (each, a
Relevant Member State) will be made pursuant to an exemption under the Prospectus Directive, as
implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes.
Accordingly, any person making or intending to make an offer in that Relevant Member State of Notes which are
subject to the offering contemplated in this Offering Memorandum may only do so in circumstances in which no
obligation arises for the Issuer, the Guarantors or the initial purchasers to publish a prospectus pursuant to Article
3 of the Prospectus Directive in relation to that offer. None of the Issuer, the Guarantors or the initial purchasers
has authorized, nor do they authorize, the making of any offer of Notes in circumstances in which an obligation
arises for us or the initial purchasers to publish a prospectus for that offer.

The distribution of this Offering Memorandum and the offering and sale of the Notes in certain
jurisdictions may be restricted by law. We and the initial purchasers require persons in possession of this
Offering Memorandum to inform themselves about and to observe any applicable restrictions. This Offering
Memorandum does not constitute an offer of, or an invitation to purchase, any of the Notes in any jurisdiction in
which such offer or invitation would be unlawful.

The contents of Alsacias website, Expresss website, the website of Transantiago, and any other
website do not form part of this Offering Memorandum.

This Offering Memorandum contains some of our trademarks, trade names and service marks, including
our logos, Alsacia and Express de Santiago. Each trademark, trade name or service mark of any company
appearing in this Offering Memorandum belongs to its respective holder.

The Notes will be available initially only in book-entry form. We expect that the Notes will be issued in
the form of one or more registered global notes. The global notes will be deposited with, or on behalf of, The
Depository Trust Company (DTC), and registered in our name or in the name of Cede & Co., its nominee.
Beneficial interests in the global notes will be shown on, and transfers of beneficial interests in the global notes
will be effected through, records maintained by DTC and its participants. We expect the Regulation S global
notes, if any, to be deposited with the trustee as custodian for DTC, and beneficial interests in them may be held
through the Euroclear System, Clearstream Banking S.A. or other participants. See Description of Notes and
Finance Agreements for further discussion of these matters.

iii
 ADDITIONAL INFORMATION

We currently do not file information with the United States Securities and Exchange Commission. We
have agreed that while any Notes remain outstanding and are restricted securities as defined in Rule 144(a)(3)
under the Securities Act, we will make available, upon request, to any holder or prospective purchaser of Notes
the information required pursuant to Rule 144A(d)(4) under the Securities Act with respect to us, during any
period in which we are not subject to Section 13 or 15(d) of the Exchange Act or not exempt by virtue of Rule
12g3-2(b) thereunder. Any request should be directed to us at our principal office at Ave. Santa Clara 555
Huechuraba, Santiago, Chile.

UNITED KINGDOM SELLING RESTRICTION

In the United Kingdom this Offering Memorandum is only being distributed to, and is only directed at,
(a) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) (the Order); and (b) high net worth companies and other
persons falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant
persons). Any person in the United Kingdom that is not a relevant person should not act or rely on this Offering
Memorandum or any of its contents. Any investment or investment activity to which this Offering Memorandum
relates is available in the United Kingdom only to relevant persons, and will be engaged in only with those
persons.

CHILEAN SELLING RESTRICTION

The Notes may not be offered or sold, directly or indirectly, in the Republic of Chile or to any resident
of Chile, except as permitted by applicable Chilean law.

NOTICE TO NEW HAMPSHIRE RESIDENTS

NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN

APPLICATION FOR A LICENSE HAS BEEN FILED UNDER CHAPTER 421-B OF
THE NEW HAMPSHIRE REVISED STATUTES ANNOTATED, 1955, AS AMENDED
(RSA 421-B), WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT
A SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN
THE STATE OF NEW HAMPSHIRE CONSTITUTES A FINDING BY THE
SECRETARY OF STATE OF THE STATE OF NEW HAMPSHIRE THAT ANY
DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND NOT
MISLEADING. NEITHER ANY SUCH FACT NOR THE FACT THAT AN
EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY OR A
TRANSACTION MEANS THAT THE SECRETARY OF STATE OF THE STATE OF
NEW HAMPSHIRE HAS PASSED IN ANY WAY UPON THE MERITS OR
QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY
PERSON, SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR
CAUSE TO BE MADE, TO ANY PROSPECTIVE PURCHASER, CUSTOMER OR
CLIENT ANY REPRESENTATION INCONSISTENT WITH THE PROVISIONS OF
THIS PARAGRAPH.

iv
 CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS

This Offering Memorandum contains words, such as believe, intend, estimate, expect, could,
may, will, plan, target, project, potential, predict, forecast, guideline, should, anticipate
and similar expressions, that identify forward-looking statements reflecting our views about future events and
financial performance. Words such as believe, could, may, will, anticipate, plan, expect, intend,
target, estimate, project, potential, predict, forecast, guideline, should and similar expressions
are intended to identify forward-looking statements, but are not the exclusive means of identifying these
statements. Statements that are not historical facts, including statements about our strategy, plans, objectives,
assumptions, prospects, beliefs and expectations, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and involve inherent risks and uncertainties. These forward-looking
statements are based on current plans, estimates and projections, and therefore you should not place undue
reliance on them. Actual results could differ materially and adversely from those expressed or implied by the
forward-looking statements as a result of factors that may be beyond our control, including but not limited to:

our ability to service our debt, fund our working capital requirements or comply with financial
covenants in our debt instruments;

our ability to fund and implement our capital expenditure programs;

our ability to successfully complete acquisitions and disposals; partnerships, existing or future; and
our ability to realize expected synergies or cost savings;

our ability to comply with the terms of the Concession Agreements and related agreements;

changes in our regulatory environment, including transportation and environmental regulations;

the maintenance of our relationship with the Ministry;

the maintenance of our relationships with our employees;

Passenger Validations and seasonality;

fluctuation of fuel prices;

the state of the Chilean and world economies;

the relative value of the Chilean peso compared to other currencies;

the effects of inflation;

the effects from competition; and

the effects of changes in interest rates.

Some of these factors are discussed under Risk Factors, but there may be other risks and uncertainties
not discussed under Risk Factors or elsewhere in this Offering Memorandum that cause actual results to differ
materially from those in forward-looking statements. In any event, these statements speak only as of their dates,
and we do not undertake any obligation to update or revise any of them as a result of new information, future
events or otherwise.

v
 INTRODUCTORY NOTE

Since its inception in 2005, Alsacia has been owned by Carlos and Javier Ros and certain members of
their family. For over a decade, the Ros family has been engaged in various businesses related to the provision
of public services, including bus and other transportation services and waste management services in Latin
America, principally in Colombia and Chile. In addition to the Ros familys ownership of Alsacia, since 2005
they have jointly owned Express with Grupo Transportador (Grupo Transportador), a group of business entities
and individuals based in Colombia, as part of their joint interest in participating and developing the passenger bus
transportation business in Santiago, Chile.

In 2011, as part of a plan to separate their activities, the Ros family and Grupo Transportador
determined that they would restructure their ownership of Alsacia and Express whereby, among other things:

(i) the Ros familys direct interests in Alsacia and Express would be transferred to a newly formed
holding company, GPS Group;

(ii) GPS Group would acquire Grupo Transportadors interest in Express as a result of which GPS
Group would own all of the outstanding shares of Alsacia and Express (other than a de minimis
number of shares required to be held under Chilean law by a second shareholder in order to
maintain a separate corporate existence) through two intermediate holding companies, Eco Uno
and Panamerican (both of which exist to maximize operational flexibility and tax efficiency for the
Ros family and, subsequently, GPS Group);

(iii) as a result of common ownership by GPS Group, Alsacia and Express would become affiliated
companies under common control by the GPS Group; and

(iv) Alsacia and Express would repay all of their Existing Indebtedness held by the Existing Lenders.

Alsacia is issuing the Notes contemplated herein to refinance all of the outstanding Existing
Indebtedness and to facilitate the Acquisition.

However, as a result of (i) the inability of Alsacia and Express to incur additional indebtedness pursuant
to the requirements of the Existing Indebtedness and (ii) the request by Existing Lenders, our Principal
Shareholder has caused the incorporation of the Initial Temporary Issuer, a special purpose bankruptcy remote
entity organized under the laws of Chile, to issue the Notes being offered hereby. The Initial Temporary Issuer
will be wholly owned by two corporations formed under the laws of the British Virgin Islands, which in turn are
wholly owned by a trust formed under the laws of the British Virgin Islands independent of Alsacia, Express, our
Principal Shareholder and their respective affiliates. The purpose of establishing the Initial Temporary Issuer is to
allow funds to be raised that will be, among other things, used to repay the Existing Indebtedness, which
otherwise would not be repaid simultaneous with, or out of the proceeds of, the initial issuance of the Notes and
which is required to be repaid therefor following delivery of specified prepayment notices. As a result, following
the issuance of the Notes, the proceeds thereof will be placed in the Escrow pending delivery of the aforesaid
prepayment notices to the Existing Lenders. See The Escrow.

Upon release of the Escrow, (i) Alsacia, Express, Eco Uno and Panamerican will be companies under
common control by GPS Group, (ii) Alsacia and Express, as the operating companies in Chile controlled by GPS
Group, will be operated as part of a common enterprise controlled by GPS Group and the Notes will have the
terms as described under Description of Notes and Finance Agreements.

vi
 PRESENTATION OF FINANCIAL AND OTHER INFORMATION

Financial Information

General

As noted above under Introductory Note, the Notes offered in this Offering Memorandum are part of a
plan undertaken by GPS Group, Alsacia and Express to reorganize the holding of interests in Alsacia and
Express, refinance their current debt obligations, fund various capital expenditures and expand the role of Alsacia
and Express as principal providers of passenger bus services in the Santiago, Chile metropolitan area. See
Introductory Note.

As a result of the Acquisition, Alsacia, Express, Eco Uno and Panamerican will become affiliated
companies under common control by GPS Group. GPS Group intends to operate Alsacia and Express jointly
under common management and to develop common operating procedures and sharing of overhead and other
costs in order to maximize efficiencies for both entities. No formal operating agreement has been developed to
date.

As a result, this Offering Memorandum presents financial information separately for Alsacia and
Express, which are operating companies, because both will be commonly controlled subsidiaries of GPS Group,
but neither will be owned by the other. However, since the Acquisition of the Express shares is not being made
by Alsacia, but rather by the GPS Group itself, and since the GPS Group is not an issuer or Guarantor of the
Notes, this Offering Memorandum, consistent with applicable accounting literature and requirements, does not
contain any pro forma financial or other information with respect to the Acquisition or any combined or
consolidating financial statements of either Alsacia or Express. All references herein to us or we are to the
joint operations of Alsacia and Express unless otherwise noted.

The consolidated financial statements of Express and Alsacia which have been included in this Offering
Memorandum are subject to potential adjustments relating to the net balance of accounts payable to Alsacia
relating to items under dispute mainly arising from expenses incurred in prior years on account of Express in
relation to the joint operations of Express and Alsacia performed up to August 2006. Upon completion of the
Acquisition, Grupo Transportador will no longer own any equity interest in Express and Express and Alsacia will
come under common control of the Principal Shareholder. At that time, we expect the Principal Shareholder will
cause Alsacia and Express to settle their dispute relating to their accounts payable balances. However, the effect
of any settlement on the financial statements and tax position of Express and Alsacia have not yet been
determined. Any such determination could have an adverse effect on our results of operations, tax liability or
financial position. See Risk FactorsRisks Relating to Our BusinessThe financial statements of Express and
Alsacia may be restated in the future based on the settlement of their related party dispute.

Alsacia

The consolidated financial statements of Alsacia as of and of the years ended December 31, 2007 and
2008, which have been prepared in Chilean pesos in accordance with Chilean GAAP and included in this
Offering Memorandum, have been audited by KPMG Auditores Consultores Limitada, Alsacias prior
independent auditors, as stated in their report appearing herein.

The consolidated financial statements of Alsacia as of and for the year ended December 31, 2009, which
have been prepared in Chilean pesos in accordance with Chilean GAAP and included in this Offering
Memorandum, have been audited by Ernst & Young Servicios Profesionales de Auditoria y Asesorias, Alsacias
independent auditors, as stated in their report appearing herein.

The interim consolidated financial statements of Alsacia as of and for the nine months ended
September 30, 2009 and 2010 have been prepared in Chilean pesos in accordance with Chilean GAAP and
included in this Offering Memorandum.

vii
Express

The consolidated financial statements of Express as of and for the years ended December 31, 2007, 2008
and 2009, which have been prepared in Chilean pesos in accordance with Chilean GAAP and included in this
Offering Memorandum, have been audited by PricewaterhouseCoopers Consultores, Auditores y Compaa
Limitada, Expresss independent accountants, as stated in their qualified report appearing herein.

The interim consolidated financial statements of Express as of and for the nine months ended
September 30, 2009 and 2010, which have been prepared in Chilean pesos in accordance with Chilean GAAP
and included in this Offering Memorandum, have been subjected to a limited review by PricewaterhouseCoopers
Consultores, Auditores y Compaa Limitada, Expresss independent accountants, as stated in their qualified
report appearing herein.

Eco Uno and Panamerican

No financial or operating information is provided in this Offering Memorandum for either Eco Uno or
Panamerican, which are additional Guarantors of the Notes. Eco Uno is a holding company with the sole purpose
of holding 99.998% of the common shares of Express. Panamerican is a holding company formed for the sole
purpose of acquiring and consolidating the ownership of 99.7% of the common shares of Eco Uno through the
Acquisition. Both Eco Uno and Panamerican lend or borrow intercompany debt to or from affiliates from time to
time, and neither will have any employees or other activities except as described herein. See Description of
Notes and Finance AgreementsAdditional Covenants Related to Panamerican and Eco Uno. As a result,
Alsacia does not believe any information concerning Eco Uno or Panamerican would be material to prospective
investors.

Initial Temporary Issuer

No financial or operating information is provided in this Offering Memorandum for the Initial
Temporary Issuer because it has never had, and currently does not have, any assets, liabilities or operations. It is
a special purpose company established to facilitate the issuance of the Notes as described under The Escrow.

Chilean GAAP vs. IFRS

Under the terms of our Concession Agreements, we must prepare our financial statements in accordance
with IFRS for the year beginning January 1, 2011. IFRS differs in certain significant respects from Chilean
GAAP. See Appendix A for a description of the principal differences between Chilean GAAP and IFRS as they
relate to us and our consolidated subsidiaries.

Currency Information

Our consolidated financial statements and our financial data in this Offering Memorandum have been
presented in Chilean pesos and references to pesos or Ch$ are to Chilean pesos. Unidades de Fomento are
inflation-indexed Chilean peso-denominated units that are linked to, and adjusted daily to reflect changes in, the
previous months Chilean consumer price index (CPI). References to UF are to Unidades de Fomento. As of
February 2, 2011, UF 1.00 was equivalent to Ch$21,478 and U.S.$44.69, as reported by the Chilean Central
Bank. References to $, U.S.$, U.S. dollars and dollars are to United States dollars.

Industry and Market Data

Some statistical information in this Offering Memorandum is based on governmental publications or

other independent sources, including the INE and the Chilean Central Bank. Although we believe these sources
are reliable, we have not independently verified the information and cannot guarantee its accuracy or
completeness.

viii
Other Information

Certain figures included in this Offering Memorandum and in our financial statements have been
rounded for ease of presentation. Percentage figures included in this Offering Memorandum have not in all cases
been calculated on the basis of the rounded figures but on the basis of the amounts prior to rounding. For this
reason, percentage amounts in this Offering Memorandum may vary from those obtained by performing the same
calculations using the figures in our financial statements. Certain other amounts that appear in this Offering
Memorandum may not sum due to rounding.

ix
 ENFORCEMENT OF CIVIL LIABILITIES

Alsacia and Express are corporations (sociedades annimas) organized under the laws of Chile. Under
the terms of the Concession Agreements, Alsacia and Express must comply with the rules applicable to Chilean
publicly held corporations (sociedades annimas abiertas) other than the requirement to file quarterly financial
information with the SVS. Eco Uno is a corporation (sociedad annima) organized under the laws of Chile and
subject to the rules applicable to Chilean closed corporations (sociedades annimas cerradas). Panamerican is a
corporation organized under the laws of Bermuda and through its Chilean branch is subject to the laws of Chile
which are applicable to Chilean branches. BRT Escrow Corporation SpA is a corporation (sociedad por
acciones) organized under the laws of Chile and subject to the rules applicable to Chilean corporations, as
simplified for sociedades por acciones. In addition, all or substantially all of the officers and directors for these
companies reside outside the United States, principally in Chile or Colombia. As a result, except as described
below, it may not be possible for investors to effect service of process within the United States upon us, the
Guarantors, or our or their respective officers or directors or to enforce against them U.S. court judgments
predicated upon the civil liability provisions of the U.S. federal securities laws.

We and the Guarantors have appointed Corporation Service Company, Wilmington, Delaware, as our
authorized agent upon which process may be served in any action arising out of or based upon the Notes, which
may be instituted in any federal or state court located in the city of New York having subject matter jurisdiction,
and we and the Guarantors submit to the jurisdiction thereof.

We have been advised by our Chilean counsel, Bofill Mir & Alvarez Jana, that no treaty exists between
the United States and Chile for the reciprocal enforcement of foreign judgments. Chilean courts, however, have
enforced final judgments rendered in the United States, without reviewing the merits of the subject matter of the
case, by virtue of the legal principles of reciprocity and comity, subject to the review in Chile of the United
States judgment in order to ascertain whether certain basic principles of due process and public policy have been
respected. Nevertheless, we have been advised by Bofill Mir & Alvarez Jana that there is doubt as to the
enforceability, in original actions in Chilean courts, of liabilities predicated solely upon the U.S. federal
securities laws and as to the enforceability in Chilean courts of judgments of U.S. courts obtained in actions
predicated upon the civil liability provisions of the U.S. federal securities laws. In addition, it may be necessary
for investors to comply with certain procedures, including payment of stamp tax (currently assessed at a rate of
up to 0.6% of the face value of a debt security), if applicable, in order to file a lawsuit with respect to the Notes
in a Chilean court.

x
 EXCHANGE RATES

Chile has two currency markets, the Formal Exchange Market (Mercado Cambiario Formal) and the
Informal Exchange Market (Mercado Cambiario Informal). The Formal Exchange Market is comprised of banks
and other entities authorized by the Chilean Central Bank. The Informal Exchange Market is comprised of
entities that are not expressly authorized to operate in the Formal Exchange Market, such as certain foreign
exchange houses and travel agencies, among others. The Chilean Central Bank is empowered to determine that
certain purchases and sales of foreign currencies be carried out on the Formal Exchange Market.

Both the Formal and Informal Exchange Markets are driven by free market forces. Current regulations
require that the Chilean Central Bank be informed of certain transactions and that they be effected through the
Formal Exchange Market.

The Observed Exchange Rate (dlar observado), which is reported by the Chilean Central Bank and
published daily in the Official Gazette of Chile, is computed by taking the weighted average of the previous
business days transactions on the Formal Exchange Market. Although the Chilean Central Bank is not required
to follow any exchange rate, it generally uses spot rates for its transactions. Other banks generally carry out
authorized transactions at spot rates also.

The Informal Exchange Market reflects transactions carried out at an informal exchange rate. There are
no limits imposed on the extent to which the exchange rate in the Informal Exchange Market can fluctuate above
or below the Observed Exchange Rate. In recent years, the variation between the Observed Exchange Rate and
the informal exchange rate has not been significant.

The following table sets forth the annual low, high, average and period-end Observed Exchange Rate for
U.S. dollars for each year starting in 2005, and for the month of February 2011 (through the date of this Offering
Memorandum), as reported by the Chilean Central Bank.

Observed exchange rates (Ch$ per U.S.$1.00 (1))

End of
High (2) Low (2) Average (3) Period
2005 .................................... 592.75 509.70 559.86 514.21
2006 .................................... 549.63 511.44 530.26 534.43
2007 .................................... 548.67 493.14 522.69 495.82
2008 .................................... 676.75 431.22 521.79 629.11
2009 .................................... 643.87 491.09 559.67 506.43
2010 .................................... 549.17 468.37 510.38 468.37
2011
January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499.03 466.05 489.44 483.32
February (through February 4, 2011) . . . . . . 484.14 480.50 481.70 481.56
(1) Nominal figures (i.e., not adjusted for inflation).

(2) Exchange rates are the actual high and low, on a day-by-day basis, for each period.

(3) The average rate is calculated as the average of the exchange rates reported on a day-to-day basis during
each respective period.

Source: Chilean Central Bank

We make no representation that the Chilean peso or the U.S. dollar amounts referred to herein could
have been or could be converted in U.S. dollars or Chilean pesos, as the case may be, at the rates indicated, at any
particular rate or at all. The Federal Reserve Bank of New York does not report a noon buying rate for pesos.

xi
 EXCHANGE CONTROLS IN CHILE

Pursuant to Article 39 of Law No. 18,840, the Chilean Central Bank Act, any person or entity may
freely execute any foreign exchange transaction unless the Chilean Central Bank imposes a restriction or
limitation to such foreign exchange transaction. Currently, there is no filing, registration or approval to be made
or obtained with respect to the bonds to be issued by Alsacia or to the Guarantees to be issued by Express, Eco
Uno and Panamerican.

Pursuant to the current regulations contained in Chapter XIV of the Compendium of Foreign Exchange
Regulations of the Chilean Central Bank (the Compendium), although no prior authorization from the Chilean
Central Bank is required to effect payments in U.S. dollars abroad, such payments are required to be made
through the Formal Exchange Market and disclosed to the Chilean Central Bank. The participant of the Formal
Exchange Market involved in the transfer must provide certain information to the Chilean Central Bank. In the
event payments are made by us using foreign currency held abroad, relevant information should be provided by
us to the Chilean Central Bank directly or through an entity of the Formal Exchange Market within the first 10
days of the month following the date on which the payment was made. As of this date, under Chapter XIV of the
Compendium, payments and remittances of funds from Chile are governed by the rules in effect at the time the
payment or remittance is made.

There can be no assurance that we, any Guarantor or any other entity will be able to purchase U.S.
dollars in the Informal Exchange Market or in the Formal Exchange Market at the time or in the amounts
required to effect any payment due pursuant to the Notes.

Any change made to laws and regulations of the Chilean Central Bank after the date hereof may affect
foreign investors who have acquired the Notes. We cannot assure you that further Chilean Central Bank
regulations or legislative changes to the current foreign exchange control regime in Chile will not restrict or
prevent us, any Guarantor or any other entity, from acquiring U.S. dollars or that further restrictions applicable to
us, any Guarantor or any other entity will not affect our or its ability to remit U.S. dollars for payment of interest
or principal on the Notes.

The above is a summary of the foreign exchange regime applicable with respect to the Notes, as in force
and effect as of the date of this Offering Memorandum. We cannot assure you that restrictions will not be
imposed in the future, nor can there be any assessment of the duration or impact of such restrictions if imposed.
This summary does not purport to be complete and is qualified in its entirety by reference to the provisions of the
Compendium, a copy of which is available from us upon request.

xii
 SUMMARY

The Notes offered in this Offering Memorandum are part of a plan undertaken by GPS Group, Alsacia
and Express to reorganize the holding of interests in Alsacia and Express, refinance their current debt
obligations, fund various capital expenditures and expand the role of Alsacia and Express as principal providers
of passenger bus services in the Santiago, Chile metropolitan area. See Introductory Note.

References in this Offering Memorandum to we or our or similar words refer to the combined
operations of both Alsacia and Express, except as discussed in Managements Discussion and Analysis of
Financial Condition and Results of Operations for Alsacia and Express and elsewhere as indicated herein.

Investors should read the following summary together with the information set forth under the heading
Risk Factors and in the financial statements and accompanying notes appearing elsewhere in this Offering
Memorandum. Financial information for each of the three years ended December 31, 2009 has been restated in
constant Chilean pesos as of December 31, 2009 in accordance with Chilean GAAP. Financial information for
each of the nine months ended September 30, 2009 and 2010 has been restated in constant Chilean pesos as of
September 30, 2010 in accordance with Chilean GAAP. Under the terms of our Concession Agreements, we must
prepare our financial statements in accordance with IFRS for the year beginning January 1, 2011. IFRS differs
in certain significant respects from Chilean GAAP. See Appendix A for a description of the principal differences
between Chilean GAAP and IFRS as they relate to us and our consolidated subsidiaries.

Our Business

General

Alsacia and Express together are the largest operator of bus transportation services in the Santiago,
Chile metropolitan area, as measured by the available bus capacity and scheduled route length of Alsacia and
Express combined. We jointly operate under the Alsacia and Express brands and Concessions to provide
passenger bus service within Transantiago, the rapid transit system of Santiago managed by the Chilean
Government.

As of September 30, 2010, we collectively owned or operated 72 bus routes, 1,861 buses and 9 bus
terminals and we had 6,038 employees. In the first nine months of 2010, we received an average of 27 million
Passenger Validations per month, which was approximately 28% of the total bus Passenger Validations in
Transantiago. Our fleet passenger capacity accounted for 31% and 34% of the total passenger capacity and 21%
and 23% of the scheduled route length in Transantiago in 2009 and the first nine months of 2010, respectively.
Alsacia and Express had revenue of Ch$66,658 million and Ch$86,065 million and operating (loss) income of
Ch$(184) million and Ch$4,429 million for the year ended December 31, 2009, respectively, and revenue of
Ch$54,732 million and Ch$70,844 million and operating income (loss) of Ch$3,441 million and Ch$(450)
million, respectively, for the nine months ended September 30, 2010.

The Transantiago Concessions

Transantiago is the public transportation system of the Santiago metropolitan area, consisting of the
citys buses, the Metro subway, an integrated electronic payment system designed to allow passengers to pay bus
and subway fares with electronic stored value cards, as well as planning and construction functions for
transportation infrastructure. Transantiago was designed and implemented by the Chilean Government in 2003 in
a complete overhaul of the then-existing public transportation system in Santiago, which was largely unregulated
and prone to accidents, inefficiency and excessive pollution. Transantiago was implemented in three phases
between October 2005 and February 2007 and rerouted the bus lines for more efficient service, consolidated

1
approximately 3,500 independent bus operators into 14 concession holders, introduced an integrated electronic
payment system and replaced the majority of buses then in use with a modern standardized fleet. See
Transantiago.

We hold concessions to operate two of the five trunk bus lines that, together with the Metro subway and
the feeder bus lines, make up Transantiago and provide transit service across Santiagos 10 metropolitan zones.
Under the Concession Agreements, the Ministry grants Alsacia and Express the right to use the roads of Santiago
for the provision of urban passenger transportation services along their assigned routes. Our Concessions were
initially awarded in 2005 and will expire in October 2018 unless previously terminated. Each respective
Concession Agreement can be renewed for 18 months if Alsacia or Express does not reach minimum revenue
thresholds set forth in its respective Concession Agreement. See The Concessions.

In exchange for the provision of our services, Alsacia and Express receive payment from the AFT under
the terms of their Concessions. Substantially all of our revenue is derived from payments under the Concessions,
which are based on the aggregate Passenger Validations recorded on our buses as adjusted by formulas set forth
in the Concession Agreements. These formulas are driven by the following four main factors:

Base Revenue: Base Revenue is a predetermined monthly amount that is adjusted for a seasonality
curve, which is predetermined in the Concession Agreements. Base Revenue is also adjusted each
month for changes in the Cost Index described below. Base Revenue comprised 43% and 36% of
Alsacias and Expresss respective revenue in 2009.

Variable Revenue: Variable Revenue is based on a number of factors, including our Operating
Plans, Passenger Validations and the Cost Index. Variable Revenue comprised 57% and 64% of
Alsacias and Expresss respective revenue in 2009.

Service Fulfillment Ratio: Every two weeks, the Ministry determines our Service Fulfillment
Ratio, which measures our actual operating performance relative to our Operating Plans. The
Service Fulfillment Ratio acts as a discount to Base Revenue and Variable Revenue because the
Service Fulfillment Ratio is multiplied by our Base Revenue and Variable Revenue for each month
to determine our actual revenue earned. By improving the timely and accurate delivery of our bus
services, we can maximize our Service Fulfillment Ratio and increase our earned revenue. Since
2008, Alsacia has consistently achieved high Service Fulfillment Ratios relative to the other
operators in Transantiago while Express achieved Service Fullfillment Ratios that were near the
average of other operators.

Cost Index: Substantially all of our revenue is adjusted monthly based on a weighted average
specified in the Concession Agreements of certain macroeconomic and cost factors. Because most
of our operating expenses are also correlated or directly tied to these factors, the Cost Index
significantly mitigates the effect of changes in these factors on our operating income or loss.

See The ConcessionsConcession Revenue for a more complete description of our Concession
revenue.

Transantiago Payment Sources

Through the revenue and payment formulas set forth in our Concession Agreements, the Ministry
regulates the supply and quality of our bus services in coordination with the services provided by other bus
concession holders and the Metro. Passengers currently pay a Ch$520 bus fare throughout Transantiago, which
includes up to two free bus transfers, plus an additional fee of either Ch$20 or Ch$80 to transfer to the Metro

2
subway, depending on the time of the day. Payment methods and fares are standardized across the system with an
electronic fare system. The electronic system consists of a prepaid smart card, called the Bip! card (a brand
name derived from the sound made when a stored value card is passed through an electronic card reader installed
at entry points on our buses and at bus stops), with an embedded microchip, which can be purchased from
vending machines, vendors and kiosks throughout Santiago. Transantiago passenger fares are regulated and
periodically set by a panel of experts (Panel de Expertos) appointed by the Ministry.

Although the Ministry is our counterparty under the Concession Agreements, the Ministry itself does
not pay or guarantee our Concession revenue. Instead, all revenue generated in Transantiago from passenger
fares payments is deposited into accounts managed by the AFT, which is responsible for the Bip! card system
and the management of all associated funds on behalf of all Transantiago service providers. The AFT is separate
from the Ministry and is a private corporation, owned by various Chilean domestic banks and other corporate
entities, including Banco del Estado de Chile (the state bank of Chile), Banco de Chile, Banco de Crdito e
Inversiones, Banco Santander Chile, Promotora CMR Falabella S.A. and Sonda S.A. The AFT was established to
collect and hold all revenue generated by Transantiago in trust for the benefit of the various Transantiago service
providers and concessionaires, including Alsacia and Express. This revenue is then distributed, in order of
contractual priority, first to the Metro, then to the bus concession holders and then to Transantiagos ancillary
service providers, including the AFT, in accordance with the terms of their respective concession agreements.

Since 2007, a significant portion of Transantiagos revenue, and consequently our revenue, has been
subsidized by the Chilean Government through supplemental payments to the AFT, which, in turn, are paid to us
and the other bus concessionaires. These supplemental payments are made twice per month, on the same
schedule as our payments under the Concession Agreements, and address shortfalls created by passenger revenue
levels that are lower than anticipated in the initial concession bidding process. The Chilean Government
subsidies help maintain the long-term financial stability of Transantiago and help ensure the commercial viability
of its service providers and operators, including Alsacia and Express. These subsidies thus reflect the critical
nature of Transantiago to everyday life in the Santiago metropolitan area, and the Chilean Governments
dedication to its continuance. Subsidy payments made by the Chilean Government to Transantiago totaled
Ch$151,960 million from June through December of 2007, Ch$361,092 million in 2008, Ch$359,172 million in
2009 and Ch$255,339 million for the nine months ended September 30, 2010, which comprised 42%, 50%, 49%
and 45% of the total costs to support Transantiago during those respective periods.

Routes and Operations

We operate 72 bus routes under our Concessions that are defined in our Operating Plans. Routes are
created and designed according to expected demand for our services in the different areas of Santiago. Each route
schedule specifies the bus type and frequency at specified intervals each day. The average route length (one way)
is 20 kilometers for Alsacia and 23 kilometers for Express. For Alsacia, we estimate the financial profitability of
each route by measuring key operating statistics for each route such as route length, the ratio of in-service to
out-of-service kilometers traveled, passenger fare evasion, average speed, fuel consumption, driver time
requirements, and route specific costs. We routinely monitor these operating metrics and adjust our scheduling
and other operations to improve them. Our planning and scheduling systems utilize global positioning systems
and scheduling software to maximize the performance of our buses and drivers.

We also regularly consult with the Ministry in order to make changes to our Operating Plans that may
benefit our performance as well as service to our passengers. Our operational performance is measured every two
weeks by the Ministry through the Service Fulfillment Ratio.

We collectively had 1,861 buses as of September 30, 2010, most of which were based on two standard
configurations incorporating an 18 meter articulated design and a 12 meter low-floor design. We maintain our
buses regularly to increase their efficiency, safety and life span. See BusinessProperty and Equipment.

3
 Our drivers receive training that averaged 46 hours for Alsacia drivers and 7.5 hours for Express drivers
in the first nine months of 2010. The drivers have an average tenure of approximately 3 years with us. Alsacias
driver training programs cover topics such as driver skills improvement and job stress management. In addition
to providing skills training, Alsacia has developed a career development and coaching plan to support our
drivers long-term advancement and professional development.

Our Business Strategy

Our goal is to be the best operator in Transantiago while operating under the most efficient cost
structure, which we believe will allow us to generate the most income under our Concession Agreements and in
future concessions for bus and other services in Chile. We believe that each of the strategies described below can
help us to achieve our goal.

Improve Timeliness, Frequency and Quality of Our Bus Services

We seek to increase the timeliness, frequency and quality of our bus services which we believe will
increase our overall revenue in three ways. First, if we improve our bus operations relative to our Operating
Plans, then our Service Fulfillment Ratio will increase. Because substantially all of our revenue is affected by our
Service Fulfillment Ratio, each percentage point increase in our Service Fulfillment Ratio will result in an
approximate 1% increase in our revenue. Second, improved service frequency and timeliness also increases our
ICF and ICR, which minimizes various discounts applied to our revenue under the Concession Agreements.
Third, we believe that by maintaining high Service Fulfillment Ratios, ICF and ICR, we can increase the level of
goodwill we hold with the Ministry and the Chilean Government. We believe that increased goodwill will
increase our ability to obtain new routes, route extensions and modifications that may increase our revenue.

Among the ways that we believe we can improve our operational efficiency is by (i) applying Alsacias
operating procedures to Express to try to improve Expresss Service Fulfillment Ratio, which we believe has
been declining in recent months due to turnover in certain employees and the recent addition of portions of trunk
line 3 to Expresss prior routes, and (ii) leveraging key strategic relationships with our outsource partners,
Citymovil and BIG Services SpA, whom we believe will provide us with superior service in the areas of
planning, service fulfillment, quality control and operational information management outsourcing. We also
believe our existing strategic relationships with key transportation service and product suppliers such as Brazils
Petrobras for fuel supply; Instituto de Gestin del Transporte (IGT) for driver training outsourcing; Swedens
Volvo for buses and spare parts; and Germanys ZF Friedrichshafen AG for bus transmission systems will help
us to lower our future costs. These outsourced relationships and vendors allow us to focus on our core operations
to improve our performance.

Maximize Synergies from Joint Operating Arrangements with Express

We expect in the near term to achieve a number of cost synergies by jointly coordinating the operations
of Alsacia and Express, including the following:

Increasing route and terminal densities will allow us to minimize the number of unpaid kilometers
driven by our buses and drivers. These unpaid kilometers primarily include distances driven
between the bus terminal and the start of a bus route, along with distances driven to switch bus
routes in the middle of a work shift. Reduction of unpaid kilometers will reduce our fuel, labor and
bus depreciation and maintenance costs without a corresponding decrease in revenue. We believe
that Express in particular will benefit from the use of Alsacias Huechuraba and Pealolen
terminals, which are located in the northern and eastern portion of Santiago, respectively, where
many of Expresss routes are located. See BusinessProperty and EquipmentBus Terminals
for an illustration of our current terminal locations in relation to our bus routes.

4
 Increasing the number of drivers and bus terminals will allow us to minimize the distance we travel
to shuttle drivers to and from work, resulting in cost savings. We also expect to be able to schedule
more efficient breaks for our drivers by combining the our existing rest stops and eliminating
redundant rest stops. Because some of the rest stops of Alsacia are the closest rest stops to certain
routes of Express, and vice versa, we believe we can achieve improvements in productivity by
minimizing the time to travel from a bus route to the nearest rest stop.

Eliminating redundant general and administrative labor costs between Alsacia and Express,
including duplicative finance, accounting, legal, executive management and board functions,
resulting in significant cost savings. Along with the reduction in headcount, there will be a
reduction of the overhead costs for associated office space, computer equipment and other
non-compensatory costs relating to any reduced headcount, allowing us to realize significant
savings from elimination of redundant labor functions.

Leveraging the size of our combined fleet to increase our purchasing power for buses, tires, spare
parts and maintenance supplies and services.

Seek Approval of the Ministry To Allow Joint Management of the Operations of Alsacia and Express,
Maximize Revenue and Identify Service Improvements

The current Concession Agreements contain certain restrictions on our ability to share bus routes, bus
drivers, or buses between Alsacia and Express. If we are able to remove these contractual restraints, we believe
we will be able to realize significant synergies in addition to those described above by cross operating the routes
of Alsacia and Express.

The Chilean Government has also announced a number of initiatives that we believe will increase
demand for Transantiago bus services. For example, the Chilean Government plans to implement an urban toll
system to tax private use of city roads and more stringent regulation of automobile and traffic regulations, which
we believe will increase the cost of private automobile transport and, as a result, increase bus ridership. In
addition, the Chilean Government began a campaign to reduce fare evasion, which is currently estimated by the
Ministry to occur on approximately 18% of passenger trips, by placing more fare inspectors on buses,
implementing new payment zones where passengers pay fares before boarding buses, increasing fines and
creating a master list of people who fraudulently use subsidized fare cards. We also believe that the Chilean
Government will implement further fare increases.

Build on Our Experience as an Operator To Obtain New Concessions

We intend to leverage our experience in bus operations and concessions to obtain new concessions
within Transantiago. We believe that there will be significant opportunities to expand our role within
Transantiago in the near term because the feeder line bus concessions are scheduled to end in October 2011. We
expect the Ministry will solicit new bids to operate the feeder concessions when they expire. Although the
solicitation process has not been established yet, there is no requirement for the Ministry to maintain an open
bidding process available to all interested parties. Instead, the Ministry can enter into private negotiations with a
single potential service provider. In the past, the Ministry has reassigned certain bus routes and concessions to
other existing concession holders in Transantiago without conducting an open bidding process. We believe our
operating history in Transantiago will give us an advantage in winning a feeder line concession when and if they
are renewed.

Our experience in Transantiago also gives us valuable expertise in operating and managing public
transportation concessions. We plan to apply this expertise to help us win transportation concessions in other

5
major metropolitan areas in the world. We also believe that other concession bidders throughout the world will
seek our expertise and prior concession credentials by partnering with us and giving us minority interests in the
concessions with minimal equity investments by us.

Increase Overall Operating Efficiencies and Cost Reductions

We intend to continue initiatives designed to decrease our operating and overhead costs in addition to
any synergies we may realize from the joint management of the operations of Alsacia and Express. Our cost-
cutting initiatives include improving route designs for added efficiency, investing in better scheduling software
and equipment, enhancing our information and GPS systems to improve operations, improving bus reliability and
availability, and improving our driver hiring and training programs and other safety initiatives across our
operations. In addition, we believe the Acquisition will allow us to take advantage of a unified management
structure to apply operational and managerial best practices across Alsacia and Express. We believe that
knowledge sharing and cross training on best practices will help reduce the operational costs of Alsacia and
Express in addition to the synergies described above.

6
 THE OFFERING

For a more complete description of the terms of the Notes, see Description of Notes and Finance
Agreements.

Initial Temporary Issuer . . . . . . . . . . . . . BRT Escrow Corporation SpA (the Initial Temporary Issuer), a
special purpose company formed in 2011 under the laws of the
Republic of Chile. The Initial Temporary Issuer is owned by two
special purpose companies formed in 2011 under the laws of the
British Virgin Islands, which special purpose companies are in turn
owned by a trust formed in 2011 under the laws of the British Virgin
Islands, independent of Alsacia, the Guarantors, the Principal
Shareholders and their affiliates.

Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Alsacia S.A. (Alsacia or the Issuer)

Guarantors . . . . . . . . . . . . . . . . . . . . . . . . Various affiliates of the Issuer, consisting of (i) Express de Santiago

Uno S.A. (Express and together with Alsacia, the
Concessionaires), (ii) Eco Uno S.A. (Eco Uno) and (iii)
Panamerican Investments Ltd. (Panamerican and together with
Express and Eco Uno, the Guarantors). For a description of the
relationship of the Guarantors to the Issuer, see BusinessOur
History and Use of ProceedsThe Acquisition.

Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S.$464,000,000 aggregate principal amount of 8.00% Senior

Secured Notes due 2018 (the Notes).

Escrow . . . . . . . . . . . . . . . . . . . . . . . . . . . The Initial Temporary Issuer has been established to facilitate the
issuance of the Notes by Alsacia. The Notes will be initially issued by
the Initial Temporary Issuer due to restrictions on the part of Alsacia
and Express to incur indebtedness pending the repayment of the
indebtedness described in Appendix B and Appendix C of this
Offering Memorandum (the Existing Indebtedness) and the release
of the liens securing the Existing Indebtedness.

In order to address these restrictions, The Bank of New York Mellon,

not in its individual capacity, but as escrow agent (the Escrow
Agent), will hold the proceeds of the issuance of the Notes (the
Note Proceeds), in escrow in New York (the Escrow) pursuant to
an escrow agreement or agreements, dated as of the date of this
Offering Memorandum (the Escrow Agreement), among the Initial
Temporary Issuer, Alsacia, Banco Internacional (BI) and the
Escrow Agent.

The Initial Temporary Issuer will issue the Notes (the date of such
issuance, the Note Closing Date) pursuant to an indenture (as
supplemented from time to time, the Indenture) by and between the
Initial Temporary Issuer and The Bank of New York Mellon, not in
its individual capacity, but solely as trustee (the Trustee), principal
paying agent, transfer agent and registrar.

7
In addition, and as a condition to the closing of the Notes on the Note
Closing Date, the Escrow Agent will receive and hold in Escrow
U.S.$12.0 million of net proceeds (the Loan Proceeds) from the
Bus Terminal Loan to the Initial Temporary Issuer from BI and an
additional amount payable by Alsacia in cash of approximately
U.S.$2.0 million such that the funds in Escrow are in an amount
sufficient to (i) redeem in cash the Notes at a redemption price equal
to 100.00% of the aggregate issuance price of the Notes, (ii) pay
interest on the Notes at the stated rate from and including the Note
Closing Date and to and excluding March 3, 2011 and the related
Additional Amounts, (iii) repay the Bus Terminal Loan in full, and
(iv) pay interest on the Bus Terminal Loan at the stated rate from and
including the date it is disbursed into the Escrow and to and excluding
March 3, 2011 (collectively with the Note Proceeds and the Loan
Proceeds, the Escrowed Amounts).

Upon receipt by the Escrow Agent of the Escrowed Amounts and

approval of the form of all closing documents, irrevocable notices
will be delivered to the lenders of the Existing Indebtedness
indicating the Concessionaires intention to repay all of the Existing
Indebtedness owed to such lenders, and related hedging termination
payments on or before February 28, 2011. On the date scheduled for
such repayment (the Escrow Closing Date), the following will be
deemed to occur simultaneously, as certified by Alsacia and the
Guarantors pursuant to an Officers Certificate delivered to the
Escrow Agent and the Trustee:

(a) Alsacia will acquire 100% of the common stock of the Initial
Temporary Issuer, which will result in the automatic dissolution of
the Initial Temporary Issuer and the assumption by Alsacia of the
Initial Temporary Issuers obligations under the Notes, the Indenture,
the Bus Terminal Loan and the Escrow by operation of Chilean law;

(b) affiliates of Alsacia will consummate the pending acquisition of

Express and Eco Uno as described under Use of ProceedsThe
Acquisition without any provision of the related Acquisition
Agreement having been amended or waived in any manner that would
be material and adverse to the Noteholders;

(c) Alsacia and Express will repay the Existing Indebtedness in full;

(d) all liens securing the Existing Indebtedness will be released and
terminated and the liens securing the Notes and the Notes Hedge
Agreement as part of the Collateral will become effective, subject to
perfection as contemplated by Description of Notes and Finance
AgreementsAffirmative Covenants of the Issuer and the
GuarantorsPerfection of Security Interests under Chilean Security
Documents;

(e) Alsacia will expressly assume the Initial Temporary Issuers

obligations and position under the Notes and the Indenture, and

8
Express, Eco Uno and Panamerican will become guarantors
thereunder pursuant to a supplemental indenture (the Supplemental
Indenture);

(f) Alsacia and the Guarantors will enter into a collateral trust
agreement in connection with the Collateral (the Collateral Trust
Agreement) by and among themselves, Banco Santander Chile, as
collateral trustee with respect to collateral located in or governed by
the laws of Chile (the Chilean Collateral Agent) and The Bank of
New York Mellon, not in its individual capacity, but solely as
collateral trustee for all other collateral (the U.S. Collateral Agent
and, together with the Chilean Collateral Agent and the Trustee, the
Secured Party Agents);

(g) Express and Eco Uno will accede to the purchase agreement
relating to the Notes;

(h) Express and Eco Uno will certify to the Escrow Agent that each of
them has not, between the Note Closing Date and the Escrow Closing
Date, except in connection with the consummation of the
Transactions and the Acquisition as described in the Offering
Memorandum: (i) incurred any Debt, (ii) created or, to the best of
their knowledge, suffered to exist any Liens (except Permitted Liens)
on any of its assets or property, (iii) sold, assigned, leased, transferred
or otherwise disposed of any interest in its assets or property, (iv)
created or acquired any Subsidiaries or made any Investment, (v)
consolidated or merged with or into any other Person or sold, leased
or otherwise transferred, directly or indirectly, all or any part of its
assets or property to any other Person, (vi) made any Restricted
Payments, (vii) entered into any Sale and Lease-Back Transaction,
(viii) entered into an Affiliate Transaction, (ix) granted any powers of
attorney in connection with its assets or property, (x) incurred or
committed any CAPEX, except in each case in the ordinary course of
business, on an arms-length basis (except Affiliate Transactions that
would otherwise be permitted by the Indenture), and that could not be
reasonably expected to result in a material adverse change in, or a
material adverse effect on, the financial position, results of operations
or business of Express and Eco Uno, considered as a whole;

(i) Alsacia and Panamerican will certify to the Escrow Agent that
each of them has not, between the Note Closing Date and the Escrow
Closing Date, except in connection with the consummation of the
Transactions and the Acquisition as described in the Offering
Memorandum: (i) incurred any Debt, (ii) created or, to the best of
their knowledge, suffered to exist any Liens (except Permitted Liens)
on any of its assets or property, (iii) sold, assigned, leased, transferred
or otherwise disposed of any interest in its assets or property (except
the contribution of the Excluded Depot to Lorena SpA), (iv) created
or acquired any Subsidiaries or made any Investment (except the
contribution of the Excluded Depot to Lorena SpA), (v) consolidated
or merged with or into any other Person or sold, leased or otherwise

9
transferred, directly or indirectly, all or any part of its assets or
property to any other Person, (vi) made any Restricted Payments, (vii)
entered into any Sale and Lease-Back Transaction (except the
contribution to Lorena SpA of the Excluded Depot and lease thereof
to Alsacia), (viii) entered into an Affiliate Transaction, (ix) granted
any powers of attorney in connection with its assets or property, (x)
incurred or committed any CAPEX, except in each case in the
ordinary course of business, on an arms-length basis (except Affiliate
Transactions that would otherwise be permitted by the Indenture), and
that could not be reasonably expected to result in a material adverse
change in, or a material adverse effect on, the financial position,
results of operations or business of Alsacia and Panamerican,
considered as a whole; in addition, Alsacia and Panamerican will
certify that (i) they have been in compliance in all material respects
during the period from the Note Closing Date to the Escrow Closing
Date with all of the provisions of the Indenture, and (ii) that there has
been no event or occurrence that as of such date would constitute an
Event of Default or would, with the passage of time or otherwise,
constitute an Event of Default had the Indenture been in effect and
applicable to them from and after the Note Closing Date, but subject
to all cure periods provided for in the Indenture, except in each case
for (A) any noncompliance resulting from implementation of any of
the transactions contemplated in Use of Proceeds in the Offering
Memorandum relating to the Acquisition or other matters described
therein and (B) those reasonably relating to establishment of accounts
and related payment priorities, payment provisions and pledges of
collateral and similar provisions contemplated by the Indenture which
by necessity are to become operative only from and after the Escrow
Closing Date;

(j) the Escrow Agent will receive customary opinions from counsels
and certificates from officers of Alsacia and the Guarantors;

(k) Alsacia will enter into the Notes Hedge Agreement with the Notes
Hedge Counterparty;

(l) Lorena SpA will grant a first priority security interest (or the
closest equivalent thereof under applicable Chilean law) on the
Huechuraba terminal (the Excluded Depot) and Alsacia will grant a
first priority security interest (or the closest equivalent thereof under
applicable Chilean law) on Lorena SpAs capital stock to secure
Alsacias obligations under the Bus Terminal Loan (see Use of
ProceedsSecured Subordinated Bus Terminal Loan), subject to
perfection thereof; and

(m) the Escrow Agent, will distribute the Escrowed Amounts as set
forth in Use of Proceeds (the foregoing clauses (a) through (m)
being referred to as the Closing Conditions).

In the event the Closing Conditions cannot be met, the Escrow may
be terminated prior to February 28, 2011 by giving notice to the

10
 Noteholders, at which time the Escrowed Amounts shall be paid to
the Noteholders three business days thereafter (the Escrow
Redemption Date). If no notice is given and the Closing Conditions
shall have not been satisfied on or prior to February 28, 2011, the
Escrow Redemption Date shall be March 3, 2011. If the Escrow
Redemption Date occurs, then the Escrowed Amounts shall be paid to
the Noteholders on a pro rata basis based on the principal amount of
Notes held by such Noteholders (the Escrow Redemption) in an
amount equal to the initial purchase price therefor together with
interest at the stated rate therefore from and including the date of
initial issuance and through and excluding the date of any such
redemption, and the Notes shall be deemed to have been repaid in full
and no longer be outstanding or having any effect or liability attached
thereto. In addition, the Bus Terminal Loan will become due and
payable immediately and will be repaid with funds in the Escrow. In
the event that the other Closing Conditions shall not have been
satisfied on or prior to February 28, 2011, Alsacia and an affiliate of
Alsacia will acquire 100% of the common stock of the Initial
Temporary Issuer no later than March 3, 2011.

Guarantees . . . . . . . . . . . . . . . . . . . . . . . . All payments and obligations under the Notes due by the Issuer will
be fully and unconditionally guaranteed on a senior secured basis by
each Guarantor pursuant to a guarantee agreement included in the
Indenture (each, a Guarantee), as described in Description of
Notes and Finance AgreementsNote Guarantees.

Under each Guarantee, each Guarantor, jointly and severally, will pay
directly and unconditionally all amounts due under the Notes, without
the need of any presentment, demand of payment, protest or notice to
the Issuer. Each Guarantor will agree to subordinate any right of
subrogation or similar right under Chilean law arising from any
payments made by such Guarantor to the Trustee under the
Guarantee.

Notes Hedge Agreement . . . . . . . . . . . . . The Issuer will enter into the Notes Hedge Agreement with the Notes
Hedge Counterparty (as defined below) to hedge against changes in
the value of the Chilean peso against the U.S. dollar, as described
under Exchange Rate Hedge.

Expected Final Maturity Date . . . . . . . . . Unless redeemed or amortized prior thereto, the final payment on the
Notes is expected to be made on August 18, 2018.

11
Principal Amortization . . . . . . . . . . . . . . Principal payments under the Notes (the Scheduled Principal
Amounts) will be made semi-annually on February 18 and
August 18 of each year (each such date, a Payment Date),
beginning February 18, 2012, in accordance with the following
schedule (except as provided for under Early Amortization
Period below):
Scheduled Principal
Payment Date Amount (U.S.$)
August 18, 2011 . . . . . . . . . . . . . . . . . . . . . .
February 18, 2012 . . . . . . . . . . . . . . . . . . . . . 16,000,000
August 18, 2012 . . . . . . . . . . . . . . . . . . . . . . 13,900,000
February 18, 2013 . . . . . . . . . . . . . . . . . . . . . 29,300,000
August 18, 2013 . . . . . . . . . . . . . . . . . . . . . . 21,900,000
February 18, 2014 . . . . . . . . . . . . . . . . . . . . . 35,600,000
August 18, 2014 . . . . . . . . . . . . . . . . . . . . . . 25,700,000
February 18, 2015 . . . . . . . . . . . . . . . . . . . . . 36,100,000
August 18, 2015 . . . . . . . . . . . . . . . . . . . . . . 28,000,000
February 18, 2016 . . . . . . . . . . . . . . . . . . . . . 39,500,000
August 18, 2016 . . . . . . . . . . . . . . . . . . . . . . 29,600,000
February 18, 2017 . . . . . . . . . . . . . . . . . . . . . 47,300,000
August 18, 2017 . . . . . . . . . . . . . . . . . . . . . . 38,800,000
February 18, 2018 . . . . . . . . . . . . . . . . . . . . . 55,400,000
August 18, 2018 . . . . . . . . . . . . . . . . . . . . . . 46,900,000

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest on the Notes will accrue from the date of issuance at the rate
of 8.00% per annum. Interest will be payable in U.S. dollars semi-
annually in arrears in cash on each Payment Date beginning
August 18, 2011. Interest will be calculated on the basis of a 360-day
year consisting of twelve 30-day months.

Use of Proceeds . . . . . . . . . . . . . . . . . . . . On the Escrow Closing Date, the Issuer will apply the proceeds as set
forth under Use of Proceeds.

Ranking . . . . . . . . . . . . . . . . . . . . . . . . . . The Notes will be senior obligations of the Issuer, secured by the
Collateral. Each Guarantee will be the senior obligations of each
Guarantor, secured by the Collateral.

Collateral . . . . . . . . . . . . . . . . . . . . . . . . . The Notes, the Guarantees and the Notes Hedge Agreement will be
secured, equally and ratably, by a first priority perfected security
interest (or the closest equivalent thereof under applicable Chilean
law) held by the Chilean Collateral Agent (with respect to collateral
located in or governed by the laws of Chile) and the U.S. Collateral
Agent (with respect to all other collateral) in the rights and interests
of the Issuer and the Guarantors in the following categories of
existing and after-acquired personal property and assets (all of the
foregoing being referred to as the Collateral) in each case subject to
Permitted Liens:

(a) all the outstanding shares of Express pursuant to one or more

share pledge agreements (the Express Share Pledge
Agreements);

12
(b) the Concessions and all the Concessionaires rights under the
Concession Agreements (as defined below) pursuant to one or
more concession pledge agreements (the Concession Pledge
Agreements) and under the other Operating Agreements
pursuant to one or more additional pledge agreements (the
Other Pledge Agreements);

(c) all buses owned by the Concessionaires (excluding any buses

acquired out of the proceeds of any Subordinated Indebtedness
(as defined below) and, if so elected by the Issuer and the
Guarantors, any buses acquired out of the proceeds of a Vendor
Financing (as defined below), in each case incurred after the
date hereof in accordance with the Indenture), pursuant to one or
more asset pledge agreements (the Asset Pledge Agreements);

(d) the intercompany notes payable to Alsacia from Panamerican

and Express entered into on the Escrow Closing Date pursuant to
one or more pledge agreements (the Intercompany Debt Pledge
Agreements);

(e) all owned bus terminals, owned depot stations (except the
Excluded Depot) and other owned real estate assets used by the
Concessionaires in connection with the Concessions, including
any buildings, offices and fixtures therein, pursuant to one or
more first priority real property mortgages (the Mortgages);

(f) the NY Accounts (as defined below) and the money deposited
therein (and investments thereof) from time to time pursuant to
one or more account pledge agreements or as set forth in the
Indenture (the NY Account Pledge Agreements);

(g) the Chilean Accounts (other than the Transaction Checking

Accounts) and the money deposited therein (and investments
thereof) from time to time pursuant to one or more money
pledges (the Chilean Money Pledges); the Chilean Accounts
(other than the Transaction Checking Accounts) will be in the
name of the Chilean Collateral Agent; the Transaction Checking
Accounts will be in the name of each Concessionaire;

(h) one or more irrevocable powers of attorney granted by the

Concessionaires to the Chilean Collateral Agent, exercisable
only by the Chilean Collateral Agent as instructed by the
Controlling Party if an Event of Default shall have occurred and
is continuing beyond applicable grace periods, for the purpose of
enforcing the Concessionaires rights under the Operating
Agreements (as defined below) (the Powers of Attorney);

(i) insurance proceeds (only to the extent not deposited in the

Accounts, in which case such insurance proceeds will be part of
the Collateral pursuant to the NY Account Pledge Agreements

13
 and Chilean Money Pledges) pursuant to one or more
appointments of the U.S. Collateral Agent or the Chilean
Collateral Agent, as applicable, as additional insured and
beneficiary (beneficiario) under the insurance policies of (and
for the benefit of) the Concessionaires (and by Panamerican and
Eco Uno in the event that either of them carries any insurance)
(the Insurance Appointments, and together with the NY
Account Pledge Agreements, the Chilean Money Pledges, the
Concession Pledge Agreements, the Intercompany Debt Pledge
Agreements, the Other Pledge Agreements and the Asset Pledge
Agreements, the Pledge Agreements) (excluding, for the
avoidance of doubt, the Excluded Depot and any collateral
securing Vendor Financings that are not secured by the
Collateral); and

(j) all proceeds, products, rents, profits, income, benefits,

substitutions and replacements of any and all of the foregoing
including, without limitation, cash (excluding any release from
the Collateral in accordance with the Transaction Documents,
such as purchases of assets that are not in the categories listed in
(a) through (i) above with funds from the Accounts and transfers
of funds from the Accounts (other than the Transaction
Checking Accounts) to the Transaction Checking Accounts)

Although the Notes and the Notes Hedge Agreement will not be
guaranteed by the Issuers shareholders, the Notes and the Notes
Hedge Agreement will be secured by a first priority perfected security
interest (or the closest equivalent thereof under Chilean law) granted
by the Issuers shareholders in all the outstanding shares of the Issuer
pursuant to one or more share pledge agreements (together with the
Express Share Pledge Agreements, the Share Pledge Agreements).

The Collateral will secure the Noteholders and the Notes Hedge
Counterparty equally and ratably on a pari passu basis.

The Issuer and the Guarantors may incur either secured or unsecured
Senior Indebtedness in compliance with the Indenture. If such Senior
Indebtedness is secured, the collateral thereof will secure the Notes
and the Notes Hedge Agreement, and such Senior Indebtedness will
be secured by the Collateral, equally and ratably on a pari passu basis
in accordance with the Collateral Trust Agreement; provided that if
such Senior Indebtedness is a Vendor Financing, the collateral
securing such Vendor Financing may not secure the Notes and the
Notes Hedge Agreement at the election of the Issuer and the
Guarantors, in which case the Collateral will not secure such Vendor
Financing.

All Liens securing the Notes, the Notes Hedge Agreement and all
future secured Senior Indebtedness permitted under the Indenture will
be held by the Secured Party Agents and administered pursuant to the
Collateral Trust Agreement. See Collateral Trust Agreement.

14
For purposes of the foregoing:

Additional Agreements means all agreements or contracts (as

amended from time to time) entered into by, or the benefits of
which run to, the Concessionaires in connection with the
Concession Agreements, the AFT Agreement, the Collection
Mandate Agreements and the Technology Services Agreements
(including, without limitation, each service contract, publicity
contract, supply contract, lease or other agreement contemplated
or permitted by the Operating Agreements), the gross value
(measured by either liabilities or receivables at the time such
agreements or contracts are entered into, amended or
supplemented in any manner) of which (either individually or in
the aggregate with any other contracts comprising the same
transaction or series of related transactions) equals or exceeds
U.S.$3.0 million per annum.

AFT Agreement means the Financial Administration

Complementary Services Agreement, dated July 28, 2005,
between the Administrador Financiero Transantiago S.A.
(including any successor entity, the AFT) and the Ministerio de
Transporte y Telecomunicaciones (the Ministry of
Transportation), as amended from time to time.

Collection Mandate Agreements means, collectively, the

Collection Mandate Agreement, dated October 19, 2005, between
Alsacia and the AFT, as amended from time to time, and the
Collection Mandate Agreement, dated October 19, 2005, between
Express and the AFT, as amended from time to time.

Concession Agreements means, collectively, the Concession

Agreement, dated January 28, 2005, between Alsacia and the
Ministry of Transportation, as amended from time to time, and
the Concession Agreement, dated January 28, 2005, between
Express and the Ministry of Transportation, as amended from
time to time, and any other similar concession agreements
between the Ministry of Transportation or any other
Governmental Authority (as defined below) and either
Concessionaire in respect of the operation of public bus services
in the Transantiago System entered into from time to time in
accordance with the Indenture, in all cases as certified to by the
Issuer and the Guarantors.

Finance Agreements means, collectively, the Notes, the

Indenture, the Supplemental Indenture, the Escrow Agreement,
the Notes Hedge Agreement, the Guarantees and the Security
Documents.

Material Adverse Change means (a) a material adverse change

in, or a material adverse effect on, the financial position, results
of operations or business of the Issuer and the Guarantors, taken

15
as a whole, (b) a material adverse change in, or a material
adverse effect on, the ability of the Issuer or any Guarantor to
perform their (i) respective non-payment obligations under any
Finance Agreement having due regard to the interest of the
Noteholders and (ii) payment obligations under any Finance
Agreement, taking the Issuer and the Guarantors as a whole, (c) a
material adverse change in, or a material adverse effect on, the
rights of the Trustee or the Noteholders under any Finance
Agreement, or (d) either (i) any Transaction Document shall no
longer be valid, effective or enforceable, or (ii) the obligation of
the AFT and/or any Governmental Authority to make payments
in respect of any subsidies or otherwise as contemplated on the
date hereof in connection with the Concession Agreements, the
AFT Agreement, the Collection Mandate Agreements and/or the
Technology Services Agreement shall be changed or affected,
provided that either (i) or (ii) results in any of the events in
(a) through (c) above.
Operating Agreements means, collectively, the Concession
Agreements, the AFT Agreement, the Collection Mandate
Agreements, the Technology Services Agreements and all the
Additional Agreements.
Security Documents means, collectively, the Pledge
Agreements, the Powers of Attorney, the Share Pledge
Agreements, the Collateral Trust Agreement and the Mortgages.
Senior Indebtedness means all unsubordinated Debt of the
Issuer or any Guarantor, including among others, any Vendor
Financing.
Subordinated Indebtedness means all Debt of the Issuer or any
Guarantor that is subordinate or junior in right of payment to the
Notes and any other Senior Indebtedness pursuant to a written
agreement, provided that such written agreement shall set forth
that all cash payments under such Debt shall be made in
compliance with the Indenture and will comply (when entered
into, amended, restated or novated) with any requirements to be
considered subordinated indebtedness on the terms set forth
herein under its governing law.
Technology Services Agreements means, collectively, the
Technology Services Agreement, dated March 22, 2006, between
Alsacia and the AFT, as amended from time to time, and the
Technology Services Agreement, dated March 22, 2006, between
Express and the AFT, as amended from time to time.
Transaction Documents means, collectively, the Finance
Agreements, the Operating Agreements, any termination and
release agreements relating to the repayment of the Existing
Indebtedness and the agreement relating to the indirect
acquisition of the 55% of the common shares of Express.

16
 Vendor Financing means, collectively, any direct or indirect
advance, loan or other extension of credit from a company to
either Concessionaire which is used by such Concessionaire to
purchase, or enter into capital leases in respect of, buses for the
bus transportation and related operating systems subject to the
Concession Agreements (the Bus Network) from such
company or an affiliate or related party thereof.
Collateral Trust Agreement . . . . . . . . . . . On the Escrow Closing Date, the Issuer and the Guarantors will enter
into the Collateral Trust Agreement with the Secured Party Agents.
The Collateral Trust Agreement will set forth the terms on which the
Secured Party Agents will receive, hold, administer, maintain, enforce
and distribute the proceeds of all Liens upon the Collateral at any
time held by it, in trust for the benefit of the Noteholders, the Notes
Hedge Counterparty and, if applicable, the present and future holders
of any other secured Senior Indebtedness. See Collateral Trust
Agreement.
Accounts . . . . . . . . . . . . . . . . . . . . . . . . . The Concessionaires will establish and maintain the following
accounts in the name of the U.S. Collateral Agent and, in the case of
the Chilean Accounts, in the name of the Chilean Collateral Agent,
for the benefit of the Noteholders and the Notes Hedge Counterparty,
and, if applicable, the holders of any other secured Senior
Indebtedness:
a revenue account (the Revenue Account) for both
Concessionaires;
an operations and maintenance account for each Concessionaire
(the O&M Accounts); and
an overhaul account for each Concessionaire (the Overhaul
Accounts).
In addition, the Concessionaires will establish and maintain the
following accounts in the name of the U.S. Collateral Agent and, in
the case of the Chilean Accounts, in the name of the Chilean
Collateral Agent, for the exclusive benefit of the Noteholders and the
Notes Hedge Counterparty but not any holder of any other Senior
Indebtedness:
a payment account (the Payment Account);
a reserve account (the Reserve Account);
an open market purchases account (the Open Market Purchases
Account); and;
the Coverage Reserve Account (as defined below).
For purposes of the foregoing:
Accounts means collectively the Chilean Accounts, the NY
Accounts, the Additional Payment Accounts, the Open Market
Purchases Account and the Additional Reserve Accounts (each as
defined below).

17
 Chilean Accounts means collectively the Revenue Account, the
O&M Accounts, the Overhaul Accounts, the Transfer Accounts
and the Transaction Checking Accounts.

NY Accounts means collectively the Payment Account, the

Reserve Account, the Open Market Purchases Account and the
Coverage Reserve Account.

Panamerican and Eco Uno will establish and maintain an operations

and transfer account for each of themselves (the Transfer Accounts)
in the name of the Chilean Collateral Agent for the benefit of the
Noteholders and the Notes Hedge Counterparty, and, if applicable, the
holders of any other secured Senior Indebtedness permitted pursuant
to the Indenture. Transfers of funds from the Transfer Accounts will
be limited to transfers to the Revenue Account but no other Person
shall be permitted to have any interest therein.

Each Concessionaire will establish and maintain two transaction

checking accounts in its name in respect of its O&M Account (the
O&M Transaction Checking Accounts) and its Overhaul Account
(the Overhaul Transaction Checking Accounts and, together with
the O&M Transaction Checking Accounts, the Transaction Checking
Accounts).

Funds on deposit in the Accounts may be invested in Permitted U.S.

Investments and Permitted Chilean Investments, as applicable, provided
that all funds received in respect of such Investments upon sale or
repayment of such Investments shall be available to be transferred to
other Accounts on each Transfer Date or otherwise disbursed as required
by the Indenture and the other Transaction Documents.

The balance of the Accounts remaining after the Notes and all other
amounts owing in respect of the Indenture, the other Transaction
Documents and, if applicable, any other Senior Indebtedness have
been paid in full will be released to the Concessionaires.

Distribution of Funds to and from the

Accounts:

Revenue Account . . . . . . . . . . . . . . . . . . By irrevocable instructions to the AFT on or before the Escrow

Closing Date, the Concessionaires will cause to be deposited directly
into the Revenue Account all amounts which they are entitled to
receive under, in connection with or pursuant to the Operating
Agreements or ancillary agreements related thereto and, in any event,
shall immediately deposit in the Revenue Account any funds that they
shall receive from the AFT in respect of the Concessions. The
Concessionaires shall also cause to be deposited directly into the
Revenue Account the funds described in Description of Notes and
Finance AgreementsTreatment of FundsDeposits of Funds to and
Distribution of Funds from the Revenue Account subject to the
exceptions set forth therein. The Revenue Account will be maintained
in Chile by the Concessionaires with the Chilean Collateral Agent.

18
Bi-monthly Distributions . . . . . . . . . . . . On the day immediately following the Escrow Closing Date and,
thereafter, on the 15th and last day of each month during any period
that the Notes shall be outstanding (or if any such day is not a
Business Day, on the following Business Day) (each such date, a
Transfer Date, and the period from but excluding such Transfer
Date until and including the next Transfer Date, a Transfer Period),
the Concessionaires will cause funds in the Revenue Account to be
disbursed in the following order of priority:

first, into the O&M Accounts, until the balance in such accounts
equals the aggregate amount of (i) fees, expenses and any other
amounts due and payable to the Secured Party Agents during the
following Transfer Period, plus (ii) O&M Costs then due and
payable or reasonably expected to be due and payable during the
following two Transfer Periods, plus (iii) Repair Payments then
due and payable or reasonably expected to be due and payable
during the following two Transfer Periods in an aggregate amount
not to exceed U.S.$3.0 million of Unsettled Claims at any time
outstanding as set forth under Repair Payments below;
provided that no Repair Payments may be made from the O&M
Accounts during any Early Amortization Period or Cash Trapping
Period if, after giving effect thereto, the aggregate amount of
Unsettled Claims outstanding would exceed U.S.$1.5 million as set
forth under Repair Payments below;

second, into the Overhaul Accounts, until the balance in such

accounts equals the Overhaul Costs (as defined below);

third, to the Agents and the Rating Agencies (as defined below),
the amount of fees and expenses due and payable to each of them
during the following Transfer Period;

fourth, to the Notes Hedge Counterparty and any other Hedge

Counterparty, the aggregate amount of the Hedge Payments in
respect of the Notes and any other Senior Indebtedness,
respectively, due and payable to the Notes Hedge Counterparty and
such Hedge Counterparty during the following Transfer Period;

fifth, pro rata to (i) the L/C Bank, the aggregate amount of any fees
due and payable to the L/C Bank under the Letter of Credit during
the following Transfer Period, and (ii) to BI, the aggregate amount
of interest and fees due and payable to BI under the Bus Terminal
Loan during the following Transfer Period; and

sixth, into the Transfer Accounts and from the Transfer Accounts
into the Revenue Account as determined by the Concessionaires to
be necessary; provided that, any balance in the Transfer Accounts
will be transferred pursuant to first to seventeenth under
Description of Notes and Finance AgreementsTreatment of
FundsDeposits of Funds to and Distribution of Funds from the
Revenue Account on each Payment Transfer Date.

19
Semi-annual and Special
Distributions . . . . . . . . . . . . . . . . . . . . On the Transfer Date prior to any (i) Payment Date during any period
that the Notes shall be outstanding (each such date, a Payment
Transfer Date, and the period from but excluding such Payment
Transfer Date until and including the next Payment Transfer Date, a
Payment Period), and (ii) (A) payment date of Repair Payments to
be made pursuant to clause (ii) of Semi-annual and Special
Distributionseleventh, (B) payment date of CAPEX Costs incurred
or committed pursuant to Negative Covenants of the Issuer and the
GuarantorsCAPEX Costs and to be made pursuant to clause (ii) of
Semi-annual and Special Distributionseleventh and (C)
payment date of any Permitted Investment made pursuant to clause
(ii) of Semi-annual and Special Distributionsfifteenth (each
such date in clauses (ii)(A) through (ii)(C), a Special Transfer
Date), the Concessionaires will cause funds in the Revenue Account
to be disbursed, after disbursement pursuant to first through
sixth above, in the following order of priority:
seventh, pro rata into (i) the Payment Account, until the balance in
such account equals the amount of (A) the Scheduled Principal
Amount (or the Early Amortization Principal Amount during an
Early Amortization Period), accrued interest and any other payment
due under the Notes in the order of priority set forth in the
Indenture on the next Payment Date to the Noteholders, plus (B)
any Contingent Hedge Payment and Accelerated Hedge Payments
due and payable to the Notes Hedge Counterparty during the
current Payment Period; and (ii) any other payment account or
accounts pledged for the benefit of the creditors under any other
Senior Indebtedness (the Additional Payment Accounts), until
the balance in such accounts equals the amount of (A) the
payments due under such other Senior Indebtedness on the
payment dates thereof during the current Payment Period, plus (B)
any Contingent Hedge Payment due and payable to any Hedge
Counterparty in respect of such other Senior Indebtedness during
the current Payment Period;
eighth, to any Hedge Counterparty, the aggregate amount of the
Hedge Payments in the form of put options for the purpose of
offsetting declines in revenue pursuant to the revenue formula
under the Concession Agreements that the Concessionaires
reasonably expect may exceed the Concessionaires reductions in
actual fuel expenses due and payable to such Hedge Counterparty
during the following Transfer Period, in an aggregate amount not to
exceed U.S.$2.0 million in any fiscal year;
ninth, pro rata into (i) the Reserve Account, until the balance in
such account equals the Debt Service Reserve Amount (as defined
below); and (ii) any other reserve account or accounts pledged for
the benefit of the creditors under any other Senior Indebtedness
(the Additional Reserve Accounts), until the balance in such
accounts equals the amount of debt service reserve provided for
thereunder;

20
 tenth, pro rata to (i) BI, the aggregate amount of principal due and
payable to BI under the Bus Terminal Loan on such Payment Date,
and (ii) the L/C Bank, the aggregate amount of interest and
principal due and payable to the L/C Bank under the Letter of
Credit during the current Payment Period;

eleventh, as instructed by each Concessionaire, in each case on the

conditions set forth under Repair Payments below:

(i) on any Payment Transfer Date, to make Repair Payments

exceeding the amount permitted pursuant to Bi-monthly
Distributionsfirst that are then payable or reasonably expected
to be payable during the following Payment Period; and

(ii) on any Special Transfer Date, (A) in the event that the amount
deposited in the Reserve Account and any Additional Reserve
Account pursuant to Semi-annual and Special Distributions
ninth and in the Payment Account and any Additional Payment
Accounts pursuant to Semi-annual and Special Distributions
seventh equals the aggregate amount of payments due from such
accounts on the next Payment Date, to make Repair Payments
exceeding the amount permitted pursuant to Bi-monthly
Distributionsfirst that are payable on such Special Transfer
Date or reasonably expected to be payable during the following
Transfer Period; and (B) in the event that the amount deposited in
the Reserve Account and any Additional Reserve Account
pursuant to Semi-annual and Special Distributionsninth
equals the aggregate amount of payments due from such accounts
on the next Payment Date and the amount deposited in the
Payment Account and any Additional Payment Accounts pursuant
to Semi-annual and Special Distributionsseventh equals the
aggregate amount of payments due on the next Payment Date from
such accounts, calculated in proportion to the number of days
elapsed in the then-current Payment Period through such Special
Transfer Date, to make Repair Payments in an aggregate amount
not exceeding U.S.$1.5 million of Unsettled Claims at any time
outstanding in addition to the Repair Payments made pursuant to
Bi-monthly Distributionsfirst; for the avoidance of doubt,
the Concessionaires may make Repair Payments at this level of
priority as described in the foregoing clause (B) even if the
Payment Account and any Additional Payment Accounts, which
are at a higher level of priority, are not fully funded but
proportionally funded as described in the Description of Notes
and Finance Agreements; and

twelfth, as instructed by each Concessionaire, in each case on the

conditions set forth under CAPEX Costs below:

(i) on any Payment Transfer Date, the portion of CAPEX Costs

reasonably expected to be due and payable during the following
Payment Period; and

21
 (ii) on any Special Transfer Date, in the event that the amount
deposited in the Reserve Account and any Additional Reserve
Account pursuant to Semi-annual and Special Distributions
ninth equals the aggregate amount of payments due from such
accounts on the next Payment Date and the amount deposited in
the Payment Account and any Additional Payment Accounts
pursuant to Semi-annual and Special Distributionsseventh
equals the aggregate amount of payments due on the next Payment
Date from such accounts, calculated in proportion to the number of
days elapsed in the then-current Payment Period through such
Special Transfer Date, to pay the CAPEX Costs due and payable
on such Special Transfer Date or during the following Transfer
Period; for the avoidance of doubt, the Concessionaires may pay
CAPEX Costs at this level of priority as described in the foregoing
clause (ii) even if the Payment Account and any Additional
Payment Accounts, which are at a higher level of priority, are not
fully funded but proportionally funded as described in the
Description of Notes and Finance Agreements
thirteenth, to the Notes Hedge Counterparty and any other Hedge
Counterparty, the aggregate amount of any Excluded Contingent
Hedge Payments due and payable to the Notes Hedge Counterparty
and such Hedge Counterparty during the current Payment Period;
fourteenth, pro rata to the holders of any Subordinated
Indebtedness, the aggregate amount due and payable under the
Subordinated Indebtedness during the current Payment Period
provided that any cash payment under such Subordinated
Indebtedness shall be made in compliance with Description of
Notes and Finance AgreementsLimitations on Restricted
Payments (all payments due by the Concessionaires under any
Subordinated Indebtedness will be subordinated to payments under
the Notes and any other Senior Indebtedness, and, except for
intercompany payments between the Issuer and the Guarantors
within the Revenue Account or pursuant to Description of Notes
and Finance AgreementsTreatment of FundsDeposits of Funds
to and Distribution of Funds from the Revenue Account-sixth,
will be made only from the Revenue Account according to the
foregoing order of priority; no event, request, demand, direction,
notice, consent, waiver or other action under any Subordinated
Indebtedness will have any effect or consequence under the Notes
or any other Senior Indebtedness);
fifteenth, as instructed by each Concessionaire:
(i) on any Payment Transfer Date, to use funds to make Permitted
Investments (other than clause (d) of the definition of Permitted
Investments, which will be made from the O&M Accounts); and
(ii) on any Special Transfer Date, in the event that the amount
deposited in the Reserve Account and any Additional Reserve
Account pursuant to Semi-annual and Special Distributions

22
 ninth and in the Payment Account and any Additional Payment
Accounts pursuant to Semi-annual and Special Distributions
seventh equals the aggregate amount of payments due from such
accounts on the next Payment Date, to use funds to make
Permitted Investments pursuant to clause (j) of the definition
thereof on such Special Transfer Date;
sixteenth, as instructed by each Concessionaire, into the Open
Market Purchases Account to effect redemptions of the Notes
under the Indenture (excluding, for the avoidance of doubt,
redemptions effected with Permitted Refinancing Indebtedness or
pursuant to a defeasance or satisfaction and discharge in
accordance with the Indenture), Open Market Purchases or to
consummate any tender offers for the Notes in accordance with the
Indenture during the following Payment Period; and
seventeenth, subject to Description of Notes and Finance
AgreementsLimitations on Restricted Payments, to make
payments in respect of Restricted Payments, in accordance with the
Concessionaires written instructions, and to make all other
payments required to be made not payable at a higher level of
priority set forth hereunder, or deposited into reserves, by the
Concessionaires in accordance with the Indenture and the other
Transaction Documents.
Notwithstanding the foregoing, transfers on any Special Transfer Date
will be limited to Semi-annual and Special Distributionsfirst
through fifteenth on the terms set forth therein.
If an Event of Default has occurred and is continuing, the
Concessionaires will continue to disburse funds from the Accounts as
specified in the Indenture except to the extent otherwise instructed by
the Trustee acting at the direction of the Controlling Party as
contemplated by the Indenture; provided that such instructions will
not limit or restrict the rights of the Secured Party Agents to receive
payments under the Indenture. During any Early Amortization Period
or Cash Trapping Period, the Concessionaires will disburse funds
from the Accounts as specified in Early Amortization and
Cash Trapping Upon any Event of Default, respectively, as
contemplated by the Indenture except to the extent otherwise
instructed by the Trustee acting at the direction of the Controlling
Party. The Trustee may instruct the Concessionaires to make such
disbursements at any time, but only (a) to pay amounts owing in
respect of the Notes and under the Indenture, or (b) in accordance
with the payment priorities set forth in the Indenture.
For purposes of the foregoing:
Accelerated Hedge Payments means the present value of the
premiums payable over the remaining life of the Notes Hedge
Agreement, net of the present value of any premium payments
payable to Alsacia, if any, as calculated by the Notes Hedge
Counterparty in accordance therewith.

23
Business Day means any day other than a Saturday, Sunday
or other day on which banking institutions in New York City,
New York, or Santiago, Chile, are permitted or required by
applicable law to remain closed.

CAPEX Costs means the aggregate amount of capital

expenditures of the Concessionaires for fixed or capital assets
for the Bus Network or a Permitted Business which, in
accordance with Chilean GAAP, would be classified as capital
expenditures, to be incurred by the Concessionaires in good
faith, on an arms-length basis and in the ordinary course of
business, but excluding any such expenditures that are Repair
Payments or Overhaul Costs.

Controlling Party means, as of any date of determination, the

Noteholders and the Notes Hedge Counterparty that, in the
aggregate, hold more than 50% of the Voting Balances;
provided that, with respect to certain waivers and amendments,
the consent of each affected Noteholder and affected Notes
Hedge Counterparty will also be required. Notes held by the
Issuer, the Guarantors or any of their respective affiliates are
excluded from this definition.

GPS International means GPS International of Panam

(Chile) S.A.

Hedge Counterparty means the counterparty to any contract,

agreement or arrangement giving rise to Hedging Obligations in
each case in the ordinary course of business for the purpose of
fixing, hedging or swapping interest rate, foreign currency
exchange rate or fuel cost risk, and not for speculative purposes,
and which counterparty is entitled to receive the Hedge
Payments under such contract, agreement or arrangement.

Hedge Counterparty Default means the occurrence of a

default or an event of default (as defined in the relevant
contract, agreement or arrangement giving rise to Hedging
Obligations) with respect to the relevant Hedge Counterparty,
where the relevant Hedge Counterparty is the defaulting party
(as defined in such contract, agreement or arrangement) or such
default or event of default has been caused by an action or
omission of such Hedge Counterparty.

Hedge Interest Amounts means, with respect to the Notes and

any other Senior Indebtedness, the amounts (if any) specified to
be paid by the Concessionaires to the Hedge Counterparty in
accordance with the Indenture or the agreement related to such
other Senior Indebtedness which are calculated by reference to
a rate of interest. For the avoidance of doubt, the term Hedge
Interest Amounts does not include any amounts of Contingent
Hedge Payments.

24
Hedge Payments means payments (other than Contingent
Hedge Payments) due by or to Concessionaires under Hedging
Obligations, in each case in the ordinary course of business for
the purpose of fixing, hedging or swapping interest rate, foreign
currency exchange rate or fuel cost risk (or to reverse or amend
any such agreements previously made for such purposes), and
not for speculative purposes, and that do not increase the Debt
of the obligor outstanding at any time other than as a result of
fluctuations in interest rates, foreign currency exchange rates or
fuel cost, or by reason of fees, indemnities and compensation
payable thereunder. For the avoidance of doubt, the term Hedge
Payments in respect of the Notes and any other Senior
Indebtedness includes Hedge Interest Amounts.

Hedging Obligations means, with respect to any specified

Person, the obligations of such Person under (i) any interest rate
protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement; (ii) any commodity forward
contract, commodity swap agreement, commodity option
agreement or other similar agreement or arrangement; or
(iii) any foreign exchange contract, option, currency swap
agreement or other similar agreement or arrangement.

Notes Hedge Agreement means each Chilean peso-U.S.

dollar currency hedge in respect of the Notes.

Notes Hedge Counterparty means each Hedge Counterparty,

including its successors and assigns, that will enter into a Notes
Hedge Agreement with the Issuer.

Notes Hedge Value means, with respect to any Notes Hedge

Agreement on any date of determination, (a) prior to the
termination of such Notes Hedge Agreement, an amount (which
will be zero if negative) that would be payable by the Company
under such Notes Hedge Agreement if (i) such Notes Hedge
Agreement were being terminated early on such date of
determination due to a termination event or event of default, (ii)
the Company were the sole affected party or defaulting party
and (iii) the applicable Notes Hedge Counterparty were the sole
party determining such payment amount, and (b) from and after
the termination of such Notes Hedge Agreement, an amount
equal to the Contingent Hedge Payments as of such date of
determination (other than any amounts paid prior to such date).
In determining the amount of any Notes Hedge Value, the
Trustee and each Collateral Trustee may conclusively rely upon
reasonably detailed good faith calculations supplied by the
relevant Notes Hedge Counterparty pursuant to and in
accordance with the Indenture as to the amount of such Notes
Hedge Value in respect of the Notes Hedge Agreement to which

25
such Notes Hedge Counterparty is a party; provided that if the
relevant Notes Hedge Counterparty shall have failed to deliver
such good faith calculations within 2 Business Days following
receipt by the Notes Hedge Counterparty of the Trustees
request therefor in accordance with the terms of the Indenture,
then such Notes Hedge Values shall be deemed to be zero.

O&M Costs means cash operations and maintenance costs,

including payments required to be made under the Operating
Agreements (including CAPEX Costs for an aggregate amount
not to exceed U.S.$4.0 million in 2011 and U.S.$3.0 million in
any later fiscal year), payments for insurance, employee
salaries, contractors and suppliers, wages and other
employment-related costs, taxes, administrative expenses, legal
and accounting fees, settlement of legal proceedings in
connection with the operation of the Bus Network or any
Permitted Business, professional and consulting services
(provided that no more than U.S.$150,000 of such amount in
any fiscal year may be paid to an affiliate of the
Concessionaires, with any excess thereof being payable from
Description of Notes and Finance AgreementsTreatment of
FundsDeposits of Funds to and Distribution of Funds from
the Revenue AccountSemi-annual and Special
Distributionsseventeenth) (excluding professional and
consulting services directly related to the Acquisition or the
Transactions), consumables, fuel, spare parts, leases
obligations and other similar costs, in each case incurred and
paid by the Concessionaires in good faith, on an arms-length
basis and in the ordinary course of business; in addition, O&M
Costs will include taxes and administrative expenses of
Panamerican and Eco Uno for an aggregate amount not to
exceed U.S.$150,000 in any fiscal year.

Overhaul Costs means the aggregate amount required and

necessary for the major maintenance on the gear box, engine or
transmission overhaul of the buses comprising the Bus Network
during the following six months on a rolling basis to be incurred
by the Concessionaires in good faith, on an arms-length basis
and in the ordinary course of business.

Permitted Business means (a) any business conducted or

proposed to be conducted (as described in this Offering
Memorandum) by the Concessionaires on the Note Closing
Date, or (b) other businesses (i) reasonably related or ancillary
thereto or (ii) which require a concession for rendering public
services and as permitted by the Concession Agreements
(including by waiver or amendment), in each of (i) and (ii) so
long as at the time any such Permitted Business is proposed to
be commenced or acquired by either Concessionaire, the assets

26
or liabilities associated therewith shall not, on a pro forma
basis, exceed 35% of the consolidated assets or liabilities,
respectively, of the Concessionaires considered together
(except, for the avoidance of doubt, any Unrestricted
Subsidiary).

Permitted Disposition means: (a) any Disposition of Capital

Stock of the Issuer or any Guarantor pursuant to a public
offering of securities registered on a recognized stock
exchange; or (b) any other Disposition of Capital Stock of the
Issuer or any Guarantor that, after giving effect to any such
Disposition, the following conditions as to the transferee and
the Disposition will be satisfied: (i) no Default or Event of
Default would result from such Disposition; (ii) no violation of
applicable law or any Transaction Document would result from
such Disposition; (iii) the Issuer or any Guarantor would not
forfeit any of its material rights under any Operating Document
as a result of such Disposition; and (iv) if such Disposition is of
any Capital Stock pledged pursuant to a Security Document, the
proposed transferee will have executed and delivered a pledge
and security agreement in substantially similar form as the
Stock Pledge Agreements together with an Officers Certificate
in form and substance reasonably acceptable to the Trustee.

Permitted Liens has meaning as defined in Negative

Covenants of the Issuer and the Guarantors under Description
of Notes and Finance Agreements.

Repair Payments means the aggregate amount of funds

required to repair property damage to the Bus Network, or to
acquire Replacement Assets in respect thereof, or any other
property necessary to maintain the operation of the Bus
Network or pay any other claim against the Concessionaires or
liability arising in respect thereof, in each case that the
Concessionaires reasonably believe to be covered by an
insurance policy in effect.

Voting Balances means the sum of (a) the outstanding

principal amount of the Notes (excluding any Notes held by the
Company, the Guarantors or any of their respective Affiliates)
and (b) the sum of Notes Hedge Values. In determining the
amount of Voting Balances, the Trustee and each Collateral
Trustee may conclusively rely upon reasonably detailed good
faith calculations supplied by the relevant Notes Hedge
Counterparty pursuant to and in accordance with the Indenture
as to the amount of such Notes Hedge Value in respect of the
Notes Hedge Agreement to which such Notes Hedge
Counterparty is a party; provided that if the relevant Notes
Hedge Counterparty shall have failed to deliver such good faith

27
 calculations within 2 Business Days following receipt by the
Notes Hedge Counterparty of the Trustees request therefor in
accordance with the terms of the Indenture, then such Notes
Hedge Values shall be deemed to be zero.
O&M Accounts . . . . . . . . . . . . . . . . . . . . The Concessionaires will deposit or cause to be deposited into the
O&M Accounts all amounts required to be transferred thereto from
the Revenue Account. The O&M Accounts will be maintained in
Chile by the Concessionaires with the Chilean Collateral Agent. The
Concessionaires will cause funds in each O&M Account to be
disbursed at any time to pay in the following order of priority:
first, as instructed by each Concessionaire, the aggregate amount of
fees and expenses due and payable to the Secured Party Agents
during the current Transfer Period;
second, as instructed by each Concessionaire, the aggregate amount
of O&M Costs due and payable during the current Transfer Period;
third, as instructed by each Concessionaire, the aggregate amount
of Repair Payments payable from the O&M Accounts due and
payable during the current Transfer Period;
fourth, between the O&M Accounts as determined by the
Concessionaires to be necessary; and
fifth, into the Revenue Account, to the extent any remaining funds
in the O&M Accounts exceed the O&M Costs required to be
deposited therein.
The Concessionaires will not make or direct the Secured Party Agents
to make, and the Secured Party Agents will not make, any withdrawal
from either O&M Account to the extent that the aggregate amount of
all requested withdrawals from such O&M Account to pay O&M
Costs (other than fuel costs to be incurred by the Concessionaires in
the ordinary course of business) in any semi-annual budgetary period
exceeds 115% of the amount budgeted for O&M Costs (other than
fuel costs to be incurred by the Concessionaires in the ordinary course
of business) for such semi-annual budgetary period as set forth in the
then-current semi-annual expense budget applicable to such O&M
Account (the Expense Budget) completed by the Concessionaires
and submitted to the Secured Party Agents and each Rating Agency
unless such Concessionaire has delivered to the Secured Party Agents
an Officers Certificate executed by its respective chief financial
officer and chief executive officer setting forth, in reasonable detail,
the purpose and nature of such exceptional O&M Costs (other than
fuel costs to be incurred by the Concessionaires in the ordinary course
of business) and certifying that such exceptional O&M Costs are
reasonable and necessary and are required to maintain the safe and
economic operation of the Bus Network, to satisfy a legal obligation
or to avoid a breach of or default under the Operating Agreements
and that such exceptional O&M Costs have been or will be incurred
in good faith and on an arms-length basis.

28
 The Concessionaires will not make or direct the Secured Party Agents
to make, and the Secured Party Agents will not make, any withdrawal
from either O&M Account in respect of Repair Payments payable
from the O&M Accounts unless such withdrawal is in compliance
with Repair Payments below.

In any case, the Concessionaires will also deliver to the Secured Party
Agents, within ten days after the end of each fiscal quarter, an
Officers Certificate certifying all O&M Costs and Repair Payments
payable from the O&M Accounts incurred and paid during the
applicable fiscal quarter and attaching an account statement.

Unless otherwise instructed by the Controlling Party in a notice of

acceleration, the Concessionaires may cause funds in each O&M
Account to be transferred to and from the respective O&M
Transaction Checking Account at any time to pay O&M Costs;
provided that, the aggregate amount deposited in the O&M
Transaction Checking Accounts may not exceed at any time the lesser
of (i) U.S.$12.0 million (considered together with the aggregate
amount deposited in the Overhaul Transaction Checking Accounts)
and (ii) the sum of O&M Costs which will be paid in the following
seven calendar days from the O&M Transaction Checking Accounts,
plus any outstanding checks issued from such account that has not yet
been paid plus U.S.$3.0 million. The Controlling Party may, together
with the delivery of a notice of acceleration to the Concessionaires
and the Trustee in accordance with the Indenture, request the Trustee
to instruct the Chilean Collateral Agent to transfer all amounts
deposited in the O&M Transaction Checking Accounts to the O&M
Accounts, at which time the Concessionaires will not make further
transfers to the O&M Transaction Checking Accounts unless such
notice of acceleration is rescinded in accordance with the Indenture.
The O&M Transaction Checking Accounts will be deemed
sub-accounts of the O&M Accounts and subject to the same
aggregate limits, reporting and certification obligations.

Overhaul Accounts . . . . . . . . . . . . . . . . . The Overhaul Accounts will be funded on the Escrow Closing Date
with part of the proceeds from the issuance of the Notes. On the
Escrow Closing Date, the Concessionaires will deposit or cause to be
deposited an amount equal to Ch$3,316 million into the Overhaul
Accounts, which amount represents the initial Overhaul Costs. The
required balance of each Overhaul Account will be adjusted on each
Transfer Date thereafter so that such amount at such time will equal
the Overhaul Costs reasonably expected to be expended over the next
six months following such Transfer Date on a rolling basis. The
Overhaul Accounts will be maintained in Chile by the
Concessionaires with the Chilean Collateral Agent. The
Concessionaires will cause funds in each Overhaul Account to be
disbursed at any time to pay in the following order of priority:

first, as instructed by each Concessionaire, the portion of Overhaul

Costs due and payable during the current Transfer Period;

29
 second, between the Overhaul Accounts as determined by the
Concessionaires to be necessary; and

third, into the Revenue Account, to the extent any remaining funds
in the Overhaul Accounts exceed the Overhaul Costs required to be
deposited therein.

The Concessionaires will not make or direct the Secured Party Agents
to make, and the Secured Party Agents will not make, any withdrawal
from either Overhaul Account to the extent that the aggregate amount
of all requested withdrawals from such Overhaul Account to pay
Overhaul Costs in any semi-annual budgetary period exceeds 115%
of the then-current semi-annual overhaul budget applicable to each
Concessionaire (the Overhaul Budget) completed by the
Concessionaires and submitted to the Secured Party Agents and each
Rating Agency unless such Concessionaire has delivered to the
Secured Party Agents an Officers Certificate executed by its
respective chief financial officer and chief executive officer setting
forth, in reasonable detail, the purpose and nature of such exceptional
Overhaul Costs and certifying that such Overhaul Costs are
reasonable and necessary and are required to maintain the safe and
economic operation of the Bus Network or to avoid a breach of or
default under the Operating Agreements and that such Overhaul Costs
have been or will be incurred in good faith and on an arms-length
basis.

In any case, the Concessionaires will also deliver to the Secured Party
Agents, within ten days after the end of each fiscal quarter, an
Officers Certificate certifying all Overhaul Costs incurred and paid
during the applicable fiscal quarter and attaching an account
statement.

Unless otherwise instructed by the Controlling Party in a notice of

acceleration, the Concessionaires may cause funds in each Overhaul
Account to be transferred to and from the respective Overhaul
Transaction Checking Account at any time to pay Overhaul Costs;
provided that, the aggregate amount deposited in the Overhaul
Transaction Checking Accounts may not exceed at any time the lesser
of (i) U.S.$12.0 million (considered together with the aggregate
amount deposited in the O&M Transaction Checking Accounts) and
(ii) the sum of Overhaul Costs which will be paid in the following
seven calendar days from the Overhaul Transaction Checking
Accounts, plus any outstanding checks issued from such account that
has not yet been paid plus U.S.$3.0 million. The Controlling Party
may, together with the delivery of a notice of acceleration to the
Concessionaires and the Trustee in accordance with the Indenture,
request the Trustee to instruct the Chilean Collateral Agent to transfer
all amounts deposited in the Overhaul Transaction Checking
Accounts to the Overhaul Accounts, at which time the
Concessionaires will not make further transfers to the Overhaul

30
 Transaction Checking Accounts unless such notice of acceleration
is rescinded in accordance with the Indenture. The Overhaul
Transaction Checking Accounts will be deemed sub-accounts of the
Overhaul Accounts and subject to the same aggregate limits,
reporting and certification obligations.
Payment Account . . . . . . . . . . . . . . . . . . The Concessionaires will deposit or cause to be deposited into the
Payment Account all amounts required to be transferred thereto from
the Revenue Account and payments due by the Notes Hedge
Counterparty to the Concessionaires under the Notes Hedge
Agreement. The Payment Account will be maintained in New York
by the Concessionaires with the U.S. Collateral Agent. The
Concessionaires will instruct the U.S. Collateral Agent to disburse
funds in the Payment Account on each Payment Date (or payment
dates under the Notes Hedge Agreement) in the following order of
priority:
first, pro rata to the Noteholders and each Notes Hedge
Counterparty, respectively, the aggregate amount (i) of the
Scheduled Principal Amount (or the Early Amortization Principal
Amount during an Early Amortization Period), accrued interest and
any other payment due and payable under the Notes in the order of
priority set forth in the Indenture on such Payment Date, and (ii) of
the Contingent Hedge Payments and Accelerated Hedge Payments
due and payable under the Notes Hedge Agreements on the
applicable payment dates; and
second, into the Revenue Account, to the extent any remaining
funds in the Payment Account exceed the amounts required to be
deposited therein.
Additional Payment Accounts . . . . . . . . . The Concessionaires will deposit or cause to be deposited into any
Additional Payment Account all amounts required to be transferred
thereto from the Revenue Account and payments due by any Hedge
Counterparty to the Concessionaires under any foreign exchange
contract, currency swap agreement or other similar agreement or
arrangement entered into in connection with any Senior Indebtedness
(other than the Notes). The Payment Account will be maintained as
provided for under the applicable instruments. The Concessionaires
will instruct the collateral agent thereunder to disburse funds in the
Additional Payment Account on each applicable payment date in the
following order of priority:
first, pro rata to any Hedge Counterparty and the creditors under
any other Senior Indebtedness, the aggregate amount (i) of the
Contingent Hedge Payment due and payable with respect thereto
on the applicable payment date, and (ii) due and payable under
such other Senior Indebtedness on the applicable payment date; and
second, into the Revenue Account, to the extent any remaining
funds in the Additional Payment Accounts exceed the amounts
required to be deposited therein.

31
 Any such Additional Payment Accounts may not provide for more
favorable benefits or be on more favorable terms to the creditors
under such other Senior Indebtedness than the Payment Account to
the Noteholders and the Hedge Counterparty, as determined by the
boards of directors of the Concessionaires in good faith.

Reserve Account . . . . . . . . . . . . . . . . . . . The Reserve Account will be funded on the Escrow Closing Date
with either or a combination of (a) part of the proceeds from the
issuance of the Notes, and/or (b) a Letter of Credit. On the Escrow
Closing Date, the Concessionaires will deposit or cause to be
deposited into the Reserve Account an aggregate amount equal to
U.S.$22.0 million. The required balance of the Reserve Account will
be adjusted on each Payment Transfer Date and each Special Transfer
Date thereafter so that such amount at such Payment Transfer Date
and Special Transfer Date, as applicable, will equal the sum of the
amount (which amount will be set forth in a schedule to the
Indenture) representing the interest, Scheduled Principal Amount and
Hedge Payments to be paid in respect of the Notes on the
immediately succeeding Payment Date or on the next succeeding
Payment Date, whichever sum is the higher (such required amount
being the Debt Service Reserve Amount). The Reserve Account
will be maintained by the Concessionaires in New York with the U.S.
Collateral Agent.

As an alternative to depositing and/or maintaining the Debt Service

Reserve Amount in cash, the Concessionaires may deliver to the U.S.
Collateral Agent one or more direct-pay on-demand irrevocable
letters of credit for the benefit of the Trustee, the Noteholders and the
Notes Hedge Counterparty from a bank (the L/C Bank) with an
international rating of at least A by S&P, A by Fitch or A2 by
Moodys, or a Chilean domestic rating of at least AA or equivalent
by any of such rating agencies (the Letter of Credit), in an amount
equal to, when combined with any amounts on deposit in the Reserve
Account, the Debt Service Reserve Amount.

All payments due by the Concessionaires to the L/C Bank under the
Letter of Credit (other than fees due to the L/C Bank under the Letter
of Credit payable pursuant to Description of Notes and Finance
AgreementsTreatment of FundsDeposits of Funds to and
Distribution of Funds from the Revenue AccountBi-monthly
Distributionfifth) will be subordinated to payments under the
Notes and any other Senior Indebtedness as permitted pursuant to the
terms of the Indenture and will be made only from the Revenue
Account according to the order of priority set forth above.

On each Payment Date, so long as no Event of Default is continuing,

the U.S. Collateral Agent will disburse funds in the Reserve Account
or draw on the Letter of Credit in the following order of priority:

first, pro rata to the Trustee for the benefit of the Noteholders and
to the Notes Hedge Counterparty, to the extent that the Payment

32
 Account would not be fully funded on such Payment Date (or the
Early Amortization Principal Amount during an Early
Amortization Period to the extent available in the Reserve Account
and/or Letter of Credit); and

second, to the Revenue Account, to the extent any remaining funds

in the Reserve Account exceed the Debt Service Reserve Amount
(not including drawing on the Letter of Credit).

Additional Reserve Accounts . . . . . . . . . Any other Senior Indebtedness may provide for Additional Reserve
Accounts, provided that such Additional Reserve Accounts may not
provide for more favorable benefits or be on more favorable terms to
the creditors under such other Senior Indebtedness than the Reserve
Account to the Noteholders and the Notes Hedge Counterparty, as
determined by the boards of directors of the Concessionaires in good
faith.

Open Market Purchases Account . . . . . . The Concessionaires will deposit or cause to be deposited into the
Open Market Purchases Account any amount that they determine at
their sole discretion, which amount may be zero. The Concessionaires
may direct any funds in the Open Market Purchases Account to be
transferred to the Revenue Account at any time. The Open Market
Purchases Account will be maintained in New York by the
Concessionaires with the U.S. Collateral Agent.

The Concessionaires will instruct the U.S. Collateral Agent to

disburse funds in the Open Market Purchases Account on any
Transfer Date as follows:

first, to effect any redemption of the Notes under the Indenture,

Open Market Purchases of the Notes or to consummate any tender
offer for the Notes in accordance with the Indenture; and

second, into the Revenue Account, any balance at the end of the
applicable Payment Period.

For the avoidance of doubt, the Concessionaires may make Open

Market Purchases with funds on deposit in the Open Market
Purchases Account during the applicable Payment Period even if at
the time of such purchases there would not have been funds available
to run through the waterfall at Semi-annual and Special
Distributionssixteenth.

Repair Payments . . . . . . . . . . . . . . . . . . . When the Concessionaires experience losses they reasonably believe
to be covered by an insurance policy in effect (except for
deductibles), they may make Repair Payments subject to the
following:

in the event that any Repair Payment is not reasonably expected to

exceed U.S.$1.0 million, the Concessionaires may (i) transfer funds
from the Revenue Account to the O&M Accounts and disburse

33
 funds in the O&M Accounts, subject to the limitations on the
amount of Unsettled Claims that may be funded at any time
pursuant to Distribution of Funds to and from the Accounts
Bi-Monthly Distributionsfirst, or (ii) disburse funds in the
Revenue Account pursuant to, and subject to the limitations of
Distribution of Funds to and from the AccountsSemi-annual
and Special Distributionseleventh above, as applicable, in each
case to cover such Repair Payment irrespective of the time that the
insurance proceeds are received in the Revenue Account;

in the event that any Repair Payment is reasonably expected to

exceed U.S.$1.0 million but is not reasonably expected to exceed
U.S.$25.0 million, subject to the delivery by the Concessionaires to
the Trustee and the Rating Agencies of an Officers Certificate
setting forth, in reasonable detail, the purpose and nature of such
Repair Payment and that it will be used in good faith and on an
arms-length basis, the Concessionaires may (i) transfer funds from
the Revenue Account to the O&M Accounts and disburse funds in
the O&M Accounts, subject to the limitations on the amount of
Unsettled Claims that may be funded at any time pursuant to
Distribution of Funds to and from the AccountsBi-Monthly
Distributionsfirst, or (ii) disburse funds in the Revenue Account
pursuant to, and subject to the limitations of Distribution of
Funds to and from the AccountsSemi-annual and Special
Distributionseleventh above, as applicable, in each case to
cover such Repair Payment irrespective of the time that the
insurance proceeds are received in the Revenue Account;

in the event that the Repair Payment is reasonably expected to

exceed U.S.$25.0 million, the Repair Payment may not be made
prior to the receipt of insurance proceeds except pursuant to the
next bullet below; within 180 days after the receipt of any such
insurance proceeds in the Revenue Account, the Concessionaires
will apply an amount equal to such proceeds at their option: (i) to
invest, or to enter into a binding agreement to invest within 30
days, in Replacement Assets; (ii) to repay any other Senior
Indebtedness and, in the case of any such Senior Indebtedness
which constitutes a revolving credit facility, to cause the related
loan commitment (if any) to be permanently reduced in an amount
equal to the principal amount so prepaid, repaid or purchased;
(iii) to make an offer to purchase Notes at 100% of the principal
amount thereof plus accrued interest; or (iv) a combination of
(i) through (iii). Any such Repair Payment proceeds so deposited in
the Revenue Account will not be subject to the order of priority set
forth under Distribution of Funds to and from the Accounts
above, but they will be segregated and applied in due time to the
purposes provided for from (i) through (iv) above subject to the
delivery by the Concessionaires to the Trustee and the Rating
Agencies of an Officers Certificate setting forth, in reasonable
detail, the purpose and nature of such Repair Payment and that it

34
 will be used in good faith and on an arms-length basis; in addition,
any purchase of Replacement Assets with such insurance proceeds
will not be subject to the covenant restrictions applicable to
CAPEX Costs; and
irrespective of the amount of the Repair Payment and irrespective
of any Event of Default, Early Amortization Event or Cash
Trapping Period, if such Repair Payment has been funded with
common equity for cash issued by, cash capital contributions made
to or Subordinated Indebtedness incurred by the Concessionaires in
anticipation of their receiving insurance proceeds, subject to the
delivery by the applicable Concessionaire to the Trustee and the
Rating Agencies of an Officers Certificate setting forth, in
reasonable detail, the purpose and nature of such Repair Payment
and that it has been so funded into the Revenue Account and will
be used in good faith and on an arms-length basis, the
Concessionaires may disburse funds in the Revenue Account to
cover such Repair Payment. Any proceeds so deposited in the
Revenue Account will not be subject to the order of priority set
forth under Distribution of Funds to and from the Accounts
above. Upon receipt of the insurance proceeds corresponding to
such Repair Payment in the Revenue Account, subject to the
delivery by the Concessionaires to the Trustee of an Officers
Certificate setting forth the purpose and nature of the withdrawal,
the Concessionaires may use such funds in the Revenue Account to
repay such Subordinated Indebtedness or return such common
equity or cash capital contributions to the extent of the insurance
proceeds received in the Revenue Account for that Repair Payment
(which shall not be considered a Restricted Payment), with any
remaining balance payable in accordance with the Indenture and
the order of priority set forth therein; provided that no such
repayment or return may be made, even after receipt of the
insurance proceeds corresponding to such Repair Payment in the
Revenue Account, during the period that an Event of Default, Early
Amortization Event or Cash Trapping Period is continuing.
In each case, the Concessionaires will deliver to the Trustee, within
ten days after the end of each fiscal quarter, an Officers Certificate
certifying all such Repair Payments paid during the applicable fiscal
quarter and attaching an account statement.
CAPEX Costs . . . . . . . . . . . . . . . . . . . . . The Issuer and the Guarantors will not incur, commit or pay any
CAPEX Costs during the first two Reporting Periods after the date of
the Indenture, except to the extent permitted to be paid from the
O&M Account or with proceeds from common equity issuances for
cash, cash capital contributions or Subordinated Indebtedness in
accordance with the Indenture. After the first two Reporting Periods,
the Concessionaires will not make or direct the Secured Party Agents
to make, and the Secured Party Agents will not make, any withdrawal
from the Revenue Account to the extent that the aggregate amount of
all requested withdrawals from the Revenue Account to pay CAPEX

35
Costs from the Description of Notes and Finance Agreements
Treatment of FundsDeposits of Funds to and Distribution of Funds
from the Revenue AccountSemi-annual and Special
Distributionseleventh in any quarterly budgetary period exceeds
100% of the amount budgeted for CAPEX Costs for such quarterly
budgetary period (excluding, for the avoidance of doubt, CAPEX
Costs paid from the O&M Account in accordance with the Indenture)
as set forth in the then-current quarterly CAPEX budget (the CAPEX
Budget) completed by the Concessionaires and submitted to the
Secured Party Agents and each Rating Agency; provided that such
CAPEX Costs will be subject, at the time they are incurred or
committed, to (a) a backwards looking Debt Service Coverage Ratio
requirement of not less than 1.20:1.00 for each of the two
immediately preceding Reporting Periods for which consolidated
financial statements have been submitted to the Secured Party Agents,
(b) a forward looking Debt Service Coverage Ratio requirement of an
average of 1.20:1.00 for the remaining Reporting Periods until the
final maturity of the Notes, and (c) a forward looking Debt Service
Coverage Ratio requirement of a minimum of 1.15:1.00 for each of
the remaining Reporting Periods until the final maturity of the Notes.

Notwithstanding the foregoing, if the Concessionaires fund any

CAPEX Costs by the issuance of common equity for cash, cash
capital contributions or Subordinated Indebtedness, then such CAPEX
Costs will not be subject to any ratios and such funds will not be
required to be deposited into the Revenue Account.

The Concessionaires will deliver to the Secured Party Agents, within

ten days after the end of each fiscal quarter, an Officers Certificate
certifying all CAPEX Costs incurred and paid during the applicable
fiscal quarter and attaching an account statement.

For purposes of the foregoing:

Debt Service means, for any period, the sum of all cash
principal and cash interest payments (including cash
withholding tax payments in connection therewith) and any
fees, expenses, breakage costs, termination costs and other
amounts in respect of all Debt other than Subordinated
Indebtedness, in each case taking into account the actual
amount payable or receivable under any Hedging Obligations
related thereto for purposes of the foregoing calculation.

Debt Service Coverage Ratio means, for any period, the result
obtained by dividing (a) the aggregate amount of funds
deposited into the Revenue Account (excluding any funds
transferred from the other Accounts to the Revenue Account)
minus the aggregate amount of funds transferred pursuant to
first through fifth under Description of Notes and Finance
AgreementsTreatment of FundsDeposits of Funds to and
Distribution of Funds from the Revenue Account (other than

36
 Contingent Hedge Payments and cash withholding tax
payments made in connection with Debt Service), for such
period by (b) the total Debt Service for such period, in each
case as reflected in certifications reasonably acceptable to the
Trustee and, in the case of future Reporting Periods, estimates
of such deposits and Debt Service then scheduled to be due and
payable for such future periods, in the forms provided in the
Indenture or in the most recent consolidated financial
statements of the Issuer presented in U.S. dollars and submitted
to the Trustee pursuant to the provisions of the Indenture.
Calculations shall exclude payments of expenses and fees in
respect of the Transactions or the Acquisition.

Reporting Period means the last six full months (considered

as one period) most recently ended to any date of determination.

Withholding Taxes . . . . . . . . . . . . . . . . . All payments under the Notes will be made free and clear of, and
without withholding or deduction for or on account of, any present or
future taxes, penalties, duties, fines, assessments or other
governmental charges (or interest on any of the foregoing) of
whatsoever nature imposed, levied, collected, withheld or assessed
by, within or on behalf of any Relevant Taxing Jurisdiction, unless
such withholding or deduction is required by law or the interpretation
or administration thereof. In such event, subject to certain exceptions,
the Issuer or the Guarantors, as applicable, will pay to each holder
such additional amounts as may be necessary to ensure that the
amounts received by the holder of such Note after such withholding
or deduction, including withholding or deduction with respect to such
additional amounts, equal the amounts of principal and interest and
premium, if any, and additional amounts, if any, that would have been
receivable in respect of such Note in the absence of such withholding
or deduction. See Description of Notes and Finance Agreements
Additional Amounts.

Change of Control . . . . . . . . . . . . . . . . . . If the Issuer or any Guarantor experiences a Change of Control (as
defined in Description of Notes and Finance AgreementsChange
of Control), then the Issuer and the Guarantors must offer to redeem
the Notes at 101% of the principal amount of the Notes, plus any
accrued and unpaid interest to the date of purchase, subject to certain
conditions.

Redemption Solely for Tax Reasons . . . . The Issuer and the Guarantors may, at their options, redeem the Notes
at 100% of their principal amount, plus accrued and unpaid interest, if
any, to the date of redemption and any Additional Amounts then due
and payable, in the event specified changes in tax law impose certain
additional withholding taxes on amounts payable on such Notes such
that the total rate of withholding applicable on such Notes is in excess
of 4%, being the rate in effect on the date hereof, and, as a result, the
Issuer or any Guarantor is required to pay Additional Amounts with
respect to such withholding taxes. See Description of Notes and
Finance AgreementsRedemption Solely for Tax Reasons.

37
Optional Redemption . . . . . . . . . . . . . . . At any time prior to February 18, 2015, the Issuer and the Guarantors
may on any one or more occasions redeem up to 35% of the original
aggregate amount of Notes and Additional Notes at a redemption
price of 108.00% of the principal amount, plus accrued and unpaid
interest to the applicable redemption date (subject to the right of the
holders of record on the relevant record date to receive interest due on
the relevant interest payment date), with the net cash proceeds of one
or more Equity Offerings; provided that: (i) at least 65% of the
aggregate principal amount of Notes remains outstanding
immediately after the occurrence of such redemption (excluding
Notes held by the Issuer or any Guarantor); and (ii) the redemption
occurs within 120 days of the date of the closing of such Equity
Offering.

At any time prior to February 18, 2015, the Issuer and the Guarantors
may redeem all or a part of the Notes at a redemption price equal to
100% of the principal amount of the Notes redeemed plus the
Applicable Premium as of, and accrued and unpaid interest, if any, to
the applicable redemption date (subject to the rights of holders of
record on the relevant record date to receive interest due on the
relevant interest payment date).

On or after February 18, 2015, the Issuer and the Guarantors may
redeem all or a part of the Notes on any one or more occasions, at the
redemption prices (expressed as percentages of principal amount of
the Notes to be redeemed) set forth below plus accrued and unpaid
interest on the Notes redeemed, to the applicable redemption date
(subject to the rights of holders of record on the relevant record date
to receive interest due on the relevant interest payment date), if
redeemed during the 12-month period beginning on February of each
of the years indicated below:

Year Percentage
2015 . . . . . . . . . . . . . . . . . . . 104.00%
2016 . . . . . . . . . . . . . . . . . . . 102.00%
2017 and thereafter . . . . . . . 100.00%

For purposes of the foregoing:

Applicable Premium means with respect to any Note on any

redemption date, the difference (not to be less than zero) between (a)
the present value (compounded on a semi-annual basis) to such date
of the scheduled future principal and interest cash flows from the
beneficial interests in the Notes being redeemed discounted at a per
annum rate equal to the then-current bid side yield (as most recently
published in the New York edition of The Wall Street Journal) on the
U.S. Treasury Note having a maturity date closest to the remaining
weighted average life on the Notes calculated at the time of the
prepayment, plus 0.75% per annum and (b) the aggregate principal
amount of Notes (or portion thereof) to be redeemed.

38
Assigned Receivables means certain receivables that the Issuer
expects to collect from a dispute with Express and which the Issuer
assigned to GPS International pursuant to an agreement dated
October 12, 2010, in an aggregate amount not to exceed Ch$2,127
million, which payment will be subject to Description of Notes and
Finance AgreementsLimitations on Restricted Payments and will
be made pursuant to Description of Notes and Finance
AgreementsTreatment of FundsDeposits of Funds to and
Distribution of Funds from the Revenue AccountSemi-annual and
Special Distributionsseventeenth.

Base Case Model means the financial model, certified as having

been prepared in good faith by an Officer of the Issuer in accordance
with the Annual Budget, as set forth in an exhibit to the Indenture, as
such Base Case Model may be revised from time to time pursuant to
the Indenture.

Capital Stock means: (i) in the case of a corporation, corporate

stock of any class; (ii) in the case of an association or business entity,
any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock; (iii) in the case of a
partnership or limited liability company, partnership or membership
interests (whether general or limited); and (iv) any other interest or
participation that confers on a person the right to receive a share of
the profits and losses of, or distributions of assets of, the issuing
person.

Contingent Hedge Payments means, with respect to any contract,

agreement or arrangement giving rise to Hedging Obligations, any
amounts paid or to be paid by the Concessionaires to the related
Hedge Counterparty as a result of the early termination, breakage or
mark-to-market determinations or similar contingent amounts under
such contract, agreement or arrangement other than Excluded
Contingent Hedge Payments. Contingent Hedge Payments do not
constitute a part of any Hedge Payments.

Disqualified Stock means, with respect to any person, any Capital

Stock that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of
any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of
the holder of the Capital Stock, in whole or in part, prior to the date
that is one year after the date on which the Notes mature.
Notwithstanding the preceding sentence, any Capital Stock that would
constitute Disqualified Stock solely because the holders of the Capital
Stock have the right to require the Issuer or any Guarantor to
repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the
terms of such Capital Stock provide that the Issuer or any Guarantor
may not repurchase or redeem any such Capital Stock pursuant to

39
 such provisions unless such repurchase or redemption complies with
the Restricted Payment test or otherwise requires the prior repayment
in full of the Notes. The term Disqualified Stock will also include
any options, warrants or other rights that are convertible into
Disqualified Stock or that are redeemable at the option of the holder,
or required to be redeemed, prior to the date that is one year after the
date on which the Notes mature.
Equity Offerings means any public or private sale of equity
securities of the Issuer or any Guarantor (other than Disqualified
Stock) other than: (i) offerings related to equity securities issuable
under any employee benefit plan of the Issuer or any Guarantor; and
(2) issuances to any subsidiary of the Issuer or any Guarantor.
Excluded Contingent Hedge Payments means, in relation to any
contract, agreement or arrangement giving rise to Hedging
Obligations that is in effect with respect to the Notes or any other
Senior Indebtedness, an amount equal to the amount of any
termination payment due and payable under such contract, agreement
or arrangement to the relevant Hedge Counterparty as a result of a
Hedge Counterparty Default with respect to such Hedge
Counterparty.
Mandatory Redemption . . . . . . . . . . . . . . Subject to the provisions of the Indenture, the Notes will be redeemed
prior to maturity, in whole or, to the extent of available funds, in part,
upon the occurrence of a Termination Event (as defined below) or any
Expropriatory Action (as defined below), to the extent of the
Expropriation Compensation (as defined below) received. In such a
redemption, the redemption price of the Notes to be redeemed will be
equal to (x) the principal amount of such Notes, plus (y) interest on
such principal amount accrued through the redemption date, plus (z)
Additional Amounts, if any, payable in respect of such Notes.
See Description of Notes and Finance AgreementsMandatory
Redemption.
For purposes of the foregoing:
Expropriatory Action means any action or series of actions
taken, authorized, ratified or acquiesced in by any Governmental
Authority in Chile, or any person purporting to act as a
Governmental Authority in Chile or any governing authority
which is in de facto control of part of Chile or arising under any
Chilean Law, for the appropriation, confiscation, expropriation,
seizure or nationalization (by intervention, condemnation or other
form of taking), whether with or without compensation and
whether under color of law or otherwise (including through
confiscatory taxation or imposition of confiscatory charges), of
ownership or control of the Concession rights, the Operating
Agreements or the Bus Network, or any substantial portion
thereof, held by Concessionaires or any substantial portion of the
Concessionaires economic benefits therefrom.

40
 Expropriation Compensation means all value (whether in the
form of money, securities, property or otherwise) paid or payable
by any Governmental Authority in Chile, in whole or partial
settlement of claims, whether or not resulting from judicial
proceedings and whether paid or payable within or outside Chile,
as compensation for or in respect of any Expropriatory Action.

Governmental Authority means any government, governmental

department, ministry, commission, board, bureau, agency,
regulatory authority, instrumentality of any government (central
or local), judicial, legislative or administrative body, domestic or
foreign, federal, state or local, having jurisdiction over the person
or matter in question.

Termination Event means any of the Operating Agreements is

terminated, canceled, repealed, annulled, rescinded or revoked by
any Governmental Authority in Chile (whether in whole or in
material part) on any ground, in each case as such action could
reasonably be expected to result in a Material Adverse Change.

Certain Covenants . . . . . . . . . . . . . . . . . . The Indenture will contain negative and affirmative covenants of the
Issuer and the Guarantors, subject to certain limitations and
exceptions:

limitations on Senior Indebtedness;

limitations on Restricted Payments (as defined below);

limitations on liens;

limitations on sales of assets;

limitations on sale and lease-back transactions;

limitations on merger, consolidation, liquidation or dissolution;

limitations on Affiliate transactions;

requirement to maintain all operations and undertake maintenance

consistent with the requirements of the Concessions;

requirement to provide specified expense budgets and three-year

master plans;

requirement to provide an updated version of the base case

financial projections;

limitations on abandonment of the Concessions;

limitations on assignments;

41
 a requirement to use the proceeds of the Notes as described under
Use of Proceeds;

requirements as to the use of cash flow;

requirement to maintain existence;

requirement not to engage in any business other than a Permitted

Business;

compliance with Concessions;

compliance with all applicable legal requirements;

requirement to repay obligations;

requirement to pay taxes;

requirement to maintain books and records;

requirement to maintain properties and insurance;

requirements as to visitation and third-party inspection of the

Issuers and the Guarantors properties;

requirement to provide specified notices to the Secured Party

Agents and the holders of the Notes;

requirement to provide consolidated financial statements and

period audits; and

requirement to provide compliance certificates.

In addition, each of Eco Uno and Panamerican will be subject to

specific limitations on their businesses that prohibit any activity other
than (i) the direct or indirect ownership of shares of the Issuer and/or
one or more of the Guarantors held by them on the date of the
Indenture or any additional shares provided that the same are
promptly pledged to secure their Guarantees as contemplated in the
Description of Notes and Finance Agreements, (ii) establishment
and maintenance of the Transfer Accounts, and (iii) as otherwise
required or contemplated in connection with the Finance Agreements
and intercompany transfers pursuant thereto and, as applicable,
intercompany obligations owing to or from the Issuer and/or one or
more of the Guarantors.

Lorena SpA. Alsacia will cause Lorena SpA not to engage in any
business activity other than ownership of the Excluded Depot and
guarantee of the Bus Terminal Loan, the lease of the Excluded Depot to
Alsacia and related administrative activities. In addition, Lorena SpA
shall not (i) incur any Debt (except its guarantee of the Bus Terminal

42
Loan and intercompany Subordinated Debt payable to Alsacia),
(ii) create or suffer to exist any Liens on any of its assets or property
(except Permitted Liens), (iii) sell, assign, lease, transfer or otherwise
dispose of any interest in its assets or property (except its lease of the
Excluded Depot to Alsacia and in connection with any foreclosure on the
Excluded Depot), (iv) create or acquire any Subsidiaries or make any
Investment, (v) consolidate or merge with or into any other Person or sell,
lease or otherwise transfer, directly or indirectly, all or any part of its
assets or property to any other Person (except the Issuer or a Guarantor),
in each case except as otherwise expressly permitted under the Finance
Agreements. For the avoidance of doubt, the Excluded Depot shall be
operated by Alsacia, and O&M Expenses, Repair Costs and other
payments in respect of the Excluded Depot and such operations shall be
paid out of the Accounts as Concessionaire payments. Alsacia shall
operate the Excluded Depot in accordance with the covenants of this
Indenture applicable to other operations of Alsacia.

Bus Terminal Loan. Alsacia and any Guarantor will not consent to or
otherwise provide for any amendment, supplement, novation or
renewal of the Bus Terminal Loan on terms that are more favorable
than the current terms thereof, nor any such amendment, supplement,
novation or renewal will be on terms materially adverse to the
Noteholders or the Notes Hedge Counterparty.

For purposes of the foregoing:

Debt to Equity Ratio means, as of the date of calculation, the

ratio of (i) the aggregate outstanding amount of Senior
Indebtedness, without duplication, of the Issuer and the
Guarantors, taken as a whole, as of such date to (ii) the aggregate
amount of Equity of the Concessionaires, taken as a whole, as of
such date.

Equity means, as of the date of calculation, the sum of the

present value (compounded on a semi-annual basis) of the
aggregate amount of funds deposited and projected to be
deposited into the Revenue Account (excluding any funds to be
transferred from the other Accounts to the Revenue Account)
minus the aggregate amount of funds transferred and projected to
be transferred from the Revenue Account pursuant to first
through fourteenth under Revenue Account above until,
and including, August 18, 2018, as projected in the Base Case
Model (as defined in Description of Notes and Finance
Agreements) as updated to such date of calculation, discounted
at a per annum rate equal to 12%.

Fair Market Value means, with respect to any asset, the price
which could be negotiated in an arms length free market
transaction, for cash, between a willing seller and a willing
buyer, neither of which is under compulsion to complete the
transaction, (i) if such asset has a price of at least U.S.$1.0

43
million and less than U.S.$10.0 million, as such price is
determined in good faith by the board of directors of the relevant
Concessionaire as evidenced by a resolution of such board of
directors; or (ii) if such asset has a price of at least U.S.$10.0
million, as such price is determined by an opinion as to the
fairness of such price to the Concessionaire from a financial point
of view issued by an investment banking firm of international
standing.

GAAP means generally accepted accounting principles in

Chile or IFRS to the extent then applicable, in each case as in
effect on the date of the Indenture.

Investments means, with respect to any Person, all direct or

indirect investments by such Person in other Persons (including
affiliates) in the form of loans or other extensions of credit
(including guarantees), advances, capital contributions (by means
of any transfer of cash or other property to others or any payment
for property or services for the account or use of others),
purchases or other acquisitions for consideration of Debt, equity
interests or other securities, together with all items that are or
would be classified as investments on a balance sheet prepared in
accordance with GAAP.

Permitted Chilean Investments means any of the following,

and which may include investments in respect of which the
Trustee acts as investment advisor or manager: (i) fixed income
securities issued by the Chilean Treasury, the Chilean Central
Bank, Chilean banks or corporations with an international rating
of at least A by S&P, A by Fitch or A2 by Moodys, or a
Chilean domestic rating of at least AA or equivalent by any of
such rating agencies; (ii) repurchase agreements (A) with any of
the entities mentioned in (i) above and (B) with respect to which
the collateral consist of fixed income securities issued by the
Chilean Treasury, the Chilean Central Bank or any of the entities
mentioned in (i) above; and (iii) time deposit accounts,
certificates of deposit and money market deposits denominated
and payable in Chilean pesos maturing within 180 days of the
date of acquisition thereof issued by Chilean banks mentioned in
(i) above.

Permitted Investments means (a) cash, Permitted Chilean

Investments and Permitted U.S. Investments; (b) receivables in
respect of Hedge Payments; (c) stock, obligations or securities
received in settlement of (or foreclosure with respect to) debts
created in the ordinary course of business and owing to either
Concessionaire or in satisfaction of judgments or compromise of
claims; (d) payroll, travel and similar advances to cover matters
that are expected at the time of such advances ultimately to be
treated as expenses for accounting purposes and that are made in
the ordinary course of business; (e) guarantees of Senior

44
Indebtedness or Subordinated Indebtedness permitted by the
Indenture; (f) Receivables owing to either Concessionaire if
created or acquired in the ordinary course of business; (g)
Investments in an affiliate of the Issuer and/or any Guarantor,
provided that the Issuer and the Guarantors shall have delivered
to the Trustee at least 30 days in advance of making such
Investment an Officers Certificate executed by its respective
chief financial officer and chief executive officer setting forth: (i)
that such affiliate will only engage in a business that, if
conducted by either Concessionaire, would be a Permitted
Business, (ii) that such affiliate will be an Unrestricted
Subsidiary for purposes of the Indenture, (iii) in reasonable
detail, the agreements, contracts and transactions that are
expected to be entered into by and between such affiliate and the
Issuer or any Guarantor, (iv) that there will be no other liability
of any kind or obligation to invest or transfer assets by the Issuer
or any Guarantor in connection therewith, (v) that any
transactions between such affiliate and the Issuer or any
Guarantor will comply with the limitations on affiliate
transactions covenant, (vi) that such Investment in the affiliate
will be funded with a cash common equity or capital contribution
to, or Subordinated Indebtedness incurred by, the Issuer or any
Guarantor (which cash common equity or capital contribution or
Subordinated Indebtedness proceeds shall not be required to be
deposited into the Revenue Account), and (vii) that the Issuer and
the Guarantors shall deliver to the Trustee within ten days after
the end of each fiscal quarter an Officers Certificate executed by
its respective chief financial officer and chief executive officer
indicating compliance with clauses (i) through (vi) above; (h) an
equity Investment in any Person received by the Issuer or any
Guarantor solely in consideration for provision by the
Concessionaires of technical, management or other related
support services to such Person (or its subsidiaries), provided that
the Issuer and the Guarantors shall have delivered to the Trustee
at least 30 days in advance of making such Investment an
Officers Certificate executed by its respective chief financial
officer and chief executive officer to the same effect as clauses
(ii) through (vi) of the preceding clause (g) of this definition
(whether or not such Person is an affiliate) and in addition setting
forth (i) that such Person (and its subsidiaries) will exonerate the
Issuer and the Guarantors for any liability in connection
therewith to the full extent permitted by applicable law, and
(ii) that the Issuer and the Guarantors shall deliver to the Trustee
within ten days after the end of each fiscal quarter an Officers
Certificate executed by its respective chief financial officer and
chief executive officer indicating compliance with clauses
(ii) through (vi) and (i) above; (i) Investments by the Issuer or
any Guarantor in the Issuer or any Guarantor; and (j) additional
Investments having an aggregate Fair Market Value, taken
together with all other Investments made pursuant to this clause

45
(j) that are at the time outstanding, not to exceed U.S.$1.0 million
at the time of such Investment (with the Fair Market Value of
each Investment being measured at the time made and without
giving effect to subsequent changes in value).
Permitted U.S. Investments means any of the following, and
which may include investments in respect of which the Trustee acts
as investment advisor or manager: (i) direct obligations of the United
States of America or any agency thereof or obligations fully and
unconditionally guaranteed by the United States of America or any
agency thereof; (ii) time deposit accounts, certificates of deposit and
money market deposits denominated and payable in U.S. dollars
maturing within 180 days of the date of acquisition thereof issued by
a bank or trust company which is organized under the laws of the
United States of America, any state thereof or any foreign country
recognized by the United States of America, and which bank or trust
company has capital, surplus and undivided profits aggregating in
excess of U.S.$100.0 million (or the foreign currency equivalent
thereof) and has outstanding debt which is rated A (or such similar
equivalent rating) or higher by S&P or Moodys or any money
market fund denominated and payable in U.S. dollars sponsored by a
registered broker dealer or mutual fund distributor; (iii) repurchase
obligations with a term of not more than 30 days for underlying
securities of the types described in clause (i) above entered into with
a bank meeting the qualifications described in clause (ii) above; (iv)
commercial paper denominated and payable in U.S. dollars,
maturing not more than 90 days after the date of acquisition, issued
by a corporation (other than an affiliate of the Issuer or the
Guarantors) organized and in existence under the laws of the United
States of America or any state thereof with a rating at the time as of
which any investment therein is made of P-1 (or higher) according
to Moodys or A-1 (or higher) according to S&P; (v) securities
with maturities of six months or less from the date of acquisition
issued or fully and unconditionally guaranteed by any state,
commonwealth or territory of the United States of America, or by
any political subdivision or taxing authority thereof, and rated at
least A by S&P or Moodys; (vi) Investments in money market
funds substantially all of whose assets are comprised of securities of
the types described in clauses (i) through (v) above; (vii) demand
deposit accounts with U.S. banks maintained in the ordinary course
of business.
Receivables means all rights of either Concessionaire to
payments (whether constituting accounts, chattel paper,
instruments, general intangibles or otherwise, and including the
right to payment of any interest or finance charges), which rights
are identified in the accounting records of such Concessionaire as
accounts receivable.
Restricted Payments means any reduction (excluding reductions
resulting from losses or impairments) or return of capital of the

46
 Issuer or any Guarantor; any payment by the Issuer or any Guarantor
of any dividends to its respective shareholders (other than in the
form of Capital Stock of the Issuer or such Guarantor), except for
dividends payable to the Issuer or any Guarantor; the authorization
or making of any other distribution, any payment or delivery by the
Issuer or any Guarantor of property or cash to their respective
shareholders in their capacity as shareholders of the Issuer or such
Guarantor or to such shareholders as permitted under the Indenture;
the redemption, retirement, purchase or other acquisition, directly or
indirectly, for consideration of any of its Capital Stock now or
hereafter outstanding (or any options or warrants issued by the Issuer
or any Guarantor with respect to their respective Capital Stock) or
the setting aside of any funds for any of the foregoing purposes; or
the making by the Issuer or any Guarantor of any cash payments
with respect to principal or interest on, or the purchase, redemption
or defeasance of, any Subordinated Indebtedness (except payments
on intercompany Subordinated Indebtedness between the Issuer and
any Guarantor or between Guarantors); it being understood that any
dividend to a shareholder (or any other person who becomes an
owner of Capital Stock of the Issuer or any Guarantor as a result of a
Permitted Disposition) immediately then contributed back to the
Issuer or such Guarantor will not constitute a Restricted Payment;
Investments other than Permitted Investments. Payments made in
connection with and related to the Transactions and Acquisition as
described in this Offering Memorandum shall not constitute
Restricted Payments.

Sale and Lease-Back Transaction means any arrangement with

any Person (other than the Issuer or any of the Guarantors), or to
which any such Person is a party, providing for the leasing to the
Issuer or a Guarantor for a period of more than three years of any
property or assets that have been or are to be sold or transferred
by such Issuer or Guarantor to such Person or to any other Person
(other than the Issuer or a Guarantor) to which funds have been
or are to be advanced by such Person on the security of the leased
property or assets.

See Description of Notes and Finance AgreementsCovenants.

Events of Default . . . . . . . . . . . . . . . . . . . The Indenture will provide for acceleration of the Notes and exercise
of other remedies upon events of default, in each case subject to
certain limitations and cure rights (each an Event of Default):

any payment default;

any failure to perform any of the obligations, including obligations

under any covenants, provided for under the Indenture;

the application of any fines or discounts under the Concession

Agreements which could reasonably be expected to result in a
Material Adverse Change;

47
 any default under any Transaction Document, including any failure
to deposit any funds to the extent available as provided therein or
withdrawal, except as expressly permitted thereunder, including
express provision for default if any Transaction Document (other
than Additional Agreements) is terminated, canceled or materially
amended, and in each case could reasonably be expected to result
in a Material Adverse Change;

any representation or warranty made by the Issuer or any Guarantor

in any Finance Document to which such person is a party or in any
Officers Certificate delivered in connection with the release of the
Escrow, is found to be false and misleading in any material respect
when made, unless, in the case of any false or misleading
representation or warranty as to which the condition giving rise
thereto is capable of being cured, such condition has been cured
and such representation or warranty is no longer false or
misleading in any material respect within 30 days after the Issuer or
such Guarantor first has knowledge or should have had knowledge,
after due inquiry, that such representation or warranty was false or
misleading in such material respect;

any bankruptcy, insolvency or similar proceedings involving the

Issuer or any Guarantor or any of their assets;

any final, non-appealable judgments, decisions or orders for the

payment of money in an aggregate amount exceeding U.S.$10.0
million (or the equivalent in another currency) (to the extent such
judgments, decisions or orders are not paid or covered by insurance
provided by a reputable carrier) are entered against the Issuer or
any Guarantor and (A) enforcement proceedings are commenced
by any creditor upon such judgments, decisions or orders or (B)
there is a period of 30 consecutive days during which a stay of
enforcement of such judgments, decisions or orders, by reason of a
pending appeal or otherwise, is not in effect;

any Expropriatory Action of the Concessions or any portion,

material to the Issuer and the Guarantors considered as a whole, of
the assets used by the Issuer and/or any Guarantor and their
affiliates in connection with the operation of the Concessions,
except to the extent that an Expropriatory Action results in the
immediate payment to the Trustee of Expropriation Compensation
sufficient, in the opinion of the Trustee, to repay the Notes and all
amounts then due and payable to the holders of the Notes;

any suspension, revocation, cancellation, loss or termination of any

of the Operating Agreements and that in each case could
reasonably be expected to result in a Material Adverse Change;

the holders of the Notes or the Notes Hedge Counterparty cease to

have a perfected first-priority security interest in any Collateral

48
 having an aggregate Fair Market Value in excess of U.S.$10.0
million except as released in accordance with the Transaction
Documents;
any revocation or withdrawal of any material government
authorization that could reasonably be expected to result in a
Material Adverse Change; or
default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced
any Senior Indebtedness (other than the Bus Terminal Loan) by the
Issuer or any Guarantor (or the payment of which is guaranteed by
the Issuer or any Guarantor) whether such Senior Indebtedness or
guarantee now exists, or is created after the issuance of the Notes,
if that default: (a) is caused by a failure to make any payment when
due at the final maturity of such Senior Indebtedness (a Payment
Default); or (b) results in the acceleration of such Senior
Indebtedness prior to its express maturity, and, in each case, the
amount of any such Senior Indebtedness, together with the amount
of any other such Senior Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated,
aggregates U.S.$10.0 million or more.
Early Amortization Period . . . . . . . . . . . During the period (the Early Amortization Period) beginning on the
day on which an Early Amortization Period is declared to have
commenced or automatically commences pursuant to the provisions
under Early Amortization Events below, and continuing to and
including the date on which principal, interest and all other amounts
due under the Notes have been paid in full (or such earlier date as the
Controlling Party of the Notes so determines), the remaining unpaid
principal balance under the Notes will be due and payable on each
Payment Date with the Available Funds (as defined below) (the
Early Amortization Principal Amounts).
During any Early Amortization Period, the Concessionaires will
transfer or cause to be transferred the Available Funds (in addition to
funds for accrued interest and any other payment under the Notes in
the order of priority set forth in the Indenture, and Contingent Hedge
Payments) from the Revenue Account to the Payment Account on
each Transfer Date for payment of the Early Amortization Principal
Amounts on the next Payment Date(s). Additionally, during any Early
Amortization Period, the Concessionaires will transfer funds in the
Reserve Account and/or under the Letter of Credit to the Trustee for
the benefit of the Noteholders and the Notes Hedge Counterparty on
the next Payment Date, which funds will be applied to the payment of
the Early Amortization Principal Amounts, accrued interest and any
other payment under the Notes in the order of priority set forth in the
Indenture on such Payment Date.
Amounts thus applied to reduce the principal of the Notes will result
in a pro rata reduction of the remaining Scheduled Amortization
Amounts for the Notes.

49
 For purposes of the foregoing, Available Funds means all the funds
available on each Transfer Date for transfer from the Revenue
Account to the Payment Account after deduction of the aggregate
amount of funds transferred on such Transfer Date from the Revenue
Account pursuant to Bi-monthly Distributionsfirst through
fifth.

Early Amortization Events . . . . . . . . . . . Each of the following will be designated as an Early Amortization
Event for the Notes:

the occurrence of an Event of Default;

the occurrence of an early amortization event with respect to any

other Senior Indebtedness of the Issuer or any Guarantor; and

failure to maintain a minimum Debt Service Coverage Ratio of

1.10:1.00 in any Reporting Period (the Early Amortization Debt
Service Coverage Ratio), except for the Reporting Periods through
March 31, 2012.

Upon the occurrence of an Early Amortization Event, the Controlling

Party, by notice then given in writing to the Issuer, the Guarantors
and the Secured Party Agents, may declare that the Early
Amortization Period has commenced; provided that, the written
notice in respect of an Event of Default (other than an Event of
Default described in clause (h) under Events of Default) must be
given by the Controlling Party to the Issuer, the Guarantors and the
Secured Party Agents within six months of the Noteholders receiving
notice of such Event of Default; provided further that, (A) upon the
occurrence of an Event of Default described in clause (h) under
Events of Default, an Early Amortization Period will
automatically commence, and (B) the specific event, occurrence or
omission that resulted in the Event of Default that caused such Early
Amortization Event shall not be the basis for declaration of any other
Early Amortization Events for six months following the end of such
six-month period.

Coverage Reserve Account . . . . . . . . . . . Notwithstanding anything in the Description of Notes and Finance
Agreements to the contrary, upon the occurrence of an Early
Amortization Event related to the failure to satisfy the Early
Amortization Debt Service Coverage Ratio, the Issuer and the
Guarantors may cure such breach by either:

(a) electing (by written notice to the Secured Party Agents) to have all
amounts then and thereafter payable to the Noteholders under the
Finance Agreements to be deposited into a segregated trust account in
the United States held by the Secured Party Agents in the name of
Secured Party Agents for the benefit of the Noteholders (the
Coverage Reserve Account); and/or

(b) depositing, or causing to be deposited, into the Coverage Reserve

Account (which shall be funded by the issuance of common equity for

50
cash, cash capital contributions or Subordinated Indebtedness, and
which shall not be required to be deposited into the Revenue
Account) an amount of U.S. dollars such that, had such amount been
received as collections in the Revenue Account during the applicable
Transfer Period, such breach would not have occurred (the Coverage
Reserve Account Deposit Amount). If so elected by the Issuer and
the Guarantors, the Issuer and the Guarantors shall deposit, or cause
to be deposited, into the Coverage Reserve Account an amount equal
to the Coverage Reserve Account Deposit Amount, which must have
been funded with Subordinated Indebtedness incurred by or cash
capital contributions made to the Issuer or the Guarantors for specific
deposit therein.

If the Coverage Reserve Account is funded as described in the

Description of Notes and Finance Agreements, notwithstanding
anything to the contrary described therein, an Early Amortization Event
related to the failure to satisfy any Early Amortization Debt Service
Coverage Ratio will be deemed not to have occurred (regardless of
whether the Controlling Party for the Notes has declared that an Early
Amortization Period has commenced with respect to the failure to meet
the Early Amortization Debt Service Coverage Ratio); provided that if
the Early Amortization Debt Service Coverage Ratio continues to fail
to be met for each of the next three respective Reporting Periods, then,
notwithstanding the funding of the Coverage Reserve Account, an
Early Amortization Event shall occur.

Pending application in accordance with the Indenture, amounts in the

Coverage Reserve Account will be invested by the Secured Party
Agents in U.S. Permitted Investments. The Issuer and the Guarantors
may exercise such right to cure up to three times through the final
maturity of the Notes; provided that it may not exercise such right
more than once during any period of 12 consecutive calendar months.

Amounts in the Coverage Reserve Account will be distributed by the

Secured Party Agents as follows:

(a) on each Payment Date occurring after the exercise by the Issuer
and the Guarantors of the option to fund the Coverage Reserve
Account, if amounts on deposit in the Payment Account for the Notes
on such Payment Date are less than the aggregate amount due and
payable on such date, then the amount of such shortfall will (to the
extent available) be transferred from the Coverage Reserve Account
to the Payment Account and then paid to the Noteholders, the Notes
Hedge Counterparty and other parties entitled to such amounts as set
forth in the Indenture; and

(b) if the Early Amortization Debt Service Coverage Ratio for the
Notes is met with respect to any two consecutive Reporting Periods
after such election, then the balance of funds on deposit in the
Coverage Reserve Account may be used by the Issuer and the
Guarantors to cancel the related Subordinated Indebtedness or return

51
 the related capital contribution (which, in each case, shall not
constitute a Restricted Payment), with any remaining balance under
the Subordinated Indebtedness or the capital contribution payable in
accordance with the Indenture and the order of priority set forth
above; additional funds need no longer be deposited into the
Coverage Reserve Account unless and until the Issuer and the
Guarantors exercise such option again.

If a balance remains in the Coverage Reserve Account after all of the

Notes have been paid in full, then such balance will be paid at the
Issuers and the Guarantors instructions.

Additional Coverage Reserve

Account . . . . . . . . . . . . . . . . . . . . . . . . Any other Senior Indebtedness may provide for an account to serve
the same purpose as the Coverage Reserve Account (the Additional
Coverage Reserve Accounts), provided that such Additional
Coverage Reserve Accounts may not provide for better benefits or be
on more favorable terms to the creditors under such other Senior
Indebtedness than the Coverage Reserve Account to the holders of the
Notes and the Notes Hedge Counterparty, as determined by the board
of directors of the Concessionaires in good faith.

Purchases of Notes . . . . . . . . . . . . . . . . . The Issuer and any Guarantor may at any time, or from time to time,
subject to the terms and conditions of the Indenture, purchase Notes
through Open Market Purchases, by tender or by private agreement;
provided, however, that the Issuer and the Guarantors may not
purchase any Notes if they are in default on any payment due
pursuant to the Notes. Any purchase by tender by the Issuer and the
Guarantors shall be made available to all Noteholders alike. All Notes
so purchased shall be cancelled immediately. In determining whether
the holders of the requisite principal amount of outstanding Notes
have given any request, demand, authorization, direction, consent,
notice or waiver under the Indenture, Notes owned by the Issuer and
the Guarantors, by any other obligor upon the Notes or by an affiliate
of the Issuer and the Guarantors or of such other obligor shall be
disregarded and deemed not to be outstanding.

For purposes of the foregoing, Open Market Purchase means the

purchase of any Notes available for sale in the secondary market
through broker-dealers or similar intermediaries, in each case for total
consideration less than the sum of the principal amount thereof plus
accrued and unpaid interest thereon, provided that any Notes so
purchased are surrendered immediately to the Trustee for
cancellation.

Book-Entry; Form and Denomination . . . The Notes will be issued in the form of one or more global notes
without coupons. The Rule 144A and Regulation S Global Notes will
each be issued in book-entry form and registered in the name of a
nominee of DTC and deposited on behalf of the purchasers of the
Notes represented thereby with a custodian of DTC and will trade in

52
 DTCs Same-Day Funds Settlement System. For a description of
certain factors relating to clearance and settlement, see Description
of Notes and Finance AgreementsForm and Denomination.

The Notes will be issued in minimum denominations of U.S.$150,000

and integral multiples of $1,000 in excess thereof. Owners of
beneficial interests in Notes held in book-entry form will not be
entitled to receive physical delivery of certificated Notes except in
certain limited circumstances. See Description of Notes and Finance
AgreementsForm and Denomination.

Governing Law . . . . . . . . . . . . . . . . . . . . The Issuers and Guarantors capacity and corporate authorization to
execute and deliver the Transaction Documents are governed by
applicable Chilean laws. The Mortgages, the Asset Pledge
Agreements, the Concession Pledge Agreements, the Chilean Money
Pledges, the Intercompany Debt Pledge Agreements and the Share
Pledge Agreements will be governed by, and construed in accordance
with, the laws of Chile. The Notes, the Indenture and the NY Account
Pledge Agreements will be governed by, and construed in accordance
with, the laws of the State of New York.

Transfer Restrictions . . . . . . . . . . . . . . . . The Notes have not been registered and will not be registered with the
U.S. Securities and Exchange Commission under the Securities Act.
The Notes are subject to certain restrictions on transfer and may not
be offered, transferred or resold except as permitted under the
Securities Act and applicable state laws pursuant to registration or
exemption therefrom. See Transfer Restrictions.

Exchange Controls in Chile . . . . . . . . . . . Under current Chilean Central Bank regulations, the Issuer and the
Guarantors will have access to either the Formal Exchange Market or
the Informal Exchange Market for the purchase of U.S. dollars
necessary to make payments under the Notes or the Guarantees. See
Exchange Controls in Chile.

Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank of New York Mellon

Principal Paying Agent, Transfer Agent

and Registrar . . . . . . . . . . . . . . . . . . . . The Trustee acting in such capacities.

U.S. Collateral Agent . . . . . . . . . . . . . . . The Trustee acting in such capacity.

Chilean Collateral Agent . . . . . . . . . . . . . Banco Santander Chile

Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . The Issuer and the Guarantors will apply to list the Notes on the
Official List of the Luxembourg Stock Exchange and to trade them on
the Euro MTF Market of that exchange.

Rating Agencies . . . . . . . . . . . . . . . . . . . Fitch, Inc. and Moodys Investors Service, Inc. (the Rating
Agencies)

Risk Factors . . . . . . . . . . . . . . . . . . . . . . . You should carefully consider the risk factors discussed under the
caption Risk Factors before purchasing any Notes.

53
 SUMMARY SELECTED
FINANCIAL AND OPERATING INFORMATION

As discussed herein, concurrently with this offering, Alsacia, Express, Eco Uno and Panamerican will
become affiliated companies under common control by GPS Group, and GPS Group intends to operate Alsacia
and Express jointly under common management and to develop common operating procedures and sharing of
overhead and other costs in order to maximize efficiencies for both entities. However, because Alsacia is not
acquiring any interest in Express in the Acquisition, those entities cannot be presented together on a pro forma
basis in this Offering Memorandum. See Introductory Note.

The following tables present summary selected financial information and other data as of or for the
years ended December 31, 2007, 2008 and 2009 and as of or for the nine months ended September 30, 2009 and
2010 for each of Alsacia and Express on a consolidated basis. These summary selected financial data presented
below are qualified in their entirety by reference to, and should be read in conjunction with, the financial
statements and notes thereto for each of Alsacia and Express included elsewhere in this Offering Memorandum.
The following data as of or for each of the years ended December 31, 2007, 2008 and 2009 have been derived
from the audited financial statements for each of Alsacia and Express, which have been prepared in Chilean
pesos in accordance with Chilean GAAP. The data as of or for the nine months ended September 30, 2009 and
2010 have been derived from the unaudited interim financial statements for each of Alsacia and Express and have
been prepared in Chilean pesos in accordance with Chilean GAAP. See Presentation of Financial and Other
Information and Appendix ASignificant Differences Between Chilean GAAP and IFRS.

The unaudited information for the nine months ended September 30, 2009 and 2010 includes all
adjustments, consisting of only normal recurring adjustments, which in the opinion of management for each of
Alsacia and Express are necessary for the fair presentation of the information. The results of operations for the
nine months ended September 30, 2010 are not necessarily indicative of the results to be expected for the year
ending December 31, 2010.

Financial information for each of the three years ended December 31, 2009 has been restated in constant
Chilean pesos as of December 31, 2009 in accordance with Chilean GAAP. Financial information for each of the
nine months ended September 30, 2009 and 2010 has been restated in constant Chilean pesos as of September 30,
2010 in accordance with Chilean GAAP.

No financial or operating information is provided in this Offering Memorandum for either Eco Uno or
Panamerican, which are additional Guarantors of the Notes. Eco Uno is a holding company with the sole purpose
of holding 99.998% of the equity of Express. Panamerican is a holding company formed for the sole purpose of
acquiring and consolidating the ownership of 99.7% of the equity of Eco Uno through the Acquisition. Both Eco
Uno and Panamerican lend or borrow intercompany debt to or from affiliates from time to time, and neither will
have any employees or other activities except as described herein. See Description of Notes and Finance
Agreements. As a result, Alsacia does not believe any information concerning Eco Uno or Panamerican
would be material to prospective investors.

No financial or operating information is provided in this Offering Memorandum for the Initial
Temporary Issuer because it has never had, and currently does not have, any assets, liabilities or operations. It is
a special purpose company established to facilitate the issuance of the Notes as described under The Escrow.

54
 HISTORICAL FINANCIAL INFORMATION
Alsacia Express
As of or for the Nine As of or for the Nine
As of or for the Year Ended Months Ended As of or for the Year Ended Months Ended
Dec. 31, Dec. 31, Dec. 31, Sept. 30, Sept. 30, Dec. 31, Dec. 31, Dec. 31, Sept. 30, Sept. 30,
2007 2008 2009 2009 2010 2007 2008 2009 2009 2010
(Millions of constant Ch$ (Millions of constant Ch$ (Millions of constant Ch$ (Millions of constant Ch$
as of December 31, 2009) as of September 30, 2010) as of December 31, 2009) as of September 30, 2010)
(unaudited) (unaudited)
Income Statement Data
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,918 70,866 66,658 50,311 54,732 66,924 91,183 86,065 63,290 70,844
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,159 9,348 (184) 414 3,441 1,673 5,970 4,429 1,865 (450)
Non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,345 (15,972) 8,739 4,332 185 15,129 (1,444) (9,252) (8,576) (3,772)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . 14,504 (6,623) 8,555 4,746 3,627 16,802 4,526 (4,823) (6,711) (4,222)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,895) 1,084 (1,990) (1,604) (772) (3,085) (707) 872 1,231 474
Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,609 (5,539) 6,565 3,142 2,855 13,717 3,819 (3,951) (5,480) (3,748)
Profit (loss) investment in related companies (1) . . . . . . . . 2,031 491 404 (721) (553)
Balance Sheet Data
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . 354 312 3,876 728 33 3,562 3,323 25 963 74
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,994 17,263 19,663 16,955 17,574 48,010 52,860 32,716 33,199 32,954
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,306 66,574 60,800 64,218 60,720 88,144 85,975 77,782 81,029 72,345
55

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,776 108,140 101,382 102,824 97,665 191,243 196,181 148,142 153,631 141,038
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,377 29,550 34,381 36,451 28,718 32,742 45,067 27,198 27,637 30,682
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 63,704 80,434 62,280 65,110 61,276 125,944 114,740 88,521 94,381 81,033
Total shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . 3,696 (1,843) 4,722 1,262 7,670 32,556 36,374 32,423 31,613 29,323
Cash Flow Data
Net cash flow from (used in) operating activities . . . . . . . . . . . . 4,725 4,848 9,431 7,057 2,840 7,557 19,719 27,954 2,251 6,454
Net cash flow from (used in) financing activities . . . . . . . . . . . . 7,232 8,038 (2,321) (3,466) (5,760) 12,563 (5,222) (8,483) (8,451) (8,276)
Net cash flow from (used in) investing activities . . . . . . . . . . . . (11,776) (12,957) (3,538) (3,181) (1,156) (16,880) (14,465) (22,827) 3,709 2,637
Reconciliation of Operating Income to Adjusted EBITDA
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,159 9,348 (184) 414 3,441 1,673 5,970 4,429 1,865 (450)
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,316 7,578 8,256 6,313 6,470 7,275 12,598 13,205 10,068 10,230
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,063 1,574 2,401 1,944 1,247 3,560 3,939 3,843 3,752 2,934
Adjusted EBITDA (2) . . . . . . . . . . . . . . . . . . . . . . . . . 12,538 18,501 10,473 8,671 11,158 12,508 22,507 21,477 15,685 12,714

(1) Relates solely to Alsacias investment in 16% of the equity of Eco Uno, which is a holding company that owns 99.998% of Express. Changes in the value of this investment primarily
reflect Expresss financial performance over the same period. These changes are presented net of any interest expense recognized by Eco Uno on certain intercompany debt to its parent
company during the period.
(2) We calculate Adjusted EBITDA by adding Depreciation and Amortization to Operating Income. Because our calculation of Adjusted EBITDA begins with Operating Income, Adjusted
EBITDA also does not include several non-cash expenses that are deducted from Net income under Chilean GAAP such as Price-level restatements and Foreign exchange rate
differences. Adjusted EBITDA also does not include our Interest expenses or Income Taxes, which are also deducted from our Net income. Adjusted EBITDA is a not a recognized
financial measure under Chilean GAAP or IFRS and does not have a standardized meaning. As such, Adjusted EBITDA as presented herein may not be comparable to similarly titled
measures provided by other companies. We disclose Adjusted EBITDA because we believe that certain investors use it as an indicator of a companys ability to meet debt service and
capital expenditure requirements. Adjusted EBITDA should not be considered in isolation, or as a substitute for net income or operating income as indicators of operating performance.
 HISTORICAL OPERATING DATA

We track a number of non-financial performance measures about our business and the industry,
including the following (1):
As of or for the Year As of or for the Nine Months
Ended December 31, Ended September 30,
2007 2008 2009 2009 2010
Bus Passenger Validations (in millions) (2)
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.4 133.3 130.9 96.2 100.6
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.7 208.2 204.1 151.0 142.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186.1 341.5 335.0 247.2 243.5
Transantiago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 1,159 1,205 886 881
Alsacia and Express as a Percentage of Transantiago . . . . . . 29.2% 29.5% 27.8% 27.9% 27.6%
Scheduled Route Distance (in millions of kilometers) (3)
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.7 42.7 44.4 32.7 35.3
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 65.6 65.2 48.2 52.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.4 108.3 109.6 80.9 88.2
Transantiago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367.8 480.0 515.9 357.9 385.6
Alsacia and Express as a Percentage of Transantiago . . . . . . 22.7% 22.6% 21.2% 22.6% 22.9%
Number of Bus Drivers (4)
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,729 1,751 1,751 1,695 1,685
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,115 2,175 2,227 2,253 2,354
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,844 3,926 3,978 3,948 4,039
Passenger Capacity of Bus Fleet (rounded to the nearest
thousand) (5)
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.4 68.8 68.7 68.7 73.4
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.4 117.0 116.9 116.9 136.4
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178.8 185.8 185.6 185.6 209.8
Transantiago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559.3 585.7 593.1 590.2 616.8
Alsacia and Express as a Percentage of Transantiago . . . . . . 32.0% 31.7% 31.3% 31.5% 34.0%
Service Fulfillment Ratio (6)
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.4% 97.9% 96.7% 97.5% 96.8%
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.8% 96.2% 96.4% 97.8% 93.6%

(1) See Managements Discussion and Analysis of Financial Condition and Results of Operations for Alsacia
and Express for a discussion of the reasons for the changes in these figures over the periods presented.

(2) Total Passenger Validations received on buses during the applicable period (Validaciones). For discussion
of Passenger Vaildations, see The ConcessionsConcession RevenueRevenue Formulas, The
ConcessionsAFT PaymentsResponsibilities of the AFT and BusinessOverviewGeneral.

(3) Aggregate scheduled route distance in Operating Plans during the applicable period (Kilmetros del
Programa de Operacin). For a discussion of Operating Plans, see The ConcessionsOperating Plans.

(4) Full-time and part-time bus drivers employed at the end of the applicable period (Personal de Conduccin).
For a discussion of our driving personnel, see BusinessOur OperationsOur Employees.

56
(5) Aggregate passenger capacity of all buses, as registered with the Ministry, at the end of the applicable
period (Plazas). For a discussion of our fleet passenger capacity, see BusinessOverviewGeneral.

(6) Ratio of actual passenger capacity and route distance serviced compared to the scheduled passenger capacity
and route distance in Operating Plans during the applicable period (ndice de Cumplimiento Plaza Kilmetro
Hora). Prior to October 2009, the calculation of this ratio did not include distance (kilmetros) and was
known as ndice de Cumplimiento Plaza Hora. The Ministry added distance (kilmetros) to the ratio in
October 2009 and renamed it ndice de Cumplimiento Plaza Kilmetro Hora. The Ministry reports a
preliminary Service Fulfillment Ratio to each concessionaire on a semi-monthly basis. Each concessionaire
can then review the preliminary Service Fulfillment Ratio and propose adjustments to it to reflect service
interruptions or delays that are outside of the concessionaires control, such as road construction or traffic
accidents along its routes. Once the proposed adjustments are reviewed and accepted by the Ministry, the
Ministry publicly reports the adjusted Service Fulfillment Ratios for a period starting on the sixth day of
each calendar month and ending on the fifth day of the following calendar month. Alsacia and Express also
separately calculate the adjusted Service Fulfillment Ratio for each calendar month for their internal
reporting purposes. All Service Fulfillment Ratios used in this Offering Memorandum refer to the internal,
adjusted Service Fulfillment Ratios calculated by Alsacia and Express. For a more complete description of
the Service Fulfillment Ratio, see The ConcessionsConcession RevenueRevenue Formulas and
BusinessOverviewThe Concessions.

57
 RISK FACTORS

The following risks could affect our business, results of operations and financial condition and, as a
result, the Notes and our ability to fulfill our obligations under the Notes. You should consider carefully all the
information contained in this Offering Memorandum, including the risk factors set forth below, before deciding
to invest in the Notes. You should note that the risks described below may not be the only risks to which we are
exposed. There may be other risks that are not presently known to us or that we do not presently consider to be
material that could affect our ability to fulfill our obligations under the Notes.

Risks Relating to the Escrow and the Initial Temporary Issuer

The initial issuance of the Notes is by a special purpose vehicle, whose assets will be limited to initial issuance
price of, and certain interest payment under, the Notes.

The Notes are initially being issued by the Initial Temporary Issuer, which is a special purpose vehicle
that will place the proceeds thereof in an escrow for a period lasting up to March 3, 2011. On or prior to
February 28, 2011, Alsacia and Express are expected to enter into arrangements to repay certain indebtedness
currently held by various international and Chilean banks, after which the Initial Temporary Issuer will be
combined with and into Alsacia and the escrowed funds will be used to, among other things, repay such third
party indebtedness. See The Escrow and Use of Proceeds. Although the Initial Temporary Issuer has been
established to be a bankruptcy remote entity, the existence of the Initial Temporary Issuer and the various
transactions that have been designed to combine the Initial Temporary Issuer into Alsacia and have Alsacia and
the Guarantors become obligors in respect of the Notes, involve a number of actions that are substantially more
complicated than would otherwise be the case if the Notes were issued by Alsacia.

In addition, the only assets of the Initial Temporary Issuer will be the amounts deposited in escrow
consisting of the net proceeds from the offering of the Notes, plus cash amounts deposited by Alsacia, among
other things, to ensure at the date the escrow if established there are sufficient funds, in addition to the net
proceeds from the offering of the Notes, to repay (i) the full issuance price of the Notes, (ii) interest at the stated
rate for 15 calendar days and (iii) all other amounts then due on the Notes, including any additional amounts in
respect of taxes or otherwise. If, for whatever reason, the transactions contemplated in this Offering
Memorandum are not consummated, there will be no other assets to collect any additional claims or recourse
against any other person than the Initial Temporary Issuer.

The repayment by us of Existing Indebtedness is required to obtain releases of collateral to be pledged to

holders of Notes as described herein.

The Notes are to be secured by various types of collateral as described herein. See Description of Notes
and Finance Agreements. Certain of these types of collateral, including terminals, buses and the shares issued
by Alsacia and Express, are currently pledged to the holders of Existing Indebtedness that we intend to repay in
connection with the issuance of the Notes. It is a condition to the effectiveness of the release of the escrow
described herein and the Notes becoming obligations of Alsacia and the Guarantors that the releases be filed
publicly in Chile, and in some cases it will be necessary subsequent thereto to file documentation with various
public officials to remove the pledges and the banks as secured parties therefor, a process that can take several
months. While Alsacia and Express have obtained advice of counsel that the agreements to release any such
collateral will be binding and effective against all parties, implementation of such releases and updating of the
public records in order to register the collateral to secure the Notes could result in significant delays in giving
effect to the same. During any such period, the Secured Party Agents could experience difficulties in enforcing
any pledge, mortgage or security interest on any affected type of collateral as a result of the foregoing.

58
If the conditions to the Escrow Closing Date are not met by the Escrow Termination Date, then the Notes shall
be accelerated and repaid without any premium thereon.

If, for any reason, the Acquisition and the Escrow Closing Date are not consummated on or prior to
February 28, 2011, then on the Escrow Termination Date, (i) the Escrow shall be terminated; (ii) the Notes shall
without any action required be deemed to have been redeemed by the Initial Temporary Issuer; (iii) funds on
deposit shall be used by the Escrow Agent to repay the initial issuance price of the Notes together with interest
thereon at the stated rate from and including the date of issuance through and excluding the Escrow Termination
Date; and (iv) the Initial Temporary Issuer shall thereafter be liquidated and Alsacia shall be liable, to the extent
required under applicable law, for any filing fees, liquidation fees, taxes or other amounts due and owing to any
British Virgin Islands, Chilean or other governmental authority as a result thereof. In such an event, there will be
no premium paid to redeem the Notes.

We are dependent on third parties to meet the conditions to the Escrow Closing Date, including our Existing
Lenders who may have competing interests from us and who are outside or our control.

One of the conditions to the Escrow Closing Date is that we negotiate and agree upon prepayment fees,
penalties and termination payments with our Existing Lenders relating to the early payment of our Existing
Indebtedness. These Existing Lenders have conflicts of interest with us, and may not agree to accept prepayment
fees, penalties and termination payments on reasonable terms, if at all. They may also extend their negotiations of
these amounts beyond the Escrow Termination Date. In such an event, the Notes will be repaid without any
premium.

The bankruptcy or insolvency of Alsacia or any Guarantor while the Escrow is in place could delay or reduce
payments on the Notes from the Escrow.

As described herein, the Initial Temporary Issuer is a special purpose company formed in 2011 under
the laws of Chile, independent of Alsacia or the Guarantors. However, it was established to facilitate a
transaction in which Alsacia and the Guarantors are participants. As a result, a court could disregard, or a creditor
of Alsacia could seek to disregard, the independence of the Initial Temporary Issuer or the Escrow structure in
the event that Alsacia or any other Guarantors became involved in bankruptcy, insolvency or similar proceedings.
In that case, the Initial Temporary Issuer or the Escrow (and funds contained therein) could be consolidated with
Alsacia for financial reporting or other purposes in the bankruptcy, insolvency or other proceedings, which could
reduce or delay payments on the Notes from the Escrow.

Alsacia and/or the Guarantors could take actions, or fail to take actions, during the Escrow period that would
be prohibited or required by the Indenture after the Escrow Closing Date.

Only the Initial Temporary Issuer will be subject to the Indenture and the terms of the Notes during the
pendency of Escrow. Only at the Escrow Closing Date will Alsacia and the Guarantors be bound by the Indenture
and be subject to the Notes. Prior to that time and during the pendency of the Escrow, Alsacia and the Guarantors
could take actions, or fail to take actions, that would have been prohibited or required by the Indenture had it
been in effect from and after the initial issuance of the Notes.

Inasmuch as many of the Indentures terms cannot be implemented until it is effective against Alsacia
and the Guarantors, such as the collateral arrangements, it will not be possible for Alsacia and the Guarantors to
certify at the time the Escrow is released that they have been in compliance with the Indenture as if it had been in
effect from the initial issuance of the Notes.

59
Risks Relating to Our Business

Alsacia and Express have limited operating histories.

Alsacia and Express both began operation in 2005 and have had limited operating histories. As a result,
we are subject to many of the risks common to new enterprises, including potential undercapitalization, cash
shortages and limitations with respect to personnel, financial and other resources. We may not have the financial,
technical and other resources to operate profitably, or at all, in the future.

We may not achieve the expected benefits from the joint operation of Alsacia and Express, and the Acquisition
and joint operation of Alsacia and Express could disrupt our operations and/or be unsuccessful.

Organizational, union-related, market, supplier, planning and/or other issues may prevent us from
obtaining all of the expected benefits from the joint operation of Alsacia and Express, including the synergies
discussed herein. See BusinessOur Business Strategy for a discussion of expected synergies. Some joint
operating benefits may require the prior approval of various authorities or the amendment of certain contracts and
we cannot assure that these approvals or contract amendments will be obtained. In addition, upon completion of
the Acquisition, we may be subject to unknown liabilities that could have a material adverse effect on us, our
assets and our business.

Alsacia and its affiliates must pay significant transaction-related expenses in connection with the
Acquisition, including substantial legal, accounting and financial advisory fees and other similar expenses.
Moreover, our day-to-day operations may be disrupted due to the substantial time and effort our management
must devote to completing the Acquisition and implementing the joint operation of Alsacia and Express.

For these reasons and potentially others, the Acquisition, as well as the acquisition of additional
businesses in the future as and to the extent permitted under the Transaction Documents, may be unsuccessful
and the integration of our existing businesses and any additional businesses (which implies the use of our
executives and of our resources) may disrupt our operations.

The Acquisition Agreement for Express contains provisions that limit the recourse of Alsacia and the holders
of the Notes to Express and the sellers of Express under the Acquisition Agreement. Prior to the Acquisition,
we will not have control of the operations, assets or liabilities of Eco Uno or Express.

The Acquisition Agreement for Express includes provisions that the sellers shall not be held responsible
in any way, directly or indirectly, for any statements, omissions, or misrepresentations made in connection with
this offering and acknowledges that the sellers have not participated in or approved any aspect of this offering.
After the closing of the Acquisition, we will not have any recourse to the sellers under the Acquisition
Agreement for any breach of representation or warranty or otherwise.

Although we have a shareholders agreement and board representation at Express, until the
consummation of the Acquisition, we will not have day-to-day operational control over Eco Uno or Express or
their assets, liabilities or actions. Until the Acquisition is consummated with the proceeds of this offering when
released from escrow, the Notes will not be guaranteed by Express and there will be no recourse to Express. GPS
Group has agreed to indemnify members of Grupo Transportador for claims against them arising out of this
offering or relating to the time period prior to the consummation of the Acquisition Agreement.

Passenger revenue and volume depend on factors beyond our control.

Our revenue depends in part on the number of passengers we transport. Our revenue also depends on the
number of passengers transported by Transantiago as a whole. Several factors determine the volume of
passengers that will use our buses, as well as Transantiago as a whole, in the future, many of which are beyond
our control. Some of these factors include demographic changes, Chilean Government macroeconomic policies,

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prevailing economic conditions in Chile, fare rates (including the amount and frequency of fare increases),
taxation, inflation, interest rates, fuel prices, infrastructure development (including the quality, proximity and use
of alternative methods of transportation), social stability and other factors prevalent in the Santiago metropolitan
area and in Chile as a whole.

In addition to the factors listed above, an increase in the accessibility or convenience of private
transportation could reduce the number of passengers that use our buses and Transantiago generally. For
example, a change in fuel taxes, vehicle importation taxes, auto loans, transportation infrastructure, toll roads or
parking policies could decrease the number of passengers who choose to use our buses.

For the above reasons, the number of passengers traveling on our buses or on Transantiago in general
may decrease, or may not remain stable or increase, and any reduction in the level of passengers on our buses or
on Transantiago in general may have an adverse effect on us and our affiliates.

We may need to seek additional capital in the future.

Ongoing repair and maintenance of our buses and facilities will require substantial capital. If our plans
or assumptions change, if our assumptions prove to be inaccurate, or if we experience unanticipated costs or
competitive pressures, we may be required to seek additional capital. The Notes restrict the terms upon which we
may incur additional debt. We may not be able to raise any necessary additional capital on satisfactory terms, if
at all. If we decide to raise additional funds through the incurrence of debt, we may become subject to additional
or more restrictive financial covenants and our interest obligations will increase. If we are unable to obtain
additional capital or to obtain it on acceptable terms, we may be unable to meet our obligations under the
Concession Agreements, which could lead to termination of the Concession Agreements.

We have entered into certain transactions with related parties that may potentially create conflicts of interest.

We have entered into transactions with related parties described in Related Party Transactions and
may continue to do so in the future. Although we believe the terms of these transactions are consistent with
market transactions with unaffiliated parties, our relationships with the counterparties to these transactions could
potentially create conflicts of interest.

The financial statements of Express and Alsacia may be restated in the future based on the settlement of their
related party dispute.

The consolidated financial statements of Express and Alsacia which have been included in this offering
memorandum are subject to potential adjustments relating to the net balance of accounts payable to Alsacia
relating to items under dispute mainly arising from expenses incurred in prior years on account of Express in
relation to the joint operations of Express and Alsacia performed up to August 2006. The analysis of the different
items which make up this related party accounts payable, and the determination of which adjustments are to be
recorded, in order to properly recognize in the financial statements the effect of expenses jointly incurred during
2005 and 2006, are still pending. As a result of this dispute, the consolidated financial statements of Express as of
and for the years ended December 31, 2007, 2008 and 2009 received a qualified audit opinion, and the interim
consolidated financial statements of Express as of and for the nine months ended September 30, 2009 and 2010
received a qualified review opinion from PricewaterhouseCoopers Consultores, Auditores y Compaa Limitada,
Expresss independent accountants. See Note 5 to the consolidated financial statements of Express as of and for
the years ended December 31, 2008 and 2009 and Note 6 to the interim consolidated financial statements of
Express as of and for the nine months ended September 30, 2009 and 2010.

On October 12, 2010, Alsacia sold its rights in connection with certain of these receivables from
Express, which have a book value estimated by Alsacia of between U.S.$4.4 million and U.S.$5.0 million, to
GPS International of Panam (Chile) S.A. (GPS International), a company under common control with Alsacia
by GPS Group. In connection with the purchase of these rights, GPS International agreed to pay Alsacia
U.S.$50,000, plus one percent of any amount recovered from Express.

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 Upon the completion of the Acquisition, Grupo Transportador will no longer own any equity interest in
Express and Express and Alsacia will come under common control of the Principal Shareholder. At that time, we
expect the Principal Shareholder will cause Alsacia and Express to settle their dispute relating to their accounts
payable balances. However, the effect of any settlement on the financial statements and tax position of Express
and Alsacia have not yet been determined. Any such determination could have an adverse effect on our results of
operations, tax liability or financial position.

We are dependent on certain outsourced services provided by third parties, and failure to properly manage
these relationships could adversely impact our results of operations.

We are dependent on third-party providers for certain planning, service fulfillment, control and
operational information management, which we outsource to Citymovil and BIG Services SpA. Although we
have contracts with these providers, we have no assurance that business interruptions will not occur or that these
third parties will meet the needs of our business. If we are unable to properly manage the relationships with these
third-party providers, our revenue and income may be adversely affected. Similarly, if our third-party providers
do not comply with their contractual obligations or do not perform their services to our advantage, our operations
may be harmed causing our revenue and results of operations to be adversely impacted.

We have no effective means to ensure that these third parties will continue to perform these services to
our satisfaction, in a manner satisfactory to us or the Ministry, or on commercially reasonable terms. We could
become dissatisfied with the service providers or their cost levels and refuse to utilize them in the future. If a
service provider is not able to provide the agreed services at the level of quality we require, we may not be able
to replace such service provider on short notice, which may have a material adverse effect on our business.

Our business could suffer as a result of current or future litigation.

We are and/or may in the future be subject to various legal proceedings, including claims involving
arbitration. Under Chilean law, disputes with the Chilean Government, including the enforcement of any
indemnification obligations, must be resolved by ordinary Chilean courts, which generally require a long time to
reach resolutions. We may face litigation arising from a number of sources, including road accidents, general
damages, wrongful death claims, personal injury claims and/or labor disputes. It is inherently difficult to assess
the outcome of litigation matters, and we may not prevail in any litigation. Any litigation could result in
substantial costs and diversion of our efforts, which by itself could have a material adverse effect on our financial
condition and operating results. Further, adverse determinations in litigation could result in loss of our assets or
subject us to significant liabilities to third parties.

We provide a broadly used public service that is subject to intense public scrutiny, especially in the case of
disruption.

The majority of people in the Santiago metropolitan area use public transportation as their primary
means of transportation. As a result, the Santiago public depends on public transportation providers, including
Alsacia and Express, for consistent, uninterrupted service, and the activities of these public transportation
providers are under constant and intense public scrutiny. Due to this scrutiny, any disruption in our services,
regardless of the cause, may create negative public sentiment toward us and therefore could have an adverse
effect on us beyond that caused directly by the disruption.

Labor problems and catastrophic events beyond our control may affect our operations.

The operation of business could be disrupted by labor disputes or by catastrophic events such as floods,
earthquakes, fires in our bus terminals or other similar events that could damage or destroy our buses and other
assets, or a material portion thereof, all of which could significantly reduce our revenue or significantly increase
the expense of operating, maintaining or restoring buses. Any insurance we have is subject to customary
deductible and coverage limits. Accordingly, any insurance proceeds, together with any other available funds,

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may not be sufficient to provide for the repair or replacement of any damaged or destroyed assets, and our
insurance may not remain on commercially reasonable terms or at all. Although we maintain business
interruption insurance, operational interruptions could adversely affect our revenue from operation or even result
in termination of the Concessions.

Although the major earthquake of 2010 in Chile did not materially impact Santiago or our operations,
future earthquakes or other natural disasters or conditions could negatively affect our operations.

Potential changes in labor legislation may increase our labor expenses.

The Chilean Ministries of Labor, Finance and Treasury are currently considering changes to the
statutory obligations related to employee severance payments. Existing Chilean law requires employers to make
severance payments to employees who (i) have worked for longer than one year under an open-term employment
contract and (ii) are terminated for corporate needs, which essentially equates to downsizing due to
modernization, reductions in productivity or changes in market or economic conditions. The proposed changes,
which are still under discussion and have not yet been drafted into a bill, would require severance payments
regardless of the length of employment or the cause of termination.

In addition, the Chilean Senates Labor Commission is currently considering an amendment to the legal
definition of Company for the purposes of labor regulations. The proposed amendment would group holding
entities and related company groups together with employer companies in the context of collective labor rights,
including rights related to the formation of unions and collective bargaining, as well as individual labor rights,
including the calculation of employer revenue for the purposes of bonus or gratification payment obligations.

If adopted, each of these changes could increase our labor expenses and have an adverse effect on our
results of operations.

Expansion of the Metro subway could negatively affect us by reducing the number of passengers who use our
buses.

To the extent our bus routes overlap with the Metro subway lines, we may compete with the Metro for
passengers. Therefore, expansion of the Metro subway in the areas we service may decrease the number of
passengers who use our buses. In response to any such decrease in passengers, the Ministry could redesign or
alter our routes and services, thereby changing the scheduled route distances and passenger capacity under our
Operating Plans. Because our revenue depends in part on the number of passengers who use our buses, as well as
our scheduled route distances and passenger capacity, the expansion of the Metro subway in the areas we service
could have an adverse effect on our results of operations.

In early 2010, Line 1 of the Metro subway was extended to the Los Dominicos station in eastern
Santiago. This extension encroached on the areas serviced by Express and decreased the number of passengers on
certain of Expresss routes. In addition, Line 5 of the Metro subway has been extended to the Plaza de Maip
station in southwestern Santiago, and extensions of Lines 3 and 6 of the Metro subway have recently been
announced. Each of these extensions is expected to encroach on areas serviced by both Alsacia and Express.

While our Concession Agreements give us the right to be compensated for reductions in our revenue
caused by the expansion of public transportation, and the Ministry has partially compensated us for the actual and
anticipated decreases in passengers caused by the extensions of Lines 1 and 5 by granting us five of the bus
routes formerly serviced by Trunk Line 3 (Troncal Tres) of Transantiago, the degree and timing of compensation
required by the Concession Agreements is unclear. As a result, we cannot assure you that any such compensation
by the Ministry will be adequate, complete or timely.

We are awaiting final approval of the required permits to operate some of our terminals.

Currently, partial or provisional authorizations have been issued for four of Alsacias five required bus
terminals (namely, Huechuraba, Renca, Puente Alto and Pealoln) and for all four of Expresss required bus

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terminals (namely, Pudahuel, Pajaritos, Maip and La Reina). For Alsacias Maip terminal, the authorizations
are currently pending. Partial or provisional authorizations do not meet the requirements of the Concession
Agreements, and, therefore, we could be fined up to UF 200 for every 30 days during which we operate without
final and full authorizations. Under Chilean law, such fines may be enforced for up to six months from the date
of the infraction. In addition to generating potential financial liability, the lack of permits could give the Ministry
the right to terminate the Concessions if we accumulate UF 6,000 in fines within a 12 month period.

As of the date of this Offering Memorandum, we have never been fined based on the lack of final and
full authorizations in connection with our terminals. Moreover, the amendments to our Concession Agreements,
dated March 5, 2010, include a provision that would make partial or provisional authorizations sufficient under
the Concession Agreements. Nevertheless, these amendments have not yet received the requisite approval and
are therefore not currently in force. See Risk FactorsRisks Relating to the ConcessionsThe most recent
amendment to the Concession Agreements has not yet received the necessary approval from the General
Comptroller of the Republic. and The ConcessionsMarch 2010 Concession Amendments.

Accidents and vandalism to our assets could affect us.

Our assets, including primarily our buses and bus terminals, play an integral part in our business. As
they travel throughout the Santiago metropolitan area, our buses may be damaged by accidents or vandalism.
Such accidents or vandalism may lead to downtime for affected buses and require us to repair any damages,
which may require cash expenditures given that many of these repairs may not be covered by our customary
insurance policies or may be subject to deductibles, all of which could adversely affect us.

Changes to certain liability laws or insurance cost increases could have a material adverse impact on us.

As an operator of buses, we are exposed to claims for personal injury or death and property damage as a
result of accidents. We currently maintain liability insurance within the standards required under applicable law
and the Concession Agreements. Chilean regulations require that each bus operating in Chile have minimum
third party liability insurance coverage and coverage for injuries suffered by our employees, including those
arising out of assault and other wrongdoings. In the fiscal year 2009, expenses relating to insurance accounted for
0.9% and 1.3% of Alsacias and Expresss operating expenses, respectively. The implementation of stricter laws
and regulations, or different or stricter interpretation of existing laws or regulations, may impose new liabilities
on us or require us to contract insurance at greater expense.

The amount of our insurance coverage may need to be increased, bus insurers may reduce their coverage
or increase their premiums significantly, and we may be forced to bear substantial losses from accidents that
exceed our coverage.

Our liability insurance may be insufficient to cover a judgment against us in a claim for personal injury or
death.

Damages in claims for personal injury or death are not subject to statutory caps in Chile. As a result, a
judgment against us for a claim of personal injury or death may exceed the coverage of our liability insurance
and could subject us to substantial, or even catastrophic, financial liability.

Our taxes paid to the Chilean Government could increase.

We pay the general income tax of 17%, which is applicable to all corporations. As part of the measures
taken by the Chilean Government to deal with effects caused by the earthquake, which took place in February
2010, a legislative bill was recently passed that temporarily increased this tax rate for the years 2011 and 2012 to
20% and 18.5%, respectively. These temporary tax increases adversely affect us, as could any additional tax
increases in the future.

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We are required to change our accounting standards from Chilean GAAP to IFRS and, as a result, some of
our financial statements will not be easily comparable from period to period.

Pursuant to the terms of our Concession Agreements and current SVS regulations, we must adopt IFRS
accounting standards, as adopted by the International Accounting Standards Board, for the period beginning
January 1, 2011. Currently we prepare our financial statements in Chilean pesos in accordance with Chilean
GAAP, as required by Chilean regulations. We expect that out results reported under IFRS will be in Chilean
pesos. IFRS differs in certain significant respects from Chilean GAAP. See Appendix A for a description of the
principal differences between Chilean GAAP and IFRS as they relate to us and our consolidated subsidiaries. The
lack of comparability of our financial statements for future periods may make it difficult to gain a full and
accurate understanding of our operations and financial position.

Risks Relating to the Concessions

Transantiago has experienced serious problems in the past and continues to experience problems that could
threaten the long-term viability of the system.

A series of problems with the planning, design and implementation of Transantiago initially led to long
passenger delays, a lack of sufficient routes and buses, overcrowding of bus stops and the Metro subway and
failings of the passenger payments system. These factors, as well as the Chilean Governments failure to
effectively communicate with the public regarding changes in routes and the system in general, led to a poor
initial reception of Transantiago. In addition, Transantiago has run at a financial deficit since its implementation
due to, among other things, initially underpriced fares, unsubsidized student discounts and systemic passenger
fare evasion. While many of the systems original problems have been resolved or mitigated, Transantiago
continues to run at a significant deficit and public approval remains relatively low. To the extent they are not
offset by Chilean Government subsidies or other funding, Transantiagos deficits have a direct negative impact
on our revenue, and low public approval of Transantiago could lead to legislative changes that alter our rights
under the Concession Agreements and/or modify the transportation system as a whole, either of which could also
adversely affect us.

Our revenue under the Concession Agreements is limited to funds received by the AFT.

Our Concession Agreements contain revenue formulas that are used by the AFT to calculate our revenue
on a monthly basis. However, our right to payment under the Concession Agreements is limited to the funds
received by the AFT and held for the benefit of the Transantiago bus concessionaires. In the case of shortfalls
between the amount due under our Concession Agreements and the amount held for payment to us by the AFT,
we are limited to the amount held by the AFT and have no recourse to recover any deficiency. See The
ConcessionsAFT PaymentsFlow of Funds and Payment Priority.

Transantiago relies on a subsidy from the Chilean Government.

Since 2007, a significant portion of Transantiagos revenue, and consequently our revenue, has been
subsidized by the Chilean Government through supplemental payments to the AFT, which, in turn, are paid to us
and the other bus concessionaires. Subsidy payments made by the Chilean Government to Transantiago totaled
Ch$151,960 million from June through December of 2007, Ch$361,092 million in 2008, Ch$359,172 million in
2009 and Ch$255,339 million for the nine months ended September 30, 2010, which comprised 42%, 50%, 49%
and 45% of the total costs to support Transantiago during those respective periods. Without these subsidies, the
cash flows into the AFT from passenger fares alone would be insufficient to pay all amounts owed to us under
our Concession Agreements.

In September 2009, the Chilean Government passed Law No. 20,378, which created a subsidy to correct
the operating deficit in Transantiago. Under this law, the Chilean Government is authorized to pay up to
Ch$115,000 million per year into Transantiago to cover any shortfalls. In addition, from 2010 to 2014, in the

65
event of annual shortfalls exceeding Ch$115,000 million, the Chilean Government is authorized to pay an
additional subsidy of up to a total over the five years of Ch$549,598 million, with each year having a different
cap amount. In addition, in November 2010, the Chilean Government passed Law No. 20,468, which amends
Law No. 20,378 to increase the available subsidy for Transantiago from 2011 through 2014, adding an additional
Ch$61,997 million for each of the years 2011 through 2013 and an additional Ch$30,998 million for 2014.
Nevertheless, while these laws set forth the parameters of future subsidies to Transantiago, the Chilean Congress
must still approve the inclusion of the subsidies in its annual budget each year.

Apart from Laws Number 20,378 and 20,468, we have no legal right or title to subsidies in the future.
The fact that the Chilean Government has subsidized Transantiago in the past does not mean it will do so in the
future, and even the current subsidies under Laws Number 20,378 and 20,468 could be amended or revoked by
the Chilean Congress.

The most recent amendment to the Concession Agreements has not received the necessary approval from the
General Comptroller of the Republic.

The March 5, 2010 amendments to the Concession Agreements have been agreed upon and approved by
us and the Ministry. However, the consent given by the Ministry is subject to legal review by the General
Comptroller of the Republic of Chile (the General Comptroller of the Republic) and, therefore, it is not
enforceable until such approval is received. Despite the over 10 months that have passed since we and the
Ministry executed the March 5, 2010 amendments, the General Comptroller of the Republic has not yet approved
these amendments and we have not received any indication regarding a timetable for the General Comptrollers
review or approval. The General Comptroller of the Republic has the authority to object to the Ministrys
approval if the Ministry did not meet all of the legal requirements governing the decision. If the General
Comptroller of the Republic objects to the amendment, the amendment cannot be enforced until it is corrected in
accordance with the instructions of the General Comptroller of the Republic and we would not receive the
benefits provided by such amendment. In addition, the terms of a corrected amendment may be substantially
different than the terms of the current amendment, and any such differences could negatively affect our future
revenue.

The Chilean Government regulates the price of Transantiago passenger fares.

We do not control the ultimate pricing of our services to passengers. Transantiago passenger fares are
regulated and periodically set by a panel of experts (Panel de Expertos) appointed by the Ministry. The panel of
experts most recently changed the price of Transantiago passenger fares on January 14, 2011, increasing the
basic bus fare from Ch$500 to Ch$520. This increase and any future fare increases may reduce the number of
passengers that travel on our buses. In addition, an increase in fare prices may increase the percentage of evasion,
or riding without validation, on our buses. For these reasons, our inability to regulate our prices could adversely
affect us.

The Ministry has the authority to make certain changes to the services we provide and the measurement of our
performance under the Concession Agreements, and a change in the leadership of the Ministry makes it more
difficult for us to predict how the Ministry will exercise its authority in the future.

The Concession Agreements authorize the Ministry to unilaterally make certain changes to the services
we provide under the Concession Agreements, and the recent appointment of a new Minister of Transportation
and Telecommunications, Pedro Pablo Errzuriz, on January 16, 2011 makes it more difficult for us to predict
how the Ministry will exercise its discretionary authority in the future. Although we are entitled to compensation
under the Concession Agreements for such changes, the compensation may be insufficient to offset increased
costs. The Ministry may, among other things:

modify the permitted passenger capacities and frequency of our bus services;

temporarily modify operating schedules by requiring additional daily services;

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 require additional bus departures under certain circumstances;

modify the bus routes of the trunk lines by changing or eliminating existing routes within the
assigned trunk lines, or, in exceptional circumstances, creating additional routes outside of the
assigned trunk lines; and/or

require us to use certain types of buses within our fleet for specific routes.

In addition, pursuant to Article 3 of Law No. 20,378, the Ministry has regulatory authority to modify the
calculation of our performance under the Concession Agreements, specifically with respect to the Service
Fulfillment Ratio, which directly affects our revenue. In December 2010, the Ministry modified the calculation of
the Service Fulfillment Ratio, which calculates performance for each half hour of bus service, to eliminate the
offsetting of deficient performance during a half-hour period on any route with excessive performance at other
times or on other routes. This modification has made and may continue to make the Service Fulfillment Ratio a
more stringent measure of performance, and it, as well as any future modifications by the Ministry, may have a
negative effect on our revenue if we are unable to adjust our performance accordingly.

Changes to the legal framework of Transantiago, including changes to the authority of the Chilean
Government to terminate the Concession Agreements, could reduce or eliminate our rights under the
Concession Agreements.

Currently, there is a bill before the Chilean Congress that is intended to modify and improve the legal
framework of public transportation subject to concessions, including Transantiago. Among the proposed
modifications applicable to Transantiago are the following: a general increase in the Ministrys surveillance
powers in connection with the concessionaires performance; an increase in the Chilean Governments powers in
connection with the concessionaires agreements with the Ministry, particularly in terms of their unilateral
modification; the establishment and regulation of bankruptcy as grounds for the termination of concessions; and
the implementation of grounds and methods of appointing a provisional administrator of any concessionaire in
order to assure the continuity of service.

The bill also provides that the Ministry may unilaterally terminate the Concession Agreements for a
period of three years following the date of the proposed laws publication in the Official Gazette of Chile. While
the bill acknowledges that such termination would be an expropriation requiring compensation by the Chilean
Government, any such compensation may be insufficient to offset the loss of our Concessions. The Chilean
Senate approved this bill on January 11, 2011 and forwarded it to the House of Representatives for further
review.

Our business relies on certain Chilean Government-managed services and infrastructure that may not be
available as expected.

Our future financial performance will depend on the performance of the obligations under the
Concession Agreements by the Ministry and other participants in Transantiago that are responsible for
infrastructure improvements intended to maximize the use of the bus fleets. Specifically we are relying on:

a support system for fleet management that controls buses and monitors traffic to be put into place
in the coming years;

the gradual completion of infrastructure improvements in Santiago by 2013 including dedicated bus
lanes and bus stops; and

the provision, by the Ministry, of a system for the effective prosecution of fare evasion by
passengers.

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We are subject to a wide range of governmental regulation and we cannot predict how the specific regulations
governing our business will be applied.

We are subject to a wide range of national, provincial and municipal regulation, as well as supervision
generally applicable to companies engaged in business in Chile, including laws and regulations pertaining to
taxation, labor, social security, public health, consumer protection, competition, and the environment. With
respect to the environment, we are specifically subject to laws and regulations regarding emissions from our
buses, the handling of diesel fuel and the cleanup of fuel spills. In addition, although we are not a publicly held
company, the Concession Agreements require our subjection to the rules applicable to Chilean publicly held
corporations (sociedades annimas abiertas) and the oversight of and specific regulations issued by the SVS,
including the obligation to provide regular information to the SVS regarding our business.

Many of the laws, regulations and instruments that regulate our business were adopted or became
effective during the last five years. Therefore, there is only a limited history that would allow us to predict the
impact of these legal requirements on our operations. In addition, although Chilean law sets forth ranges of
sanctions that might be imposed should we fail to comply with the terms of the Concession Agreements, Chilean
transportation regulations, or any other applicable law, we cannot predict the actual sanctions that are likely to be
assessed for a given violation. We may encounter difficulties in complying with these laws, regulations and
instruments. Moreover, the laws and regulations governing our business, or the interpretation or application of
such laws and regulations, may change in the future.

The existing laws and regulations, or stricter laws and regulations in the future, or different or stricter
interpretation of existing laws or regulations, may require us to make material expenditures or impose new
liabilities on us, thereby having an adverse effect on us and affecting our ability to meet our obligations under the
Notes.

Our Concession Agreements expire on October 22, 2018 and may not be extended without the consent of the
Ministry.

The term of our Concession Agreements is scheduled to expire on October 22, 2018, subject to an
extension of up to 18 months, as determined under the terms of the Concession Agreements, if expected revenue,
as defined in the Concession Agreements (Valor Actualizado de los Ingresos Esperados), is not achieved. Such
an extension would require an amendment of the Concession Agreements and would be subject to legal review
before the General Comptroller of the Republic. Without the approval of the General Comptroller of the Republic
for such an amendment, our Concessions would end.

The Concession Agreements can be terminated prior to expiration by the Chilean Government in certain
circumstances.

Our principal asset is our contractual right under the Concession Agreements to operate two of the five
main trunk lines of Transantiago, which together run across the 10 zones in Santiago. The Chilean Government
may unilaterally terminate the Concessions prior to expiration in certain circumstances under the Concession
Agreements, including, among others, poor performance by us relative to predetermined performance objectives,
default under our performance bonds, accumulation of more than UF 6,000 in fines paid in a period of 12
months, or submission of inaccurate records when such action affects the economic or operating conditions of the
Concession. In the case of the termination of the Concession Agreements as a result of our default under the
terms of such agreements and the expiration of any applicable notice and cure periods, we would be obligated to
continue operating under the Concessions at the discretion of the Ministry for up to 18 months, during which
period we would be compensated under the terms of the Concession Agreements and the performance bonds
granted by us pursuant to the Bidding Guidelines would remain unexecuted. However, thereafter, we would not
be entitled to compensation from the Chilean Government or otherwise, other than payment for our buses,
terminals and equipment by any successor concessionaire, and the performance bonds granted by us pursuant to

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the Bidding Guidelines would be executed as matter of liquidated damages. For a discussion of the performance
bonds required by the Bidding Guidelines, see The ConcessionsPerformance Bonds. Because under these
circumstances we would no longer receive revenue, we would be unable to meet our payment obligations under
the Notes.

The Ministry has the power to apply discounts and fines to our payments if we fail to fully perform under the
Concession Agreements.

The Ministry is authorized to apply discounts and/or fines to our payments under the Concession
Agreements and/or the subsidy if we fail to fully perform under the Concession Agreements and related
Operating Plans. Any discounts and/or fines imposed on us by the Ministry could adversely affect us and affect
our ability to meet our obligations under the Notes. The Concession Agreements allow the Ministry to make
discounts for the portion the Service Fulfillment Ratio, which measures our performance under the Concession
Agreements, that is below 100%. The detailed methodology of calculation of the Service Fulfillment Ratio has
changed over time as the Ministry has improved its technological capacity to more accurately measure operators
service fulfillment, and the Ministry has the right to introduce additional changes in the future. Although we have
been able to adapt to measurement changes in the Service Fulfillment Ratio in the past, we may be unable to
adapt to future changes, and such changes could negatively affect our financial performance. See The
ConcessionsConcession RevenueRevenue Formulas historical Service Fulfillment Ratios and a description
of how the Service Fulfillment Ratio applies to our revenue.

The Concession Agreements also provide for discounts related to other two service quality indices, the
ICF and the ICR, for which our revenue is regularly discounted. In addition, the Ministry may impose fines on us
under the Concession Agreements for other service quality tests, such as bus cleanliness. The number and
amount of such discounts and fines imposed on us could increase in the future, and any such increase could
adversely affect us.

Our business is subject to seasonal fluctuations.

The Chilean urban bus transportation industry is seasonal in nature and generally follows the pattern of
commercial activity as a whole in Chile, with peaks during the months of October and November, and lower
activity during the summer months of January and February and on holidays, most notably Chilean Independence
Day in September. Therefore, an event that adversely affects ridership during any of these peak periods could
have a material adverse effect on us. The day of the week on which certain holidays occur, the length of certain
holiday periods, and the date on which certain holidays occur within a fiscal quarter will also affect our quarterly
results of operations and the comparison of our quarterly results.

Risks Relating to Chile

Our growth and profitability depend on political and economic stability in Chile.

All of our revenue is derived from our operations in Chile. Accordingly, our results of operations and
general financial condition depend in part on Chilean markets for labor and certain materials and equipment, and
on factors relating to Chilean political and economic stability generally. Future developments in or affecting
Chiles political or economic stability, including economic or political instability in other emerging markets, may
result in material and adverse effects on our business, financial condition or results of operations and in the
market value of the Notes. Our financial condition and results of operations could also be affected by regulatory
changes in administrative practices, changes in economic or other policies of the Chilean Government or other
political or economic developments in or affecting Chile, over which we have no control.

Our business performance is subject to changes in the value of the Chilean peso.

Substantially all of our revenue and operating expenses have been denominated in Chilean pesos, except
for our existing debt, most of which is denominated in U.S. dollars. Because of the denomination of our assets

69
and liabilities, historically, a decrease in the Chilean peso/U.S. dollar exchange rate resulted in foreign exchange
rate differences that were gains on our income statement. Conversely, increases in the exchange rate resulted in
foreign exchange rate differences that were losses on our income statement. We expect to repay our existing debt
referred to above with the proceeds of the Notes offered hereby, which will also be payable in U.S. dollars. In
conjunction with this offering, we intend to purchase certain call options on U.S. dollars, which will be designed
to hedge against future appreciation of the U.S. dollar against the Chilean peso. See discussion below under
Managements Discussion and Analysis of Financial Condition and Results of Operations for Alsacia and
ExpressQuantitative and Qualitative Disclosures About Market and Operating RisksExchange Rate Hedge.

In addition, our Concession revenue is adjusted based on changes in the Cost Index, which is a weighted
average of several macroeconomic indicators and commodity prices, including the Chilean peso/U.S. dollar exchange
rate, which comprises 11% and 2.2% of the Cost Index for Alsacia and Express, respectively. As a result, we expect
that changes in the Chilean peso/U.S. dollar exchange rate will cause our revenue to change in a similar proportion.

The Chilean peso/U.S. dollar exchange rate has been subject to significant fluctuations in the past and it
may continue to be subject to similar fluctuations in the future. In the three-year period ended December 31,
2010, the value of the Chilean peso relative to the U.S. dollar has fluctuated between a low of Ch$431 per
U.S.$1.00 and a high of Ch$677 per U.S.$1.00, based on Observed Exchange Rates. During the twelve months
ended December 31, 2010, the value of the Chilean peso relative to the U.S. dollar appreciated approximately
8.1%, in real terms. See Exchange Rates.

Our business performance is subject to the effects of inflation.

High levels of inflation or deflation in Chile could adversely affect the Chilean economy and have an
adverse effect on us. We were required under Chilean GAAP to restate non-monetary assets and liabilities,
Unidades de Fomento (a daily indexed Chilean peso-denominated monetary unit that takes into account the effect
of the Chilean inflation rate), foreign currency-denominated monetary assets and liabilities, shareholders equity
and income and expense accounts to reflect the effect of variations in the purchasing power of the Chilean peso
during each accounting period. Chilean peso-denominated monetary assets and liabilities were not restated
because they were presented at their purchasing power as of the date of the balance sheet. The net effect of the
increase or decrease in net purchasing power, calculated as described above, is included in our financial
statements under price-level restatements, which is included in net income.

Historically, substantially all of our revenue, expenses, assets and liabilities have been denominated in
Chilean pesos, other than our U.S. dollar denominated debt. As a result, inflation in the value of the Chilean peso
has generally resulted in price-level restatements that are gains on our income statement, while deflation in the
value of the Chilean peso has generally resulted in price-level restatements that are losses on our income
statement. Beginning on January 1, 2011, we will report our financial statements in accordance with IFRS rather
than Chilean GAAP. Under IFRS, we will no longer restate our financial statements to reflect variations in the
purchasing power of the Chilean peso and we will no longer recognize price-level restatements. See Appendix A
for a description of the principal differences between Chilean GAAP and IFRS as they relate to us and our
consolidated subsidiaries.

Although we will no longer recognize these variations in our financial statements, inflation or deflation
of the Chilean peso will have a real impact on the purchasing power of our net assets. Chile has experienced high
levels of inflation in the past, which could materially and adversely affect the Chilean economy or our business if
continued in the future. The rate of inflation as measured by changes in the official consumer price index is
reported by the INE. Inflation for 2007 and 2008 were 7.8% and 7.1%, respectively. In 2009, Chile experienced
deflation of 1.4%. Accumulated inflation for the first nine months of 2010 was 2.2%.

Our Concession revenue formulas are also partially dependent on the level of inflation or deflation in
Chile. The cost indices applied to the revenue formulas of Alsacia and Express are based 18% and 27%,
respectively, on changes in the level of inflation or deflation in the Chilean peso. As a result, our revenue and
overall performance could be affected by inflation of the Chilean peso.

70
Chile has corporate disclosure and accounting standards that differ from what holders may be familiar within
the United States.

The accounting, financial reporting and securities disclosure requirements in Chile differ from those in
the United States. Accordingly, the information about us available to you will not be the same as the information
available to investors in a U.S. company. Pursuant to the terms of our Concession Agreements, we are required to
report our consolidated financial statements in accordance with IFRS for the fiscal year beginning January 1,
2011 and subsequent fiscal years thereafter. See Appendix A for a description of the principal differences
between Chilean GAAP and IFRS as they relate to us and our consolidated subsidiaries

The securities laws of Chile have as a principal objective promoting disclosure of all material corporate
information to the public. Chilean disclosure requirements, however, differ from those in the United States in
some important respects. In addition, although Chilean law imposes restrictions on insider trading and price
manipulation, applicable Chilean laws are different from those in the United States and in certain respects the
Chilean securities markets are not as highly regulated and supervised as the U.S. securities markets.

Risks Relating to the Notes after the Escrow Closing Date

We may not be able to generate sufficient cash flows to meet our debt service obligations, and our high level of
indebtedness could adversely affect our financial condition and impair our ability to fulfill our obligations
under the Notes.

We are highly leveraged and have virtually no equity. Our ability to make payments on our
indebtedness, including the Notes, to fund the Accounts and to fund planned capital expenditures will depend on
our ability to generate cash from our operations in the future. This, to a certain extent, is subject to general
economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. Our
business may not generate sufficient cash flows from operations and future sources of financing may not be
available to us in an amount sufficient to enable us to pay our indebtedness, including the Notes, or to fund our
other liquidity needs. Upon completion of this offering, Alsacia and Express will have Ch$224,414 million and
Ch$95,600 of indebtedness, respectively, on an as adjusted basis as of September 30, 2011, and during the first
year following this offering, we do not expect to have excess cash flows available to pay any unanticipated
obligations. See Capitalization.

Our level of indebtedness may have important negative effects on our future operations, including:

impairing our ability to obtain additional financing in the future (or to obtain financing on
acceptable terms) for working capital, capital expenditures, acquisitions or other general corporate
purposes or to repurchase the Notes from you upon a change of control;

making it difficult for us to refinance or restructure our indebtedness on commercially reasonable

terms, or at all;

requiring us to dedicate a substantial portion of our cash flow to the payment of principal and
interest on our indebtedness, which reduces the availability of our cash flow to fund working
capital, capital expenditures, acquisitions and other general corporate purposes;

increasing the possibility of an event of default under the financial and operating covenants
contained in our debt instruments; and

limiting our ability to adjust to rapidly changing market conditions, reducing our ability to
withstand competitive pressures and making us more vulnerable to a downturn in general economic
conditions or our business than our competitors with less debt.

71
 If we are unable to generate sufficient cash flow from operations in the future to service our debt, we
may be required to refinance all or a portion of our debt, including the Notes, or to obtain additional financing.
However, refinancing may not be possible and any additional financing may not be obtainable. If we cannot
service our indebtedness, we may have to take actions such as selling assets, seeking additional equity or
reducing or delaying capital expenditures and investments. We may not be able to take these actions, if
necessary, on commercially reasonable terms, or at all. In these circumstances, and due to our high levels of
indebtedness, there may not be interested acquirers for the pledged shares upon foreclosure.

We and the Guarantors may incur more debt, which could exacerbate the risks associated with our
indebtedness.

Although the Indenture governing the Notes contains restrictions on the incurrence of additional senior,
unsubordinated debt, these restrictions are subject to a number of qualifications and exceptions, and the
indebtedness incurred in compliance with these restrictions could be substantial. Also, these restrictions do not
prevent us or the Guarantors from incurring obligations that do not constitute debt as defined in the Indenture.
If new debt is added to the current indebtedness levels, the related risks that we now face could intensify.

We will make all determinations and calculations under the Indenture and there will be no third independent
party to review or verify them.

Pursuant to the Indenture, there will be no third party engineer to confirm the calculations made by us or
to analyze and check the estimations required thereunder. For example, we are required to prepare different
budgets relating to O&M Costs, Overhaul Costs and CAPEX Costs and furnish a copy thereof to the Trustee and
the holders of Notes. However, no third independent party will analyze the estimations and forecasts used by us
in the preparation thereof. In addition, we are required to calculate certain forward looking DSCR ratios to incur
Senior Indebtedness and make Restricted Payments, which will not be verified by a third independent party.
Therefore, such calculations, estimates and forecasts will lack a third independent party verification.

Certain funds will not be required to be deposited in the Revenue Account and/or will not be subject to the
order of priority set forth in the Indenture.

We will cause to be deposited directly into the Revenue Account all amounts that we are entitled to
receive under, in connection with or pursuant to the Operating Agreements or ancillary agreements related
thereto and, in any event, shall immediately deposit in the Revenue Account any funds we shall receive from the
AFT in respect of the Concessions. However, certain funds will not be required to be deposited in the Revenue
Account and/or will not be subject to the order of priority set forth in the Indenture. For example, cash proceeds
from any Debt permitted to be incurred under the Indenture in connection with Vendor Financings will be
applied to purchase buses for the Bus Network and Permitted Investments funded with Subordinated
Indebtedness incurred by the Issuer or any Guarantor as contemplated in clause (g) of the definition of
Permitted Investments will be applied as set forth therein. See Description of Notes and Finance
AgreementsTreatment of FundsDeposits of Funds to and Distribution of Funds from the Revenue Account.
Since these and other funds will not be required to be deposited in the Revenue Account and/or will not be
subject to the order of priority set forth in the Indenture, there could be less funds available to repay the Notes or
make designated payments under the Indenture.

Restrictive covenants in the Indenture governing the Notes may restrict the manner in which we can operate
our business.

The Indenture governing the Notes requires us and our subsidiaries to meet certain financial ratios and
tests and contains covenants limiting, among other things, our ability and the ability of certain of our restricted
subsidiaries to:

incur additional senior, pari passu or subordinated indebtedness;

72
 pay dividends on our capital stock or redeem, repurchase or retire our capital stock or subordinated
indebtedness;

make restricted payments;

guarantee debts;

create liens;

create any consensual limitation on the ability of our restricted subsidiaries to pay dividends, make
loans or transfers property to us;

engage in sale-leaseback transactions;

engage in transactions with affiliates;

sell assets, including capital stock of our subsidiaries; and

consolidate, merge or transfer assets.

These restrictions could impair our ability to respond to certain business opportunities or to make
certain investments. See Description of Notes and Finance AgreementsNegative Covenants of the Issuer and
the Guarantors. Instruments governing any other debt that we may obtain will likely also contain affirmative
and negative covenants.

The instruments governing our debt, including the Notes offered hereby, contain cross-default provisions that
may cause all of the debt issued under those instruments to become immediately due and payable as a result of
a default under an unrelated debt instrument.

Our failure to comply with the obligations contained in the indenture or other instruments governing our
indebtedness or to obtain certain waivers could result in an event of default under the applicable instrument,
which could result in the related debt and the debt issued under other instruments becoming immediately due and
payable. In that event, we would need to raise funds from alternative sources, which may not be available to us
on favorable terms, on a timely basis or at all. Alternatively, a default could require us to sell our assets and
otherwise curtail operations in order to pay our creditors.

We may not have the ability to repurchase the Notes upon a change of control as required by the indenture.

Upon the occurrence of a change of control (as defined in the indenture), we will be required to offer
to purchase all outstanding Notes at 101% of their principal amount plus accrued and unpaid interest and
Additional Interest, if any, to the date of repurchase. We may not have sufficient funds to repurchase all of the
Notes. In addition, we may be prohibited by future debt facilities from repurchasing any of the Notes unless the
lenders thereunder consent to the repurchase. Our failure to repurchase the Notes would be a default under the
indenture governing the Notes. A default under the indenture could result in an event of default under our other
indebtedness if the default relates to a payment default or the holders of the Notes were to accelerate the debt
under our Notes. If the foregoing occurs, we may not have enough assets or liquidity to satisfy all obligations
under the indenture governing the Notes and any other indebtedness that is accelerated.

Upon the occurrence of a termination event or occurrence of any expropriatory action, the Notes will be
redeemed.

Upon the occurrence of a Termination Event or any Expropriatory Action, to the extent of the
Expropriation Compensation received, we will be required to redeem the Notes prior to maturity, in whole or, to

73
the extent of available funds, in part, at an amount equal to the principal amount of such Notes, plus interest on
such principal amount accrued through the redemption date, plus Additional Amounts, if any, payable in respect
of such Notes. Upon such a redemption, you may not be able to reinvest the proceeds from the redemption in an
investment that yields comparable returns. Moreover, you may suffer a loss on your investment if you purchase
the Notes at a price greater than the redemption amount of the Notes. See Description of Notes and Finance
AgreementsRedemptionMandatory Redemption.

The Notes are denominated in U.S. Dollars, while payments received under the Concessions denominated in
Chilean pesos, which could expose us to foreign currency risks.

We will be exposed to fluctuation and volatility in the Chilean peso/U.S. dollar exchange rate because
our payment obligations under the Notes will be denominated in U.S. dollars while our receipts under the
Concession Agreements will be denominated in Chilean pesos. Our service of U.S. dollar denominated debt is
partially protected from exchange rate fluctuation by the revenue formula contained in the Concession
Agreements, which adjusts our Concession revenues based in part on the Chilean peso/U.S. dollar exchange rate,
as described under Managements Discussion and Analysis of Financial Condition and Results of Operations for
Alsacia and ExpressQuantitative and Qualitative Disclosures About Market and Operating RisksMarket and
Operating Risks and The ConcessionsConcession RevenueRevenue Formulas.

As an additional mitigant, on the Escrow Closing Date, Alsacia expects to enter into the Capped Call
Options described under Managements Discussion and Analysis of Financial Condition and Results of
Operations for Alsacia and ExpressQuantitative and Qualitative Disclosures About Market and Operating
RisksExchange Rate Hedge. However, the Capped Call Options will not provide a complete hedge against
Chilean peso/U.S. dollar exchange rate fluctuations, and could fail to provide us with sufficient protection in the
event of large movements in the Chilean peso/U.S. dollar exchange rate. If the Chilean peso/U.S. dollar exchange
rate is less than the strike price of the options, the Capped Call Options will provide no protection from
fluctuation in the exchange rate until it exceeds the strike price. If the Chilean peso/U.S. dollar exchange rate
exceeds the cap rate of the Capped Call Options, then the payments received by Alsacia under the Capped Call
Options would be insufficient to protect us completely from fluctuations in the Chilean peso/U.S. dollar
exchange rate. If the Hedge Counterparty under the Capped Call Options fails to meet its payment obligations
thereunder in a timely manner or at all, then we may have insufficient funds to make payments due under the
Notes in a timely manner or at all. Accordingly, the Capped Call Options will not fully protect us from any
adverse effects of fluctuation and volatility in Chilean peso/U.S. dollar exchange rate, which historically has
experienced periods of significant volatility.

If we fail to make timely payments of amounts due under the Capped Call Options (subject to any
applicable grace period), or if any other event of default or termination event occurs thereunder, the Capped Call
Options may be terminated. There are a number of other circumstances in which the Capped Call Options may
terminate. Further, Hedge Counterparty is only obliged to make payments to Alsacia under the Capped Call Options
as long as and to the extent that Alsacia complies with its obligations (subject to any applicable grace periods) under
the Capped Call Options (and no other event of default or termination event under the Capped Call Options has
occurred and is continuing with respect to us). If either (i) the Capped Call Options terminate, (ii) the Hedge
Counterparty is not obliged to make payments under the Capped Call Option or (iii) the Hedge Counterparty
defaults in its obligations to make payments of amounts in U.S. dollars equal to the full amount to be paid to Alsacia
on each payment date under the Capped Call Option, we will have greater exposure to changes in the Chilean Peso/
U.S. dollar exchange rate. Following the termination of the Capped Call Options, unless a replacement hedging
transaction is entered into, Alsacia may have insufficient funds to make payments under the Notes.

If the Capped Call Options terminate, there can be no assurance that Alsacia will be able to find a
replacement hedge provider which has sufficiently high ratings as may be required by any of the Rating Agencies
and which agrees to enter into a replacement hedge arrangement. Consequently, we will be fully exposed to
fluctuations in the Chilean peso/U.S. dollar exchange rate and our ability to make payments under the Notes may
be adversely affected.

74
We may not be able to make payments in U.S. dollars.

Under current Chilean laws and Chilean Central Bank regulations, international bond issuances are no
longer required to be registered with the Chilean Central Bank and, therefore, we will not have guaranteed access
to the Formal Exchange Market for payment of interest and principal on the Notes in U.S. dollars. However, we
are permitted to purchase U.S. dollars or use any U.S. dollar reserves we may have to make payments of interest
and principal on the Notes. While the Chilean Government does not currently restrict the ability of Chilean or
foreign persons or entities to convert Chilean pesos to foreign currencies, or to U.S. dollars in particular, it could
do so in the future. Any restrictive exchange control policy could prevent or restrict our access to U.S. dollars to
meet our U.S. dollar obligations and could also have a material adverse effect on us. We cannot predict the
impact of any such restrictive measures on the Chilean economy.

The Notes are a new issue of securities for which there is currently no public market and you may be unable
to sell your Notes if a trading market for the Notes does not develop.

The Notes have not been and will not be registered with the SEC and are being offered and sold only to
qualified institutional buyers within the meaning of Rule 144A under the Securities Act and in offshore
transactions to persons other than U.S. persons pursuant to Regulation S under the Securities Act. The Notes will
constitute a new issue of securities with no established trading market and will be subject to the restrictions on
transfer described under Notice to Investors. In addition, the Notes have not been registered with the SVS and
may not be offered or sold publicly, or otherwise be the subject of brokerage activities in Chile. We have applied
to list the Notes on the Official List of the Luxembourg Stock Exchange and to trade on the Euro MTF market of
the Luxembourg Stock Exchange. However, there is a possibility that the application may not be accepted and an
active trading market for the Notes may not develop or be sustained. If a trading market does not develop or is
not maintained, the value of the Notes may be adversely affected and holders of the Notes may experience
difficulty in reselling the Notes or may be unable to sell them at all.

The liquidity of any market for the Notes will depend on the number of holders of the Notes, the interest
of securities dealers in making a market in the Notes, prevailing interest rates, our operating results, prospects for
other companies in our industry, the market for similar securities, risks associated with Chilean issuers of similar
securities and other factors. If an active trading market does not develop, the market price and liquidity of the
Notes may be adversely affected. If the Notes are traded, they may trade at a discount from their initial offering
price depending upon prevailing interest rates, the market for similar securities, general economic conditions, our
performance and business prospects and other factors.

The Notes are subject to certain transfer restrictions.

The Notes are being offered in reliance upon an exemption from registration under the Securities Act.
Therefore, the Notes may be transferred or resold only in a transaction registered under or exempt from the
registration requirements of the Securities Act and in compliance with any other applicable securities law. See
Transfer Restrictions.

We may form subsidiaries which will not guarantee the Notes, and claims under the Notes will be structurally
subordinated to claims of creditors of such subsidiaries.

Under the Indenture governing the Notes and subject to certain limitations, we can form subsidiaries
with equity or Subordinated Debt proceeds as a Permitted Investment, which subsidiaries will not guarantee the
Notes. Such subsidiaries may be granted concessions by the Chilean Government or carry out services in
connection with our concessions, and their operations may be subject to substantial risks. In the event of a
bankruptcy, liquidation or reorganization of any of such subsidiaries, holders of their indebtedness and their trade
creditors will generally be entitled to payment of their claims from the assets of those subsidiaries before any
assets are made available for distribution to us.

75
The market valuation of the Notes may be exposed to substantial volatility and may be affected by
developments in emerging markets other than Chile.

A real or perceived economic downturn or higher interest rates could cause a decline in the trading value
of the Notes, and of debt instruments generally, and thereby negatively impact the market for debt instruments,
and more specifically, the Notes. Because the Notes may be thinly traded, it may be more difficult to sell and
accurately value the Notes. In addition, as has been evident of late in the recent turmoil in the global financial
markets, the present economic slowdown and the uncertainty over its breadth, depth and duration, the entire bond
market can experience sudden and sharp price swings, which could be exacerbated by large or sustained sales by
major investors in the Notes, a high-profile default by another issuer, movements in indices tied to debt securities
or other related securities or investments, or simply a change in the markets perspective regarding debt
securities. Moreover, if one of the major rating agencies lowers our credit rating or the rating for the Notes, the
market price of the Notes will likely decline.

In addition, the market value of securities of other Chilean companies has, to varying degrees, been
affected by economic and market conditions in other Latin American countries and emerging market economies
in other parts of the world. Although economic conditions in those countries may differ significantly from
economic conditions in Chile, investors reactions to developments in any of these other countries may have a
material adverse effect on the market value of the Notes.

The obligations under the Notes will be subordinated to certain statutory liabilities.

Under Chilean bankruptcy law, the obligations under the Notes are subordinated to certain statutory
preferences. In the event of liquidation, the statutory preferences, including claims for salaries, wages, secured
obligations, social security, taxes and court fees and expenses, will have preference over any other claims,
including claims by any investor with respect to the Notes.

Holders of Notes may find it difficult to enforce civil liabilities against us or our directors, officers and
controlling persons.

We are organized under the laws of Chile and our principal place of business (domicilio social) is in
Santiago, Chile. Most of our directors, officers and controlling persons reside outside the United States. In
addition, all or a substantial portion of our assets are located outside the United States. As a result, it may be
difficult for holders of Notes to effect service of process within the United States on those persons or to enforce
judgments against them, including in any action based on civil liabilities under the U.S. federal securities laws.
Based on the opinion of our Chilean counsel, there is doubt as to the enforceability against those persons in
Chile, whether in original actions or in actions to enforce judgments of U.S. courts, of liabilities based solely on
the U.S. federal securities laws. See Enforcement of Civil Liabilities.

Payments of interest or premium, if any, under the Notes by the Issuer are subject to withholding taxes and
may also be subject to certain additional tax in Chile.

Under current Chilean law and regulations, payments of interest or premium, if any, to holders of the
Notes that are not residents of Chile for purposes of Chilean taxation generally will be subject to a Chilean
withholding tax at a rate of 4.0%. Subject to certain exceptions, we will pay Additional Amounts so that the
amount received by the holder after the Chilean withholding tax will equal the amount that would have been
received if the withholding taxes had not been applicable.

The interest or premium, if any, paid on the Notes may also be subject to a special additional tax in
Chile equal to the difference between the withholding tax paid and a 35% tax rate to the extent paid on the
portion of our indebtedness considered to be excessive. Our indebtedness will be considered to be excessive
when in the commercial year in which the Notes are issued we have an indebtedness with entities related to us
qualifying for the 4% withholding tax rate that exceeds three times our net worth, as calculated for Chilean tax

76
purposes. Based on advice from our tax advisor, we believe that the lender or creditor with respect to the Notes
for this purpose is the holder of record of the Global Note, and as a result, the interest or premium paid on the
Notes should not be subject to this special additional tax. However, since there have been no rulings on the issue,
there is no assurance that the taxing authorities would agree with our position. If our position is successfully
challenged by taxing authorities, payments in respect of the Notes could become subject to the special additional
tax described above, which could have a materially adverse impact on our ability to make payments under the
Notes.

If certain changes to tax law were to occur, we would have the option to redeem the Notes.

The Notes are redeemable at our option in whole (but not in part), at any time at the principal amount
thereof plus accrued and unpaid interest and any Additional Amounts due thereon if, as a result of changes in the
laws or regulations after the date of this prospectus affecting Chilean taxation, we become obligated to pay
Additional Amounts with respect to interest on the Notes such that the total rate of withholding or deduction
applicable on such Notes is in excess of 4.0%. We are unable to determine whether an increase in the
withholding tax rate will ultimately be presented to or enacted by the Chilean Congress. See Description of
Notes and Finance AgreementsRedemptionRedemption Solely for Tax Reasons.

Our equityholder may take actions that conflict with your interests.

Upon completion of the Escrow Closing Date, the sole equityholder of Alsacia will be GPS Group. At
that time, GPS Group will have the right to designate members of Alsacias board of directors and/or its officers.
See BusinessOur HistoryRestructuring, Management and Principal Shareholders. Our board of
directors has the authority, subject to the terms of our debt, to issue additional indebtedness or equity, implement
equity repurchase programs, declare dividends and make other such decisions about our equity.

In addition, the interests of GPS Group could conflict with your interests. For example, if we encounter
financial difficulties or are unable to pay our debts as they mature, the interests of GPS Group might conflict with
your interests as a holder of the Notes. GPS Group may also have an interest in pursuing acquisitions,
divestitures, financings or other transactions that, in its judgment, could enhance its equity investments, even
though such transactions might involve risks to you, as holders of the Notes.

Credit ratings may not reflect all risks, are not recommendations to buy or hold securities and may be subject
to revision, suspension or withdrawal at any time.

One or more independent credit rating agencies may assign credit ratings to the Notes. The ratings may
not reflect the potential impact of all risks related to structure, market, additional factors discussed above and
other factors that may affect the value of the Notes. A credit rating is not a recommendation to buy, sell or hold
securities and may be revised or withdrawn by the rating agency at any time. Changes in credit ratings issued by
nationally recognized statistical rating organizations could adversely affect us and have an adverse effect on the
market price of the Notes.

Risks Relating to the Collateral

Impediments exist to any foreclosure on the collateral, which may adversely affect the proceeds of any
foreclosure.

Substantially all of the documents that create liens on the collateral for the benefit of the Notes which
we refer to as the Collateral Documents, will be governed by the laws of Chile, and substantially all of the
collateral is located in Chile. Any foreclosure would therefore be required to comply with Chilean legal and
procedural requirements, which require that foreclosure only be permitted upon receipt of a judicial order and
carried out by public auction before the same court, and differ substantially from those in the United States. In
particular, Chilean law does not allow for self-executing mechanisms or expedited foreclosure proceedings with

77
respect to these types of liens. Any proceeding against the collateral in Chile would be required to be initiated in
a Chilean court, and could involve significant delays. In order to foreclose the collateral as a consequence of an
event of default under the Indenture, a Chilean court will require a final and conclusive judgment for the payment
of money rendered from a U.S. court and the courts of Chile will enforce such final and conclusive foreign
judgment for the payment of money rendered by the U.S. court referred to above in accordance with the
exequatur procedure contemplated for the enforcement of foreign judgments (including, among other things, the
issuance of letters rogatory) in the Chilean Civil Procedure Code without any retrial or re-examination of the
merits of the original action. We may also have available to us defenses under Chilean law not available under
U.S. law to any foreclosure proceeding. In addition, foreclosure proceedings would need to be brought under
U.S. law with respect to certain of the collateral. These delays could result in a deterioration of the collateral and
a decrease in the value that would otherwise be realizable upon foreclosure. During this period, the cash proceeds
from any sales of assets that we are not required to hold in a segregated account with the trustee, if any, may
become commingled with our other cash assets and therefore not be identifiable.

Although we have agreed as described herein to cause perfection of certain mortgages and pledges
within 30 days after the merger of the SPV into Alsacia and the Notes being operational as against Alsacia and
the Guarantors, there can be no assurance that the registration and publication of such pledges and mortgages will
be properly or timely made. In particular, mortgages on real property will be perfected and enforceable against
third parties only after the mortgages are registered in the applicable public registries of property and pledges
over the buses will be perfected and enforceable against third parties only after registration of the pledge in the
Registro de Prenda sin Desplazamiento and the Motorized Vehicle Registry.

With respect to moneys held in accounts maintained in Chile by Chilean banks, on the merger date and
each time that the AFT deposits funds in the Revenue Account and on any other date funds in excess of U.S.$1.0
million are deposited in any Chilean Account (other than the Transaction Checking Accounts), the Chilean
Collateral Agent will create and perfect a money pledge. The time periods for registration and publication vary
between public registries, and we can provide no assurance as to our ability to perfect first-priority security
interests on our and the Guarantors real property, buses and other assets. In the absence of such registration, the
liens on such collateral in Chile would not be enforceable against third parties.

In addition, please be aware that Article 445 No. 17 of the Chilean Civil Procedure Code sets forth that
the assets that are part of a service that may not be stopped without harming the transit or the public hygiene
cannot be seized or attached. Therefore this provision affects assets that are part of the Collateral, such as buses
and terminals. However, they may be pledged or mortgaged since it is authorized to seize or attach the money
that they produce (i.e. any insurance indemnity).

A bankruptcy may limit the ability of the collateral agent to realize value from the collateral.

The right of the trustee to foreclose on the collateral upon the occurrence of an event of default under
the Indenture is likely to be significantly impaired by applicable bankruptcy law if a bankruptcy proceeding were
to be commenced by or against us before the trustee could foreclose on the collateral.

Under Chilean bankruptcy law (Ley de Quiebras), the trustee may be prevented from foreclosing or
selling all or any part of the collateral prior to our liquidation. Under Chilean bankruptcy law, the bankruptcy
declaration of the mortgagor or pledgor does not suspend the right of the mortgagee or pledgee to separately
foreclose the collateral before the bankruptcy court. However, the mortgagee or pledgee must guarantee, to the
satisfaction of the receiver (sndico), payment to statutorily preferred creditors, in case the proceeds obtained
from the sale of non-encumbered assets are not sufficient to make full payment of their credits. Under Chilean
law, Statutory Priorities are claims in Chile for: (i) withholding taxes or similar charges, (ii) employee benefits
and social security contributions, (iii) judicial expenses incurred for the benefit of creditors generally and other
bankruptcy expenses, and (iv) other preferences which are of similar nature. Each security interest created under
Chilean law shall be in all aspects superior in right to any other liens (except for Statutory Priorities) and
enforceable against the grantor and third parties, any receiver and any attaching creditor or third party, provided

78
however, that under Chilean bankruptcy law, a secured creditor is barred from foreclosing in, among others, the
following special circumstances during a bankruptcy proceeding: (w) creditors holding at least two thirds of
outstanding claims with right to vote decide that the debtor in bankruptcy should continue carrying on business, a
secured creditor which voted for the continuation of the business (continuacin del giro) would be barred from
foreclosing on the assets securing its credit if contemplated in the business continuation; (x) if creditors holding
more than one half of the outstanding claims decide that all or a portion of the assets of the debtor in bankruptcy
shall be sold as an economic unit (enajenacin como unidad econmica) and such unit encompasses assets
covered by a mortgage, pledge or another security interest, a secured creditor cannot separately foreclose thereon.
Instead, such secured creditor would have a first priority claim against the proceeds of the sale of the assets
concerned (subject to the Statutory Priorities); (y) if creditors holding more than 50% of the outstanding claims
support a proposal for the reorganization of the business of the debtor concerned, secured creditors would be
barred from foreclosing for a period of 90 days from the date on which the order of the bankruptcy court
summoning all creditors to a creditors meeting to discuss the proposal is notified; and (z) if a secured creditor
votes in a creditors meeting approving any type of compositions (convenio judiciales).

In addition, significant uncertainties are inherent in a Chilean bankruptcy proceeding that may result in
further delays that could adversely impact the value of the collateral. Delays in proceedings, the inadequacy of
available remedies and the inability of the receiver to exercise available remedies could result in a substantial
deterioration of the collateral during the pendency of any such proceeding.

Similar and additional factors may limit the ability of the collateral agent to realize value from the
collateral under applicable U.S. federal bankruptcy law.

The value of the collateral securing the Notes may not be sufficient to satisfy our obligations under the Notes.

Except for statutory priorities, the Notes will be secured by first-priority liens on the collateral (as
defined under Description of Notes and Finance AgreementsCollateral), some of which will be in place at
the time Alsacia acquires the shares of the Initial Temporary Issuer and the Notes being operational as against
Alsacia and the Guarantors and some of which will be created and perfected thereafter. In the event of a
foreclosure on the collateral, we would be required to pay certain fees and other amounts prior to distribution of
any amount with respect to the Notes and the other obligations secured by the collateral, which amounts would
then be shared on a pro rata basis among the Notes and such other secured obligations. In addition, certain other
permitted liens may exist on the collateral which may have priority over the liens securing the Notes. The amount
that would be distributed in respect of the Notes upon any foreclosure or otherwise, or that would arise from the
proceeds from the sale of the collateral may not be sufficient to satisfy our obligations under the Notes.

The value of the collateral and any amount to be received at foreclosure will depend upon many factors
including, among others, the condition of the collateral, changes in our industry, the ability to sell the collateral in
an orderly sale, the availability of buyers, the flexibility given by the Chilean courts to sell the collateral, our
ability to create and perfect first-priority liens on our existing and future real estate or other existing and future
collateral after the closing of this offering, the condition of the Chilean and U.S. economies and exchange rates.
No appraisal of any of the collateral has been prepared by us or on our behalf in connection with the offering and
sale of the Notes or is expected to be prepared while the Notes are outstanding. Given our competitive position in
the Chilean market, there may not be any buyer willing and able to purchase a significant portion of our assets in
the event of foreclosure.

In addition, since we are not pledging all of our assets, it may not be possible to sell our business as a
going concern upon foreclosure. The collateral consists of a substantial majority, but not all, of our tangible
assets (including permits necessary to conduct our business); in particular, certain of our transportation and other
equipment and our accounts receivable do not form part of the collateral or they had been granted collateral
under loan agreements. Furthermore, the Concessions, our principal assets, are pledged as collateral, but may not
be effectively sold or foreclosed because transfer of the Concessions require the prior consent of the Ministry. In
light of the fact that the collateral is closely related to assets that are not pledged as collateral, or pledged but

79
requiring consent for transfer, the ability of the trustee to sell the collateral as a going concern may be limited.
Each of the factors described above could reduce the likelihood of a foreclosure as well as reduce the amount of
any proceeds in the event of foreclosure and thus the amount of cash available to holders of the Notes.

The value of the collateral may decrease because of obsolescence, impairment or certain casualty events.

The value of the collateral may be adversely affected by obsolescence, changes in the technology in our
industry, other changes in equipment or certain casualty events. Although we will be obligated under the
Collateral Documents to maintain insurance with respect to the collateral, the proceeds of such insurance may not
be sufficient to repurchase adequate replacement collateral or will equal the fair market value of the damaged
collateral. Our insurance policies also do not cover all events that may result in damage to the collateral.
Additionally, we may not be required under the Collateral Documents to purchase any title insurance insuring the
trustees lien on the collateral. A loss arising from a title defect with respect to the collateral may adversely affect
the value of the collateral.

After-acquired property may not be subject to the security interest securing the Notes.

Applicable laws require that certain property and rights acquired after the grant of a general security
interest can only be perfected at the time the property and rights are acquired and identified. The trustee and
collateral trustee may not monitor the future acquisition of property and rights that constitute collateral, and
necessary action may not be taken to properly perfect the security interest in such after-acquired collateral. The
collateral trustee has no obligation to monitor the acquisition of additional property or rights that constitute
collateral or the perfection of any security interest in favor of the Notes against third parties. Such failure may
result in the loss of the security interest therein or the priority of the security interest in favor of the Notes against
third parties.

The interest of the holders of Notes in certain collateral securing the Notes may have to be shared under
certain circumstances and the imposition of certain permitted liens will dilute the value of such assets as
collateral for the Notes.

The collateral securing the Notes will also secure our obligations under the Notes Hedge Agreements.
The Indenture will also permit us to incur additional debt up to the applicable maximum debt threshold amounts
pursuant to the Indenture that may be secured by a first priority lien on the collateral securing the Notes to the
extent permitted by the Indenture and the applicable security documents. Any additional debt secured by the
collateral pursuant to the Indenture would dilute the value of the rights the holders of the Notes have in the
collateral.

In addition, the Indenture permits liens in favor of third parties to secure purchase money indebtedness
and capital lease obligations, subject to certain limitations, among other permitted liens, and any assets subject to
such liens will be automatically excluded from the collateral securing the Notes. See Description of Notes and
Finance AgreementsCollateral. If an event of default occurs and the Notes are accelerated, the Notes and the
Guarantees will rank equally with other unsubordinated and unsecured indebtedness of the relevant entity with
respect to such excluded property.

There are circumstances other than repayment or discharge of the Notes under which the collateral securing
the Notes will be released automatically, without your consent or the consent of the collateral trustee.

The Issuer and the Guarantors will be entitled to the release of property and other assets constituting
Collateral for the Liens securing the Notes and the Note Guarantees under any one or more of the circumstances
described under the heading Description of Notes and Finance AgreementsCollateral Trust Agreement
Release of Liens on Collateral under the Collateral Trust Agreement and Description of Notes and Finance
AgreementsCollateral Trust AgreementRelease of Liens in Respect of Notes and Notes Hedge Agreements
under the Indenture and the Collateral Trust Agreement.

80
 If any Collateral is released before the Notes are repaid or discharged, it could adversely effect your
ability to be repaid under the Notes.

You may be limited in your ability to influence the exercise of rights and remedies under the security
documents.

Under the terms of the Collateral Trust Agreement, the Secured Party Agents will act only upon the
direction of the holders of more than 50% of the sum of : (i) the aggregate outstanding principal amount (or in
the case of the Notes and the Notes Hedge Agreement considered together, the Voting Balances thereof) of the
Notes, the Notes Hedge Agreement and any other secured Senior Indebtedness incurred in accordance with the
Indenture (including outstanding letters of credit whether or not then available or drawn), the holders of which
have acceded to the collateral trust agreement. Therefore, the holders of the Notes may be unable to influence the
exercise of rights and remedies under the security documents.

We have significant obligations after the closing of this offering related to the creation and perfection of
security interests in our assets and addition of insurance beneficiaries for the benefit of the Notes.

Certain security interests will not be in place by the issue date of the Notes or will not be perfected on
the issue date of the Notes. We have agreed to create and perfect non-possessory pledges on the buses of Alsacia
and Express within 30 days after the acquisition of the Initial Temporary Issuer by Alsacia and the Notes being
operational as against Alsacia and the Guarantors. We have also agreed to create mortgages on all of our and the
Guarantors real property within 30 days after the acquisition of the Initial Temporary Issuer by Alsacia and the
Notes being operational as against Alsacia and the Guarantors and to use our reasonable best efforts to perfect
such mortgages within such 30-day period. In order to be perfected and enforceable against third parties, the
non-possessory pledges on the buses in Chile will require registration of the pledge deed in the Registro de
Prenda sin Desplazamiento and the Motorized Vehicle Registry; and the mortgages on real property will require
registration in the public registry of property in Chile where the real property is located. In addition, the pledges
over the Operating Agreements require (i) the appearance of the counterparty of Alsacia and Express in each of
those agreements in the pledge deed, (ii) the judicial notification of each counterparty or (iii) acceptance by each
counterparty. In order to perfect the pledge over the Concessions, the Ministry must be judicially notified
regarding the creation of the pledge. Security interests and other types of transactions entered into before filing
for bankruptcy are subject to judicial review and they may be declared void or voidable if they were executed to
harm creditor of the debtor.

We have also agreed to appoint the U.S. Collateral Agent or the Chilean Collateral Agent, as applicable,
as additional insured and beneficiary (beneficiario) under the insurance policies of (and for the benefit of) the
Concessionaires (and by Panamerican and Eco Uno in the event that either of them carries any insurance). These
appointments may occur after the Escrow Closing Date due to administrative delays. Until such appointments are
effective, holders of Notes will not be fully protected from losses otherwise covered by our insurance.

81
 USE OF PROCEEDS

The Initial Temporary Issuer will place the proceeds from this offering, together with approximately
U.S.$2.0 million (the Alsacia Escrow Deposit), representing an amount equal to interest on the Notes to and
excluding March 3, 2011 and the related Additional Amounts, in escrow pending consummation of the Escrow
Closing Date. In the event the Closing Conditions cannot be met, the Escrow may be terminated prior to
February 28, 2011 by giving notice to the Noteholders, at which time the Escrowed Amounts shall be paid to the
Noteholders three business days thereafter (the Escrow Redemption Date). If no notice is given and the Closing
Conditions shall have not been satisfied on or prior to February 28, 2011, the Escrow Redemption Date shall be
March 3, 2011. If the Escrow Redemption Date occurs, then the Escrowed Amounts shall be paid to the
Noteholders on a pro rata basis based on the principal amount of Notes held by such Noteholders in an amount
equal to the initial purchase price therefor together with interest at the stated rate therefor from and including the
date of initial issuance and through and excluding the date of any such redemption.

If the Acquisition and the Escrow Closing Date are consummated, we estimate that the net proceeds
from the offering and sale of the Notes will be approximately U.S.$448 million after deduction of discounts and
expenses associated with the offering. In addition, the Transactions (and in particular the Reserve Account
securing the Notes) will be funded in part with U.S.$12.0 million of net proceeds from the Bus Terminal Loan to
Alsacia from Banco Internacional in Santiago, Chile, as described below under Secured Subordinated Bus
Terminal Loan. Collectively, the gross proceeds from the offering of Notes and the Bus Terminal Loan will be
used to:

repay U.S.$148.3 million in existing debt owed by Alsacia, including principal, accrued interest and
any prepayment penalties, as described in Appendix B, which is net of $18.1 million in payment
reserves that Alsacia has paid on the existing debt that will be released upon its repayment;

repay U.S.$179.1 million in existing debt owed by Express, including principal, accrued interest
and any prepayment penalties, as described in Appendix C, which is net of $28.0 million in
payment reserves that Express has paid on the existing debt that will be released upon its
repayment;

pay U.S.$18.9 million to settle and terminate two U.S.$/Ch$ currency swap agreements held by
Express which are used to hedge currency risk relating to Express existing debt which will be
repaid above;

pay U.S.$0.6 million in other fees in connection with the early repayment of certain debt owed by
Alsacia and Express, as described in footnote 7 to Appendix B and footnote 5 to Appendix C.

make a U.S.$80 million intercompany loan to Panamerican to pay the purchase price to acquire the
55% of Express that is not currently owned by Alsacias affiliates and partially repay certain debt in
order to facilitate equity transfers related to the Acquisition, as described below under The
Acquisition;

pay Banco Internacional U.S.$0.5 million in fees and expenses relating to the Bus Terminal Loan;

fund U.S.$36.7 million into the Reserve Account, O&M Revenue Account and Overhaul Account,
as required in connection with the Notes as described under Description of Notes and Finance
AgreementsTreatment of Funds; and

pay other fees and expenses incurred in connection with the Transactions and the Acquisition,
including discounts, fees and expenses payable to the initial purchasers and their counsels.

If and to the extent any of the foregoing uses of proceeds is less than indicated above, we expect to use
the remaining proceeds for general corporate purposes. If the Escrow is released, Alsacia will be paid the Alsacia
Escrow Deposit and will repay any borrowings made to fund it.

82
The Acquisition

On February 3, 2011, the controlling shareholders of GPS Group entered into an agreement (the
Acquisition Agreement) with members of Grupo Transportador and other related persons and entities to
acquire the 55% of Express that is not currently beneficially owned by affiliates of Alsacia and to separate the
other business interests of GPS Group and Grupo Transportador. Pursuant to the Acquisition Agreement,
affiliates of GPS Group will pay an aggregate of U.S.$70.5 million in cash to members of Grupo Transportador
and their affiliates. We expect that the Acquisition will be completed upon the Escrow Release.

Pursuant to the terms of the Acquisition Agreement, GPS Group and its affiliates will acquire 100% of
outstanding shares of Eco Uno, which currently owns 99.998% of Express (Carlos Ros currently owns the
remaining 0.002% of Express). In order to effect the acquisition of Eco Uno, the following transactions will be
carried out pursuant to the Acquisition Agreement:

(i) Panamerican, through its Chilean branch, will pay U.S.$27,000,000 to Express del Futuro S.A., a
company that will be wholly owned by members of Grupo Transportador following the
Acquisition, to acquire all of the shares of Eco Uno currently owned by Express del Futuro S.A.,
which constitute 60% of the total outstanding shares of Eco Uno;

(ii) Panamerican and other affiliates of GPS Group will pay all taxes associated with the
U.S.$27,000,000 payment to Express del Futuro S.A. described above, which we currently estimate
will total U.S.$2,274,182;

(iii) Panamerican will pay U.S.$26,850,000 to Grupo Transportador S.A., a member of Grupo
Transportador, to acquire 100% of the shares of Ferroaluminios Limitada Panam S.A., which
currently owns 10% of the total outstanding shares of Eco Uno, as well as other assets; and

(iv) Panamerican will pay U.S.$3,000,000 to Santa Ana Corporacin Humanitaria S.A., a member of
Grupo Transportador, to acquire 100% of the shares of Ursus Corporation Inc., which currently
owns 2.0% of the total outstanding shares of Eco Uno, as well as other assets.

GPS Group currently owns 100% of (i) Alsacia, which owns 16% of the outstanding shares of Eco Uno
and (ii) EDTM Konsultores E.U., which, through its wholly owned Chilean branch, owns 11.7% of the total
outstanding shares of Eco Uno. Carlos Ros currently owns the remaining 0.3% of Eco Uno.

The following transactions will also be carried out pursuant to the Acquisition Agreement:

(i) Additional cash payments by Panamerican:

1. Panamerican will pay U.S.$330,000 to Bariloche International Corporation in order to cancel

an obligation assumed by affiliates of GPS Group to pay interest to Bariloche International
Corporation under a promissory note from Eco Uno; and

2. Panamerican will pay U.S.$11,020,500 to Bariloche International Corporation in order to

settle certain obligations of the controlling shareholders of GPS Group in connection with a
prior acquisition agreement, which was entered into, but never consummated, in October 2009
by the controlling shareholders of GPS Group and members of Grupo Transportador, who
subsequently assigned their interests therein to Bariloche International Corporation.

(ii) Transfer of assets by affiliates of GPS group:

1. Express del Futuro S.A. will pay 1,780 million Colombian pesos, less Colombian foreign
company withholding taxes of 249.2 million Colombian pesos, to TDC Group Corp., an
affiliate of GPS Group, to reacquire 445 shares of Express del Futuro S.A. currently owned by
TDC Group Corp., which represent 15.71% of the total outstanding shares of Express del
Futuro S.A.; and

83
 2. Express del Futuro S.A. will pay 1,464 million Colombian pesos to EDTM Konsultores E.U.
to reacquire 366 shares of Express del Futuro S.A. currently owned by EDTM Konsultores
E.U., which represent 12.92% of the total outstanding shares of Express del Futuro S.A.

In order to facilitate these transfers of shares of Express del Futuro S.A., Panamerican will pay
U.S.$7,885,000 to Carlos Ibarcena Valdivia, to partially cancel a debt owed by the Controlling Shareholders of
GPS Group and guaranteed by certain rights of TDC Group Corp. and EDTM Konsultores E.U. in connection
with their shares of Express del Futuro S.A. This transaction is not controlled by the Acquisition Agreement and
will be effected separately by Panamerican and Carlos Ibarcena Valdivia.

If and to the extent any of the foregoing payments relating to the Acquisition are less than indicated
above, we expect to use the remaining proceeds for general corporate purposes.

In addition to the transactions described above, other de minimis payments and transfers will be made
under the Acquisition Agreement in order to separate the business interests of GPS Group and Grupo
Transportador.

The Acquisition Agreement contains the following key features and provisions:

With the exception of Panamerican, none of the Issuer or Guarantors is party to the Acquisition
Agreement.

Panamericans obligations under the Acquisition Agreement are expressly terminated upon the
closing of the Acquisition.

The relevant parties have given representations and warranties regarding the ownership and
transferability of the shares to be transferred under the Acquisition Agreement.

From the date of the Acquisition Agreement until the closing of the Acquisition, the parties agree
not to authorize Express to acquire additional debt or make any payments outside the ordinary
course of business, except those expressly provided for as of the date of the Acquisition Agreement.

The Acquisition Agreement provides that the members of Grupo Transportador shall not be held
responsible in any way, directly or indirectly, for any statements, omissions, or
misrepresentations made in connection with this offering, and acknowledges that the members of
Grupo Transportador have not had access to, have not participated in or approved any aspect of this
offering. After the closing of the Acquisition, GPS Group and its affiliates will not have any
recourse to the members of Grupo Transportador under the Acquisition Agreement for any breach
of representation or warranty or otherwise. The Notes will not be guaranteed by Express, and there
will be no recourse to Express, until the consummation of the Acquisition with the proceeds of this
offering when released from escrow. EDTM Konsultores E.U., Yolima Esperanza Venegas
Hernandez, TDC Group Corp., Carlos Mario Ros Velilla, Francisco Javier Ros Velilla and
Inversiones Licitacin 5 TM S.A., all affiliates or owners of GPS Group, have agreed to indemnify
the members of Grupo Transportador for claims against them arising out of this offering or relating
to the time period prior to the consummation of the Acquisition Agreement.

Grupo Transportador S.A. agrees to retain responsibility for all obligations and liabilities of, or
claims, investigations or legal proceedings against, Ferroaluminios Limitada Panam S.A.

Santa Ana Corporacin Humanitaria S.A. agrees to retain responsibility for all obligations and
liabilities of, or claims, investigations or legal proceedings against, Ursus Corporation Inc.

84
 The current relationship of the Issuer, the Guarantors, GPS Group and Grupo Transportador is shown in
the diagram below.

Grupo
GrupoTransportador
Tra
r nsport
r ador
Transportador Grupo Ros
(Colombia)
(Colombia) (Colombia)

100% 100% 71.37% 28.63% 100% 100% 100%

Express del Futuro EDTM Konsultores

Ursus
r us Corporation
Urs
Ursus Corpora r tion
Corporation Ferro Aluminio Panamerican Inv. Alsacia S.A.
S.A. EU.
Inc.
Inc. (Ursus)
( Urs
r us
Ursus s)) Ltda. (Ferro) Investment (Alsacia)
(EXPF) (EDTM)
(Panam)
(Panam ))
m (Panam) (Bermuda) (Chile)
(Colombia) (Colombia)
100%

EDTM
60% Branch
(Chile)
Eco Uno S.A.
2% 10% 11.7% 16% 0.3%
(Eco Uno)
(Chile)

99.998%

Express de Santiago Uno S.A. 0.002%

(Express)
(Chile)

Upon completion of the Acquisition and the Escrow Closing Date, the relationship of the Issuer, the
Guarantors and GPS Group will be as shown in the diagram below.

GPS Group
(Panam)
(Panama)

100% 100% 100%

Panamerican Alsacia
EDTM
(Bermuda)) (Chile)
(Bermuda (Colombia) ISSUER
GUARANTOR
GUARANTOR

1 0 0% 100% 100% 100%

Ursus Ferro Panamerican EDTM

(Panam) (Panam) (Chilean (Chilean
Branch) Branch)

60%

2% 10% Eco Uno 11.7% 16% 0.3%

(Chile)
GUARANTOR
GUARANTOR

99.998%

Express 0.002%
(Chile)
GUARANTOR
GUARANTOR

85
Secured Subordinated Bus Terminal Loan

The Transactions (and in particular the Reserve Account securing the Notes) will be funded in part with
U.S.$12.0 million of net proceeds from the U.S.$12.5 million Bus Terminal Loan from Banco Internacional in
Santiago, Chile to the Initial Temporary Issuer which we expect will be assumed by Alsacia and guaranteed on a
subordinated basis by the Guarantors upon the Escrow Closing Date. Principal and interest on the Bus Terminal
Loan will be payable in Chilean pesos in accordance with its equivalent Unidad de Fomento, which adjust each
payment amount by an index measured by the inflation rate in Chile as of the payment date. Between the Note
Closing Date and the Escrow Closing Date, the Bus Terminal Loan will be secured by Alsacias Huechuraba
terminal (the Huechuraba Terminal) under a second priority mortgage which will be subordinate to a first
priority mortgage which is currently in effect under the Existing Indebtedness. Upon the Escrow Closing Date,
the Existing Indebtedness will be repaid and the mortgage in favor of the Bus Terminal Loan will become the
first priority mortgage. In addition, at that time, the Huechuraba Terminal will be contributed by Alsacia to a
special purpose subsidiary (Lorena SpA) and leased back to Alsacia. The shares of Lorena SpA will also be
pledged by Alsacia to secure the Bus Terminal Loan. Lorena SpA will own no other assets other than the
Huechuraba Terminal, incur no liabilities other than to Alsacia through the lease, and conduct no business other
than leasing the Huechuraba Terminal to Alsacia. The Bus Terminal Loan will initially be funded into the
Escrow along with the Notes prior to the Note Closing Date, and will be repaid out of the Escrow if the Escrow
Closing Date does not occur.

The Bus Terminal Loan will bear interest at 7.05%, payable on the Payment Dates for the Notes out of
the waterfall described under Description of NotesTreatment of FundsBi-Monthly Distributionsfifth,
and will finally mature in August 2018, unless prepaid sooner or pursuant to the agreed principal amortization
schedule. Principal then due on the Bus Terminal Loan is repayable out of the waterfall with the cash available
pursuant to Description of NotesTreatment of FundsSemi-Annual and Special Distributionstenth
beginning with an annual installment of 1/6 of the initial loan amount on the Payment Date in August 2012,
followed by semi-annual installments of $2.0 million beginning on the Payment Date in August 2013 until the
Bus Terminal Loan is fully paid. If there are insufficient funds in the waterfall to pay principal on the Bus
Terminal Loan on any Payment Date, the principal payment will be deferred to the next Payment Date on which
funds are available, but no later than the final maturity date of the Bus Terminal Loan. If there is a Change of
Control (as defined in the Indenture), or if there is an event of default under loan, a portion of the cash available
at the tenth level of the waterfall must be used to repay the Bus Terminal Loan pro rata with any repayments
made to the L/C Bank. Upon the occurrence of an Expropriatory Action on the Concessions or a termination of
any Concession Agreement, the Bus Terminal Loan will become pari passu with Notes and become immediately
due and payable and the Huechuraba Terminal will be transferred to Banco Internacional as payment in kind for
the Bus Terminal Loan.

If Alsacia fails to pay interest on the Bus Terminal Loan on any Payment Date, or if Alsacia fails to pay
principal when due out of available funds in the waterfall -tenth, Banco Internacional may, following a grace
period of 10 days for interest only, foreclose on the Huechuraba Terminal, and the stock of Lorena SpA. To the
extent the proceeds received by Banco Internacional in any disposition of the Huechuraba Terminal are
insufficient to repay the Bus Terminal Loan, any deficiency will be subordinated to the prior payment in full of
the Notes and any other then-outstanding Senior Indebtedness of Alsacia and the Guarantors in cash.

Other than foreclosure on the Huechuraba Terminal and the stock of Lorena SpA, Banco Internacional
does not have any other remedies against Alsacia or any Guarantor (including acceleration of the Bus Terminal
Loan) until after the Notes have been paid in full in cash; provided that, if the Companys payment obligations on
the Notes are accelerated following an Event of Default under the Indenture or a Termination Event with respect
to the Concession, or if there is a bankruptcy Event of Default as provided in the Indenture, Banco Internacional
may foreclose on the Huechuraba Terminal and accelerate the Bus Terminal Loan, subject to the subordination
provisions discussed above. Banco Internacional has agreed not to take actions to initiate any bankruptcy
proceedings against the Company or any Guarantor.

86
 Alsacias lease of the Huechuraba Terminal from Lorena SpA will accrue rent at the rate of 674.1
Unidad de Fomento per month (plus applicable taxes), which will be deferred by Alsacia until January 2, 2018
when the deferred rent will be due and payable in cash on a subordinated basis to the Notes. The lease will be
terminated on foreclosure on the Huechuraba Terminal by the Banco Internacional.

The Bus Terminal Loan will include covenants of Alsacia not to increase the interest rate on the Notes
above the rates (including default interest) contemplated by the Indenture, not to amend the waterfall priorities in
the Indenture in any manner materially adverse to the Bus Terminal Loan lender, and not to reduce the Debt
Service Coverage Ratio requirements in the Indenture that would permit Alsacia to incur additional Senior
Indebtedness.

The subordination provisions of the Bus Terminal Loan, which have been agreed by Banco
Internacional on the basis of the fifth payment priority for semi-annual interest described above, will expire by
their terms when the Notes have been paid in full in cash, and Banco Internacional will become pari passu in
right of payment with any Senior Indebtedness that is outstanding at that time, and will share Collateral pro rata
with any Permitted Refinancing Indebtedness incurred to refinance all then outstanding Notes in their entirety. In
addition, Alsacia and the Guarantors will agree not to grant Liens (other than Permitted Liens) to secure
Indebtedness incurred after repayment in full of the Notes unless the Bus Terminal Loan is equally and ratably
secured.

87
 CAPITALIZATION

The following table sets forth, on a consolidated basis, the capitalization as of September 30, 2010 for
(i) each of Alsacia and Express on a historical, unaudited basis, and (ii) each of Alsacia and Express on a pro
forma, as adjusted basis after giving effect to the issuance and sale of the Notes and the use of the proceeds as
contemplated under Use of Proceeds and assume that the Notes are assumed by Alsacia from the Initial
Temporary Issuer upon completion of the Escrow Closing Date. See The Escrow.

This table should be read in conjunction with Use of Proceeds, Managements Discussion and
Analysis of Financial Condition and Results of Operations and the consolidated financial statements for each of
Express and Alsacia, including the related notes, appearing elsewhere in this Offering Memorandum. The table
has been prepared in Chilean pesos.

Alsacia Express
As of As of
September 30, Adjustment As Adjusted September 30, Adjustment As Adjusted
2010 (1) (1) 2010 (1) (1)
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
(Millions of constant Ch$ as of September 30, 2010)
Short-term debt
Short-term bank loans . . . . . . . . . . . . 8,367 (8,367) 7,772 (7,772)
Current portion of other long-term
bank loans . . . . . . . . . . . . . . . . . . . 9,977 (9,977) 11,409 (11,409)
Current portion of Notes offered
hereby . . . . . . . . . . . . . . . . . . . . . .
Total short-term debt . . . . . . . 18,344 (18,344) 19,181 (19,181)

Long-term debt
Long-term bank loans . . . . . . . . . . . . 47,583 (47,583) 68,450 (68,450)
Derivative contracts (2) . . . . . . . . . . 7,969 (7,969)
Notes offered hereby . . . . . . . . . . . . 224,414 224,414
Notes and accounts payable to
related companies . . . . . . . . . . . . . 95,600 95,600
Total long-term debt . . . . . . . . 47,583 176,831 224,414 76,419 19,181 95,600

Shareholders equity
Share capital . . . . . . . . . . . . . . . . . . . 10,308 10,308 21,355 21,355
Capital revaluation reserve . . . . . . . . 205 205 425 425
Retained earnings (loss) . . . . . . . . . . (2,843) 600 (2,243) 7,543 7,543
Total shareholders equity . . . 7,670 8,270 29,323 29,323
Total capitalization . . . . . 73,597 158,487 232,684 124,923 124,923

(1) In connection with this offering, we expect to pay off all existing debt of Alsacia and Express in full. See
Use of Proceeds. The historical amounts are therefore being eliminated in the adjustment column.

(2) Amounts exclude any impact from the expected entry into the Notes Hedge Agreement, which is described
under Exchange Rate Hedge.

88
 SELECTED FINANCIAL INFORMATION OF
ALSACIA ON A CONSOLIDATED BASIS AND
EXPRESS ON A CONSOLIDATED BASIS

As discussed herein, concurrently with this offering, Alsacia, Express, Eco Uno and Panamerican will
become affiliated companies under common control by GPS Group and GPS Group intends to operate Alsacia
and Express jointly under common management and to develop common operating procedures and sharing of
overhead and other costs in order to maximize efficiencies for both entities. However, because Alsacia is not
acquiring any interest in Express in the Acquisition, those entities cannot be presented together on a pro forma
basis in this Offering Memorandum. See Introductory Note.

The following tables present summary selected financial information and other data as of or for the
years ended December 31, 2007, 2008 and 2009 and as of or for the nine months ended September 30, 2009 and
2010 for each of Alsacia on a consolidated basis with its subsidiary and Express on a consolidated basis with its
subsidiary. These summary selected financial data presented below are qualified in their entirety by reference to,
and should be read in conjunction with, the financial statements and notes thereto for each of Alsacia and Express
included elsewhere in this Offering Memorandum. The following data as of and for each of the years ended
December 31, 2007, 2008 and 2009 have been derived from the audited financial statements for each of Alsacia
and Express, which have been prepared in Chilean pesos in accordance with Chilean GAAP. The data as of or for
the nine months ended September 30, 2009 and 2010 have been derived from the unaudited interim financial
statements for each of Alsacia and Express and have been prepared in Chilean pesos in accordance with Chilean
GAAP. See Presentation of Financial and Other Information and Appendix ASignificant Differences
Between Chilean GAAP and IFRS.

The unaudited information for the nine months ended September 30, 2009 and 2010 includes all
adjustments, consisting of only normal recurring adjustments, which in the opinion of management for each of
Alsacia and Express are necessary for the fair presentation of the information. The results of operations for the
nine months ended September 30, 2010 are not necessarily indicative of the results to be expected for the year
ending December 31, 2010.

Financial information for each of the three years ended December 31, 2009 has been restated to constant
Chilean pesos as of December 31, 2009 in accordance with Chilean GAAP. Financial information for each of the
nine months ended September 30, 2009 and 2010 has been restated to constant Chilean pesos as of September 30,
2010 in accordance with Chilean GAAP.

No financial or operating information is provided in this Offering Memorandum for either Eco Uno or
Panamerican, which are additional Guarantors of the Notes. Eco Uno is a holding company with the sole purpose
of holding 99.998% of the equity of Express. Panamerican is a holding company formed for the sole purpose of
acquiring and consolidating the ownership of 99.7% of the equity of Eco Uno through the Acquisition. Both Eco
Uno and Panamerican lend or borrow intercompany debt to or from affiliates from time to time, and neither will
have any employees or other activities except as described herein. See Description of Notes and Finance
AgreementsAdditional Covenants Related to Panamerican and Eco Uno. As a result, Alsacia does not believe
any information concerning Eco Uno or Panamerican would be material to prospective investors.

No financial or operating information is provided in this Offering Memorandum for the Initial
Temporary Issuer because it has never had, and currently does not have, any assets, liabilities or operations. It is
a special purpose company established to facilitate the issuance of the Notes as described under The Escrow.

89
 Alsacia Express
As of or for the Year Ended As of or for the Year Ended
December 31, December 31,
2007 2008 2009 2007 2008 2009
(Millions of constant Ch$ as of (Millions of constant Ch$ as of
December 31, 2009, except ratios) December 31, 2009, except ratios)
Income Statement Data
Operating income
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,918 70,866 66,658 66,924 91,183 86,065
Operating expenses . . . . . . . . . . . . . . . . . . . . (38,558) (56,528) (60,230) (59,270) (79,578) (75,172)
Gross margin . . . . . . . . . . . . . . . . . . . . . 11,360 14,337 6,429 7,654 11,605 10,893
Administrative and selling expenses . . . . . . . (4,201) (4,989) (6,613) (5,981) (5,635) (6,464)
Operating income . . . . . . . . . . . . . . . . . . 7,159 9,348 (184) 1,673 5,970 4,429
Non-operating income (expenses)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . 821 692 170 2,005 2,058 623
Profit (loss) investment in related
companies . . . . . . . . . . . . . . . . . . . . . . . . . 2,031 491 (404)
Other non-operating income . . . . . . . . . . . . . 59 306 193 10,525 156 40
Interest expenses . . . . . . . . . . . . . . . . . . . . . . (4,197) (6,001) (4,164) (8,436) (10,116) (6,005)
Other non-operating expenses . . . . . . . . . . . . (287) (437) (582) (1,241) (348) (219)
Price-level restatements . . . . . . . . . . . . . . . . . 5,062 6,390 (1,975) 6,882 (157) (1,344)
Foreign exchange rate differences . . . . . . . . . 3,856 (17,413) 15,501 5,394 6,963 (2,347)
Non-operating income . . . . . . . . . . . . . . 7,345 (15,972) 8,739 15,129 (1,444) (9,252)
Income before income taxes . . . . . . . . . 14,504 (6,623) 8,555 16,802 4,526 (4,823)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . (1,895) 1,084 (1,990) (3,085) (707) 872
Net (loss) income . . . . . . . . . . . . . . 12,609 (5,539) 6,565 13,717 3,819 (3,951)

Balance Sheet Data

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . 354 312 3,876 3,562 3,323 25
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . 13,994 17,263 19,663 48,010 52,860 32,716
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . 61,306 66,574 60,800 88,144 85,975 77,782
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,776 108,140 101,382 191,243 196,181 148,142
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . 31,377 29,550 34,381 32,742 45,067 27,198
Total long-term liabilities . . . . . . . . . . . . . . . . . . . 63,704 80,434 62,280 125,944 114,740 88,521
Total shareholders equity . . . . . . . . . . . . . . . . . . . 3,696 (1,843) 4,722 32,556 36,374 32,423
Cash Flow Data
Net cash flow from operating activities . . . . . . . . . 4,725 4,848 9,431 7,557 19,719 27,954
Net cash flow from (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,232 8,038 (2,321) 12,563 (5,222) (8,483)
Net cash flow used in investing activities . . . . . . . (11,776) (12,957) (3,538) (16,880) (14,465) (22,827)
Other Financial Data
Capital expenditures (1) . . . . . . . . . . . . . . . . . . . . . 5,736 2,307 1,867 16,052 10,222 5,141
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,316 7,578 8,256 7,275 12,598 13,205
Adjusted EBITDA (2) . . . . . . . . . . . . . . . . . . . . . . 12,538 18,501 10,473 12,508 22,507 21,477
Interest coverage ratio (3) . . . . . . . . . . . . . . . . . . . 2.99 3.08 2.52 1.48 2.22 3.58
Adjusted EBITDA/net sales . . . . . . . . . . . . . . . . . . 25.12% 26.11% 15.71% 18.69% 24.68% 24.95%
Total debt (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,298 96,035 75,185 118,239 127,637 99,866
Total debt/capitalization (5) . . . . . . . . . . . . . . . . . . 95.26% 101.96% 94.09% 76.47% 77.82% 75.49%
Total debt/shareholders equity . . . . . . . . . . . . . . . 2,010.3% % 1,592.2% 325.06% 305.90% 308.01%

(1) Paid during the period.

90
(2) We calculate Adjusted EBITDA by adding Depreciation and Amortization to Operating Income. Because
our calculation of Adjusted EBITDA begins with Operating Income, Adjusted EBITDA also does not
include several non-cash expenses that are deducted from Net income under Chilean GAAP such as Price-
level restatements and Foreign exchange rate differences. Adjusted EBITDA also does not include our
Interest expenses or Income Taxes, which are also deducted from our Net income. Adjusted EBITDA is a
not a recognized financial measure under Chilean GAAP or IFRS and does not have a standardized
meaning. As such, Adjusted EBITDA as presented herein may not be comparable to similarly titled
measures provided by other companies. We disclose Adjusted EBITDA because we believe that certain
investors use it as an indicator of a companys ability to meet debt service and capital expenditure
requirements. Adjusted EBITDA should not be considered in isolation, or as a substitute for net income or
operating income as indicators of operating performance. The following table shows a reconciliation of our
Adjusted EBITDA to operating income for the periods indicated:

Alsacia Express
As of or for the Year Ended As of or for the Year Ended
December 31, December 31,
2007 2008 2009 2007 2008 2009
(Millions of constant Ch$ as (Millions of constant Ch$ as
of December 31, 2009, except of December 31, 2009, except
ratios) ratios)
Reconciliation of Operating Income to
Adjusted EBITDA
Operating income . . . . . . . . . . . . . . . . . . . . . . . 7,159 9,348 (184) 1,673 5,970 4,429
Depreciation . . . . . . . . . . . . . . . . . . . . . . . 4,316 7,578 8,256 7,275 12,598 13,205
Amortization . . . . . . . . . . . . . . . . . . . . . . . 1,063 1,574 2,401 3,560 3,939 3,843
Adjusted EBITDA . . . . . . . . . . . . . . . 12,538 18,501 10,473 12,508 22,507 21,447

(3) Interest coverage ratio is calculated as Adjusted EBITDA over gross interest expense, which includes the
net effect of swaps.

(4) Total debt is calculated as total financial debt, including accrued interest, which includes the net effect of
swaps.

(5) Capitalization is calculated as total debt plus total shareholders equity.

91
 Alsacia Express
As of or for the As of or for the
Nine Months Ended Nine Months Ended
September 30, September 30,
2009 2010 2009 2010
(Millions of Ch$ as of September 30, 2010)
(unaudited) (unaudited) (unaudited) (unaudited)
Income Statement Data
Operating income
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,311 54,732 63,290 70,844
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (45,304) (46,739) (56,604) (66,663)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,008 7,994 6,686 4,181
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . (4,593) (4,552) (4,821) (4,631)
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 3,441 1,865 (450)
Non-operating income (expenses)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 150 620 72
Profit (loss) investment in related companies . . . . . . . . . . . . (721) (553)
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . 87 383 83 585
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,701) (3,136) (4,929) (3,861)
Other non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . . (47) (140) (173) (157)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,445) 1,312 (3,042) (806)
Foreign exchange rate differences . . . . . . . . . . . . . . . . . . . . . 10,991 2,170 (1,135) 394
Non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . 4,332 186 (8,576) (3,772)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . 4,746 3,627 (6,711) (4,222)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,604) (772) 1,231 474
Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . 3,142 2,855 (5,480) (3,748)

Balance Sheet Data

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728 33 963 74
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,955 17,574 33,199 32,954
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,218 60,720 81,029 72,345
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,824 97,665 153,631 141,038
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,451 28,718 27,637 30,682
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,110 61,276 94,381 81,033
Total shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,262 7,670 31,613 29,323
Cash Flow Data
Net cash flow from operating activities . . . . . . . . . . . . . . . . . . . . 7,057 2,840 2,251 6,454
Net cash flow from (used in) financing activities . . . . . . . . . . . . . (3,466) (5,760) (8,451) (8,276)
Net cash flow used in investing activities . . . . . . . . . . . . . . . . . . . (3,181) (1,156) 3,709 2,637
Other Financial Data
Capital expenditures (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,711 2,659 3,953 1,027
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,313 6,470 10,068 10,230
Adjusted EBITDA (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,671 11,158 15,685 12,714
Interest coverage ratio (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.34 3.56 3.18 3.29
Adjusted EBITDA/net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.23% 20.39% 24.78% 17.95%
Total debt (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,002 65,927 108,683 87,630
Total debt/capitalization (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.99 0.90 0.77 0.75
Total debt/shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.35 8.91 3.44 2.99

(1) Paid in the period.

92
(2) We calculate Adjusted EBITDA by adding Depreciation and Amortization to Operating Income. Because
our calculation of Adjusted EBITDA begins with Operating Income, Adjusted EBITDA also does not
include several non-cash expenses that are deducted from Net income under Chilean GAAP such as Price-
level restatements and Foreign exchange rate differences. Adjusted EBITDA also does not include our
Interest expenses or Income Taxes, which are also deducted from our Net income. Adjusted EBITDA is a
not a recognized financial measure under Chilean GAAP or IFRS and does not have a standardized
meaning. As such, Adjusted EBITDA as presented herein may not be comparable to similarly titled
measures provided by other companies. We disclose Adjusted EBITDA because we believe that certain
investors use it as an indicator of a companys ability to meet debt service and capital expenditure
requirements. Adjusted EBITDA should not be considered in isolation, or as a substitute for net income or
operating income as indicators of operating performance. The following table shows a reconciliation of our
Adjusted EBITDA to operating income for the periods indicated:

Alsacia Express
As of or for the As of or for the
Nine Months Ended Nine Months Ended
September 30, September 30,
2009 2010 2009 2010
(Millions of Ch$ as of September 30, 2010)
(unaudited)
Reconciliation of Operating Income to Adjusted EBITDA
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 3,441 1,865 (450)
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,313 6,470 10,068 10,230
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,944 1,247 3,752 2,934
Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,671 11,158 15,685 12,714

(3) Interest coverage ratio is calculated as Adjusted EBITDA over gross interest expense, which includes the
net effect of swaps.

(4) Total debt is calculated as total financial debt, including accrued interest, which includes the net effect of
swaps.

(5) Capitalization is calculated as total debt plus total shareholders equity.

93
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR ALSACIA AND EXPRESS

The following discussion is based on the financial statements for Alsacia on a consolidated basis with
its subsidiary and Express on a consolidated basis with its subsidiary. It should be read in conjunction with the
financial statements and notes thereto included elsewhere in this Offering Memorandum, as well as the data set
forth in Selected Financial and Operating Information of Alsacia on a Consolidated Basis and Express on a
Consolidated Basis. The audited consolidated financial statements for each of Alsacia and Express as of
December 31, 2008 and 2009, and for each of the years ended December 31, 2007, 2008 and 2009 have been
prepared in constant Chilean pesos as of December 31, 2009 in accordance with Chilean GAAP. The unaudited
interim consolidated financial statements for each of Alsacia and Express as of and for the nine months ended
September 30, 2009 and 2010 included herein are also prepared in constant Chilean pesos as of September 30,
2010, in accordance with Chilean GAAP. Chilean GAAP differs in certain significant respects from IFRS, as
described in Appendix A to the extent applicable to us.

Overview

General

Alsacia and Express together are the largest operator of bus transportation services in the Santiago,
Chile metropolitan area, as measured by the available bus capacity and scheduled route length of Alsacia and
Express combined. We jointly operate under the Alsacia and Express brands and Concessions to provide
passenger bus service within Transantiago, the rapid transit system of Santiago managed by the Chilean
Government.

As of September 30, 2010, we collectively owned or operated 72 bus routes, 1,861 buses and 9 bus
terminals and we had 6,038 employees. In the first nine months of 2010, we received an average of 27 million
Passenger Validations per month, which was approximately 28% of the total bus Passenger Validations in
Transantiago. Our fleet passenger capacity accounted for 31% and 34% of the total passenger capacity and 21%
and 23% of the scheduled route length in Transantiago in 2009 and the first nine months of 2010, respectively.
Alsacia and Express had revenue of Ch$66,658 million and Ch$86,065 million and operating (loss) income of
Ch$(184) million and Ch$4,429 million for the year ended December 31, 2009, respectively, and revenue of
Ch$54,732 million and Ch$70,844 million and operating income (loss) of Ch$3,441 million and Ch$(450)
million, respectively, for the nine months ended September 30, 2010.

Transantiago is the public transportation system of the Santiago metropolitan area, consisting of the
citys buses, the Metro subway, an integrated electronic payment system designed to allow passengers to pay bus
and subway fares with electronic stored value cards, as well as planning and construction functions for
transportation infrastructure. Transantiago was designed and implemented by the Chilean Government in 2003 in
a complete overhaul of the then-existing public transportation system in Santiago, which was largely unregulated
and prone to accidents, inefficiency and excessive pollution. Transantiago was implemented in three phases
between October 2005 and February 2007 and rerouted the bus lines for more efficient service, consolidated
approximately 3,500 independent bus operators into 14 concession holders, introduced an integrated electronic
payment system and replaced the majority of buses then in use with a modern standardized fleet. See
Transantiago.

We hold concessions to operate two of the five trunk bus lines that, together with the Metro subway and
the feeder bus lines, make up Transantiago and provide transit service across Santiagos 10 metropolitan zones.
Under the Concession Agreements, the Ministry grants Alsacia and Express the right to use the roads of Santiago
for the provision of urban passenger transportation services along their assigned routes. Our Concessions were
initially awarded in 2005 and will expire in October 2018 unless previously terminated. Each respective
Concession Agreement can be renewed for 18 months if Alsacia or Express does not reach minimum revenue
thresholds set forth in its respective Concession Agreement. See The Concessions.

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Revenue

We generate substantially all of our revenue under the Concessions. Our Concession revenue is based on
formulas set forth in the Concession Agreements that are driven by four main factors: the Cost Index, Base
Revenue, Variable Revenue and the Service Fulfillment Ratio. See The ConcessionsConcession Revenue for
a more complete description of each of these factors and our Concession revenue. In addition to Concession
revenue, Alsacia and Express generated 0.3% and 0.6%, respectively, of their total 2009 revenue from the sale of
advertising on buses.

Operating Expenses

The main components of our operating expenses include labor, fuel, depreciation and amortization,
spare parts and maintenance, and administrative and selling expenses. The primary factors affecting our
operating expenses are the scale of our operations and the efficiency of our bus fleet. Labor expenses are
dependent on changes in the CPI, bonuses related to the completion of operational objectives and the size of our
workforce. Fuel expenses are dependent on the number of kilometers traveled by our buses, the price of diesel
fuel in Chile and the efficiency of our bus fleet. Depreciation and amortization expenses are dependent on the
value of our fixed assets and our capital expenditures. Spare parts and maintenance expenses are dependent on
the number of kilometers traveled by our buses, the number of accidents in which are buses are involved, the
aging of our buses and seasonal changes in climate. Administrative and selling expenses are dependent on the
size of our business generally.

Because our Concession revenue is adjusted for changes in the Cost Index, changes in our expenses
relating to inflation of the Chilean peso, the Chilean peso/U.S. dollar exchange rate and the cost of fuel and labor
are partially offset by corresponding increases in our revenue.

Seasonality

Demand for public transportation in Santiago is seasonal in nature and generally follows the pattern of
commercial activity of the city, with decreased revenue during the Chilean summer months of January and
February and during the Chilean Independence Day in September. Our Concession Agreements reflect this
seasonality through monthly adjustments to Base Revenue and the projected number of monthly Passenger
Validations. Although our revenue is seasonal, many of our expenses are fixed in nature, resulting in seasonal
changes to income when our revenue changes. The following graph illustrates these trends:
Alsacia Revenue and Passenger Validations
(Revenue in thousands of millions of Ch$; Passenger Validations in millions)
80 25.0
70 20.8 21.4
17.2
20.0
60
17.2 17.3
50 15.0 16.6 15.0
35.0 36.9
40 12.1 33.3 33.2 33.7 34.7
28.2 29.2
30 10.0

20
5.0
10
0 -
1Q 2Q 3Q 4Q
Passenger Validations 2008 Passenger Validations 2009
Revenue 2008 Revenue 2009

95
 Express Revenue and Passenger Validations
(Revenue in thousands of millions of Ch$; Passenger Validations in millions)
120 30.0
27.6
25.4
100 22.6 24.3 25.0
22.1
80 18.1 21.5 20.0

15.7 53.6 57.5

60 52.3 51.9 51.7 53.1 15.0
44.7 47.5
40 10.0

20 5.0

0 -
1Q 2Q 3Q 4Q
Passenger Validations 2008 Passenger Validations 2009
Revenue 2008 Revenue 2009

Passenger Validations and Passenger Fares

As discussed above, our Base Revenue, which comprised 43% and 36% of 2009 revenue for Alsacia and
Express, respectively, is not directly dependent on Passenger Validations. On the other hand, our Variable
Revenue, which comprised 57% and 64% of 2009 revenue for Alsacia and Express, respectively, is largely
dependent on Passenger Validations.

In addition, our Concession revenue is not calculated based on passenger fares set by the Ministry for
Transantiago passengers, and ridership on our buses appears to have been unaffected by past changes in
passenger fares. Since January 2009, the Ministry has raised Transantiago fares from Ch$380 to Ch$520, and
during this period we have not been able to identify any change in our Passenger Validation volume that could be
attributed to fare increases. In addition, the Ministry has publicly committed to freeze fares during the current
presidential term, and this commitment is supported by the recent increase in subsidies available to Transantiago.
See The ConcessionsThe Subsidy. Nevertheless, any increases in passenger fares in the future could affect
our revenue indirectly over the long term by changing passenger demand for our services, which would change
our Variable Revenue.

Currency Fluctuations

Foreign exchange rate differences are caused by the net effect of revaluing our liabilities that are
denominated in U.S. dollars using the prevailing exchange rate at the end of each period. Substantially all of our
revenue and operating expenses have been denominated in Chilean pesos, except for payments under our existing
debt, most of which are denominated in U.S. dollars. Because of this difference between the denominations of
our assets and liabilities, decreases in the Chilean peso/U.S. dollar exchange rate have historically resulted in
foreign exchange rate differences that were treated as gains on our income statement. Conversely, increases in
the exchange rate have historically resulted in foreign exchange rate differences that were treated as losses on our
income statement. While we expect to refinance our existing debt with the proceeds of the Notes offered hereby,
the Notes will also be payable in U.S. dollars. In conjunction with this offering, we intend to purchase U.S.
dollars derivatives, which will be designed to hedge against future appreciation of the U.S. dollar against the
Chilean peso. See discussion below under Quantitative and Qualitative Disclosures About Market and
Operating RisksExchange Rate Hedge.

However, our Concession revenue is adjusted based on changes in the Cost Index, which is a weighted
average of several macroeconomic measures and commodity prices, including the Chilean peso/U.S. dollar
exchange rate, which comprises 11% and 2.2% of the Cost Index for Alsacia and Express, respectively. As a
result, we expect that changes in the Chilean peso/U.S. dollar exchange rate will be somewhat offset by
adjustments to our revenue.

96
 The Chilean peso/U.S. dollar exchange rate has fluctuated significantly in the past and it may continue
to fluctuate similarly in the future. In the three-year period ended September 30, 2010, the value of the Chilean
peso relative to the U.S. dollar has fluctuated between a low of Ch$431 per U.S.$1.00 and a high of Ch$677 per
U.S.$1.00, according to the Chilean Central Bank. During the nine months ended September 30, 2010, the value
of the Chilean peso relative to the U.S. dollar appreciated approximately 4.6%, in real terms. See Exchange
Rates.

Impact of Inflation and Price-Level Restatement

We are required under Chilean GAAP to restate non-monetary assets and liabilities, Unidades de
Fomento (a daily indexed Chilean peso-denominated monetary unit that takes into account the effect of the
Chilean inflation rate), foreign currency-denominated monetary assets and liabilities, shareholders equity and
income and expense accounts to reflect the effect of variations in the purchasing power of the Chilean peso
during each accounting period. Chilean peso-denominated monetary assets and liabilities were not restated
because they were presented at their purchasing power as of the date of the balance sheet. The net effect of the
increase or decrease in net purchasing power, calculated as described above, is included in our financial
statements under price-level restatements, which is included in net income.

Historically, substantially all of our revenue, expenses, assets and liabilities have been denominated in
Chilean pesos, other than our U.S. dollar denominated debt. As a result, inflation in the value of the Chilean peso
has generally resulted in price-level restatements that are gains on our income statement while deflation in the
value of the Chilean peso has generally resulted in price-level restatements that are losses on our income
statement.

Beginning on January 1, 2011, we will begin reporting our financial statements in accordance with
IFRS, rather than Chilean GAAP. IFRS does not require inflationary adjustments for companies in countries, like
Chile, that are not hyperinflationary. Therefore, under IFRS, we will not adjust our financial statements for
inflation.

Although we will no longer recognize these variations in our financial statements, inflation or deflation
of the Chilean peso will continue to have a real impact on the purchasing power of our net assets. Chile has
experienced high levels of inflation in the past, although Chilean inflation has been more moderate in recent
years. High levels of inflation in Chile could materially and adversely affect the Chilean economy or our
business. Inflation for 2007 and 2008 were 7.8% and 7.1%, respectively, as reported by the INE. In 2009, Chile
experienced deflation of 1.4%, and accumulated inflation for the first nine months of 2010 was 2.2%, as reported
by the INE.

The impact of inflation on our revenue is partially offset by our Concession revenue formula, which
adjusts our revenue based on changes in the Cost Index. 18% and 27% of the Cost Index for Alsacia and Express,
respectively, are based on changes in the level of inflation or deflation in the Chilean peso. As a result, we expect
that the impact of inflation will be somewhat offset by adjustments to our revenue.

97
Results of Operations

AlsaciaComparison of the Nine Months Ended September 30, 2009, to the Nine Months Ended
September 30, 2010

Revenue. Alsacias total revenue increased 8.8% to Ch$54,732 million in the first nine months of 2010
compared to Ch$50,311 million in the first nine months of 2009 as shown below.

Nine Months Ended

September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 50,219 54,544 8.6%
Advertising revenue . . . . . . . . . . . . . . . . . 92 188 104.3%
Total revenue . . . . . . . . . . . . . . . . . . . . . . . 50,311 54,732 8.8%

Revenue from Passenger Transportation. Alsacias revenue from passenger transportation services
increased 8.6% to Ch$54,544 million in the first nine months of 2010 compared to Ch$50,219 million in the first
nine months of 2009. The table below summarizes the major components of this change.

Nine Months Ended

September 30, %
2009 2010 Change
Base Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . 19,985 21,093 5.5%
Variable Revenue . . . . . . . . . . . . . . . . . . . . . . . 25,717 29,909 16.3%
Potential revenue . . . . . . . . . . . . . . . . . . . . . . . 45,702 51,002 11.6%
Service Fulfillment Ratio . . . . . . . . . . . . . . . . . 97.5% 96.8% -0.8%
Realized revenue after Service Fulfillment
Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,605 49,342 10.7%
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,118) (424) -62.1%
Reimbursement for Transantiago expenses . . . 4,975 5,112 2.8%
Revenue Price-level restatements and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 1,757 514 -70.7%
Total Revenue from passenger transportation
services (Millions of constant Ch$ as of
September 30, 2010) . . . . . . . . . . . . . . . . . . . 50,219 54,544 8.6%

Alsacias Base Revenue increased 5.5% to Ch$21,093 million in the first nine months of 2010 compared
to Ch$19,985 million in the first nine months of 2009, as a result of a 5.2% increase in Alsacias average Cost
Index between these two periods.

Alsacias Variable Revenue increased 16.3% to Ch$29,909 million in the first nine months of 2010
compared to Ch$25,717 million in the first nine months of 2009. The main reasons for this increase were: (i) an
increase in average payment per passenger (Pago por Pasajero Transportado, or PPT) of 11% to Ch$296 in the
first nine months of 2010 compared to Ch$267 in the first nine months of 2009 and (ii) an increase in Passenger
Validations of 4.6% to 101 million in the first nine months of 2010 compared to 96 million in the first nine
months of 2009. The 11% increase in average PPT was substantially explained by the variation of the following
components within its formula: an 8.1% increase in scheduled route distance under Alsacias Operating Plans, a
5.5% increase in the average Cost Index, and a 1.3% increase in average Fleet Capacity. The increase in

98
Passenger Validations could be explained by the better economic conditions and the impact of the Ministrys
campaign to fight fare evasion during the first nine months of 2010. Better economic conditions in Chile are
demonstrated by an improvement in GDP and a reduction in unemployment in the twelve-month period ended
September 30, 2010. The monthly economic activity index (Indicador Mensual de Actividad Econmica), which
is prepared by the Chilean Central Bank as a measure of the Chilean GDP, increased 5.8% from 118.8 as of
September 2009 to 125.7 as of September 2010. As of September 30, 2009 there were 298,000 people
unemployed in Santiago compared to 234,000 as of September 30, 2010.

The increase in Alsacias average Cost Index was due to changes in the Cost Indexs underlying
macroeconomic variables (including, among others, the CPI, the cost of fuel and labor and the Ch$/U.S.$
Exchange Rate), all of which are measured based on indices prepared by the INE and the Chilean Central Bank.

Service Fulfillment Ratio, which adjusts Base Revenue and Variable Revenue, decreased 0.8% to an
average of 96.8% in the first nine months of 2010 compared to an average of 97.5% in the first nine months of
2009. In May 2009, calculation of the Service Fulfillment Ratio was modified to exclude any buses that did not
board a new passenger for 30 minutes from Alsacias actual performance figures in order to include only buses
moving in commercial service. This modification generally decreased Alsacias Service Fulfillment Ratio, even
with no change in its operational performance. Beginning in October 2009, the Ministry introduced another
modification in the calculation of the Service Fulfillment Ratio, adding a distance (kilmetro) measurement for
each half hour of bus service. As a result of the October 2009 modification, the Service Fulfillment Ratio became
known as ndice de Cumplimiento Plaza Kilmetro Hora, or ICPKH, rather than ndice de Cumplimiento Plaza
Hora, or ICPH. These modifications made the Service Fulfillment Ratio more demanding and largely explain the
decrease in Alsacias average Service Fulfillment Ratio in the first nine months of 2010 compared to the first
nine months of 2009.

Alsacias revenue from passenger transportation services is reduced by discounts applied by the
Ministry using the ICF and the ICR, which totaled Ch$424 million in the first nine months of 2010 and Ch$1,118
million in the first nine months of 2009.

All Transantiago service providers are required to pay Transantiago expenses in proportion to their
individual revenue, including, among others, the 2.0% AFT fee and the fees for the Transantiago User
Information System (Sistema de Informacin al Usuario de Transantiago). Alsacias share of Transantiago
expenses totaled Ch$5,112 million in the first nine months of 2010 and Ch$4,975 million in the first nine months
of 2009. However, pursuant to its agreements with Alsacia and the Ministry, the AFT pays all Transantiago
expenses owed by Alsacia. Alsacia accounts for payments by the AFT on its behalf as revenue under
reimbursement for Transantiago expenses and recognizes an equivalent offsetting amount under other
operating expenses.

Advertising Revenue. Alsacias advertising revenue increased 104.3% to Ch$188 million in the first nine
months of 2010 compared to Ch$92 million in the first nine months of 2009. This increase was substantially
explained by the effects of the macroeconomic crisis in 2009.

99
 Operating Expenses. Alsacias operating expenses increased 3.2% to Ch$46,739 million during the first
nine months of 2010 compared to Ch$45,304 million in the first nine months of 2009. The table below
summarizes the major components of this change.

Nine Months Ended

September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 12,810 14,804 15.6%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 8,386 10,084 20.2%
Depreciation and amortization . . . . . 6,764 6,899 2.0%
Spare parts and maintenance . . . . . . . 6,291 5,526 -12.2%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 11,053 9,426 -14.7%
Total operating expenses . . . . . . . . . . 45,304 46,739 3.2%

Labor expenses increased 15.6% to Ch$14,804 million in the first nine months of 2010 compared to
Ch$12,810 million in the first nine months of 2009. This increase was largely explained by (i) an increase of
Ch$1,550 million in employee bonuses, (ii) an increase of Ch$1,131 million in overtime pay, (iii) an increase of
Ch$895 million in employee benefits due to changes in social laws, (iv) a payment of a Ch$128 million bonus to
employees as a closing condition to negotiations with unions, (v) an increase of Ch$221 million in training
expenses, and (vi) an increase of Ch$257 million in severance indemnification payments, all of which totaled
Ch$4,182 million.

Fuel expenses increased 20.2% to Ch$10,084 million during the first nine months of 2010 compared to
Ch$8,386 million in the first nine months of 2009. During this period, the kilometers traveled by Alsacias buses
increased 12%, leading to an increase in diesel fuel consumption of 5.3%, which, combined with a 15% increase
in the price of diesel fuel during the same period, explains the increase in fuel expenses. Alsacia implemented a
fuel savings program in 2010, which explains the lower fuel consumption per kilometer traveled by Alsacias
buses.

Depreciation and amortization expenses from operating assets increased 2.0% to Ch$6,899 million in
the first nine months of 2010 compared to Ch$6,764 million in the first nine months of 2009. This small increase
was due to an increase in the value of Alsacias depreciable assets.

Spare parts and maintenance expenses decreased 12.2% to Ch$5,526 million in the first nine months of
2010 compared to Ch$6,291 million in the first nine months of 2009. This decrease was due primarily to
Alsacias investment in the updating of its buses during 2009, which required more maintenance and spare parts
in 2009 compared to 2010.

Other expenses decreased 14.7% to Ch$9,426 million in the first nine months of 2010 compared to
Ch$11,053 million in the first nine months of 2009. This decrease was primarily a result of a Ch$878 million
decrease in Alsacias overhaul provision in the first nine months of 2010 compared to the first nine months of
2009. Alsacia began accounting for overhaul provision in 2009, and during 2009 it was unusually high as it
accounted for expenses that would have been accounted for in prior periods had there been such a provision.
During 2010, Alsacia decreased its overhaul provision due to a reassessment of the wear and tear on key bus
components and a reduction in expected overhaul expenses based on the identification of better overhauling
service alternatives. The remaining difference in other expenses was mainly explained by a decrease in expenses
from third-party services.

100
 Administrative and Selling Expenses. Alsacias administrative and selling expenses decreased 0.9% to
Ch$4,552 million in the first nine months of 2010 compared to Ch$4,593 million in the first nine months of
2009. The table below summarizes the major components of this change.
Nine Months Ended
September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,327 1,830 -21.4%
Depreciation and amortization . . . . . 989 817 -17.4%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 1,277 1,905 49.2%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 4,593 4,552 -0.9%

Labor expenses decreased 21.4% to Ch$1,830 million in the first nine months of 2010 compared to
Ch$2,327 million in the first nine months of 2009. This decrease was principally due to a decrease in the number
of administrative employees, resulting primarily from Alsacias outsourcing of certain planning functions to a
third party, BIG Services SpA, in 2010, and a decrease in severance payments, which were higher in the first nine
months of 2009 because certain executives left the Alsacia during that period.

Depreciation and amortization expenses from administrative and selling assets decreased 17.4% to
Ch$817 million in the first nine months of 2010 compared to Ch$989 million in the first nine months of 2009.
This decrease was substantially explained by less amortization of expenses related to IASA de Colombia S.A., an
affiliate of Alsacia, and fewer software amortizations.

Other expenses increased 49.2% to Ch$1,905 million in the first nine months of 2010 compared to
Ch$1,277 million in the first nine months of 2009. This increase was primarily the result of an increase in general
expenses for services from third parties, due principally to Alsacias outsourcing of certain planning functions to
BIG Services SpA in 2010 and an increase in the lease expense of Alsacias Maip Terminal due to a contractual
ramp up in the amount of monthly lease payments.

Non-operating Income (Loss). Alsacias non-operating income decreased 95.7% to Ch$186 million in
the first nine months of 2010 compared to Ch$4,332 million in the first nine months of 2009. The table below
summarizes the major components of this change.
Nine Months Ended
September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Non-operating income
Interest expenses . . . . . . . . . . . . . . . . (3,533) (2,986) -15.5%
Other non-operating income . . . . . . . 40 243 507.5%
Price-level restatements . . . . . . . . . . (2,445) 1,312 153.6%
Foreign exchange rate differences . . 10,991 2,171 -80.2%
Loss from investment in related
company . . . . . . . . . . . . . . . . . . . . (721) (552) 23.4%
Total non-operating income . . . . . . . 4,332 186 -95.7%

The decrease in interest expenses in the first nine months of 2010 compared to the first nine months of
2009 was a result of a decrease in Alsacias outstanding debt, a decrease in the prevailing interest rate on
Alsacias floating interest rate debt and a decrease in the Chilean peso/U.S. dollar exchange rate.

101
 The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation
and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

Loss from investment in related company relates solely to Alsacias investment in 16% of the equity of
Eco Uno, which is a holding company that owns 99.998% of Express. Changes in the value of this investment
primarily reflect Expresss financial performance over the same period, which is discussed below. These changes
are presented net of any interest expenses recognized by Eco Uno on certain intercompany debt to its parent
company during the period.

Income Tax and Asset Tax. The statutory Chilean corporate income tax rate was 17% in September 2010
and 2009. In the first nine months of 2009 and in the first nine months of 2010, the company did not recognize
any expenses related to taxes, given that the company had losses for both periods.

The losses during the nine months ended September 30, 2009 and 2010 created deferred tax benefits,
given that Alsacia generated tax losses in prior years that were carried forward to these periods. In accordance
with Chilean tax law, losses may be carried forward and back indefinitely. Tax losses are non-transferable and
may be used only by the taxpayer that incurred the losses.

ExpressComparison of the Nine Months Ended September 30, 2009, to the Nine Months Ended
September 30, 2010

Revenue. Expresss total revenue increased 11.9% to Ch$70,844 million in the first nine months of 2010
compared to Ch$63,290 million in the first nine months of 2009 as shown below.
Nine Months Ended
September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 62,987 70,334 11.7%
Advertising revenue . . . . . . . . . . . . . . . . . 303 510 68.3%
Total revenue . . . . . . . . . . . . . . . . . . . . . . . 63,290 70,844 11.9%

Revenue from Passenger Transportation. Expresss revenue from passenger transportation services
increased 11.7% to Ch$70,334 million in the first nine months of 2010 compared to Ch$62,987 million in the
first nine months of 2009. The table below summarizes the major components of this change.
Nine Months Ended
September 30, %
2009 2010 Change
Base Revenue . . . . . . . . . . . . . . . . . . . . . . . . . 22,869 24,383 6.6%
Variable Revenue . . . . . . . . . . . . . . . . . . . . . . 39,920 48,158 20.6%
Potential revenue . . . . . . . . . . . . . . . . . . . . . . . 62,789 72,541 15.5%
Service Fulfillment Ratio . . . . . . . . . . . . . . . . 97.8% 93.6% -4.3%
Realized revenue after Service Fulfillment
Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,399 67,881 10.6%
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0.0%
Reimbursement for Transantiago expenses . . . 0 0 0.0%
Revenue Price-level restatements and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . 1,891 2,963 56.7%
Total revenue from passenger transportation
services (Millions of constant Ch$ as of
September 30, 2010) . . . . . . . . . . . . . . . . . . 62,987 70,334 11.7%

102
 Expresss Base Revenue increased 6.6% to Ch$24,383 million in the first nine months of 2010
compared to Ch$22,869 million in the first nine months of 2009. This increase was substantially explained by a
5.9% increase in the average Cost Index between these two periods.

Expresss Variable Revenue increased 20.6% to Ch$48,158 million in the first nine months of 2010
compared to Ch$39,920 million in the first nine months of 2009. This increase was substantially explained by
two opposite movements: (i) an increase in average PPT of 22% to Ch$321 in the first nine months of 2010
compared to Ch$263 in the first nine months of 2009 and (ii) a decrease in Passenger Validations of 5.7% to
143 million in the first nine months of 2010 compared to 151 million in the first nine months of 2009. The 22%
increase in average PPT was substantially explained by the variation of the following components within its
formula: a 6.9% increase in scheduled route distance under Expresss Operating Plans; a 132% increase in the
average Cost Index to 4.2 in the first nine months of 2010 compared to -13 in the first nine months of 2009; a
17% increase in bus passenger capacity; and the 5.7% decrease in Passenger Validations, which have an inverse
effect on PPT and led to an increase of 5.4% in average PPT. The decrease in Passenger Validations resulted
following the extension of Line 1 of the Metro subway, which overlaps, and therefore competes, with some of
Expresss services.

The increase in Expresss average Cost Index was due to changes in the Cost Indexs underlying
macroeconomic variables (including, among others, the CPI, the cost of fuel and labor and the Ch$/U.S.$
Exchange Rate), all of which are measured based on indices prepared by the INE and the Chilean Central Bank.

The Service Fulfillment Ratio, which adjusts Base Revenue and Variable Revenue, decreased 4.3% to
an average of 93.6% in the first nine months of 2010 compared to an average of 97.8% in the first nine months of
2009. In May 2009, calculation of the Service Fulfillment Ratio was modified to exclude any buses that did not
board a new passenger for 30 minutes from Expresss actual performance figures in order to include only buses
moving in commercial service. This modification generally decreased Expresss Service Fulfillment Ratio, even
with no change in its operational performance. Beginning in October 2009, the Ministry introduced another
modification in the calculation of the Service Fulfillment Ratio, adding a distance (kilmetro) measurement for
each half hour of bus service. These modifications made the Service Fulfillment Ratio more demanding and
largely explain the decrease in Expresss average Service Fulfillment Ratio in the first nine months of 2010
compared to the first nine months of 2009.

Express accounts for discounts under its Concession as expenses, rather than reductions in revenue.
Therefore, Express does not show any discounts in the table above.

As with Alsacia, the AFT pays all Transantiago expenses on behalf of Express. However, unlike
Alsacia, Express accounts for payments by the AFT and the expenses owed to Transantiago in a single, offsetting
account. Therefore, Express does not show any reimbursement for Transantiago expenses in the table above.

Advertising Revenue. Expresss advertising revenue increased 68.3% to Ch$510 million in the first nine
months of 2010 compared to Ch$303 million in the first nine months of 2009. This increase was substantially
explained by the effects of the macroeconomic crisis in 2009.

103
 Operating Expenses. Expresss operating expenses increased 17.8% to Ch$66,663 million in the first
nine months of 2010 compared to Ch$56,604 million in the first nine months of 2009. The table below
summarizes the major components of this change.

Nine Months Ended

September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 15,888 16,660 4.9%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 11,648 13,816 18.6%
Depreciation and amortization . . . . . 12,744 12,855 0.8%
Spare parts and maintenance . . . . . . . 8,624 10,519 22.0%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 7,700 12,813 66.4%
Total operating expenses . . . . . . . . . . 56,604 66,663 17.8%

Labor expenses increased 4.9% to Ch$16,660 million in the first nine months of 2010 compared to
Ch$15,888 million in the first nine months of 2009. This increase was substantially explained by an increase of
11% in the number of employees between these periods, resulting primarily from an increase in operation control
personnel in the streets, who monitor the timing of buses, increased maintenance personnel, as Express
internalized certain processes, and additional bus drivers for new services.

Fuel expenses increased 18.6% to Ch$13,816 million in the first nine months of 2010 compared to
Ch$11,648 million in the first nine months of 2009. During this period, the kilometers traveled by Expresss
buses increased 3.9%, leading to an increase in diesel fuel consumption of 2.0%, which, combined with the 15%
increase in the price of diesel fuel during the same period, largely explains the increase in fuel expenses. Express
implemented a fuel savings program in 2010, which explains the lower fuel consumption per kilometer traveled
by Expresss buses.

Depreciation and amortization expenses from operating assets increased 0.8% to Ch$12,855 million in
the first nine months of 2010 compared to Ch$12,744 million in the first nine months of 2009. This small
increase was mainly due to an increase in the value of Expresss depreciable assets.

Spare parts and maintenance expenses increased 22.0% to Ch$10,519 million in the first nine months of
2010 compared to Ch$8,624 million in the first nine months of 2009. This increase was mainly due to a 3.9%
increase in the number of kilometers traveled by Expresss buses, as required by changes in Expresss Operating
Plans, and Expresss updating of its bus maintenance program during 2010 to meet the needs of its aging buses.

Other expenses increased 66.4% to Ch$12,813 million in the first nine months of 2010 compared to
Ch$7,700 million in the first nine months of 2009. This increase was primarily due to Expresss decision to
account for the portion of the Service Fulfillment Ratio discount associated with the distance component, which
was added in October 2009 and which totaled Ch$3,321 million in the first nine months of 2010, as an expense
during the first nine months of 2010.

104
 Administrative and Selling Expenses. Expresss administrative and selling expenses decreased 3.9% to
Ch$4,631 million in the first nine months of 2010 compared to Ch$4,821 million in the first nine months of
2009. The table below summarizes the major components of this change.

Nine Months Ended

September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,318 2,105 -9.2%
Depreciation and amortization . . . . . 268 308 14.9%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 2,235 2,218 -0.7%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 4,821 4,631 -3.9%

Labor expenses decreased 9.2% to Ch$2,105 million in the first nine months of 2010 compared to
Ch$2,318 million in the first nine months of 2009. This decrease was a result of a decrease in Expresss
contributions to workers unions and the resignation of Expresss CEO in 2010, which decreased Expresss salary
obligations.

Other expenses decreased 0.7% to Ch$2,218 million in the first nine months of 2010 compared to
Ch$2,235 million in the first nine months of 2009. This decrease was a mainly due to a decrease in Expresss
facility rental expenses.

Depreciation and amortization expenses from administrative and selling assets increased 14.9% to
Ch$308 million in the first nine months of 2010 compared to Ch$268 million in the first nine months of 2009.
This increase was mainly due to an increase in the value of Expresss depreciable assets.

Non-Operating Income (Loss). Expresss non-operating income (loss) increased 56.0% to a loss of
Ch$3,772 million in the first nine months of 2010 compared to a loss of Ch$8,576 million in the first nine
months of 2009. The table below summarizes the major components of this change.

Nine Months Ended

September 30, %
2009 2010 Change
(Millions of constant Ch$
as of September 30, 2010)
Non-operating loss
Interest expenses . . . . . . . . . . . . . . . . . . . . (4,309) (3,790) -12.0%
Other non-operating income
(expenses) . . . . . . . . . . . . . . . . . . . (90) 430 577.8%
Price-level restatements . . . . . . . . . . (3,042) (806) -73.5%
Foreign exchange rate differences . . (1,135) 394 134.7%
Total non-operating loss . . . . . . . . . . (8,576) (3,772) 56.0%

The decrease in interest expenses in the first nine months of 2010 compared to the first nine months of
2009 was a result of a decrease in Expresss outstanding debt, a decrease in the prevailing interest rate on
Expresss floating interest rate debt and a decrease in the Chilean peso/U.S. dollar exchange rate.

The increase in other non-operating income (expenses) to income of Ch$430 million in the first nine
months of 2010 compared to an expense of Ch$90 million in the first nine months of 2009 was due to the

105
reimbursement of Express by the AFT for operating expenses incurred by Express in the previous years due to
the Ministrys failure to implement fleet control systems as required by the Concession Agreements.

The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation

and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

AlsaciaComparison of the Year Ended December 31, 2008, to the Year Ended December 31, 2009

Revenue. Alsacias total revenue decreased 5.9% to Ch$66,658 million in 2009 compared to Ch$70,866
million in 2008 as shown below.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 70,691 66,470 -6.0%
Advertising revenue . . . . . . . . . . . . . . . . . 175 188 7.4%
Total revenue . . . . . . . . . . . . . . . . . . . . . . . 70,866 66,658 -5.9%

Revenue from Passenger Transportation. Alsacias Revenue from passenger transportation services
decreased 6.0% to Ch$66,470 million in 2009 compared to Ch$70,691 million in 2008. The table below
summarizes the major components of this change.

Year ended
December 31, %
2008 2009 Change
Base Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . 19,036 27,619 45.1%
Variable Revenue . . . . . . . . . . . . . . . . . . . . . . . 45,941 35,988 -21.7%
Potential revenue . . . . . . . . . . . . . . . . . . . . . . . 64,977 63,607 -2.1%
Service Fulfillment Ratio . . . . . . . . . . . . . . . . . 97.9% 96.7% -1.2%
Realized revenue after Service Fulfillment
Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,607 61,495 -3.3%
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (363) (1,361) 274.9%
Reimbursement for Transantiago expenses . . . 5,553 6,055 9.0%
Revenue Price-level restatements and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 1,884 281 -85.1%
Total revenue from passenger transportation
services (Millions of constant Ch$ as of
December 31, 2009) . . . . . . . . . . . . . . . . . . . 70,691 66,470 -6.0%

Alsacias Base Revenue increased 45.1% to Ch$27,619 million in 2009 compared to Ch$19,036 million
in 2008. This increase was the result of an amendment to Alsacias Concession Agreement, partially offset by a
decrease in Alsacias Cost Index. On November 9, 2007, the Ministry and Alsacia entered into an amendment to
Alsacias Concession Agreement that, effective June 22, 2008, shifted a portion of Variable Revenue into Base
Revenue in the Concession revenue formula. Prior to adjustment for the Cost Index or seasonality, monthly Base
Revenue under this amendment was increased from Ch$390 million prior to June 22, 2008 to Ch$2,724 million
on or after June 22, 2008. Before application of the Cost Index, this caused total Base Revenue to increase 45%
to Ch$27,617 million in 2009 compared to Ch$19,036 million in 2008. The Ministry and Alsacia agreed to this

106
amendment to maintain Alsacias expected revenue under the Concession Agreement, given that ridership was
lower than anticipated. Similar amendments were made to the concession agreements of the other trunk line bus
concession holders. The effects of this amendment were partially offset by a 32% decrease in Alsacias average
Cost Index in 2009 compared to 2008.

Alsacias Variable Revenue decreased 21.7% to Ch$35,988 million in 2009 compared to Ch$45,941
million in 2008. The main reasons for this decrease were (i) the November 9, 2007 amendment to the Concession
Agreement mentioned above, which significantly reduced the ratio of Variable Revenue to Base Revenue
through a one-time 35% decrease in PPT on July 1, 2008 (the first payment date after June 22, 2008, the effective
date of the amendment), which affected all subsequent PPTs, given that each months PPT is calculated based on
PPT from the previous month, and resulted in a 21% decrease in average PPT in 2009 compared to 2008, and
(ii) a 1.8% decrease in actual Passenger Validations to 131 million in 2009 compared to 133 million in 2008.
This decrease in Passenger Validations was primarily due to the macroeconomic recession in 2009.

Alsacias Cost Index decreased 12% in December 2009 compared to December 2008, and Alsacias
average Cost Index decreased 6.9% in 2009 compared to 2008. The decrease in the Cost Index, at the end of the
year and on average, limited the increase in Base Revenue and contributed to the decrease in Variable Revenue in
2009 compared to 2008. The decrease in the Cost Index was a direct result of decreases in its underlying
macroeconomic variables in 2009 compared to 2008, including the CPI (-2.3% in 2009 compared to +8.9% in
2009), fuel costs (-32% in 2009 compared to +31% in 2008), labor costs (5.8% in 2009 compared to 7.4% in
2008) and the Ch$/U.S.$ exchange rate (-25% in 2009 compared to +28% in 2008).

The Service Fulfillment Ratio, which adjusts Base Revenue and Variable Revenue, decreased 1.2% to
an average of 96.7% in 2009 compared to an average of 97.9% in 2008. In May 2009, calculation of the Service
Fulfillment Ratio was modified to exclude any buses that did not board a new passenger for 30 minutes from
Alsacias actual performance figures in order to include only buses moving in commercial service. This
modification generally decreased Alsacias Service Fulfillment Ratio, even with no change in Alsacias
operational performance. Beginning in October 2009, the Ministry introduced another modification in the
calculation of the Service Fulfillment Ratio, adding a distance (kilmetro) measurement for each half hour of bus
service. These modifications made the Service Fulfillment Ratio more demanding and largely explain the
decrease in Alsacias average Service Fulfillment Ratio in 2009 compared to 2008.

Alsacias revenue from passenger transportation services is reduced by discounts applied by the
Ministry using the ICF and the ICR, which totaled Ch$1,361 million in 2009 and Ch$363 million in 2008.

All Transantiago service providers are required to pay Transantiago expenses in proportion to their
individual revenue, including, among others, the 2.0% AFT fee and the fees for the Transantiago User
Information System. Alsacias share of Transantiago expenses totaled Ch$6,055 in 2009 and Ch$5,553 in 2008.
Nevertheless, as discussed above, the Transantiago expenses owed by Alsacia are offset by equal payments from
the AFT, which Alsacia accounts for as revenue under reimbursement for Transantiago expenses.

Advertising Revenue. Alsacias advertising revenue increased 7.4% to Ch$188 million in 2009
compared to Ch$175 million in 2008.

107
 Operating Expenses. Alsacias operating expenses increased 6.5% to Ch$60,230 million in 2009
compared to Ch$56,528 million in 2008. The table below summarizes the major components of this change.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 15,920 16,959 6.5%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 15,970 11,401 -28.6%
Depreciation and amortization . . . . . 8,697 8,890 2.2%
Spare parts and maintenance . . . . . . . 4,795 7,708 60.8%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 11,146 15,272 37.0%
Total operating expenses . . . . . . . . . . 56,528 60,230 6.5%

Labor expenses increased 6.5% to Ch$16,959 million in 2009 from Ch$15,920 million in 2008. This
increase was a result of (i) a 5.6% increase in the average number of operating employees to 2,235 in 2009
compared to 2,116 in 2008 and (ii) an increase in average employee salary of 0.9% to Ch$632 thousand per
month in 2009 compared to Ch$629 thousand per month in 2008.

Depreciation and amortization expenses from operating assets increased 2.2% to Ch$8,890 million in
2009 compared to Ch$8,697 million in 2008. This increase was a result of Alsacias investment in new
depreciable assets in 2009, primarily buses, and an increase in amortization expenses in 2009 related to Alsacias
contribution to the Operating Technical Reserve. Alsacia ties the amortization of its contribution to the Operating
Technical Reserve in each period to that periods revenue. Accordingly, any increase in revenue, like that
between 2008 and 2009, is accompanied by an increase in amortization expense related to the contribution to the
Operating Technical Reserve.

Spare parts and maintenance expenses increased 60.8% to Ch$7,708 million in 2009 compared to
Ch$4,795 million in 2008. This increase was substantially explained by (i) an increase in the kilometers traveled
by Alsacias buses of 7.5% to 51 million in 2009 compared to 48 million in 2008, (ii) Alsacias implementation
of a preventive maintenance program in 2009 and (iii) Alsacias updating of its bus maintenance program during
2009.

Other expenses increased 37.0% to Ch$15,272 million in 2009 compared to Ch$11,146 million in 2008.
This increase was primarily due to a Ch$3,604 million increase in Alsacias overhaul provision to Ch$2,546
million in 2009 compared to negative Ch$1,118 million in 2008. Alsacia increased its overhaul provision as a
result of an updated assessment of this provision in 2009. Increases in other general expenses, partially offset by
decreases in insurance expenses, explain the remaining Ch$522 million increase in other expenses.

Fuel expenses decreased 28.6% to Ch$11,401 million in 2009 compared to Ch$15,970 million in 2008
due to a decrease in average diesel fuel prices of 32% to Ch$383 per liter in 2009 compared to Ch$563 per liter
in 2008. The effect of the decrease in average diesel prices was partially offset by a 7.5% increase in kilometers
traveled by Alsacias buses, which led an 8.8% increase in fuel consumption.

108
 Administrative and Selling Expenses. Alsacias administrative and selling expenses increased 32.6% to
Ch$6,613 million in 2009 compared to Ch$4,989 million in 2008. The table below summarizes the major
components of this change.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,187 3,196 46.1%
Depreciation and amortization . . . . . 909 1,234 35.8%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 1,893 2,183 15.3%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 4,989 6,613 32.6%

Labor expenses for Alsacias administrative staff increased 46.1% to Ch$3,196 million in 2009
compared to Ch$2,187 million in 2008. This increase was substantially due to (i) a 7.8% increase in the average
number of administrative employees to 153 in 2009 compared to 142 in 2008, which was due to the requirements
of the new bus terminals that started service in 2009, (ii) an increase in average administrative employee salary
of 46% to Ch$1,746 thousand per month in 2009 compared to Ch$1,287 thousand per month in 2008 due to
contractual obligations to match changes in the CPI, which increased 1.5% in 2009 compared to 2008 and
(iii) increases in bonus and employee severance expenses.

Depreciation and amortization expenses from administrative and selling assets increased 35.8% to
Ch$1,234 million in 2009 compared to Ch$909 million in 2008. This increase was due to increases in software
amortization and amortization of expenses related to affiliated companies in 2009.

Other expenses increased 15.3% to Ch$2,183 million in 2009 compared to Ch$1,893 million in 2008.
This increase was primarily due to modifications to Alsacias Concession Agreement and related laws in 2009,
which required Alsacia to increase expenditures related to external consultant and legal fees.

Non-operating Income (Loss). Alsacias non-operating income (loss) increased 154.7% to income of
Ch$8,739 million in 2009 compared to a loss of Ch$15,972 million in 2008

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Non-operating income (loss)
Interest expenses . . . . . . . . . . . . . . . . (5,309) (3,993) -24.8%
Other non-operating expenses . . . . . . (131) (389) 196.9%
Price-level restatements . . . . . . . . . . 6,390 (1,975) -130.9%
Foreign exchange rate differences . . (17,413) 15,501 189.0%
Profit (loss) from Investment in
related company . . . . . . . . . . . . . . 491 (404) -182.3%
Total non-operating income (loss) . . (15,972) 8,739 154.7%

The decrease in interest expenses in 2009 compared to 2008 was a result of a decrease in Alsacias
outstanding debt, a decrease in the prevailing interest rate on Alsacias floating interest rate debt and a decrease
in the Chilean peso/U.S. dollar exchange rate.

109
 The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation
and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

Profit (loss) from investment in related company relates solely to Alsacias investment in 16% of the
equity of Eco Uno, which is a holding company that owns 99.998% of Express. Changes in the value of this
investment primarily reflect Expresss financial performance over the same period, which is discussed below.
These changes are presented net of any interest expenses recognized by Eco Uno on certain intercompany debt to
its parent company during the period.

ExpressComparison of the Year Ended December 31, 2008, to the Year Ended December 31, 2009

Revenue. Expresss total revenue decreased 5.6% to Ch$86,065 million in 2009 compared to Ch$91,183
million in 2008 as shown below.
Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 90,720 85,560 -5.7%
Advertising and other revenue . . . . . 463 505 9.1%
Total Revenue . . . . . . . . . . . . . . . . . . 91,183 86,065 -5.6%

Revenue from Passenger Transportation. The decrease in Expresss total revenue to Ch$86,065 million
in 2009 compared to Ch$91,183 million in 2008 was primarily due to a reduction in Expresss Cost Index in
2009, which resulted from decreases in oil prices and inflation in 2009 compared to 2008. During 2008 there
were also changes in Expresss Base Revenue and Variable Revenue mix that mostly offset each other.

Expresss revenue from passenger transportation services decreased 5.7% to Ch$85,560 million in 2009
compared to Ch$90,720 million in 2008. The table below summarizes the major components of this change.
Year ended
December 31, %
2008 2009 Change
Base Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . 22,118 31,670 43.2%
Variable Revenue . . . . . . . . . . . . . . . . . . . . . . . 70,746 55,770 -21.2%
Potential revenue . . . . . . . . . . . . . . . . . . . . . . . 92,864 87,440 -5.8%
Service Fulfillment Ratio . . . . . . . . . . . . . . . . . 96.2% 96.4% 0.1%
Realized revenue after Service Fulfillment
Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,374 84,278 -5.7%
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0.0%
Reimbursement for Transantiago expenses . . . 0 0 0.0%
Revenue Price-level restatements and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 1,346 1,282 -4.8%
Total revenue from passenger transportation
services (Millions of constant Ch$ as of
December 31, 2009) . . . . . . . . . . . . . . . . . . . 90,720 85,560 -5.7%

Expresss Base Revenue increased 43.2% to Ch$31,670 million in 2009 compared to Ch$22,118 million
in 2008. This increase was the result of an amendment to Expresss Concession Agreement, partially offset by a
decrease in Expresss Cost Index. On November 13, 2007, the Ministry and Express entered into an amendment

110
to Expresss Concession Agreement that, effective June 22, 2008, shifted a portion of Variable Revenue into
Base Revenue in the Concession revenue formula. Prior to adjustment for the Cost Index or seasonality, monthly
Base Revenue under this amendment was increased from Ch$462 million prior to June 22, 2008 to Ch$3,179
million on or after June 22, 2008. Before application of the Cost Index, this caused total Base Revenue to
increase 74% to Ch$38 million in 2009 compared to Ch$21 million in 2008. The Ministry and Express agreed to
this amendment to maintain Expresss expected revenue under the Concession Agreement, given that ridership
was lower than anticipated. Similar amendments were made to the concession agreements of the other trunk line
bus concession holders. The effects of this amendment were partially offset by 8.8% decrease in Expresss
average Cost Index in 2009 compared to 2008, from decreases in oil prices and inflation in 2009 compared to
2008.

Expresss Variable Revenue decreased 21.2% to Ch$55,770 million in 2009 compared to Ch$70,746
million in 2008. The main reasons for this decline were (i) the November 13, 2007 amendment to the Concession
Agreement mentioned above, which significantly reduced the ratio of Variable Revenue to Base Revenue
through a one time 30% decrease in PPT on July 1, 2008 (the first payment date after June 22, 2008, the effective
date of the amendment), which affected all subsequent PPTs, given that each months PPT is calculated based on
PTT from the previous month, and resulted in a 21% decrease in average PPT in 2009 compared to 2008, and
(ii) a 1.9% decrease in actual Passenger Validations to 204 million in 2009 compared to 208 million in 2008.
This decrease in Passenger Validations was primarily due to the macroeconomic recession in 2009.

Expresss Cost Index decreased 8.8% to 112 in December 2009 compared to 125 in December 2008,
and Expresss average Cost Index decreased 8.1% in 2009 compared to 2008. The decrease in the Cost Index, at
the end of the year and on average, limited the increase in Base Revenue and contributed to the decrease in
Variable Revenue in 2009 compared to 2008. The decrease in the Cost Index was a direct result of decreases in
its underlying macroeconomic variables in 2009 compared to 2008, including the CPI (-2.3% in 2009 compared
to +8.9% in 2009), fuel costs (-32% in 2009 compared to +31% in 2008), labor costs (5.8% in 2009 compared to
7.4% in 2008) and the Ch$/U.S.$ exchange rate (-25% in 2009 compared to +28% in 2008).

The Service Fulfillment Ratio, which adjusts Base Revenue and Variable Revenue, increased 0.1% to an
average of 96.4% in 2009 compared to an average of 96.2% in 2008. In May 2009, calculation of the Service
Fulfillment Ratio was modified to exclude any buses that did not board a new passenger for 30 minutes from
Expresss actual performance figures in order to include only buses moving in commercial service. This
modification generally decreased Expresss Service Fulfillment Ratio, even with no change in Expresss
operational performance. Beginning in October 2009, the Ministry introduced another modification in the
calculation of the Service Fulfillment Ratio, adding a distance (kilmetro) measurement for each half hour of bus
service. These modifications made the Service Fulfillment Ratio more demanding and limited the increase in
Expresss average Service Fulfillment Ratio 2009 compared to 2008, despite Expresss improved performance
between these periods.

As discussed above, Express accounts for discounts as expenses, rather than reductions to revenue, and
includes all Transantiago expenses in a single, offsetting account with the equal payments from the AFT.
Therefore, no discounts or reimbursement for Transantiago expenses are shown in the table above.

Advertising Revenue. Expresss advertising revenue increased 9.1% to Ch$505 million in 2009
compared to Ch$463 million in 2008. Express changed its marketing company in 2008, and advertising sales
have subsequently increased.

111
 Operating Expenses. Expresss operating expenses decreased 5.5% to Ch$75,172 million in 2009
compared to Ch$79,578 million in 2008. The table below summarizes the major components of this change.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 18,809 20,957 11.4%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 21,855 15,934 -27.1%
Depreciation and amortization . . . . . 16,254 16,684 2.6%
Spare parts and maintenance . . . . . . . 11,770 9,934 -15.6%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 10,890 11,663 7.1%
Total operating expenses . . . . . . . . . . 79,578 75,172 -5.5%

Labor expenses increased 11.4% to Ch$20,957 million in 2009 compared to Ch$18,809 million in 2008.
This increase was mainly a result of (i) a 7.6% increase in the average number of operating employees to 3,160 in
2009 compared to 2,936 in 2008, which was primarily due to the requirements of increased scheduled route
distance and additional en-route operational execution control, and (ii) an increase in average employee salary of
3.5% to Ch$553 thousand per month in 2009 compared to Ch$534 thousand per month in 2008.

Fuel expenses decreased 27.1% to Ch$15,934 million in 2009 compared to Ch$21,855 million in 2008
largely due to a decrease in average diesel fuel prices of 32% to Ch$383 per liter in 2009 compared to Ch$563
per liter in 2008. The decrease in average diesel fuel prices was partially offset by a 7.3% increase in kilometers
traveled by Expresss buses, which caused a 9.3% increase in diesel consumption in 2009 compared to 2008.

Spare parts and maintenance expenses decreased 15.6% to Ch$9,934 million in 2009 compared to
Ch$11,770 million in 2008 due mainly to the reversal of a Ch$1,843 million maintenance allowance in 2009.

Other expenses increased 7.1% to Ch$11,663 million in 2009 compared to Ch$10,890 million in 2008
primarily due to a Ch$1,418 million increase in the discounts applied under Expresss Concession Agreement,
which Express accounts for as expense rather than reductions in revenue, in 2009 compared to 2008, partially
offset by decreases in general and third-party service expenses.

Depreciation and amortization expenses from operating assets increased 2.6% to Ch$16,684 million in
2009 compared to Ch$16,254 million in 2008 primarily due to Expresss investment in new depreciable assets in
2009, primarily buses, and an increase in 2009 of amortization expenses related to Expresss contribution to the
Operating Technical Reserve. Express, like Alsacia, ties the amortization of its contribution to the Operating
Technical Reserve in each period to that periods revenue. Accordingly, any increase in revenue, like that
between 2008 and 2009, is accompanied by an increase in amortization expenses related to the contribution to the
Operating Technical Reserve.

112
 Administrative and Selling Expenses. Expresss administrative and selling expenses increased 14.7% to
Ch$6,464 million in 2009 compared to Ch$5,635 million in 2008. The table below summarizes the major
components of this change.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,402 3,167 31.8%
Depreciation and amortization . . . . . 275 364 32.4%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 2,958 2,933 -0.8%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 5,635 6,464 14.7%

Labor expenses increased 31.8% to Ch$3,167 million in 2009 compared to Ch$2,402 million in 2008.
This increase was principally caused by contributions paid to the workers union, an 5.9% increase in the average
number of employees and an inflationary restatement of wages in 2009.

Depreciation and amortization expenses from administrative and selling assets increased 32.4% to
Ch$364 million in 2009 compared to Ch$275 million in 2008 due to Expresss acquisition of new depreciable
administrative and selling assets in 2009.

Other expenses decreased 0.8% to Ch$2,933 million in 2009 compared to Ch$2,958 million in 2008.

Non-operating Income (Loss). Expresss non-operating loss increased 540.7% to Ch$9,252 million in
2009 compared to Ch$1,444 million in 2008. The table below summarizes the major components of this change.

Year ended
December 31, %
2008 2009 Change
(Millions of constant Ch$
as of December 31, 2009)
Non-operating loss
Interest expenses . . . . . . . . . . . . . . . . (8,058) (5,382) -33.2%
Other non-operating expenses . . . . . . (192) (179) -6.8%
Price-level restatements . . . . . . . . . . (157) (1,344) -756.1%
Foreign exchange rate differences . . 6,963 (2,347) -133.7%
Total non-operating loss . . . . . . . . . . (1,444) (9,252) 540.7%

The decrease in interest expenses in 2009 compared to 2008 was caused by a decrease in Expresss
outstanding debt, a decrease in the prevailing interest rate on Expresss floating interest rate debt and a decrease
in the Chilean peso/U.S. dollar exchange rate.

The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation

and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

113
AlsaciaComparison of the Year Ended December 31, 2007, to the Year Ended December 31, 2008

Revenue. Alsacias total revenue increased 42.0% to Ch$70,866 million in 2008 compared to Ch$49,918
million in 2007 as shown below.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 49,687 70,691 42.3%
Advertising revenue . . . . . . . . . . . . . . . . . 231 175 -24.2%
Total Revenue . . . . . . . . . . . . . . . . . . . . . . 49,918 70,866 42.0%

Alsacias revenue from passenger transportation services increased 42.3% to Ch$70,691 million in 2008
compared to Ch$49,687 million in 2007.

A significant portion of the increase in Alsacias revenue was explained by an increase in the Cost Index
and in the scale of Alsacias operations during 2008. The Cost Index was first applied to Alsacias revenue
formula in July 2007.

During 2007 there were significant changes to Alsacias revenue formula under its Concession
Agreement that made 2007 and 2008 revenue not fully comparable. The most significant of these changes are
listed below.

Prior to February 8, 2007, Alsacias Concession revenue was composed of direct fares collected
from passengers, in cash, on board Alsacias buses. The price of these passenger fares was
determined by the Ministry.

Starting on February 9, 2007 Alsacia stopped collecting cash on its buses as the Transantiago
electronic payment system became operational. Since February 9, 2007, Alsacias revenue has not
been directly related to the fares that Alsacias passengers pay, which are managed by the AFT, but
rather to the Concession revenue formula. The revenue formula is based on Base Revenue plus
Variable Revenue, adjusted by the Service Fulfillment Ratio, minus any discounts. Variable
Revenue is based on PPT multiplied by the number of Passenger Validations received on Alsacias
buses. PPT is adjusted by the Cost Index, the scheduled route distances set forth in Operating Plans,
the passenger capacity of Alsacias bus fleet and inversely to Passenger Validations.

Due to initial limitations in the information provided by the electronic payment system, between
February 9, 2007 and June 30, 2007, Alsacia was paid according to reference Passenger Validations
set forth in the Concession Agreement and not according to actual Passenger Validations.

Beginning on July 1, 2007, the following were integrated into the Concession revenue formula:
actual Passenger Validations, as recorded by the electronic payment system; the Cost Index; and the
Service Fulfillment Ratio.

In addition to the 2007 changes to the Concession revenue formula, beginning on June 22, 2008, due to
the November 9, 2007 amendment to the Concession Agreement, Base Revenue was increased as a component of
total revenue, increasing from 6.9% to over 45% of total revenue between June 2008 and July 2008.

Advertising Revenue. Alsacias advertising revenue decreased 24.2% to Ch$175 million in 2008
compared to Ch$231 million in 2007 largely due to approximately two months without sales of advertising in
2008.

114
 Operating Expenses. Alsacias operating expenses increased 46.6% to Ch$56,528 million in 2008
compared to Ch$38,557 million in 2007 due to a significant increase in the scale of Alsacias operations. The
table below summarizes the major components of this change.

Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 13,278 15,920 19.9%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 10,129 15,970 57.7%
Depreciation and amortization . . . . . 5,201 8,697 67.2%
Spare parts and maintenance . . . . . . . 3,849 4,795 24.6%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 6,100 11,146 82.7%
Total operating expenses . . . . . . . . . . 38,557 56,528 46.6%

Labor expenses increased 19.9% to Ch$15,920 million in 2008 compared to Ch$13,278 million in 2007.
This increase was primarily due to (i) a 6.7% increase in the number of operating employees to 2,258 on
December 31, 2008 compared to 2,116 on December 31, 2007 and (ii) an increase in average employee salary
resulting from new union contracts.

Fuel expenses increased 57.7% to Ch$15,970 million in 2008 compared to Ch$10,129 million in 2007.
This increase was due to (i) a 31% increase in the average price of diesel fuel in 2008 compared to 2007 and (ii) a
35% increase in the kilometers traveled by Alsacias buses to 48 million 2008 compared to 36 million in 2007,
which led to an increase of 31% in diesel fuel consumption.

Depreciation and amortization expenses from operating assets increased 67.2% to Ch$8,697 million in
2008 compared to Ch$5,201 million in 2007. Alsacia carried out a technical study of its buses in 2008, as a result
of which Alsacia reduced the remaining useful life of its buses from 13 years to 9 years. The effect of this
reduction in useful life was a Ch$1,867 million increase in depreciation expenses in 2008. Additionally, Alsacia
acquired 41 buses in 2008, which increased depreciation expenses by Ch$538 million in 2008 compared to 2007,
and had increased amortization expenses in 2008 related to its contribution to the Operating Technical Reserve.
The remaining increase in depreciation and amortization expenses was explained mainly by the start of
operations of a new plant and the purchase of additional equipment and buses.

Spare parts and maintenance expenses increased 24.6% to Ch$4,795 million in 2008 compared to
Ch$3,849 million in 2007 mainly due to a 25% increase in the kilometers traveled by Alsacias buses to
48 million in 2008 compared to 36 million in 2007.

Other expenses increased 82.7% to Ch$11,146 million in 2008 compared to Ch$6,100 million in 2007
due mainly to an increase in the scale of Alsacias operations.

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 Administrative and Selling Expenses. Alsacias administrative and selling expenses increased 18.8% to
Ch$4,989 million in 2008 compared to Ch$4,201 million in 2007 due to an increase in the scale of Alsacias
operations. The table below summarizes the major components of this change.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,159 2,187 1.3%
Depreciation and amortization . . . . . 379 777 105.0%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 1,663 2,025 21.8%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 4,201 4,989 18.8%

Labor expenses increased 1.3% to Ch$2,187 in 2008 compared to $2,159 in 2007 due to an increase in
Alsacias workforce in response to the increase in its scale of its operationsscheduled route distances in
Alsacias Operating Plans increased 30% between 2007 and 2008.
Depreciation and amortization expenses from administrative and selling assets increased 105.0% from
Ch$379 million in 2007 to Ch$777 million in 2008 due primarily to an increase in deferred expenses related to
the financing of IASA de Colombia S.A., Alsacias subsidiary.
Other expenses increased 21.8% to Ch$2,025 million in 2008 compared to Ch$1,663 million in 2007
due to an increase in general expenses of 142% to Ch$1,630 million in 2008 compared to Ch$673 million in
2007, offset by decreases in other expenses. The increase in general expenses was primarily due to modifications
to Alsacias Concession Agreement and related laws in 2009, which required Alsacia to increase expenditures
related to external consultant and legal fees.
Non-operating Income (Loss). Alsacias non-operating income (loss) decreased 317.5% to a loss of
Ch$15,972 million in 2008 compared to income of Ch$7,345 million in 2007. The table below summarizes the
major components of this change.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Non-operating income (loss)
Interest expenses . . . . . . . . . . . . . . . . (4,197) (5,309) 26.5%
Other non-operating income
(expenses) . . . . . . . . . . . . . . . . . . . 593 (131) -122.1%
Price-level restatements . . . . . . . . . . 5,062 6,390 26.2%
Foreign exchange rate differences . . 3,856 (17,413) -551.6%
Profit from investment in related
company . . . . . . . . . . . . . . . . . . . . 2,031 491 -75.8%
Total non-operating income (loss) . . 7,345 (15,972) -317.5%

The increase in interest expense in 2008 compared to 2007 was caused by an increase in Alsacias
outstanding debt, an increase in the prevailing interest rate on Alsacias floating interest rate debt and an increase
in the Chilean peso/U.S. dollar exchange rate.
The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation
and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

116
 The profit from investment in related company relates solely to Alsacias investment in 16% of the
equity of Eco Uno, which is a holding company that owns 99.998% of Express. Changes in the value of this
investment primarily reflect Expresss financial performance over the same period, which is discussed
below. These changes are presented net of any interest expenses recognized by Eco Uno on certain intercompany
debt to its parent company during the same period.

ExpressComparison of the Year Ended December 31, 2007, to the Year Ended December 31, 2008

Revenue. Alsacias total revenue increased 36.2% to Ch$91,183 million in 2008 compared to Ch$66,924
million in 2007 as shown below.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Revenue from passenger transportation
services . . . . . . . . . . . . . . . . . . . . . . . . . 66,300 90,720 36.8%
Advertising and other revenue . . . . . . . . . 624 463 -25.8%
Total revenue . . . . . . . . . . . . . . . . . . . . . . . 66,924 91,183 36.2%

Expresss Revenue from passenger transportation services increased 36.8% to Ch$90,720 million in
2008 compared to Ch$66,300 million in 2007.

A significant portion of the increase in Expresss revenue was explained by an increase in the Cost
Index and in the scale of operations during 2008. The Cost Index was first applied to Expresss revenue formula
in July 2007.

During 2007 there were significant changes to Expresss revenue formula under its Concession
Agreement that made 2007 and 2008 revenue not fully comparable. The most significant of these changes are
listed below.

Prior to February 8, 2007, Expresss Concession revenue was composed of direct fares collected
from passengers, in cash, on board Expresss buses. The price of these passenger fares was
determined by the Ministry.

Starting on February 9, 2007 Express stopped collecting cash on its buses as the Transantiago
electronic payment system became operational. Since February 9, 2007, Expresss revenue has not
been directly related to the fares that Express passengers pay, which are managed by the AFT, but
rather to the Concession revenue formula. The revenue formula is based on Base Revenue plus
Variable Revenue, adjusted by the Service Fulfillment Ratio. Variable Revenue is based on PPT
multiplied by the number of Passenger Validations received on Expresss buses. PPT is adjusted by
the Cost Index, the scheduled route distances set forth in Operating Plans, the passenger capacity of
Expresss bus fleet and inversely to Passenger Validations.

Due to initial limitations in the information provided by the electronic payment system, between
February 9, 2007 and June 30, 2007, Express was paid according to reference Passenger Validations
set forth in the Concession Agreement and not according to actual Passenger Validations.

Beginning on July 1, 2007, the following were integrated into the Concession revenue formula:
actual Passenger Validations, as recorded by the electronic payment system; the Cost Index; and the
Service Fulfillment Ratio.

In addition to the 2007 changes to the Concession revenue formula, beginning on June 22, 2008, due to
the November 13, 2007 amendment to the Concession Agreement, Base Revenue was increased as a component
of total revenue, increasing from 6.1% to over 36% of total revenue between June 2008 and July 2008.

117
 Advertising Revenue. Expresss advertising revenue decreased 25.8% to Ch$463 million in 2008
compared to Ch$624 million in 2007. A change in Expresss marketing company in 2008 was followed by
decreased advertising sales during that year.

Operating Expenses. Expresss operating expenses increased 34.3% to Ch$79,578 million in 2008
compared to Ch$59,270 million in 2007 due to a significant increase in the scale of Expresss operations. The
table below summarizes the major components of this change.

Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Operating expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 15,673 18,809 20.0%
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 14,062 21,855 55.4%
Depreciation and amortization . . . . . 10,511 16,254 54.6%
Spare parts and maintenance . . . . . . . 9,065 11,770 29.8%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 9,959 10,890 9.3%
Total operating expenses . . . . . . . . . . 59,270 79,578 34.3%

Fuel expenses increased 55.4% to Ch$21,855 million in 2008 compared to Ch$14,062 million in 2007.
This increase resulted from a 31% increase in the average price of diesel fuel and an increase in the kilometers
traveled by Expresss buses, resulting from increased scheduled route distances in Expresss Operating Plans,
which led to a 33% increase in diesel fuel consumption in 2008.

Labor expenses increased 20.0% to Ch$18,809 million in 2008 compared to Ch$15,673 million in 2007.
This increase resulted from (i) an 18% increase in the average number of operating employees to 2,936 in 2008
compared to 2,494 in 2007 and (ii) an increase in average employee salary resulting from new union contracts.

Depreciation and amortization expenses from operating assets increased 54.6% to Ch$16,254 million in
2008 compared to Ch$10,511 million in 2007. This increase resulted from an increase in the value of Expresss
depreciable assets between 2007 and 2008, including the acquisition of 252 new buses in March 2007.

Spare parts and maintenance expenses increased 29.8% to Ch$11,770 million in 2008 compared to
Ch$9,065 million in 2007 mainly due to (i) a maintenance provision of Ch$1,843 million accounted for in 2008,
(ii) an increase in the number the number of buses in Expresss fleet and (iii) an increase in the scale of Expresss
operations.

Other expenses increased 9.3% to Ch$10,890 million in 2008 compared to Ch$9,959 million in 2007
mainly due to the increase in the scale of Expresss operations, which led to an increase expenses related to,
among other things, guard services and bus and facility leasing.

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 Administrative and Selling Expenses. Expresss administrative and selling expenses decreased 5.8% to
Ch$5,635 million in 2008 compared to Ch$5,981 million in 2007. The table below summarizes the major
components of this change.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Administrative and selling expenses
Labor . . . . . . . . . . . . . . . . . . . . . . . . . 2,404 2,402 -0.1%
Depreciation and amortization . . . . . 371 275 -25.9%
Other . . . . . . . . . . . . . . . . . . . . . . . . . 3,206 2,958 -7.7%
Total administrative and selling
expenses . . . . . . . . . . . . . . . . . . . . 5,981 5,635 -5.8%

Labor expenses remained nearly flat, decreasing 0.1% to Ch$2,402 million in 2008 compared to
Ch$2,404 million in 2007.

Depreciation and amortization expenses from administrative and selling assets decreased 25.9% to
Ch$275 million in 2008 compared to Ch$371 million in 2007. In 2007, Express recognized an extraordinary
amortization to account for the deterioration of pavements in its terminals, while 2008 had the normal rates
according to Expresss amortization and depreciation schedule.

Other expenses decreased 7.7% to Ch$2,958 million in 2008 compared to Ch$3,206 million in 2007 due
to a decrease in expenses related to services from third parties.

Non-operating Income (Loss). Expresss non-operating income (loss) decreased 109.5% to a loss of
Ch$1,444 million in 2008 compared to income of Ch$15,129 million in 2007. The table below summarizes the
major components of this change.
Year ended
December 31, %
2007 2008 Change
(Millions of constant Ch$
as of December 31, 2009)
Non-operating income (loss)
Interest expenses . . . . . . . . . . . . . . . . (6,430) (8,058) 25.3%
Other non-operating income
(expenses) . . . . . . . . . . . . . . . . . . . 9,283 (192) -102.1%
Price-level restatements . . . . . . . . . . 6,882 (157) -102.3%
Foreign exchange rate differences . . 5,394 6,963 29.1%
Total non-operating income (loss) . . 15,129 (1,444) -109.5%

The increase in interest expense in 2008 compared to 2007 was caused by an increase Expresss
outstanding debt, an increase in the prevailing interest rate on Expresss floating interest rate debt and an increase
in the Chilean peso/U.S. dollar exchange rate.

The fluctuation in price-level restatements is discussed above under OverviewImpact of inflation

and price-level restatement. The fluctuation in foreign exchange rate differences is discussed above under
OverviewCurrency fluctuations.

Accounting Differences Between Alsacia and Express

Alsacia and Express apply different accounting treatment to certain items within their financial
statements, including Concession discounts and Transantiago expenses. Following the Acquisition, we expect to

119
eliminate all such differences. However, as of the date of this Offering Memorandum, we have not yet
determined which treatment we will apply to each item. A description of the critical accounting policies for each
of Alsacia and Express appear below.

Critical Accounting Policies and Practices for Alsacia

General

The preparation of Alsacias financial statements requires estimates and assumptions that affect (i) the
reported amounts of Alsacias assets and liabilities and (ii) the reported amounts of revenue and expenses during
the reporting period. Alsacia bases its estimates and judgments on its historical experience and on various other
reasonable factors, which together form the basis for making judgments about the carrying values of its assets
and liabilities. Alsacias actual results may differ from these estimates under different assumptions or conditions.
Alsacia evaluates its estimates and judgments on an ongoing basis. Alsacias significant accounting policies are
described in Note 2 to its financial statements. Alsacia believes that its most critical accounting policies that
require the application of estimates and judgments are as follows:

Fixed Assets

The fixed assets are mainly buses for passenger public transportation, which are valued at their
historical cost adjusted by inflation, including all incremental costs incurred up to the date on which they are
available for use.

Other Assets

Expenditures corresponding to the purchase of software packages are recorded at their purchase price,
adjusted by inflation, and amortized in a three-year period.

Goods in leaseback are recorded as the fixed assets; obligations are accounted for under long and short-
term liabilities.

Fixed Asset Depreciation

The fiscal year depreciation has been estimated according to the linear method, considering the
remaining estimated useful life. For buses, useful life has been limited to the term of the Concession.

During the third quarter of 2008, Alsacia carried out a technical inspection of its buses in order to
determine the deterioration to which they been exposed under the operating conditions at that time. As a result of
this inspection, Alsacia reviewed the years of remaining useful life of its buses and decided to reduce of the
useful life from 13 years (the original useful life, which was equivalent to the duration of the Concession) to 9
years.

Operating Revenue

The operating revenue during Transantiagos transition period, October 24, 2005 to February 9, 2007,
corresponding to the public transportation ticket value and the earnings for the right of use of roads under
concession to yellow buses, which are buses that remain from the previous transportation system, are recognized
on a received basis. The income coming from static and dynamic advertising are recognized in the financial
statements once the services have been provided.

The regime period began on February 10, 2007 and from this date onward Alsacias earnings have been
calculated in accordance with the revenue formula set forth in its Concession Agreement. See The
ConcessionsConcession Revenue for a complete discussion of how revenue is calculated under the
Concession Agreements.

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 The revenue from static and dynamic advertising on buses is generated through the rental of advertising
space in the buses.

Operating Technical Reserve

See the definition of Operating Technical Reserve in Appendix D. Amounts paid and due by Alsacia to
the AFT for the Operating Technical Reserve are recorded as a deferred asset, which will be amortized against
operating revenue during the operating period of the Concession on the basis of projected revenue over the life of
the Concession.

Up-Front Interest Expenses of the Initial Borrowings

In accordance with the ordinary official letter No 11,808, dated October 31, 2006, the SVS authorized
Alsacia to defer and amortize the capital expenditures directly associated with its bank obligations related to the
purchase of its bus fleet. For this purpose the distribution method has been applied based on the actual earnings
obtained, considering the total earnings projected. These expenditures are capitalized under item other long-term
assets.

In 2005, Alsacia and Express collectively purchased 629 new Volvo B9 SALF buses at a price of
U.S.$249,000 each and 510 new Volvo B7RLE buses at a price of U.S.$130,000 each. In 2007, Alsacia and
Express purchased an additional 40 Volvo B9 SALF buses at a price of U.S.$275,000 each, 59 B7RLE buses at a
price of U.S.$155,000 each and 25 B7RLE buses at a price of U.S.$164,000 each. Under the purchase
agreements for these buses, Volvo provided its standard warranties. The purchase agreements also contained
provisions for training of Alsacia and Express mechanics in maintenance standards for the B9 SALF and B7RLE
chassis. In 2007, Alsacia also purchased 10 used Mercedes-Benz buses model OH 1420 51 at a price of Ch$8.0
million each.

Critical Accounting Policies and Practices for Express

General

Express prepares its financial statements in accordance with Chilean GAAP and the instructions of the
SVS. In the event of any differences, the SVS regulations prevail.

For comparison purposes, Expresss financial statements for 2008 and the notes thereto have been
restated off the books by -2.3%.

Expresss financial statements include assets, liabilities, income, cash flows of its parent company and
its subsidiary. Intercompany transactions or balances have been eliminated. The shareholding of minority
investors in the balance sheet and statement of income is shown as Minority Interest.
Shareholding
2009 2008
RUT Company Direct Indirect Total Total
% % % %
0-E . . . . . . . . . . . . . . . . . . . . . . . . . . EXPS de Colombia Ltda. 99.9900 0.0000 99.9900 99.9900

Price-Level Restatements

Expresss financial statements have been restated to reflect the effect of price-level changes in the
purchasing power of the Chilean peso during the respective years, in accordance with Chilean GAAP. These
restatements have been determined on the basis of the percentage change in the official consumer price index,
which showed a negative change of 2.3% from January to December in 2009 (positive change of 8.9% in 2008).

121
Translation of the Subsidiarys Financial Statements

The financial statements of Expresss foreign subsidiary have been translated to Chilean pesos as set out
in Technical Bulletin N 64 of the Chilean Institute of Accountants and official letters and circulars issued by the
SVS on foreign investments.

Basis of Translation

At each year end, assets and liabilities in foreign currency and UF have been translated into Chilean
pesos at the following exchange rates:
2009 2008
Ch$ per unit Ch$ per unit
United States dollar . . . . . . . . 507.10 636.45
Unidad de Fomento (UF) . . . . 20,942.88 21,452.57

Time Deposits

Investment in time deposits is shown at the value of the initial investment plus interests accrued at each
year end.

Marketable Securities

Investment in marketable securities refers to mutual fund quotas shown at the value of the respective
quota at the year end.

Allowance for Doubtful Accounts

Expresss policy is to make provisions for those doubtfully recoverable balances, which are determined
on the basis of the ageing of balances and reports from legal and commercial advisors of Express. These
provisions are shown net of trade receivables, notes receivable and other receivables, as appropriate.

Inventories

Inventories of fuels and spare parts necessary for the operation of buses are valued at restated
acquisition cost and shown in other current assets, net of the provision for obsolescence of spare parts without
turnover, which has been made over those items exceeding one year.

Prepaid Expenses

The cost of insurance policies is included in the prepaid expenses account. This cost is amortized over
the term of the policy.

Other Current Assets

This caption basically includes the deposits and transactions under repurchase agreement, both with
restrictions, since they are intended to guarantee the payment of interests and capital installments for the loans
granted by the HSBC Bank, as described in Note 14 and short-term forward contracts in 2008, which hedge
against foreign exchange risk. These contracts have been valued and accounted for as set forth in Technical
Bulletin N 57 of the Chilean Institute of Accountants.

Fixed Assets

Fixed assets basically refer to buses for the public transport of passengers and are valued at restated
acquisition cost, which includes all the expenses incurred until the date on which said assets are available for use
and are shown in machinery and equipment. The other fixed assets are shown at restated acquisition cost.

122
 Buildings and infrastructure includes bus terminals, which in essence have been completely finished,
and those work in process corresponding to bus terminals not completely finished yet.

The disbursements for the acquisition of computer software packages are shown at restated acquisition
cost and amortized over a four-year period.

Leased assets refer to lease contracts of movable property with the characteristics of a finance lease.
They are recorded as purchases of fixed assets, recognizing the total obligation and interests on accrual basis.
These assets are not the legal property of Express until it exercises the purchase option and it may not, therefore,
freely dispose of them.

As a policy, Express charges to net income for the year the preventive and corrective maintenance
performed to its fleet.

The maintenance provision recorded as December 31, 2008 was made as a result of the postponement of
cash disbursements which had to be made in the fleet in 2008, and which were actually carried out during 2009.

The amount charged to income in 2009 corresponding to fleet maintenance was Ch$2,219,734
(Ch$1,886,634 in 2008).

Fixed Asset Depreciation

Depreciation for the year has been calculated using the straight-line method in accordance with the
remaining useful lives of the respective assets.

Depreciation of buses has been estimated at nine years in accordance with a technical study performed
determine the wear and tear of such vehicles.

Other AssetsOther

This caption basically includes the following items:

Operating Technical Reserve

See the definition of Operating Technical Reserve in Appendix D. Amounts paid to the AFT for the
Operating Technical Reserve by Express are recorded as a deferred asset that will be amortized with a charge to
operating income, during the Concessions operating period, based on projected income to be obtained from
providing transportation services.

Unpaid amounts due for the Operating Technical Reserve are reflected in the short and long-term
liabilities, and as of December 31, 2008 the balance due is included in other current liabilities.

Derivatives contracts

Express maintains contracts to hedge against risks of fluctuation in both the exchange and interest rates.
These contracts have been valued and recorded as set forth in Technical Bulletin N 57 of the Chilean Institute of
Accountants.

Income Taxes and Deferred Taxes

Express has recorded income taxes on the basis of the net taxable income, determined in accordance
with the regulations contained in the Income Tax Law.

123
 Deferred taxes arising from temporary differences are shown in accordance with Technical Bulletins
N 60 and N 71 of the Chilean Institute of Accountants and the regulations contained in Circular N 1,466 of the
SVS.

Provision for Employee Vacations

Express recognizes the cost of employee vacation and benefits on an accrual basis at the year end.

Operating Income

The income from the public transport fare is included in the operating income account. Income coming
from bus rental, billboard and dynamic advertising are included in the financial statements once services have
been rendered.

Statement of Cash Flows

Expresss policy is to consider as cash equivalent all highly liquid financial investments and maturing in
90 days or less, and with minimum risk of loss in value. Cash flows from operating activities include all
business-related cash flows, as well as paid interest, interest income and, in general, all cash flows not defined as
from financing or investment activities. The operating concept used in this statement is more comprehensive than
that used in the consolidated statement of income.

Changes in Accounting Standards

Under the terms of our Concession Agreements, we must prepare our financial statements in accordance
with IFRS for the year beginning January 1, 2011. IFRS differs in certain significant respects from Chilean
GAAP. See Appendix A for a description of the principal differences between Chilean GAAP and IFRS as they
relate to us and our consolidated subsidiaries.

Liquidity and Capital Resources

General

Historically, our main cash flows have consisted of an initial capital investment by our shareholders and
borrowings from bank loans and lines of credit to fund our initial capital expenditures for buses and terminals.
Upon commencement of operations, we used our cash flow from operations and borrowed additional amounts
from bank financing sources and our equipment vendors to finance additional capital expenditures for more
buses and terminals, deposits in the Operating Technical Reserve as required under the terms of our Concession
Agreements and working capital.

At December 31, 2009 and September 30, 2010, Alsacia had Ch$3,876 million and Ch$33 million of
cash and cash equivalents, respectively, and Express had Ch$25 million and Ch$74 million of cash and cash
equivalents, respectively, measured in constant Chilean pesos as of such dates. We believe our working capital
combined with the proceeds of the offering of Notes and our expected cash flow from operations will be
sufficient to meet our capital requirements within the next twelve months.

We expect that substantially all of our cash flow from operations over the next 24 months will be
allocated to service our debt, make payments under the Notes Hedge Agreement and for our basic operating
requirements, including budgeted operations and maintenance and scheduled bus overhauls. As a result, we do
not expect to have any cash flow for discretionary spending or investments during that period. We also do not
expect any of our cash flow from operations to fund any material additions to the Reserve Account during this
initial 24 month period.

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Alsacia Operating Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Alsacia generated Ch$2,840 million in net cash from operating activities principally reflecting Alsacias
Adjusted EBITDA of Ch$11,154 plus non-cash write-offs and provisions of Ch$1,541 million, offset by net
changes in accounts receivable, inventories, other assets, and accounts payable related to operating income of
Ch$5,681 million and interest paid net of interest received of Ch$2,918 million. In 2009 and 2008, as measured
in constant Chilean pesos as of December 31, 2009, Alsacia generated Ch$9,431 million and Ch$4,848 million in
net cash from operating activities, respectively. The cash generated in 2009 principally reflected Alsacias
Adjusted EBITDA of Ch$10,473 million plus Ch$3,899 million in non-cash write-offs and provisions plus net
changes in accounts receivable, inventories, other assets, and accounts payable related to operating income of
Ch$2,781 million, minus Ch$4,772 million in interest paid net of interest received, minus Ch$550 million in
payments made to the Operating Technical Reserve, minus value added taxes and other taxes paid of Ch$807
million. The cash generated in 2008 principally reflected Alsacias Adjusted EBITDA of Ch$18,501 million
minus net changes in accounts receivable, inventories, other assets and accounts payable related to operating
income of Ch$1,166 million, minus interest paid net of interest received of Ch$3,131 million, minus payments
made to the Operating Technical Reserve of $7,541 million, minus Ch$1,118 million of non-cash operating
income.

Alsacia Investing Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Alsacia used Ch$1,156 million in net cash for investing activities, mainly for the purchase of leasehold
improvements for the Maip terminal and certain machinery and equipment totaling Ch$2,659 million. In 2009
and 2008, as measured in constant Chilean pesos as of December 31, 2009, Alsacia used Ch$3,538 million and
Ch$12,957 million in net cash from investing activities, respectively, which were mainly for the purchase of
property, plant and equipment of Ch$1,867 million and Ch$12,842 million, respectively. The main capital
investments made by Alsacia has been the purchase of buses and investments in bus terminals. These
investments were essential for compliance with the requirements of the Concession Agreements and fulfillment
of Alsacias operational needs. The following table sets forth Alsacias historical capital expenditures by type of
investment for the periods indicated.
Year ended
December 31, Nine Months Ended
Investment Category 2008 2009 September 30, 2010
(Ch$ million)
Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,322 0 3,675
Bus terminals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,935 2,139 0
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,257 2,139 3,675

Alsacia purchased 43 new buses in June 2010, for an amount of U.S.$8.5 million to replace older buses
that were on lease from third parties. This investment was financed by a long-term export credit agreement,
negotiated through the bus supplier.

In addition to the capital expenditures discussed above in each period, as required under the terms of
certain of its bank loans and lines of credit, Alsacia makes monthly prepayment deposits representing monthly
amortization of its debt which are offset by the semiannual return of prior deposits upon the scheduled repayment
of debt. These amounts generally offset each other each period.

Alsacia Financing Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Alsacia used Ch$5,760 million for financing activities, reflecting Ch$6,973 million of proceeds from long-term

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debt, payments of Ch$12,543 million of long-term debt and payments of Ch$190 million of related party debt. In
2009 and 2008, as measured in constant Chilean pesos as of December 31, 2009, Alsacia used Ch$2,321 million
and generated Ch$8,038 million in net cash from financing activities, respectively. The cash used in 2009 was
primarily for the repayment of Ch$23,242 million in loans offset by the incurrence of Ch$16,820 million in new
loans and Ch$4,100 in new related party loans. The cash generated in 2008 was primarily due to the Ch$19,323
million in new loan proceeds offset by Ch$11,100 million of loan repayments during the year.

Express Operating Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Express generated Ch$6,454 million in net cash from operating activities principally reflecting Ch$12,714
million of Adjusted EBITDA minus net changes in trade receivables, other assets, and accounts payable related
to operating income of Ch$581 million, minus interest paid net of interest received of $3,661 million, minus
Ch$447 million for value added taxes and other taxes paid. In 2009 and 2008, as measured in constant Chilean
pesos as of December 31, 2009, Express generated Ch$27,954 million and Ch$19,719 million in net cash from
operating activities, respectively. The cash generated in 2009 principally reflected Ch$21,477 of Adjusted
EBITDA, plus net changes in trade receivables, other assets, and accounts payable related to operating income of
Ch$12,578 million, plus non-cash write-offs and provisions of Ch$1,569 million, minus Ch$5,480 million of
interest paid net of interest received. The cash generated in 2008 principally reflected Ch$22,507 million of
Adjusted EBITDA, plus net changes in trade receivables, other assets, and accounts payable related to operating
income of Ch$800 million, plus Ch$2,087 million in other non-cash write-offs and provisions, minus Ch$5,038
million in interest paid net of interest received.

Express Investing Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Express generated Ch$2,637 million in net cash for investing activities, mainly from the sale of Ch$3,654 million
of other investments offset by the purchase of fixed assets of Ch$1,027 million. In 2009 and 2008, as measured
in constant Chilean pesos as of December 31, 2009, Express used Ch$22,827 million and Ch$14,465 million in
net cash from investing activities, respectively. Cash used in 2009 principally reflected Ch$17,774 million in
payments to the Operating Technical Reserve and Ch$5,141 million in purchases of fixed assets. Cash used in
2008 principally reflected Ch$10,222 million in purchases of fixed assets and Ch$4,243 million in investments in
financial instruments. The main capital investments made by Express have been the purchase of buses and
investments in bus terminals. These investments were essential for compliance with the requirements of
Expresss Concession Agreement and fulfillment of Expresss operational needs. The following table sets forth
Expresss historical capital expenditures by type of investment for the periods indicated.
Year ended
December 31, Nine Months Ended
Investment Category 2008 2009 September 30, 2010
(Ch$ million)
Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,924 0 0
Bus terminals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,217 3,366 594
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,141 3.366 594

Express took delivery of 193 new buses in the year 2011, for an amount of U.S.$35 million, to replace
its old buses. This purchase was financed through existing credit lines that will be repaid with the proceeds of
this Notes offering. Express also expects to invest Ch$840 million for the construction of new bus terminals for
the operation of these new buses, plus Ch$514 million to complete committed investments in existing terminals.

In addition to the capital expenditures discussed above in each period, as required under the terms of
certain of its bank loans and lines of credit, Express makes monthly prepayment deposits representing monthly

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amortization of its debt which are offset by the semiannual return of prior deposits upon the scheduled repayment
of debt. These amounts generally offset each other each period.

Express Financing Activities

In the first three quarters of 2010, as measured in constant Chilean pesos as of September 30, 2010,
Express used Ch$8,276 million for financing activities, reflecting Ch$2,125 million of proceeds from long-term
debt and payments of Ch$10,402 million of long-term debt. In 2009 and 2008, as measured in constant Chilean
pesos as of December 31, 2009, Express used Ch$8,483 million and Ch$5,222 million in net cash from financing
activities, respectively. The cash used in 2009 was primarily for the repayment of loans. The cash used in 2008
was primarily due to the Ch$2,212 million in new loan proceeds offset by Ch$7,434 million of loan repayments
during the year.

Off-balance Sheet Arrangements

We do not have any material off-balance sheet arrangements.

Quantitative and Qualitative Disclosures About Market and Operating Risks

The following discussion includes forward-looking statements that involve risks and uncertainties.
Actual results could differ materially from those projected in such forward-looking statements. See Cautionary
Statement Regarding Forward-Looking Statements.

Market and Operating Risks

We are exposed to risks arising from changes in various inputs into our revenue formula under our
Concessionns, including the number of passenger validations on our buses, the consumer price index, the
exchange rate for U.S dollars and Chilean pesos, diesel fuel index, the labor cost index, the passenger capacity on
our buses, and the scheduled route distance of our bus fleet under our Operating Plans. The table below illustrates
the estimated effect of a 10% increase or decrease in each of these factors on hypothetical revenue for Alsacia
and Express in 2011, assuming that all other factors remain constant and assuming baseline, hypothetical revenue
of Ch$70,023 million for Alsacia and Ch$92,526 million for Express in 2011. The hypothetical amounts in the
table below are illustrative only and do not reflect actual or expected inputs or revenue.
Alsacia Express
Effect on Base Effect on Base
Revenue assuming a Revenue assuming a
change in the Base change in the Base
Assumption of the Assumption of the
Input of Input of
Base 10% 10% Base 10% 10%
Input Assumption Increase Decrease Assumption Increase Decrease
Passenger validations on our buses . . . . . . . . . 137.5 2.1% -2.1% 189.8 2.3% -2.3%
million million
Consumer Price Index
(ndice de Precios al Consumidor) . . . . . . . . 102.0 1.8% -1.8% 102.0 2.7% -2.7%
Exchange Rate (Chilean pesos/U.S. dollars) . . . 518.6 1.1% -1.1% 518.6 0.2% -0.2%
Diesel Fuel Index . . . . . . . . . . . . . . . . . . . . . . . 455.7 3.5% -3.5% 455.7 3.6% -3.6%
Labor Cost Index
(ndice de Costo de Mano de Obra) . . . . . . . 130.8 2.8% -2.8% 130.8 2.7% -2.7%
Passenger capacity on our buses . . . . . . . . . . . . 69,107 5.8% -5.8% 128,571 to 6.3% -6.3%
116,930
Scheduled route distance under Alsacias 47.2 3.4% -3.4% 67.3 3.5% -3.5%
Operating Plans . . . . . . . . . . . . . . . . . . . . . . . million million
kilometers kilometers

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 Many of the revenue inputs above also impact our operating costs in proportion to our revenue. As a
result, the net impact of changes on the inputs on our revenue and operating costs in less than the gross impact of
these changes on our revenue alone.

As shown in the table above, we expect that a 10% increase in fuel prices increases our revenue be
approximately 3.5% to 3.6%. Historically, our fuel costs as a percentage of revenue from passenger
transportation services was 17.2% and 18.5% for Alsacia for 2009 and for the nine months ended September 30,
2010, and 18.6% and 19.6% for Express during the same periods. As a result, we estimate that a 10% increase in
fuel prices would cause our revenue to increase by a greater amount than our fuel expense, causing our operating
income to increase.

From time to time we assess our exposure and monitor opportunities to manage these risks above,
including entering into derivative contracts. In the normal course of business, we also face risks that are either
non-financial or non-quantifiable. Such risks principally include country risk, credit risk and legal risk and are
not represented in the information above.

Exchange Rate Hedge

On the Escrow Closing Date, Alsacia expects to enter into one or more derivatives transactions pursuant
to which it will acquire series of call options that will allow it to purchase U.S. dollars at a strike price ranging
from 570 to 585 Chilean pesos per U.S. dollar. The options will be subject to a cap rate of 750 Chilean pesos per
U.S. dollar or, if the options are not subject to a cap, Alsacia will sell a series of call options obligating it to sell
U.S. dollars at a price of 750 Chilean pesos per U.S. dollar in the same quantities (effectively capping the call
options bought by Alsacia), except that the options will be capped (or effectively capped) at 685 Chilean pesos
per U.S. dollar during the final period. The call options will have semiannual terms which match the scheduled
amortization of the Notes so that their net effect is to hedge the exchange rate risk associated with scheduled
principal and interest payments under the U.S. dollar denominated Notes in the event the U.S. dollar / Chilean
peso exchange rate increases between the strike prices and the cap rates specified above. If the exchange rate
increases above 750 Chilean pesos / U.S. dollar (or, during the final period, 685 Chilean pesos / U.S. dollar), the
call options will act as a partial hedge to reduce our exchange rate risk by up to 180 Chilean pesos / U.S. dollar,
which is the difference between the strike price of the call options and either the cap rate or the exercise price of
the call options sold by Alsacia, as applicable.

Based on current exchange rates, Alsacia expects to pay a total of approximately U.S.$39.4 million to
purchase the call options, of which approximately U.S.$4.6 million is expected to be paid in the first year after
the offering. The foregoing amounts exclude any amounts that Alsacia would get as a result of exercising the call
options.

Contractual Obligations

The tables below summarize the outstanding contractual obligations of Alsacia and Express as of
December 31, 2009.
Payments Due by Period
2010 2011 2012 2013 2014 Thereafter Total
Alsacia (in millions of Ch$)
Long-Term Debt Obligations (1) . . . . . . . . . 19,889 17,450 13,756 10,331 10,041 25,999 97,466
Capital Lease Obligations (2) . . . . . . . . . . . . 126 132 24 282
Operating Lease Obligations (3) . . . . . . . . . 1,878 558 550 531 531 2,105 6,153
Purchase Obligations (4) . . . . . . . . . . . . . . . 14,134 14,468 14,029 42,631
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,027 32,608 28,359 10,862 10,572 28,104 146,532

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 Payments Due by Period
Express 2010 2011 2012 2013 2014 Thereafter Total
(in million of Ch$)
Long-Term Debt Obligations (1) . . . . . . . . . 13,271 15,591 15,280 14,741 14,164 33,537 106,583
Capital Lease Obligations (2) . . . . . . . . . . . . 24 54 9 87
Operating Lease Obligations (3) . . . . . . . . . 11,231 6,369 161 70 70 282 18,183
Purchase Obligations (4) . . . . . . . . . . . . . . . 18,590 23,150 41,740
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,116 45,164 15,450 14,811 14,234 33,819 166,593

(1) Amounts relate to scheduled principal and interest payments on Alsacias and Express long term debt
outstanding as of December 31, 2009, which will be repaid out of the proceeds of the offering of the Notes.

(2) Represents amounts payable under capital leases for equipment.

(3) Represents amounts payable under operating leases for our leased terminals and driver transition areas as
well as certain buses leased under operating leases.

(4) Relates to estimated minimum amounts payable for 2,500 cubic meters of diesel fuel per month under
Alsacias fuel contract with Petrobras and 4,000 cubic meters of diesel fuel per month under Express fuel
contract with Copec, which are described under Our BusinessOur OperationsFuel.

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 TRANSANTIAGO

General

Transantiago is the trade name of the public transportation system of the Santiago, Chile metropolitan
area, consisting of the citys buses, the Metro subway, an integrated electronic payment system, as well as
planning and construction functions for transportation infrastructure. It is a critical part of the lives of a large
segment of Santiago residents, who rely on it for their daily commuting needs. Approximately 1,810 million
passenger trips were taken on Transantiago in 2009, of which approximately 1,205 million, or 67%, were bus
trips. Of those bus trips, approximately 11% and 17% were on the buses of Alsacias Trunk Line 1 and Expresss
Trunk Line 4, respectively, compared to approximately 16%, 8.4% and 11% on the buses of Trunk Lines 2, 3 and
5, respectively.

Transantiago is administered by the Ministry through a series of contracts and is not a separate legal
entity. It was designed and implemented by the Chilean Government in 2003 as a complete overhaul of the
then-existing public transportation system in Santiago. Since its implementation, Transantiago, along with its
operators, has gradually replaced the citys buses with a modern standardized fleet, rerouted the bus lines for
more efficient service, consolidated approximately 3,500 independent bus operators into 14 bus concession
holders, including Alsacia and Express, and introduced an integrated electronic payment system.

History

Bus rapid transit systems originated in Latin America in the 1970s in response to the transportation
problems related to urban growth. Bus rapid transit systems offer several of the benefits of underground
transportation systems in terms of efficiency and quality of service but at a fraction of the investment. These
practical and economic benefits have led to the adoption of bus rapid transit systems in a number of cities in
developing countries. In addition to bus rapid transit systems, many cities have also adopted integrated urban
transportation systems that include both underground and surface services with coordinated planning and
common payment systems.

Prior to the implementation of Transantiago, the bus transportation system in Santiago was largely
informal and decentralized, had consistently high accident rates and caused high levels of pollution. The system
consisted of approximately 8,000 buses operated by approximately 3,500 operators. Bus drivers in the system
worked more than 12 hours per day and their salaries were based on passenger tickets received.

Transantiago was introduced as a response to the problems of the previous system and was implemented
in three phases between October 2005 and February 2007. The initial implementation of Transantiago was
problematic for the public and the systems operators due to a number of factors including (i) delayed
development of infrastructure for dedicated bus lanes, electronic payment machines, and GPS bus locators;
(ii) poor communication and public preparedness for new routes; (iii) the elimination of cash payments; (iv) an
insufficient number of buses; (v) initial fares that were underpriced; and (vi) a poorly designed incentive
structure for concessionaires. Most of these transition issues have been resolved and public perceptions of
Transantiago have generally improved over time.

Transantiago offers significant improvements over its predecessor. For example, according to the
Ministry, bus accidents were reduced by nearly 50% from 6,386 in 2005 to 3,291 in 2008. In addition, there has
been a significant reduction in bus pollution due to improved emissions (85% of all buses in Transantiago now
meet Euro III emission standards, an emission standard implemented by the European Union in 2000 and since
adopted in other areas of the world) and fewer buses (there are approximately 19% fewer buses in service today
than under the old bus system). Transantiagos integrated electronic payment system is also a significant
improvement over the variety of payment methods and fares prices among operators in the previous system.

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 The Ministry continues to focus on further improving the system by, among other things, implementing
an anti-evasion campaign, which will increase the number of inspectors on the street and the amount of fines
applied to passengers that do not comply with the rules. The Ministry is also coordinating with operators to
indentify ways to improve their services without decreasing efficiency or quality. In addition, the Chilean
Government created a panel of experts (Panel de Expertos) in 2009 that examines and revises fares on a monthly
basis to maximize the long-term financial stability of Transantiago.

Bus Lines

Transantiago bus lines are divided into trunk lines and feeder lines. The trunk lines complement the
Metro subway and travel longer distances with fewer stops between different zones of the city. Trunk buses often
travel on dedicated bus-only lanes across the city. The trunk lines are divided into five business units that are
each individually operated by a bus concession holder, including each of Alsacia and Express. Feeder lines travel
shorter distances with more frequent stops within each of 10 zones in the city, which correspond to various
municipalities within the Santiago metropolitan area. The feeder lines are divided into nine business units that are
operated by six bus concession holders. The trunk and feeder business units are shown in the map below, which
illustrates the trunk business units with the actual trunk bus lines and the feeder business units with the zones
they service.

As of September 30, 2010, there were approximately 3,800 trunk buses in Transantiago, with an
aggregate passenger capacity of approximately 445,000, and approximately 2,700 feeder buses with an aggregate
passenger capacity of approximately 172,000. Together, Alsacia and Express owned and operated 1,861 buses
with an aggregate passenger capacity of approximately 210,000 (670 buses with an aggregate passenger capacity

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of approximately 73,000 through Alsacia and 1,191 buses with an aggregate passenger capacity of approximately
136,000 through Express), representing approximately 47% of the total trunk buses and approximately 47% of
the total trunk line passenger capacity.

In the nine months ending September 30, 2010, the trunk buses within Transantiago had received total
Passenger Validations of approximately 552 million, while the feeder buses had received total Passenger
Validations of approximately 329 million. By contrast, the entire Metro subway system received approximately
457 million total Passenger Validations over the same period. Together, Alsacia and Express received total
Passenger Validations of approximately 244 million during this period, representing 44% of all Passenger
Validations on trunk buses.

In the nine months ending September 30, 2010, the total scheduled route distance for trunk buses within
Transantiago was approximately 217 million kilometers, while the total scheduled route distance for feeder buses
was approximately 169 million. The total scheduled route distance for Alsacia and Express together was
approximately 88 million, representing approximately 41% of the scheduled route distance for trunk buses.

Competition

Bus concession holders compete with each other within Transantiago to a limited extent. The trunk line
bus concession holders, including Alsacia and Express, compete more directly with each other than with the
feeder line bus concession holders. Some of the routes of the three trunk line bus concession holders other than
Alsacia and Express run parallel or overlap with our routes, or provide service to the same areas that our routes
cover. As a result, a passenger could take several routes and combinations of buses to travel from one point to
another in the Santiago metropolitan area and bypass our routes entirely. In some cases, these alternative routes
may be faster, involve fewer transfers, or be less expensive, than taking our buses.

Bus concession holders also compete with the Metro for passengers. The Metro subway has five
operating lines and is currently under expansion. Extensions of the Metro subways Line 1 were concluded in
2010 and extensions of Line 5 were concluded in early 2011. Also, the addition of new Lines 3 and 6 have been
announced.

In addition to buses and the Metro subway, the prevalent forms of urban transportation available in
Santiago include private automobiles, private motorcycles, taxis and bicycles. According to the 2009 Chilean
Transportation and Communications Almanac (AnuaRos de Transporte y Comunicaciones 2009, INE), there
were approximately 1.3 million automobiles, including motorcycles (approximately 58,000) and taxis
(approximately 41,000), in the Santiago metropolitan area. Consequently, of the citys 6.9 million inhabitants,
only a minority use private transportation as their primary mode of transportation. In addition, while the network
of roads in Santiago is generally well developed, these roads are often overwhelmed by traffic, making private
transportation many times less practical than the public transportation offered by Transantiago.

Passenger Fares

Since 2009, Transantiago passenger fares have been set by the panel of experts appointed by the
Ministry, which was established by the same law that created the original Transantiago subsidy. See The
ConcessionsThe Subsidy. The panel of experts determines, on a monthly basis and in light of available
subsidies, the price of fares that will be charged to bus passengers based on methodology established by the
Ministry.

The current bus fare on Transantiago buses is Ch$520, which includes up to two free bus transfers, plus
an additional fee of either Ch$20 or Ch$80 to transfer to the Metro subway, depending on the time of the day.
Payment methods and fares are standardized across the system with an electronic fare system. The electronic
system consists of a prepaid smart card with an embedded microchip called the Bip! card, which can be
purchased from vending machines, vendors and kiosks throughout the city. The card automatically recognizes

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passengers who transfer buses or subway trains and passengers who are entitled to reduced fares. The payment
system is operated by the AFT, which is a private company that contracted with the Ministry to manage
Transantiagos payment systems and cash flows, including Passenger Validation revenue and Chilean
Government subsidies. The AFT is responsible for all aspects of the Transantiago payment system, including the
implementation and maintenance of the electronic payment systems and the collection and distribution of funds
from passengers and the Chilean Government to the bus concession holders and the Metro. See The
ConcessionsAFT PaymentsResponsibilities of the AFT.

The Transantiago Subsidy

Passenger fares have historically been, and currently are, insufficient to cover Transantiagos costs,
including the amounts owed to bus concession holders. Therefore, Transantiago has relied on, and currently
relies on, Chilean Government subsidies to cover the costs. Subsidies from the Chilean Government are paid to
the AFT twice per month, on the same schedule as our payments under the Concession Agreements, and
combined with funds received from passenger fares to pay Transantiagos concession holders, including Alsacia
and Express, pursuant to the terms of their respective concession agreements.

In September 2009, the Chilean Congress approved Law No. 20,378 (the Subsidy Law), which
provides for a subsidy to be paid by the Chilean Government to the AFT on behalf of Transantiago (the
Subsidy). Under the Subsidy Law, the Chilean Government has budgeted to pay a maximum Subsidy of up to
Ch$115,000 million annually into Transantiago, with the maximum amount adjusted annually for inflation. In the
event of shortfalls exceeding the maximum Subsidy, the Subsidy Law provides for an additional Subsidy of up to
an aggregate of Ch$549,598 million to be paid into Transantiago between 2009 and 2014, with caps of
Ch$133,349 million, Ch$29,641 million, Ch$9,283 million and Ch$3.654 million in the remaining years of 2011,
2012, 2013 and 2014, respectively.

In November 2010, the Chilean Congress approved Law No. 20,468, which amends the Subsidy Law to
increase the Subsidy by Ch$61,997 million for each of the years 2011 through 2013 and Ch$30,998 million for
2014, with all amounts subject to inflationary adjustment based on the CPI.

Nevertheless, while the Subsidy Law, as amended, sets forth the parameters of the Subsidy in future
years, the Chilean Congress must still approve the inclusion of the Subsidy in its annual budget each year.

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 THE CONCESSIONS

Bids for Concessions Solicited in 2003

In 2003, the Ministry publicly solicited bids for the right to operate the five trunk bus lines, or business
units, and the nine feeder bus lines that would exist within Transantiago. Following the bidding process in
January 2005, Alsacia was awarded the concession to operate Trunk Line 1 (Troncal Uno) and Express was
awarded the concession to operate Trunk Line 4 (Troncal Cuatro).

Concession Agreements Executed in 2005

On January 28, 2005, Alsacia and Express entered into Concession Agreements with the Ministry for
the operation of these business units within Transantiago. Since that time, our Concession Agreements have each
been amended more than 15 times in attempts to improve the structure and services provided thereunder. Under
the Concession Agreements, as amended, the Ministry grants Alsacia and Express the right to use the roads of the
city of Santiago for the provision of urban passenger transportation services within the scope of their respective
business units. In exchange for the provision of these services, the Alsacia an Express receive payment from the
AFT.

Concession Agreements Amended in March 2010

On March 5, 2010, we agreed to new amendments to our Concession Agreements with the Ministry
(together, the March 2010 Concession Amendments). The March 2010 Concession Amendments modify a
number of important provisions of the Concession Agreements, including the formula that controls our revenue.
However, the March 2010 Concession Amendments are currently under review by the General Comptroller of
the Republic and they will not be effective, if ever, until the review is completed and the objections, if any, of the
General Comptroller of the Republic are resolved. See Risk FactorsThe most recent amendment to the
Concession Agreements has not received the necessary approval from the General Comptroller of the Republic.
If and when the March 2010 Concession Amendments become effective, their terms will be effective
retroactively to August 2009. At such time, we will be entitled to receive from the AFT the difference between
what our revenue would have been under the March 2010 Concession Amendments and our actual revenue
during the period beginning in August 2009.

Addendums to Concession Agreements in 2010

In the beginning of 2010, Line 1 of the Metro subway was extended to the Los Domincos station in
eastern Santiago, and Line 5 of the Metro subway is currently under construction as it is being extended to the
Plaza de Maip station in southwestern Santiago. In addition, extensions to Lines 3 and 6 of the Metro subway
have recently been announced. These extensions of the Metro subway reach into the areas we service. Because
we at times compete with the Metro for passengers in the areas where our services overlap, the extension of the
Metro subway has decreased the number of passengers who use certain of our routes already and could
potentially decrease the number of passengers who use our buses in the future, thereby reducing our revenue.
Under the Bidding Guidelines (Bases de Licitacin), which were used in the public bidding process for
concessions and which establish the parameters of our Concessions, the Ministry is obligated to compensate us
for any reductions in revenue greater than 3.0% caused by increases in the availability of mass transportation
services other than buses, like the Metro subway.

In order to partially compensate us for the actual and anticipated losses caused the extensions of Lines 1
and 5, the Ministry has granted us five additional bus routes, which were formerly part of the concession of
Trunk Line 3 (Troncal Tres) of Transantiago. The Ministry granted us these additional routes through addendums
to our Concession Agreements, dated July 30 and August 5, 2010, for Express and Alsacia, respectively

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(together, the 2010 Addendums). In addition to adding new bus routes to our Concessions, the 2010
Addendums (i) increase our required fleet passenger capacity to ensure we are able to meet the increased route
and passenger demands and (ii) increase reference Passenger Validations, which, as described below in The
ConcessionsConcession Revenue, increases our overall revenue.

Unlike the March 2010 Concession Amendments, the 2010 Addendums are not subject to the legal
review of the General Comptroller and therefore became effective upon their execution.

Operating Plans

Our obligations under the Concession Agreements are limited solely to the provision of transportation
services as set forth in our Operating Plans, which dictate routes for bus service, frequency of service, departure
times, stop locations and the types of buses that will be used for specific services on weekdays, weekends and
holidays. After over five years of operating in Transantiago and working with the Ministry, the terms of our
Operating Plans have stabilized and the approval process has become a routine, though still very important, part
of our business.

Alsacia and Express each have an account executive (jecutivo de cuenta) at the Ministry, who is
responsible for negotiating with us regarding, and ultimately approving, the terms of our Operating Plans. We
maintain frequent contact with our account executives in order to ensure that our Operating Plans meet public
demand and match our capabilities. During periodic meetings at the offices of the Ministry and through frequent
telephone and email communications, we discuss all aspects of our Operating Plans with our account executives,
including, most importantly, our levels of Passenger Validations.

Sixty days prior to the beginning of each fiscal quarter, Alsacia and Express each sends its account
executive a proposal for that quarters Operating Plan. Within 21 days after the submission of our proposals, our
account executives respond to us with observations and objections to our proposals. Thereafter, we have 20 days
to submit revised proposals. After receiving our revised proposals, our account executives approve our Operating
Plans by posting them to the Ministrys website and sending us approval letters generally at least 10 days prior to
the start of the quarter.

Concession Revenue

Collection of Funds and Payments to Us

Other than permitting the AFT access to our buses to install and maintain Passenger Validation
machines, we do not participate in the setting of fare prices or the collection of fares from passengers. Instead a
panel of experts (Panel de Expertos) appointed by the Ministry sets fare prices, and fares are paid by passengers
to the AFT. The AFT, which is responsible for all funds in Transantiago, makes Concession payments to us in
two monthly installments. These Concession payments are based on revenue formulas in the Concession
Agreements, with funds derived from two primary sources, passenger fares and a Chilean Government subsidy.

The AFT uses the Concession revenue formulas to calculate our revenue. Nevertheless, under the
Concession Agreements, we are only entitled to funds that are paid into Transantiago, including passenger fares
and Chilean Government subsidies. See The ConcessionsAFT Payments. While Chilean Government
subsidies have covered Transantiagos shortfalls in the past, and are scheduled to do so in the future, there is no
contractual mechanism under the Concession Agreements, or otherwise, to compensate us for shortfalls in the
funds held by the AFT compared to the amounts owed to us under the our respective Concession revenue
formulas.

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Revenue Formulas

The Concession revenue formulas of Alsacia and Express have two primary components: Base Revenue,
which comprised 43% and 36% of Alsacias and Expresss respective revenue in 2009; and Variable Revenue,
which comprised 57% and 64% of Alsacias and Expresss respective revenue in 2009. Base Revenue and
Variable Revenue are adjusted, based on our performance, by the Service Fulfillment Ratio and discounts,
though Express accounts for discounts as expenses, rather than adjustments to its revenue. The diagram below
shows the basic revenue formula for each of Alsacia and Express, and descriptions of the four major components
of the formula follow.

Service
Total Revenue
= Base
Revenue + Variable
Revenue X Fulfillment
Ratio
- Discounts
(Alsacia)

Base Revenue = Base Payment * Cost Index * Seasonal Adjustment Factor

Base Payment = Base Revenue from the previous month, with the initial Base Payment set in
July 2008 at Ch$2,724 million for Alsacia and Ch$3,179 million for Express.

Cost Index accounts for changes over the previous month in several indices set forth in the
Concession Agreements. The specific weight given to each index is set forth in each Concession
Agreement and is tied to the types of buses in Alsacias and Expresss fleet.

Alsacia Cost Index = ( CPI * 17.6%) + ( VPS * 1.1%) + ( Labor Cost Index * 27.9%) +
( Diesel Cost Index * 34.2%) + ( Lubricant Cost Index * 1.1%) + ( Tire Cost Index *
7.0%) + ( Ch$/U.S.$ Exchange Rate * 11.2%)

The table below shows the number of each type of bus in Alsacias fleet, the weight given by Alsacias
Concession Agreement to each variable in the Cost Index formula based on the type of bus and the total weight
given to each variable in Alsacias revenue formula.

ALSACIA
Cost Index Weights

Bus Fleet Percentage of Labor Diesel Lubricant Tire Ch$/U.S.$
as of Bus Type in Cost Cost Cost Cost Exchange
Bus Type September 30, 2010 Fleet CPI VPS Index Index Index Index Rate
Volvo B7RLE (1) . . . . . 436 65.1% 17.0% 1.0% 29.8% 33.0% 1.1% 6.6% 11.5%
Volvo B9 SALF (2) . . . 173 25.8% 15.6% 1.2% 22.0% 37.6% 1.2% 8.1% 14.3%
Remnant (3) . . . . . . . . . 61 9.1% 27.5% 1.0% 30.6% 33.2% 1.0% 6.7% 0.0%
Weighted Average of
Cost Index
Weights . . . . . . . . . . . 17.6% 1.1% 27.9% 34.2% 1.1% 7.0% 11.2%

(1) The Volvo B7RLE is a bus chassis designed for urban use; it has a 7-liter rear engine on a 4x2 configuration
and is equipped with a BEA2 bus electronic architecture, which gives the driver computer access to
information on the engine, brakes, suspension, external lights, operational data and failure diagnosis.
(2) The Volvo B9 SALF is an articulated (or tandem) low-floor bus chassis; it has a 360-hp sideward
mid-mounted engine and is equipped with an integrated electronic system with onboard computer.

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(3) The Remnant buses are those buses from the pre-Transantiago transportation system that remain in use.
These include a variety of different models and brands. Alsacia plans to retire all Remnant buses from its
fleet during 2011.

Express Cost Index = ( CPI * 24.4%) + ( VPS * 1.1%) + ( Labor Cost Index * 26.9%) +
( Diesel Cost Index * 35.0%) + ( Lubricant Cost Index * 1.1%) + ( Tire Cost Index *
7.3%) + ( Ch$/U.S.$ Exchange Rate * 4.2%)

The table below shows the number of each type of bus in Expresss fleet, the weight given by Expresss
Concession Agreement to each variable in the Cost Index formula based on the type of bus and the total weight
given to each variable in Expresss revenue formula.

EXPRESS
Cost Index Weights

Current Bus Fleet Percentage of Labor Diesel Lubricant Tire Ch$/U.S.$
as of Bus Type in Cost Cost Cost Cost Exchange
Bus Type September 30, 2010 Fleet CPI VPS Index Index Index Index Rate
Volvo B7RLE (1) . . . . . . . . . . . . . . 195 16.4% 28.5% 1.0% 29.8% 33.0% 1.1% 6.6% 0.0%
Volvo B9 SALF (2) . . . . . . . . . . . . 496 41.6% 29.9% 1.2% 22.0% 37.6% 1.2% 8.1% 0.0%
Remnant (3) . . . . . . . . . . . . . . . . . . 500 42.0% 17.4% 1.0% 30.6% 33.2% 1.0% 6.7% 10.1%
Weighted Average of Cost Index
Weights . . . . . . . . . . . . . . . . . . . 24.4% 1.1% 26.9% 35.0% 1.1% 7.3% 4.2%

(1) The Volvo B7RLE is a bus chassis designed for urban use; it has a 7-liter rear engine on a 4x2 configuration
and is equipped with a BEA2 bus electronic architecture, which gives the driver computer access to
information on the engine, brakes, suspension, external lights, operational data and failure diagnosis.

(2) The Volvo B9 SALF is an articulated (or tandem) low-floor bus chassis; it has a 360-hp sideward
mid-mounted engine and is equipped with an integrated electronic system with onboard computer.

(3) The Remnant buses are those buses from the pre-Transantiago transportation system that remain in use.
These include a variety of different models and brands. Express plans to retire all Remnant buses from its
fleet during 2011.

CPI: Percentage variation in the CPI, as estimated by the INE.

VPS: Percentage variation in the price of insurance policies, technical services and vehicle
registration, as estimated by the INE.

Labor Cost Index: Percentage variation in labor costs for the Santiago metropolitan area,
as estimated by the INE.

Diesel Cost Index: Percentage variation in distribution fuel prices, as estimated by the
INE.

Lubricant Cost Index: Percentage variation in the INEs published value of lubricant
prices.

Tire Cost Index: Percentage variation in the INEs published value of new tire prices.

Ch$/U.S.$ Exchange Rate: Percentage variation in the monthly average of daily observed
Ch$/U.S.$ exchange rate (Dlar Observado), as published by the Chilean Central Bank.

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 The Seasonal Adjustment Factor: A percentage adjustment to a base month (July 2007) based
on historical seasonal demand; ranges from 63% in our slowest month of February to 116% in
our peak month of October. The table below shows the Seasonal Adjustment Factor for each
calendar month; these numbers are the same for both Alsacia and Express.
Seasonal
Adjustment
Month Factor
January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.8%
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.8%
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.5%
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108.3%
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.1%
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.5%
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.9%
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.8%
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.1%
October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116.3%
November . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.0%
December . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.8%

Variable Revenue = Payment per Passenger (Pago por Pasajero Transportado, or PPT) *
Passenger Validations

PPT(t) = PPT(t-1) * Cost Index * Revenue Adjustment Mechanism (Mecanismo de Ajuste por
Ingresos, or MAI) * Capacity Fulfillment Ratio (Mecanismo de Ajuste por Variacin de Plazas
y Kilmetros, or MAPK)

PPT(t-1): PPT from the previous month, with the base amount set in July 2007 at Ch$194 for
Alsacia and Ch$208 for Express.

Cost Index: As calculated for each of Alsacia and Express for Base Revenue above.

MAI = ((Adjusted Reference Passenger Validations(t) * 65%) + (Actual Passenger

Validations(t-1) * 35%)) / Actual Passenger Validations(t-1)

Adjusted Reference Passenger Validations(t) = (Reference Passenger Validations(t-1)/

Reference Passenger Validations(t-2)) * Actual Passenger Validations(t-2)

Reference Passenger Validations: estimated number of Passenger Validations set forth in

the Bidding Guidelines with an annual growth rate of 1.7%.

Actual Passenger Validations(t-1): Passenger Validations recorded during the previous

month.

MAPK = (Fleet Passenger Capacity(t)/Fleet Passenger Capacity(t-1)) * 40% + (Fleet

Passenger Capacity(t)/Fleet Passenger Capacity(t-1)) * (Scheduled Route Distance per Bus(t-1)/
Scheduled Route Distance per Bus(t-2)) * 60% + Additional Route Distance * 60%

Fleet Passenger Capacity: fleet passenger capacity registered with the Ministry at the
beginning of the month.

Scheduled Route Distance per Bus: scheduled route distance set forth in the Operating
Plans, divided by the number of buses registered with the Ministry at the beginning of the
month.

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 Additional Route Distance: route distance serviced at the request of the Ministry outside
of our normal routes and schedules.

Passenger Validations: Aggregate number of Passenger Validations received on all buses of

each of Alsacia and Express during the month.

The Service Fulfillment Ratio is an index of our actual passenger capacity and the route distance
serviced by our buses measured every two weeks by the Ministry against the numbers agreed upon
in our Operating Plans. If we perform exactly as set forth under our Operating Plans, the Service
Fulfillment Ratio would equal 100%. Deviations from our Operating Plans cause the Service
Fulfillment Ratio to decline. This index is used to reduce revenue for underperformance, but does
not provide any benefit for outperforming Operating Plans.

The table below shows the average Service Fulfillment Ratio for each of Alsacia and Express for the
years ended December 31, 2007, 2008 and 2009 and the nine months ended September 30, 2009 and 2010.
For the
For the Nine Months Ended
Year Ended December 31, September 30,
Service Fulfillment Ratio 2007 2008 2009 2009 2010
Alsacia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.2% 97.5% 97.1% 97.6% 96.9%
Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96.0% 97.6% 96.6% 97.8% 93.5%

The Ministry reports a preliminary Service Fulfillment Ratio to each bus concessionaire on a semi-
monthly basis. Each bus concessionaire can then review the preliminary Service Fulfillment Ratio and propose
adjustments to it for service interruptions or delays that are outside of the concessionaires control, such as road
construction or traffic accidents along its routes. Once the proposed adjustments are reviewed and accepted by
the Ministry, the Ministry publicly reports the adjusted Service Fulfillment Ratios for a period starting on the
sixth day of each calendar month and ending on the fifth day of the following calendar month. Alsacia and
Express also separately calculate the adjusted Service Fulfillment Ratio for each calendar month for their internal
reporting purposes. All Service Fulfillment Ratios used in this Offering Memorandum refer to the internal,
adjusted Service Fulfillment Ratios calculated by Alsacia and Express. For a more complete description of the
Service Fulfillment Ratio, see The ConcessionsConcession RevenueRevenue Formulas.

Discounts are based on deviations from bus time and frequency schedules agreed upon in our
Operating Plans and measured by the ICF and the ICR. These discounts can be as great as UF 200,
depending on the degree of deviation. While Alsacia accounts for discounts as reductions in
revenue, Express accounts for discounts as an expense. Therefore, Express does not include
discounts in its revenue formula.

Fines

The Concession Agreements also include a schedule of fines for detrimental conduct, such as failure to
maintain the cleanliness of buses, lack of uniforms for employees, failure to maintain accident insurance,
alteration of routes and exceeding the maximum capacity restrictions. Fines under the Concession Agreements
range from UF 10 to UF 10,000, depending on the seriousness of the conduct, and the accumulation of more than
UF 6,000 in fines paid in a period of 12 months by Alsacia or Express gives the Ministry the right to terminate
that partys Concession Agreement. These fines are treated like expenses, rather than deductions to revenue, and
are therefore not included in the revenue formulas.

Alsacia paid fines of UF 230 in 2005, UF 630 in 2006, UF 810 in 2007, UF 690 in 2008, UF 1580 in
2009 and UF 280 in the first nine months of 2010. Express paid fines of UF 960 in 2007, UF 1200 in 2008, UF
1240 in 2009 and UF 1790 in the first nine months of 2010.

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Impact of March 2010 Concession Amendments and 2010 Addendums on Revenue

If approved, the March 2010 Concession Amendments will modify a number of significant components
of Alsacias and Expresss revenue formulas, including Base Payment, Cost Index, Seasonal Adjustment Factor
and PPT. Based on our calculations, we believe the changes made by the March 2010 Concession Amendments
would have an overall positive effect on our revenue.

The 2010 Addendums do not change Alsacias or Expresss revenue formula.

Passenger Payments to the AFT

Transantiago passengers pay all fares using Bip! cards. While cash payments were accepted on buses in
the past, Bip! cards are now the exclusive form of payment accepted on Transantiago buses and the Metro
subway. Bip! cards are issued and managed by the AFT, which is responsible for the operation of the Bip! card
system and the management of all funds received from Passenger Validations.

There are various types of Bip! cards, including the standard Bip! card, which is a bearer card with no
personalization; personalized Bip! cards, which include the passengers name and photo; multifunction Bip!
cards, which are debit cards that can also be used as Bip! cards; and student passes, which allow students to pay
reduced fares during the school year.

Passengers purchase Bip! cards, charge them with an amount between Ch$1,000 (or Ch$400 in the case
of student passes) and Ch$25,500, and then use them to pay fares by passing the cards by electronic card readers
when boarding buses or the Metro subway. Bip! cards can be purchased, at a cost of Ch$1,250 for standard cards
and Ch$2,300 for personalized cards, and refilled at AFT vending machines in Transantiago subway stations and
at various vendors and kiosks throughout the city. They can also be refilled online or by telephone. When a Bip!
card is refilled, the funds are credited to the Bip! card and held by the AFT. When a Bip! card is passed by an
electronic card reader, the appropriate fare amount is deducted from the card and transferred by the AFT to an
account used to make payments under all of Transantiagos concession agreements, including the agreements
with Alsacia, Express, the Metro and the other bus operators. See AFT Payments.

AFT Payments

Responsibilities of the AFT

The AFT is a private corporation, owned by various Chilean banks and other corporate entities,
including Banco del Estado de Chile, Banco de Chile, Banco de Crdito e Inversiones, Banco Santander Chile,
Promotora CMR Falabella S.A. and Sonda S.A., that acts as the sole collector and custodian of funds for
Transantiago. The AFT has entered into separate agreements with the Ministry, Alsacia and Express for the
collection and management of all revenue from Passenger Validations and Chilean Government subsidies that
come into Transantiago. Under the terms of these agreements, the AFT:

issues, manages and maintains the operation of Bip! cards;

provides, installs and maintains payment equipment and systems for buses;

manages and consolidates information regarding Passenger Validations on buses;

collects, manages and distributes the funds of Transantiago through designated bank accounts; and

pays suppliers of ancillary services (the Ancillary Service Providers), which are responsible for
providing non-transportation services within Transantiago, such as the AFT itself, the Transantiago

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 User Information System (Sistema de Informacin al Usuario de Transantiago), which gathers and
distributes information regarding Transantiago to passengers, and the companies responsible for
Transantiagos infrastructure and bus schedule alert system.

Flow of Funds and Payment Priority

Funds paid for Bip! cards are deposited into the first of two accounts managed by the AFT for the
benefit of the Transantiago service providers (Account Number 1). Funds from Account Number 1 are first
used to pay the Metro. Once the Metro has been paid in full, remaining funds in Account Number 1 are
transferred to a second AFT account (Account Number 2). Other funds contributed to the system, most notably
Chilean Government subsidies, are also deposited into Account Number 2. All funds entered into Account
Number 2 are the property of the Transantiago service providers and may not be commingled with other funds of
the AFT. Because funds in Account Number 2 are not the property of the AFT, they would not available to
AFTs creditors in the event of AFTs bankruptcy or otherwise.

Twice per month, the AFT makes the concession payments by transferring funds from Account Number
2 to a third AFT account, which includes subaccounts for each bus concession holder. Under the Concession
Agreements and the agreements we have with the AFT, we are entitled to receive only the funds deposited into
Account Number 2. However, if in any given period the funds in Account Number 2 are insufficient to make all
payments owed to the service providers of Transantiago, available funds are distributed by the AFT with the
following priority:

The bus concession holders are entitled to receive 85% of the amounts owed under their respective
concession agreements before payment is made to any other party. If the funds in Account Number
2 are insufficient to pay 85% of the amounts owed to the bus concession holders, the funds in
Account Number 2 are distributed pro rata , based on the amount owed, to the bus concession
holders, and no other payment is made.

After payment of 85% of the amounts owed to the bus concession holders, the remaining 15% of
the amounts owed to the bus concession holders is pooled with the amounts owed to the Ancillary
Service Providers and these amounts are paid pro rata, based on the amount owed.

Once the Metro, the bus concession holders and the Ancillary Service Providers have been paid in full,
any remaining funds are used to pay any unpaid amounts from previous periods in the same order of preference,
or, if there are no unpaid amounts outstanding, any remaining funds are used to pay any future deficits.

Audit Rights and Other Protections

We have the right to audit the accounts and operations of the AFT in order to monitor the AFTs
compliance with the terms of its contracts with us. In addition, the AFT has provided the Ministry with UF
760,000 in bank guarantees that the Ministry may collect if the AFT does not thoroughly perform its contractual
obligations, including if the contract between the AFT and Ministry is terminated early due to the fault of the
AFT, whether due to the AFTs declaration of bankruptcy, failure to make payments, or otherwise. Under its
agreement with the AFT, the Ministry is required to use funds from these guarantees to pay amounts owed to the
Transantiago service providers. In the case of both the AFTs contract with the Ministry and its contracts with us,
early termination due to the fault of the AFT would also result in a penalty for the AFT in the amount of UF
600,000. Any such penalty would also be paid to the Transantiago service providers.

The Transantiago Subsidy

As explained above under TransantiagoThe Transantiago Subsidy, passenger fares paid into
Transantiago are insufficient to cover the systems costs, including amounts owed to bus concession holders.

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Therefore, Alsacia and Express rely on subsidies from the Chilean Government for full payment of revenue
earned under their respective Concession Agreements. While subsidies have been approved through 2014, the
payment of these subsidies must be approved each year by the Chilean Government.

As explained above, Subsidy funds are transferred by the Ministry to the AFT and are used, together
with passenger fares, to pay us. We are eligible to receive the Subsidy funds if we are in compliance with our
respective Concession Agreements.

Performance Bonds

Each of Alsacia and Express is required under the Bidding Guidelines to provide the Ministry with a
performance bond each year that guarantees the faithful performance of its obligations under its respective
Concession Agreement. Each performance bond must have a term of at least 12 months and, during the
remaining years of the Concessions, must be in the amount of UF 30,000 in the case of Alsacia and UF 167,000
in the case of Expressthe difference in bond amount is based on a difference in the type of buses each planned
to use during the initial bidding process. Alsacia and Express must each provide a new performance bond at least
30 days prior to the expiration of the previous bond during each year of its Concession.

Operational Requirements

The Concession Agreements require that we use buses with specific engine types, chassis, passenger
capacities, seat placement and location, as well as emission and sound levels. In addition, the Concession
Agreements set forth maintenance requirements and useful life (vida til) limitations, measured in kilometers, for
all our buses. The Concession Agreements do not, however, contain any restrictions on the financing of our buses
generally or the selection of suppliers, including suppliers of buses, parts and fuel.

Duration of the Concessions

Term and Extensions

The current term of each Concession Agreement expires in October 2018. The term may be extended for
up to 18 additional months if, at the end of the current term, the present discounted value of the actual revenue
under each of our Concession Agreement is less than the present discounted value of expected revenue under
such Concession Agreement (Valor Actualizado de los Ingresos Esperados). We must request this extension 12
months prior to the expiration of the current term. Under the March 2010 Concession Amendments, if approved,
this extension may be for up 24 months, rather than 18 months.

In addition, the Bidding Guidelines contemplate the possibility for potential concession extensions as a
means to offset revenue reductions caused by an increase in the availability of mass transportation services other
than buses, like, most notably, the Metro subway. Nevertheless, the extent to which our Concession Agreements
might be extended in such a situation is not established in the Bidding Guidelines and would be determined on a
case-by-case basis. Other means contemplated by the Bidding Guidelines to offset such revenue reductions
include increases in the payment per passenger variable of our revenue model and the granting of additional
services, as was done through the 2010 Addendums discussed above.

The term of each Concession Agreement may also be extended for up to 72 additional months if we
choose to wholly or partially replace our bus fleet with new buses with higher environmental standards. In order
to qualify for such an extension, the replacement bus fleet must possess reduced-contamination technology in
terms of weighted particulate matter emissions (PM10) and nitrogen oxide (NOx) emissions, as compared against
a similar fleet, in terms of bus size and quantity, made up of buses complying with one of two diesel emission
standards: Euro III (an emission standard implemented by the European Union in 2000 for buses and since
adopted in other areas of the world) or EPA 98 (an emission standard implemented in the United States for buses

142
with model years between 1998 and 2003). We must request this extension, in writing, 12 months prior to the
expiration of the current term. The Ministry would then set forth the extension by an administrative act.

Under the March 2010 Concession Amendments, the 72-month extension described above would be
superseded by the following: upon the termination of the Concessions, any qualifying replacement buses that we
purchase would be incorporated by the Ministry into the bidding process for the right to operate each Trunk Line.
The winner of the bidding process for each Trunk Line would be required to acquire any replacement buses for a
price equal to the present value of any outstanding balance owed on the replacement buses, assuming all
previously due payments on the replacement buses have been made. If the Ministry is unable to sell the rights to
the Trunk Lines under these terms, the Ministry would extend the Concessions for consecutive six-month terms
until any outstanding balance on the replacement buses has been paid. Nevertheless, as previously noted, the
March 2010 Concession Amendments are still under legal review and are not currently in effect.

Termination by the Ministry

The Ministry may unilaterally terminate the Concession Agreements prior to their expiration in the
event of certain breaches by us. Under the Bidding Guidelines, the following acts and omissions by Alsacia and
Express are considered breaches of their respective Concessions that would give the Ministry the right to
terminate the relevant Concession:

Unauthorized reduction in capital when authorization for such reduction is expressly required, or
when such reduction is expressly forbidden.

Delivery of required information, on two separate occasions, with inaccurate records or data that
relate to the Concessions economic and operating conditions.

Within 30 days after notice by the Ministry, failure to comply with Section 3.2.1 of the Bidding
Guidelines, which sets forth, among other things, restrictions on our ownership and capitalization;

Accumulation of (paid) fines in an aggregate amount greater than UF 6,000 during a period of 12
months. Certain fines incurred during the startup stage of the Concessions are not counted for these
purposes.

Failure to renew, replace or refurnish, as applicable, the performance bond required by the Bidding
Guidelines.

Assignment of the Concession without the express consent of the Ministry, or modification of the
our line of business in breach of the Bidding Guidelines.

Abandonment of services at any time during the Concessions term. For these purposes,
abandonment is defined as the lack of service frequency during peak hours for two consecutive
business days.

Failure to provide services following the startup periods set forth in the Bidding Guidelines.

Commission of certain infractions set forth in the Bidding Guidelines, including failure to comply
with fleet standards, driver requirements and subcontractor requirements, on five separate
occasions.

Failure to comply with certain obligations related to driver compensation and the provision of bus
services agreed to by each of Alsacia and Express in its initial proposal to the Ministry.

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 Failure to comply with the obligation to enter into the agreements necessary for Transantiagos
integration.

Failure to provide service in compliance with the continuity and quality requirements set forth in
the Bidding Guidelines.

In the case of termination by the Ministry, Alsacia or Express, as applicable, may be required, at the
discretion of the Ministry, to continue to operate their respective concessions during a transition period for up to
18 months or until a replacement concessionaire is found. We would be entitled to compensation for the
provision of services during any transition period under the same terms as prior to the termination, but would not
be entitled to any compensation thereafter.

Pursuant to the Bidding Guidelines and under Chilean law, in order to terminate a Concession
Agreement upon our breach, the Ministry must bring a claim against us and undertake administrative
proceedings. During any such proceedings, Alsacia and Express have the right to challenge the grounds for
termination and present evidence in its favor. After the termination of administrative proceedings, the Ministry
would issue a decision regarding the termination of the Concession. The Ministrys decisions are subject to
judicial review, and Alsacia an Express may file a complaint regarding the decision before an ordinary court.

The March 2010 Concession Amendments provide for additional grounds for early termination and
amend some of the grounds described above. The most notable changes are the following: (i) the amount of
accumulated (paid) fines required to trigger the Ministrys termination right is increased to an aggregate amount
of UF 20,000 during a period of 12 months (instead of UF 6,000); and (ii) the number of infractions, such as
failure to comply with fleet standards, driver requirements and subcontractor requirements, required to trigger the
Ministrys termination right is increased to eight (instead of five). Nevertheless, as previously noted, the March
2010 Concession Amendments are still under legal review and are not currently in effect.

Termination by Alsacia or Express

Alsacia and Express have the right to terminate their respective Concessions under certain
circumstances. The Bidding Guidelines identify the following two cases in which Alsacia and Express would be
permitted to terminate their respective Concessions:

During six successive months, Alsacia or Express, as applicable, has not received in full its
minimum preferential revenue, as defined in the Bidding Guidelines.

The sum of accumulated and outstanding minimum preferential revenue, as defined in the Bidding
Guidelines, equals the average of Alsacias or Expresss monthly revenue over the previous six
months, as of the date the termination request is submitted.

Termination by us would terminate the relevant Concession, and our obligations under the Concession,
as well as our rights to compensation under that Concession. Nevertheless, following termination, the Ministry
may require Alsacia or Express, as applicable, to continue providing services under its Concession during a
transition period for up to 18 months. During any transition period, we would be entitled to compensation under
the same terms as prior to termination.

Pending Legislation: Termination by the Chilean Government

A bill is currently being processed by the Chilean Congress, which, if approved, would allow the
Chilean Government to unilaterally terminate the Concession Agreements prior to their expiration. In the case of
such early termination, we would be entitled to the rights associated with expropriation, which include
compensation in favor of the expropriated party, payable in cash prior to the termination of the Concession. This
bill was approved by the Chilean Senate and forwarded to the House of Representatives for further review on
January 11, 2011.

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Amendments

The Concession Agreements may only be amended by mutual consent of the Ministry and the relevant
Concession holder. However, under the Concession Agreements, the Ministry may unilaterally (i) modify the
permitted passenger capacities and frequency of our bus services; (ii) temporarily modify Operating Plans by
requiring additional daily services; (iii) require additional bus departures under certain circumstances; and/or
(iv) require that Alsacia and Express use specific buses within their respective fleets to service specific routes.

Regardless of whether the Ministry takes any of the unilateral actions described above, the Concession
Agreements protect our revenue to a certain extent by requiring minimum levels of scheduled route distance and
passenger capacity in the Operating Plans. Both scheduled route distance and passenger capacity are drivers of
our revenue. See The ConcessionsConcession RevenueRevenue Formulas.

Under the March 2010 Concession Amendments, the Ministry would be able to unilaterally modify the
bus routes of the trunk lines by changing or eliminating existing routes within the assigned trunk lines, or, in
exceptional circumstances, creating additional routes outside of the assigned trunk lines. Nevertheless, as
previously noted, the March 2010 Concession Amendments are still under legal review and are not currently in
effect.

The 2010 Addendums do not change the rights of the Ministry, Alsacia or Express with respect to
amendment of the Concession Agreements.

Other Chilean Government Regulations

General

In addition to the Concession Agreement, the Bidding Guidelines and other laws directly relating to
Transantiago and our Concessions described in The Concessions, we are subject to a number of regulations
that govern matters such as driver aptitude, traffic rules, safety regulations, and damages, including the
following:

Law No. 18,290, Transit Act.

Supreme Decree No. 212 of 1992, Regulation for National Public Passenger Transportation
Services.

Supreme Decree No. 170 of 1985, Driver License Application Regulation.

Law No. 18,490 which requires mandatory civil liability insurance for motorized vehicles.

Since we are a transportation business, we also own and operate bus terminals, which are subject to
many regulations and permits, particularly of a city planning and environmental nature, within the context of
Law No. 19,300, which established the general groundwork for environmental protection, the General Law of
Construction and Planning, its Ordinance and Regulation, municipal regulations and city plans. As of the date of
this Offering Memorandum, we have a number of permits that are pending approval.

Permits

Prior Favorable Report: This permit consists of a report issued by the Ministry which describes and
approves the operational features of the terminal. This report is required for obtaining the municipal construction
permit. This permit has been issued with respect to all of our terminals.

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 Urban Traffic Impact Study (Estudio de Impacto al Sistema de Transporte Urbano): This permit is
processed before a dependency of the Ministry, which operates a single point of contact, for the purposes of
evaluating any potential impacts over traffic conditions in the corresponding projects sector as well as any
mitigation measures that may apply. This study, approved as is indicated, is required for obtaining the municipal
construction permit. This permit has been approved for the Puente Alto, Pealoln, Huechuraba and Renca
terminals, but it is still pending with respect to Maip.

National Registry of Passenger Transportation Services: Registration is mandatory and this record is
held and kept by the Ministry for all means of remunerated public transportation, particularly for the vehicles by
which these services are rendered. This National Registry shall contain all the information that the Ministry may
deem relevant in order to oversee and control the abovementioned services. Registration shall be mandatory in
order to render services, whichever the means of transportation. Registered vehicles must carry a copy of their
registration at all times. This requirement has repercussions in our Concession Agreements. Currently, all of our
public transportation vehicles are registered.

RCA (Environmental Qualification Resolution): This resolution is issued by the Regional Environmental
Commission and its purpose is that of evaluating any potential impacts that a certain project or business may
have on the environment. RCAs may be subject the approval of the project to certain conditions that, if breached,
may lead to the revocation of the approval, among other potential sanctions. This resolution has been approved
for the Puente Alto, Pealoln, Huechuraba and Renca terminals, but it is still pending with respect to Maip.

DIA (Environmental Impact Declaration) to modify RCA: As opposed to Environmental Impact Studies,
Environmental Impact Declarations are required for projects whose potential impacts on the environment are not
substantial. It is currently being processed for all of our terminals.

Drinking Water and Drainage Systems Permit (Aguas Andinas): This permit is required for the purposes
of connecting the terminals the water and sewer mains as provided by a water company. It is one of the RCAs
conditions. It has already been approved for our Pealoln, Huechuraba and Renca terminals, but its approval is
still pending with respect to Puente Alto and Maip.

Interior Electrical Facilities (SEC TE1): This permit is required for the installation, use, and operation
of interior electrical facilities. It is processed and granted by a dependency of the Superintendence of Fuel and
Electricity and it has been approved for all of our terminals.

Gas Facilities (SEC TC6-TC2): This permit is required for the installation, use, and operation of gas
facilities. Applicable statute sets out the minimum requirements for interior gas facilities, collective or otherwise,
whether supplied by a gas network or by pressurized tanks. It is processed and granted by a dependency of the
Superintendence of Fuel and Electricity and it has been approved for all of our terminals.

Fuel (SEC TC4): This permit is required to install, use and operate storage and operation facilities for
liquid fuels such as petroleum or diesel. It is processed and granted by a dependency of the Superintendence of
Fuel and Electricity and it has been approved for all of our terminals.

Pavement Permit (MOP): It is only required for our Huechuraba Terminal and has already been issued.

Pavement Permit (SERVIU): Pavement (or repavement, as the case may be) placement works must be
previously approved by the National Service of Housing and Planning by way of this permit. This permit has
been issued for the Puente Alto, Pealoln, Huechuraba and Renca terminals, but it is still pending with respect
to Maip.

Waste Extraction (SEREMI SALUD): This permit is required in order to extract waste and other forms
of non-hazardous residues and it is required for our terminals because of the volume of waste. It is processed and

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granted before a dependency of the Ministry of Health. The only terminal that currently possesses this permit is
Puente Alto.

Other Approvals

Municipal Construction: This approval is required to carry out constructions of a certain size. All of our
terminals required a construction permit in order to begin building. This approval is processed and granted by the
municipality in which the works are intended to be erected. We currently possess construction approvals for all
of our terminals except for the Maip Terminal.

Provisional Reception: Through this approval, the Municipality provisionally authorizes the use and
operation of the newly-constructed works while there are still pending works to be carried out. It shall set forth a
term during which the unfinished or pending portions must be terminated and immediately after which the
Definitive Reception must be obtained. It is currently being processed for all of our terminals, but has yet to be
granted.

Definitive Reception: This approval allows permanent use and operation of a construction or a part
thereof. It is currently being processed for all of our terminals.

Municipal Patent: This patent is issued by the Municipality in which any business operates. Businesses
operating within the Municipality must pay bi-annual fees in order to carry out their respective lines of business
and non-payment shall bring about fines and other sanctions. The amount of these fees is dependant on the
business revenue. Currently, the only terminal with a municipal patent is Huechuraba.

Termination and Revocation of Permits

The grounds for termination and revocation of permits shall vary depending on their respective statutes.
However, material breaches or non-compliance of the permits terms and conditions, as well as other statutory
breaches, may bring about the termination or revocation of permits.

Inspection and Supervision

Surveillance of compliance of sector-specific permits is carried out by the sector-specific Chilean

Government agency that issued the corresponding permit. Thus, supervision of compliance in connection with
health-related permits shall be carried out by a dependency of the Ministry of Health, and so forth.

Therefore, buses and terminals may be inspected by representatives of the Ministry of Health,
Transportation, Superintendence of Electricity and Fuel, or other relevant Chilean Government agencies. The
inspectors shall present themselves at the place of inspection on a predetermined or non-disclosed date, as the
case may be, and personally verify compliance of each and every one of the corresponding permits terms,
conditions and requirements, drawing up minutes of all observations which are then signed by both the inspector
and the inspected parties. Depending on the seriousness of the breaches, such observations may or may not bring
about sanctions.

Sanctions

Sanctions applicable to non-observance of legal requirements pertaining to these permits may bring
forth a wide scope of sanctions which range from written or verbal reprimands, fines (the amount of which also
varies in accordance with the specific permits statute), temporary or definitive suspension of authorizations and
licenses, seizure of assets, revocation of the permit, disconnection to mains or other public networks when
applicable and, in some extreme cases, suspension of works until administrative proceedings are unfolded in
order to resolve the matter.

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 BUSINESS

Overview

General

Alsacia and Express together are the largest operator of bus transportation services in the Santiago,
Chile metropolitan area, as measured by the available bus capacity and scheduled route length of Alsacia and
Express combined. We jointly operate under the Alsacia and Express Concessions and brands to provide
passenger bus service within Transantiago, the rapid transit system of Santiago managed by the Chilean
Government.

As of September 30, 2010, we collectively owned or operated 72 bus routes, 1,861 buses and 9 bus
terminals and we had 6,038 employees. In the first nine months of 2010, we received an average of 27 million
Passenger Validations per month, which was approximately 28% of the total bus Passenger Validations in
Transantiago. Our fleet passenger capacity accounted for 31% and 34% of the total passenger capacity and 21%
and 23% of the scheduled route length in Transantiago in 2009 and the first nine months of 2010, respectively.
Alsacia and Express had revenue of Ch$66,658 million and Ch$86,065 million and operating (loss) income of
Ch$(184) million and Ch$4,429 million for the year ended December 31, 2009, respectively, and revenue of
Ch$54,732 million and Ch$70,844 million and operating income (loss) of Ch$3,441 million and Ch$(450)
million, respectively, for the nine months ended September 30, 2010.

The Transantiago Concessions

Transantiago is the public transportation system of the Santiago metropolitan area, consisting of the
citys buses, the Metro subway, an integrated electronic payment system, as well as planning and construction
functions for Transantiago infrastructure. Transantiago was designed and implemented by the Chilean
Government in 2003 in a complete overhaul of the then-existing public transportation system in Santiago, which
was largely unregulated and prone to accidents, inefficiency and excessive pollution. Transantiago was
implemented in three phases between October 2005 and February 2007 and rerouted the bus lines for more
efficient service, consolidated approximately 3,500 independent bus operators into 14 concession holders,
introduced an integrated electronic payment system and replaced the majority of buses then in use with a modern
standardized fleet. See Transantiago.

We hold concessions to operate two of the five trunk bus lines that, together with the Metro subway and
the feeder bus lines, make up Transantiago and provide transit service across Santiagos 10 metropolitan zones.
Under the Concession Agreements the Ministry grants Alsacia and Express the right to use the roads of Santiago
for the provision of urban passenger transportation services along their assigned routes. Our Concessions were
initially awarded in 2005 and will expire in October 2018 unless previously terminated. Each respective
Concession Agreement can be renewed for 18 months if Alsacia or Express does not reach minimum revenue
thresholds set forth in its respective Concession Agreement. See The Concessions.

In exchange for the provision of our services, Alsacia and Express receive payment from the AFT under
the terms of their Concessions. Substantially all of our revenue is derived from payments under the Concessions,
which are based on the aggregate Passenger Validations recorded on our buses as adjusted by formulas set forth
in the Concession Agreements. These formulas are driven by the following four main factors:

Base Revenue: Base Revenue is a predetermined monthly amount that is adjusted for a seasonality
curve, which is predetermined in the Concession Agreements. Base Revenue is also adjusted each
month for changes in the Cost Index described below. Base Revenue comprised 43% and 36% of
Alsacias and Expresss respective revenue in 2009.

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 Variable Revenue: Variable Revenue is based on a number of factors, including our Operating
Plans, Passenger Validations and the Cost Index. Variable Revenue comprised 57% and 64% of
Alsacias and Expresss respective revenue in 2009.

Service Fulfillment Ratio: Every two weeks, the Ministry determines our Service Fulfillment
Ratio, which measures our actual operating performance relative to our Operating Plans. The
Service Fulfillment Ratio acts as a discount to Base Revenue and Variable Revenue because the
Service Fulfillment Ratio is multiplied by our Base Revenue and Variable Revenue for each month
to determine our actual revenue earned. If our buses operate exactly as planned in our Operating
Plans, our Service Fulfillment Ratio would equal 100% and we would earn the full amount of our
Base Revenue and Variable Revenue for that period. If, however, our buses deviate from our
Operating Plans, our Service Fulfillment Ratio would decrease, which would lead to a proportionate
decrease in our revenue. By improving the timely and accurate delivery of our bus services, we can
maximize our Service Fulfillment Ratio and increase our earned revenue. Since 2008, Alsacia has
consistently achieved high Service Fulfillment Ratios relative to the other operators in Transantiago
while Express achieved Service Fullfillment Ratios that were near the average of other operators.

Cost Index: Substantially all of our revenue is adjusted monthly based on a weighted average
specified in the Concession Agreements of the Chilean consumer price index; the price of vehicle
insurance, inspection and registration; the Chilean labor cost index; the price of diesel fuel; the
price of mineral oil lubricant; the price of tires; and the U.S. dollar/Chilean peso exchange rate.
Because most of our operating expenses are also correlated or directly tied to these factors, the Cost
Index significantly mitigates the effect of changes in these factors on our operating income or loss.

See The ConcessionsConcession Revenue for a more complete description of our Concession
revenue.

Transantiago Fund Sources

Through the Concession payment formula, the Ministry regulates the supply and quality of our bus
services in coordination with the services provided by other bus concession holders and the Metro. Passengers
currently pay a Ch$520 bus fare throughout Transantiago, which includes up to two free bus transfers, plus an
additional fee of either Ch$20 or Ch$80 to transfer to the Metro subway, depending on the time of the day.
Payment methods and fares are standardized across the system with an electronic fare system. The electronic
system consists of a prepaid smart card, called the Bip! card (a brand name derived from the sound made when
the card is passed by an electronic card reader), with an embedded microchip, which can be purchased from
vending machines, vendors and kiosks throughout Santiago. Transantiago passenger fares are regulated and
periodically set by a panel of experts (Panel de Expertos) appointed by the Ministry.

Although the Ministry is our counterparty under the Concession Agreements, the Ministry does not pay
or guarantee our Concession revenue. Instead, all revenue generated in Transantiago from passenger fares
payments is deposited into accounts managed by the AFT, which is responsible for the Bip! card system and the
management of all associated funds on behalf of all Transantiago service providers. The AFT is separate from the
Ministry and is a private corporation, owned by various Chilean domestic banks and other corporate entities,
including Banco del Estado de Chile (the state bank of Chile), Banco de Chile, Banco de Crdito e Inversiones,
Banco Santander Chile, Promotora CMR Falabella S.A. and Sonda S.A. The AFT was established to collect and
hold all revenue generated by Transantiago in trust for the benefit of the various Transantiago service providers
and concessionaires, including Alsacia and Express. This revenue is then distributed, in order of contractual
priority, first to the Metro, then to the bus concession holders and then to Transantiagos ancillary service
providers, including the AFT, in accordance with the terms of their respective concession agreements.

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 Since 2007, a significant portion of Transantiagos revenue, and consequently our revenue, has been
subsidized by the Chilean Government through supplemental payments to the AFT, which, in turn, are paid to us
and the other bus concessionaires. These supplemental payments are made twice per month, on the same
schedule as our payments under the Concession Agreements, and address shortfalls created by passenger revenue
levels that are lower than anticipated in the initial concession bidding process. The Chilean Government
subsidies help maintain the long-term financial stability of Transantiago and help ensure the commercial viability
of its service providers and operators, including Alsacia and Express. These subsidies thus reflect the critical
nature of Transantiago to everyday life in the Santiago metropolitan area, and the Chilean Governments
dedication to its continuance. Subsidy payments made by the Chilean Government to Transantiago totaled
Ch$151,960 million from June through December of 2007, Ch$361,092 million in 2008, Ch$359,172 million in
2009 and Ch$255,339 million for the nine months ended September 30, 2010, which comprised 42%, 50%, 49%
and 45% of the total costs to support Transantiago during those respective periods.

Our History

GPS Group

GPS Group and its controlling shareholders have operated businesses in various sectors, including urban
transportation, process outsourcing, environmental solutions and real estate development, and have a presence in
both South and North America, including in Chile, Colombia, Panama, Peru and the United States. GPS Group
and its controlling shareholders hold approximately U.S.$400 million in total assets and generated revenue of
more than U.S.$350 million in 2009 through their various business ventures.

GPS Group is focused on generating value by growing its current businesses and capitalizing on new
opportunities in its current business sectors. GPS Group is principally owned by Carlos Ros, Javier Ros, and
entities controlled by them and members of their family.

Alsacia

After enjoying success in operating a concession in Bogot, Colombia, the controlling shareholders of
GPS group founded Alsacia to explore the opportunities related to Transantiago. In January 2005, Alsacia was
incorporated under Chilean and bid for Transantiagos Trunk Line 1 (Troncal Uno), which consists of bus routes
that run from north to south across much of the Santiago, Chile metropolitan area. After winning the rights to
operate Trunk Line 1, Alsacia entered into a concession agreement with the Ministry on January 28, 2005 for the
provision of public transportation services.

In October 2005, Alsacia began operations as a part of Transantiago. With a fleet of over 600 Volvo
buses and over 2,500 employees, Alsacia currently transports approximately 500,000 passengers each day and
transported over 44 million passengers in 2009 alone. Having enjoyed success in the operation of Trunk Line 1
through Alsacia, the controlling shareholders of GPS Group began discussions to assume the independent
operation of Trunk Line 4 in 2008. See Express and Use of ProceedsThe Acquisition.

Express

Express was founded in 2005 and incorporated under Chilean law as a joint venture between the
controlling shareholders of GPS Group and a Colombian investor group called Grupo Transportador.

In December 2000, Transmilenio, the transit system that serves the city of Bogot, Colombia, opened to
the public. The controlling shareholders of GPS Group joined with Grupo Transportador, a former transportation
provider in Bogot, to bid for a concession in the Transmilenio system. Together, the controlling shareholders of
GPS Group and Grupo Transportador won a concession, which they continue to operate.

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 In 2003, the controlling shareholders of GPS Group and members of Grupo Transportador, having
enjoyed a successful partnership in Transmilenio, decided to participate jointly in the bidding process for
Transantiago, through Express, to operate Trunk Line 4 (Troncal Cuatro). At this same time, the controlling
shareholders of GPS Group bid for Trunk Line 1 (Troncal Uno) independently from Grupo Transportador
through Alsacia. In January 2005, Express entered into a concession agreement for the operation of Trunk Line 4,
and in October 2005, Express began operating in Transantiago.

In 2008, the controlling shareholders of GPS Group and members of Grupo Transportador began
discussions regarding the separation of their joint operation. As part of the negotiation that followed, they agreed
that Grupo Transportador would by itself take over the operation of Transmilenio and that the controlling
shareholders of GPS Group would take over their largest joint operation, Trunk Line 4 Transantiago.

On February 3, 2011, the controlling shareholders of GPS Group entered into an agreement with
members of Grupo Transportador and other related persons and entities to acquire the 55% of Express that is not
currently beneficially owned by affiliates of Alsacia for U.S.$70.5 million in cash and to separate the other
business interests of GPS Group and Grupo Transportador. In addition in order to facilitate equity transfer related
to the Acquisition, Panamerican will pay U.S.$7.9 million to partially repay certain debt of GPS Group. This
transaction is expected to be completed shortly after this offering. We intend to finance our proposed acquisition
of Express through this offering of Notes.

Our Business Strategy

Our goal is to be the best operator in Transantiago while operating under the most efficient cost
structure, which we believe will allow us to generate the most income under our Concession Agreements and in
future concessions for bus and other services in Chile. We believe that each of the strategies described below can
help us to achieve our goal.

Improve Timeliness, Frequency and Quality of Our Bus Services

We seek to increase the timeliness, frequency and quality of our bus services which we believe will
increase our overall revenue in three ways. First, if we improve our bus operations relative to our Operating
Plans, then our Service Fulfillment Ratio will increase. Because substantially all of our revenue is affected by our
Service Fulfillment Ratio, each percentage point increase in our Service Fulfillment Ratio will result in an
approximate 1% increase in our revenue. Second, improved service frequency and timeliness also increases our
ICF and ICR, which minimizes various discounts applied to our revenue under the Concession Agreements.
Third, we believe that by maintaining high Service Fulfillment Ratios, ICF and ICR, we can increase the level of
goodwill we hold with the Ministry and the Chilean Government. We believe that increased goodwill will
increase our ability to obtain new routes, route extensions and modifications that may increase our revenue.

Among the ways that we believe we can improve our operational efficiency is by (i) applying Alsacias
operating procedures to Express to try to improve Expresss Service Fulfillment Ratio, which we believe has
been declining in recent months due to turnover in certain employees and the recent addition of portions of trunk
line 3 to Expresss prior routes, and (ii) leveraging key strategic relationships with our outsource partners,
Citymovil and BIG Services SpA, whom we believe will provide us with superior service in the areas of
planning, service fulfillment, quality control and operational information management outsourcing. We also
believe our existing strategic relationships with key transportation service and product suppliers such as Brazils
Petrobras for fuel supply; Argentinas Asesoras y Proyectos San Jorge S.A. for driver training outsourcing;
Swedens Volvo for buses and spare parts; and Germanys ZF Friedrichshafen AG for bus transmission systems
will help us to lower our future costs. These outsourced relationships and vendors allow us to focus on our core
operations to improve our performance.

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Maximize Synergies from Joint Operating Arrangements with Express

We expect in the near term to achieve a number of cost synergies by jointly coordinating the operations
of Alsacia and Express, including the following:

Increasing route and terminal densities will allow us to minimize the number of unpaid kilometers
driven by our buses and drivers. These unpaid kilometers primarily include distances driven
between the bus terminal and the start of a bus route, along with distances driven to switch bus
routes in the middle of a work shift. Reduction of unpaid kilometers will reduce our fuel, labor and
bus depreciation and maintenance costs without a corresponding decrease in revenue. We believe
that Express in particular will benefit from the use of Alsacias Huechuraba and Pealolen
terminals, which are located in the northern and eastern portion of Santiago, respectively, where
many of Expresss routes are located. See Property and EquipmentBus Terminals for an
illustration of our current terminal locations in relation to our bus routes.

Increasing the number of drivers and bus terminals will allow us to minimize the distance we travel
to shuttle drivers to and from work, resulting in cost savings. We also expect to be able to schedule
more efficient breaks for our drivers by combining the our existing rest stops and eliminating
redundant rest stops. Because some of the rest stops of Alsacia are the closest rest stops to certain
routes of Express, and vice versa, we believe we can achieve improvements in productivity by
minimizing the time to travel from a bus route to the nearest rest stop.

Eliminating redundant general and administrative labor costs between Alsacia and Express,
including duplicative finance, accounting, legal, executive management and board functions,
resulting in significant cost savings. Along with the reduction in headcount, there will be a
reduction of the overhead costs for associated office space, computer equipment and other
non-compensatory costs relating to any reduced headcount, allowing us to realize significant
savings from elimination of redundant labor functions.

Leveraging the size of our combined fleet to increase our purchasing power for buses, tires, spare
parts and maintenance supplies and services.

Seek Approval of the Ministry To Allow Joint Management of the Operations of Alsacia and Express,
Maximize Revenue and Identify Service Improvements

The current Concession Agreements contain certain restrictions on our ability to share bus routes, bus
drivers, or buses between Alsacia and Express. If we are able to remove these contractual restraints, we believe
we will be able to realize significant synergies in addition to those described above.

The Chilean Government has also announced a number of initiatives that we believe will increase
demand for Transantiago bus services. For example, the Chilean Government plans to implement an urban toll
system to tax private use of city roads and more stringent regulation of automobile and traffic regulations, which
we believe will increase the cost of private automobile transport and, as a result, increase bus ridership. In
addition, the Chilean Government began a campaign to reduce fare evasion, which is currently estimated by the
Ministry to occur on approximately 18% of passenger trips, by placing more fare inspectors on buses,
implementing new payment zones where passengers pay fares before boarding buses, increasing fines and
creating a master list of people who fraudulently use subsidized fare cards. We also believe that the Chilean
Government will implement further fare increases.

Build on Our Experience as an Operator To Obtain New Concessions

We intend to leverage our experience in bus operations and concessions to obtain new concessions within
Transantiago. We believe that there will be significant opportunities to expand our role within Transantiago in the

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near term because the feeder line bus concessions are scheduled to end in October 2011. We expect the Ministry
will solicit new bids to operate the feeder concessions when they expire. Although the solicitation process has not
been established yet, there is no requirement for the Ministry to maintain an open bidding process available to all
interested parties. Instead, the Ministry can enter into private negotiations with a single potential service provider. In
the past, the Ministry has reassigned certain bus routes and concessions to other existing concession holders in
Transantiago without conducting an open bidding process. We believe our operating history in Transantiago will
give us an advantage in winning feeder line concession when and if they are renewed.

Our experience in Transantiago also gives us valuable expertise in operating and managing public
transportation concessions. We plan to apply this expertise to help us win transportation concession in other
major metropolitan areas in the world. We also believe that other concession bidders throughout the world will
seek our expertise and prior concession credentials by partnering with us and giving us minority interests in the
concessions with minimal equity investments by us.

Increase Overall Operating Efficiencies and Cost Reductions

We intend to continue initiatives designed to decrease our operating and overhead costs in addition to
any synergies we may realize from the joint management of the operations of Alsacia and Express. Our cost-
cutting initiatives include improving route designs for added efficiency, partnering with Citymovil and BIG
Services SpA to improve bus and driver scheduling and GPS-based service rendering control, improving bus
reliability and availability, and improving our driver hiring and training programs and other safety initiatives
across our operations. In addition, we believe the Acquisition will allow us to take advantage of a unified
management structure to apply operational and managerial best practices across Alsacia and Express. We believe
that knowledge sharing and cross training on best practices will help reduce the operational costs of Alsacia and
Express in addition to the synergies described above.

Our Strengths

We believe the following are our principal competitive strengths:

Solid Contract-Driven Revenue

We have a consistent source of recurring revenue from our Concessions to operate two of the five trunk
lines in Transantiago. The Concessions expire, unless previously terminated, in October 2018, which is one year
after the expected final maturity of the Notes. The Concessions can be renewed for 18 additional months if we do
not reach minimum revenue thresholds set forth in the Concession Agreements.

The revenue formula under the Concessions significantly mitigates the effects of changes in inflation of
the Chilean peso, the Chilean peso/U.S. dollar exchange rate, the cost of fuel and labor, and the number of
passengers on our buses. See discussion of these factors under Managements Discussion and Analysis of
Financial Condition and Results of Operations for Alsacia and ExpressQuantitative and Qualitative
Disclosures About Market and Operating Risks.

Our counterparty under the Concession Agreements is the Ministry, which has a vital political interest in
the continued services provided by Transantiago. Together with the rest of Transantiago, we serve a majority of
the people in Santiago to meet their daily transportation needs. We play a critical part within Transantiago, and
operate approximately 47% of its intrazonal trunk lines, as measured by passenger capacity. Without our
services, the daily commute for a significant number of Santiago residents would be disrupted. As a result, we
work closely with the Ministry and the Chilean Government in general to resolve emerging issues that we face.
The Chilean Government demonstrated its interest in Transantiago in 2009 by implementing a subsidy for
Transantiago to supplement the systems revenue, which has been lower than anticipated in the initial bidding
process. The subsidy is adjusted annually through the Chilean national budget and has been approved until 2014

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to help maintain the long-term financial stability of Transantiago, including Alsacia and Express. See The
Concessions for a description of the subsidy, our Concessions and the Concession revenue.

Achieved Economies of Scale

As a result of the Acquisition, Alsacia and Express, viewed as a commonly controlled operation, will
become the largest operator in Transantiago, as measured by available bus capacity and scheduled route distance.
Together, we managed 1,861 buses and 9 terminals, transported 29 million passengers per month in 2009 and
traveled 9.1 million kilometers per month in 2009. Combined, the companies will control 34% of the bus
capacity within Transantiago and 47% of the bus capacity among the trunk line operators. We believe that our
larger size will give us:

economies of scale in management and administrative costs;

greater purchasing power for materials, services and spare parts;

reduced spare parts inventories as a percentage of buses due to parts sharing;

more efficient scheduling and reduced idle time for buses, terminals and drivers; and

route densities for transferring buses and drivers between lines and to and from bus terminals.

See discussion above under BusinessOur Business StrategyMaximize synergies from the
Acquisition of Express.

Efficient Operator

General

Alsacia has developed robust business processes and logistics that have made it one of the most efficient
bus operators in Transantiago. Alsacia has consistently maintained a high Service Fulfillment Ratio, which is a
comparison of actual in-service capacity, number of hours in service and distance traveled by each operators
buses against Operating Plans. Our efficiency stems from our expertise in bus maintenance, driver training and
management, operational planning and fleet logistics.

Express has historically achieved a Service Fulfillment Ratio near the average of other concession
holders in Transantiago. Upon completion of the Acquisition, we believe that we can improve Expresss
performance by applying Alsacias operating and management techniques to Express.

Bus Maintenance

High quality maintenance service is an important part of our success and enables us to keep our buses
running longer, with less down time and at a lower operating expense. In 2009, Express received ISO 9001:2000
certification for its maintenance operations. Similarly, in 2009, Alsacias five maintenance terminals were
certified under both the ISO 9001:2000 and ISO 9001:2008 standards. All of Alsacias maintenance and
electrical technicians attend three one-week training modules to help them maintain our buses. All of these
maintenance practices help decrease our overall operating expenses and increase the in-service time and
percentage for our buses. See further discussion below under BusinessOur OperationsBus Maintenance.

Driver Training and Management

We provide extensive training and benefits for our drivers, which we believe increases their operating
efficiency and reduces driver turnover. Driver candidates must first pass our rigorous selection process, which

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involves matching candidates to competency maps. Once hired they must complete a new-hire training program
to build their driving and safety skills and prepare them for customer service. Once they are working in the field,
we give them ongoing training to refine and refresh their skills.

Alsacia has partnered with Asesorias y Proyectos San Jorge S.A., a driver training provider, for the
basic training of Alsacias drivers and the development of an efficient driving program tailored to reduce fuel
consumption and wear on bus systems. In addition, Alsacia intends to work with Asesorias y Proyectos San Jorge
S.A. in the future to provide driver training and certification through the use of advanced driving simulators, if
approved by future regulations.

We also constantly monitor driver performance, attendance and punctuality. This monitoring allows us
to better coordinate drivers with our dispatch system, which in turn reduces our operational labor costs.
Indentifying deficiencies and errors revealed during monitoring helps us refine our training programs to avoid
similar errors in the future.

Our compensation programs are also designed to incentivize performance. When combined with our
general employee benefits, well maintained working facilities and the uniforms we provide, we believe our total
compensation is competitive in the industry.

Scheduling

After agreeing to an Operating plan with the Ministry, it is up to the operators to schedule operations.
We have access to sophisticated technology to schedule and optimize the operational program. Our scheduling
process matches buses and drivers to meet the Operating Plan requirements while complying with other legally
mandated restrictions such as maximum drivers working hours, minimum number of Sundays off, and driver
vacations. Our scheduling process allows us to balance our legally mandated requirements with our demand
peaks and bus maintenance schedules. Our scheduling processes result in a satisfactory delivery of the service at
a minimum cost.

Fleet Logistics

We use Transantiagos real time GPS based system to monitor and control our fleet operations and we
directly employ and supervise our drivers. We also place supervisors along our bus routes, who monitor the
timeliness of our buses and communicate with our drivers and our central control center to coordinate
adjustments to our routes in response to street conditions. These measures enable us to maintain strict quality
controls and take advantage of the economies of scale resulting from the size of our operations. Our logistics and
routing systems utilize global positioning systems and scheduling software to maximize the performance of our
buses and drivers.

Experienced Management Team with a Proven Track Record

Our senior management team is composed of professionals who have significant experience in
transportation and other business sectors, providing us with a deep understanding of the industry and the
regulatory environment as well as our customers needs and expectations.

Our Operations

Bus Routes

As of September 30, 2010, we operated 72 bus routes under the Concessions that are defined in our
Operating Plans. Routes are created and designed according to expected demand for our services in the different
areas of Santiago. Each route schedule of services requires a certain frequency for each time of the day to be

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performed with the appropriate bus. The average route length (one way) is 20 kilometers for Alsacia and 23
kilometers for Express. In Alsacia, we estimate route financial performance taking into account operational
differences among routes such as route length, empty kilometers required to provide a service, passenger evasion,
average speed, fuel consumption, driver time requirement, and some other specific costs. We routinely monitor
this financial performance and adjust operations to improve them and negotiate changes to our Operating Plans
that may help benefit our performance as well as service to our passengers.

Bus Maintenance

Our bus maintenance programs are designed to maximize bus reliability and availability, which lowers
our operating expenses and extends the operational life of our buses. In 2009, Express received ISO 9001:2000
certification for its maintenance operations. Similarly, in 2009, Alsacias five maintenance terminals were
certified under the ISO 9001:2008 standard. We systematically measure our maintenance performance through
the performance statistics described below.

We measure reliability by tracking the number buses that make unscheduled returns to a bus terminal
per 10,000 kilometers driven. During the nine months ended September 30, 2010, the cumulative reliability ratio
was 2.24 for Alsacia and 2.42 for Express.

We measure availability by tracking the number of buses available at peak hours divided by total fleet.
This cumulative availability ratio for Alsacia is 96% and for Express is 97% through September 30, 2010.

To maximize our performance in these areas, we also apply preventive, repair and aesthetic maintenance
procedures.

Under our preventive maintenance program, we perform on average about 16 inspections per year, more
than the number recommended by Volvo. In addition, preventative maintenance includes the implementation of
technical upgrades and patches, fixes, recalls and regulatory modifications that are issued by the Chilean
Government and bus and equipment manufacturers. Through careful coordination of bus and mechanic
schedules, we are able to minimize the labor costs associated with our preventative maintenance programs while
minimizing bus down time. Our preventive maintenance programs result in improved fuel efficiency, reduced
repair maintenance costs and lower incidence of on-the-road mechanical assistance.

Repair maintenance is performed when service indicator lights are activated in our buses, maintenance
service is required because of a breakdown, or a technician discovers a mechanical problem during an inspection
of a bus. We also inspect each of our buses when they leave and when they return to our bus terminals and have
developed a preventative and predictive maintenance program. During the repair maintenance process our
technicians are monitored by the appropriate maintenance supervisor so that our repairs are performed correctly.
After each repair for which there is a repair checklist, the technician must fill out such checklist as part of his
quality control report. Our maintenance supervisors are required to perform at least one daily review of repairs by
reviewing the repair checklist and confirming that the work has been done by the technician. Once work has been
completed the supervisors must file a repair report and release the bus for operation.

We analyze our repair history and trends to conduct root cause analysis of the problems that led to
repair. By identifying the root cause and eliminating it through preventative maintenance or procedural changes,
we are able to lower our repair expenses. We also strive to minimize our inventory of spare parts through strict
cost and inventory management and standardization of our bus fleet.

Finally, our buses are also maintained at an aesthetic level with regular internal and external bus washes,
paint touchups and cosmetic body damage repair. These aesthetic improvements help us to avoid fines and
increase passenger satisfaction and perception of our operating brands.

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 Our maintenance personnel are subjected to a rigorous training program so that they apply the latest
maintenance techniques. In total, Alsacia and Express maintenance personnel received 11,241 hours of training
in the nine months ended September 30, 2010.

Our Employees

As of September 30, 2010, Alsacia and Express each employed a total of 2,481 and 3,557 employees
respectively, as illustrated in the table below. Approximately 5.0% and 11% of these employees, respectively, were
considered administrative staff. Historically, Alsacia and Express have been operated and managed as separate
business entities. Upon completion of the Acquisition, we believe that there are opportunities to realize some
synergies by eliminating redundant staffing. In addition, we believe that we can reduce the ratio of administrative
staff to operations staff by implementing some of Alsacias management practices at Express. See discussion above
under BusinessOur Business StrategyMaximize synergies from the Acquisition of Express.
Alsacia Express Total
Non- Sub- Non- Sub- Non- Sub-
Employee Type Operational Operational total Operational Operational total Operational Operational total
Bus Drivers . . . . . . . . . . . . 1,685 0 1,685 2,354 0 2,354 4,039 0 4,039
Operations Control
Staff . . . . . . . . . . . . . . . . 333 0 333 365 0 365 698 0 698
Maintenance
Technicians . . . . . . . . . . 248 0 248 494 26 520 742 26 768
Administrative Staff . . . . . 55 78 133 112 111 223 167 189 356
Managers . . . . . . . . . . . . . . 31 30 61 36 40 76 67 70 137
Officers . . . . . . . . . . . . . . . 9 12 21 6 13 19 15 25 40
Total Employees . . . . 2,361 120 2,481 3,367 190 3,557 5,728 310 6,038
% of Total . . . . . . . . . 95.2% 4.8% 94.7% 5.3% 94.9% 5.1%

In addition to our full-time employees, we also employ part time employees to meet some of our labor
needs. The substantial majority of these part-time employees are bus drivers that we utilize to meet peak demand
during the morning and afternoon commute on work days. As of September 30, 2010, we had 601 part-time
drivers on call.

Driver Training

We provide training, benefits and performance monitoring for our drivers, which we believe increases
their operating efficiency and reduces driver turnover. Driver candidates must first pass our rigorous selection
process, which involves careful selection of candidates to match skill set profiles and competency maps that we
have created for our driver positions. This screening process is designed to select bus drivers with high potential
for success.

Alsacia has partnered with Asesorias y Proyectos San Jorge S.A., a driver training provider, for the
basic training of Alsacias drivers and the development of an efficient driving program tailored to reduce fuel
consumption and wear on bus systems. In addition, Alsacia intends to work with Asesorias y Proyectos San Jorge
S.A. in the future to provide driver training and certification through the use of advanced driving simulators, if
approved by future regulations.

Once hired, our drivers must complete a new-hire training process that is designed to improve their
driving skills, increase their awareness of driver safety and train them on the features of our buses. Before
carrying their first regular passenger, our drivers must participate in two to four weeks of training, depending on
their level of prior experience. In addition, we require that all of our drivers posses valid driver licenses, issued
by the Chilean Government, certifying that they can drive commercial buses. Express offers a similar new-hire
training process.

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 Once they are dispatched into the field, our driver training continues with broad range of skills training
programs covering topics such as defensive driving, fuel efficient driving practices, core driving skills, customer
service and stress management. These training programs are provided by local technical schools and are repeated
at regular intervals to continually improve and maintain driver skills. In the first nine months of 2010, Alsacia
drivers logged 78,164 hours of training with an average of 46 hours per driver, and Express drivers logged
17,275 hours of training with an average of 7.5 hours per driver. In addition to the skills training, we have
developed a driver career development and coaching plans to support our drivers long-term advancement and
professional development. We expect Express training programs to be expanded with skills training programs
similar to those in place in Alsacia, upon the completion of the Acquisition.

We provide our drivers with competitive salaries, uniforms, and good working conditions on their buses,
in the terminals and at rest stops. Our labor contracts provide for paid vacation, guaranteed annual bonuses,
Christmas bonuses, and performance bonuses for attendance and punctuality. The agreements also provide for
monthly meal and travel allowances payable to employees. We also give our drivers performance incentive pay
based on their punctuality and attendance measures each month. These benefits demonstrate our commitment to
our drivers and other employees and help us maintain average driver tenure of approximately 3 years.

At Alsacia, we constantly monitor driver performance to give them proper feedback, to identify drivers
that need additional training or remedial action and to identify, promote and reward our best drivers. Drivers are
periodically evaluated and ranked on their performance based on their punctuality, attendance records, accident
rate, supervisor warnings, passenger complaints filed with Transantiago, and the number of unscheduled bus
returns to a terminal by a driver that are not caused by bus mechanical failures. By tracking driver performance
and improvement, we can continuously improve our training programs and apply driver best practices across all
of our drivers. Measuring driver attendance and punctuality also allows us to better coordinate our dispatch
program, which in turn reduces the operational costs associated with our drivers. Collectively, we believe our
driver training, compensation and monitoring programs promote a pleasant work environment and improve
employee morale and satisfaction.

Fuel

All of our buses use Grade A-1 diesel fuel which is commercially available throughout Santiago.
Because our revenue under the Concession Agreements increases with increases in the price of fuel, as described
above under The ConcessionsConcession Revenue, we do not hedge against the cost of fuel in our fuel
supply contracts.

Alsacia has contracted with Petrobras Chile Distribucion Ltda. (Petrobras), an affiliate of the Brazilian
state oil company, to be its exclusive supplier of Grade A-1 diesel fuel and for Petrobras to supply all of
Alsacias needs, subject to certain customary exceptions. The contract expires in November 2012 and is
automatically renewed for additional one-year terms unless either party gives prior notice of non-renewal. The
fuel price contained in the contract is subject to various factors including the refinery price set by the National
Petroleum Company (Empresa Nacional de Petroleo or ENAP) which is the sole refiner of oil in Chile, any
indirect effect produced by the discount ENAP gives to distributors of diesel fuel, taxes and general expenses
incurred by Petrobras such as delivery costs. The general expenses are subject to biannual adjustment based on
the Chilean Consumer Price Index and a transportation cost index. Alsacia has minimum purchase commitments
under the contract to purchase 2,500 cubic meters of diesel fuel per month. In addition, under the fuel supply
contract, Alsacia must carry Petrobras advertisements on some of its buses for certain days during May, June,
and July of each year. Petrobras also provides maintenance for Alsacias fuel pumps for no additional charge.

As of November 2009, Express has a three-year contract with Compaa de Petroleos de Chile Copec
S.A. (Copec) to be its exclusive supplier of Grade A-1 diesel fuel and for Copec to supply all of Expresss
diesel fuel needs, subject to certain customary exceptions. The agreed upon volume is 4,000 cubic meters per
month. The term of the contract is originally set out as a three-year term, but it may be extended for an additional

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two-year term if neither party gives prior notice of non-renewal. If this were the case, then Copec shall reimburse
the difference from the general expenses corresponding to first three years against the August 13 proposal and
the method of reimbursement shall be mutually agreed among the parties. The fuel price contained in the
contract, which is not guaranteed by Copec, is subject to various factors including the refinery price for fuel set
by ENAP, any discounts given by ENAP to the Transantiago operators, taxes and general expenses incurred by
Copec. The general expenses are subject to a triennial adjustment according to changes in the Chilean Consumer
Price Index. The contract is subject to termination if the Ministry or other relevant authority halts part or all of
Expresss business. The contract with Copec was renewed 6 months ago.

Planning

The Management Planning Department (Gerencia de Planeamiento) is in charge of developing and

agreeing on Operating Plans with the Ministry and then defining the detailed schedule of buses and drivers for
our operations. New business opportunities, like, for example, new or improved bus routes, capture additional
demand for our services, which in turn increases our potential revenue under the Concession Agreements. In
addition to increasing revenue, we have been able to lower costs through strategic scheduling of our buses and
bus operators. By optimizing the use of our buses and human resources, we are able to reduce our overall costs
and improve profitability.

Our planning process has a solid track record in applying complex optimization models to arrive at cost-
efficient scheduling and to suggest changes to our Operating Plans. We measure their performance by looking at
the percentage of buses that leave our bus terminals on or within two minutes of its scheduled departure. The
percentage of such on-time departures for Alsacia and Express averaged 92% for Alsacia and 77% for Express
during the nine months ended September 30, 2010.

We have contracted with a logistics consultant to optimize our fleet and bus allocations as well as
implement our route monitoring and dispatch system. Our dispatch software allows us to monitor usage of buses
for route allocation purposes and for measuring the performance of our drivers. The data we are able to obtain
allows us to improve our level of performance by applying corrective measures or providing extra training where
needed. Our software dispatch system allows us to meet peak demand while keeping the drivers shift duration
within the permitted bounds as mandated by the labor laws of Chile. Our team of dispatchers continuously
monitors traffic congestion and rider demand fluctuations in order to efficiently allocate our many buses. Our
integrated GPS system allows us to track our buses and maintain them on schedule as required by the Concession
Agreements.

Our algorithms take into account speed analysis to assign bus schedules and assign shifts to drivers to
match bus schedules. Bonuses are also payable to dispatchers who meet on-time dispatching goals.

Scheduling and Traffic Control

We divide our bus fleet operations into two critical areas. The Scheduling Department schedules bus
drivers, optimizes our inventory of available buses that are ready to go into service, matches the drivers to the
buses, allocates available buses and drivers among our terminals, and regulates the dispatch of each bus into
service.

Once a bus goes into service, the Traffic Control Department (Control de Operaciones de Flota) takes
over from the Scheduling Department. In a central control room, the Traffic Control Department monitors the
flow of all of our buses on the street, traffic levels, and the allocation and flow of buses along each route. They
are able to pinpoint the precise location of each bus through GPS systems installed on all of our buses. They
continuously monitor our bus fleet in the field and take corrective actions to reallocate the pace and flow of buses
to maintain consistent service and minimize service lags or gaps. The control room is able to communicate with
route coordinators located in the field who flag down bus operators and give them instructions to adjust their
pace.

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 The effectiveness and efficiency of Alsacias bus fleet operations have earned it consistently high
Service Fulfillment Ratio in Transantiago in the nine months ending September 30, 2010. Expresss Service
Fulfillment Ratio has generally been near the average of other concession holders over the same period. We
believe that the recent decline in Expresss Service Fulfillment Ratio is a result of turnover in certain employees
and the recent addition of portions of trunk line 3 to Expresss prior routes. We believe we can improve
Expresss operational performance by applying the best practices from Alsacia.

Service Fulfillment Ratio (1)

(ICPH / ICPKH)
102.0% Alsacia Express
100.0%
98.0%
96.0%
94.0%
92.0%
90.0%
88.0%
86.0%
84.0%
82.0% ICPH ICPKH
80.0%
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
(1) Ratio of actual passenger capacity and route distance serviced compared to the scheduled passenger capacity
and route distance in Operating Plans during the applicable period (ndice de Cumplimiento Plaza Kilmetro
Hora). Prior to October 2009, the calculation of this ratio did not include distance (kilmetros) and was
known as ndice de Cumplimiento Plaza Hora. The Ministry added distance (kilmetros) to the ratio in
October 2009 and renamed it ndice de Cumplimiento Plaza Kilmetro Hora. The Ministry reports a
preliminary Service Fulfillment Ratio to each concessionaire on a semi-monthly basis. Each concessionaire
can then review the preliminary Service Fulfillment Ratio and propose adjustments to it to reflect service
interruptions or delays that are outside of the concessionaires control, such as road construction or traffic
accidents along its routes. Once the proposed adjustments are reviewed and accepted by the Ministry, the
Ministry publicly reports the adjusted Service Fulfillment Ratios for a period starting on the sixth day of
each calendar month and ending on the fifth day of the following calendar month. Alsacia and Express also
separately calculate the adjusted Service Fulfillment Ratio for each calendar month for their internal
reporting purposes. All Service Fulfillment Ratios used in this Offering Memorandum refer to the internal,
adjusted Service Fulfillment Ratios calculated by Alsacia and Express. For a more complete description of
the Service Fulfillment Ratio, see The ConcessionsConcession RevenueRevenue Formulas and
BusinessOverviewThe Concessions.

Labor Unions

Substantially all of our employees are unionized.

Alsacia has entered into collective bargaining agreements with labor unions number 1 through 5
covering approximately 72% of its employees, which expire on December 31, 2012. In addition, approximately
14% of Alsacias employees are covered under a collective bargaining agreement with the Sinemia labor union
which expires on March 31, 2013. These agreements require annual salary raises equal to the increase, if any, in
the Chilean Consumer Price Index and provide for additional incentive compensation for meeting punctuality and
attendance standards. Workers were also paid a one-time signing bonus ranging from Ch$100,000 to
Ch$400,000. On July 6, 2010, Alsacia experienced a temporary service disruption for a few hours at its Pealoln
terminal because some of our bus drivers alleged that the buses were being operated unsafely. Local police
negotiated a quick end to the disruption, and Transantiago coordinator ultimately determined that the driver
complaints were without merit.

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 Express has entered into collective bargaining agreements with a number of labor unions covering
approximately 84% of its employees, which expire in February 2013. In addition, the majority of Expresss
remaining workers are covered under a separate collective bargaining agreement which expires in March 2011
that we expect will be renewed under terms to be negotiated. These agreements require annual salary raises equal
to the increase, if any, in the Chilean Consumer Price Index and provide for additional incentive compensation
for meeting punctuality and attendance standards. In Workers were also paid a one-time signing bonus with an
average of Ch$304,000. Two of the labor unions representing Express employees engaged in a three day strike in
April 2009. The strike was initiated by bus drivers who unsuccessfully demanded higher wages.

In addition to the collective bargaining agreements with the unions, we are required by Chilean law to
enter into employment contracts with all of our employees which adhere to minimum labor law standards
required by law which govern work hours, breaks and other working conditions.

Chilean law also provides severance for our employees in the event they are terminated without cause at
the rate of one month of compensation per year worked by the employee for the employer, capped at 11 years of
service or compensation at a rate equal to the salary paid during the last month of service, with a cap of UF
90 per month.

Property and Equipment

Substantially all of our assets are currently pledged under bank credit facilities. We plan to repay these
bank credit facilities in full with the net proceeds from the Notes and, as a result, to have the pledges be released.
See Use of Proceeds.

Bus Fleet Composition

Our bus fleet is comprised of modern buses with a proven track record for reliability, cost effectiveness
and safety. The majority of our buses are made by Volvo, and we have one of the largest fleets of Volvo buses in
Latin America. Each of our buses has a safety system that helps prevent the bus from moving if its doors are not
closed. In addition, our buses are equipped with disc brakes, ABS and portable fire extinguishers. All of our
buses meet the Euro III emission standards, an emission standard implemented by the European Union in 2000
and since adopted in other areas of the world.

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 As of September 30, 2010, we operated a total of 1,861 buses, of which 1,300 were owned and 561 were
leased. Our leased buses remain in use from the pre-Transantiago transportation system and include a variety of
models and brands. We plan to retire all of these leased buses by July 2011. Our owned buses come in two
standard models with the following features and quantities as of September 30, 2010:

Articulated Low Floor

(Type 18) (Type 12) Total
Bus Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9 SALF B7RLE
Engine and Chassis Manufacturer . . . . . . . . . . . Volvo Volvo
Body Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marco Polo and Busscar Marco Polo and Busscar
Length . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 meters 12 meters
Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 double doors 3 double doors
Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 passengers 91 passengers
Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 360 horsepower 275 290 horsepower
Quantity:
Alsacia Fleet . . . . . . . . . . . . . . . . . . . . . 173 436 609
Express Fleet . . . . . . . . . . . . . . . . . . . . . 496 195 691
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 669 631 1,300
% of Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.5% 48.5% 100%
Average approximate kilometers in service
per bus as of September 30, 2010
Alsacia Fleet . . . . . . . . . . . . . . . . . . . . . 341,000 kilometers 397,000 kilometers
Express Fleet . . . . . . . . . . . . . . . . . . . . . 395,000 kilometers 399,000 kilometers
Approximate kilometers driven per month
per bus
Alsacia Fleet . . . . . . . . . . . . . . . . . . . . . 6,400 kilometers 7,700 kilometers
Express Fleet . . . . . . . . . . . . . . . . . . . . . 7,800 kilometers 7,400 kilometers

We maintain our fleet of buses in accordance with a regular program of preventive and corrective
maintenance, as described above under BusinessOur OperationsBus Maintenance.

We have recently purchased 43 Volvo B7RLE buses for Alsacia, which were delivered in August
through October 2010. We also have purchase orders to purchase 193 Volvo B7RLE buses for Express to replace
the buses we currently lease, which we expect to receive in July 2011. We expect that the useful life of these
recent bus purchases will coincide with the expiration of the Concession Agreements.

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Bus Terminals

We own or lease nine long-term bus terminals spread throughout the Santiago metropolitan area at
strategic locations along our bus routes. We use our terminals primarily as service stations to provide
preventative and repair maintenance for our buses, as well as to house our operations personnel. The terminals
also provide parking for our buses when they are not in use. The table and map below summarize the location
and major characteristics of our long-term terminals.

Terminal Bus Service Leased / Lease

Operator Name Capacity Bays Owned Expiration
Express . . . . . . . . . . . . . . . . . . . . . Pudahuel 260 18 Owned n/a
Express . . . . . . . . . . . . . . . . . . . . . Maip 220 23 Owned n/a
Alsacia . . . . . . . . . . . . . . . . . . . . . Maip 212 46 Leased March 2019
Express . . . . . . . . . . . . . . . . . . . . . Pajaritos 129 10 Leased October 2012
Alsacia . . . . . . . . . . . . . . . . . . . . . Pealolen 126 20 Leased March 2019
Alsacia . . . . . . . . . . . . . . . . . . . . . Renca 113 20 Owned n/a
Alsacia . . . . . . . . . . . . . . . . . . . . . Huechuraba 105 16 Owned n/a
Express . . . . . . . . . . . . . . . . . . . . . La Reina 82 6 Leased October 2018
Alsacia . . . . . . . . . . . . . . . . . . . . . Puente Alto 59 6 Owned n/a
Total 1,306 165

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 In addition, to the long-term terminals above, Express has four temporary terminals that it recently
leased on a short-term basis to help integrate operations for the new bus routes we were assigned from Trunk
Line 3. These short term leases expire between December 2010 and August 2011, and have 26 total service bays
and capacity to store 304 buses. We do not intend to renew these leases when they expire, but will instead
integrate their operations into the combined capacity of our nine long-term bus terminals.

Alsacia has an option to renew the Maipu (Alsacia) terminal lease for an additional term corresponding
with the remaining length of its latest expiring Concession, which is currently set to expire in October 2018.

The Pealolen terminal lease automatically renews for one year unless either party gives notice more
than one year prior to the expiration of the then applicable term. Alsacia can unilaterally extend the lease for one
year beyond the initial term even if the lessor notifies Alsacia of its intention not extend the lease. Alsacia
possesses a right of first refusal to match any third party offer to purchase the terminal during the lease term.
Alsacia also possesses a right of first refusal to lease the terminal after expiration of the current lease term.

The Pajaritos terminal lease automatically renews for seven years unless Express gives notice more than
three months prior the end of the initial term. Thereafter, the lease automatically renews for four year terms
unless either parties gives notice more than one year before the end of the term.

The La Reina terminal lease may be extended to coincide with any additional term of the Concession
granted to Express past the expiration of initial term of the lease.

Express also owns vacant land in Buzeta, Santiago, Chile, which has total size of 22,515 square meters.

Insurance

We are frequently subjected to claims for personal injury or death and property damage as a result of
bus and other operational accidents. We may be liable for damages to passengers and luggage caused by the
transportation services we provide under certain circumstances. We maintain customary insurance policies that
meet the standards required by the Concession Agreements and under applicable law for companies engaged in
similar operations. We maintain insurance for our buses, infrastructure, and terminals with coverage for material
damage, civil liability and personal injury. We also carry mandatory life insurance as well as personal injury
insurance for our drivers.

Litigation

We are a party in various lawsuits arising in the ordinary course of our business, primarily involving
personal injury and property damage claims and employment-related claims. The majority of these claims arise
from traffic accidents involving our buses. We currently are not subject to pending legal proceedings, other than
routine litigation incidental to our business. We do not believe any liabilities resulting from these proceedings are
likely to have a material adverse effect on our financial condition, cash flows or results of operations.

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 MANAGEMENT

As a result of the Acquisition, Alsacia, Express Eco Uno and Panamerican will become affiliated
companies under common control by GPS Group. GPS Group intends to operate Alsacia and Express jointly
under common management, common operating procedures and sharing of overhead and other costs in order to
maximize efficiencies for both entities. Eco Uno and Panamerican have no independent operations or employees.
The directors and officers described below represent the current directors and officers of Alsacia, and the
expected directors and officers of Alsacia and Express after the Escrow Closing Date. The discussion below
excludes a discussion of the current Directors and Officers of Express, Eco Uno and Panamerican because, due
to our efforts to consolidate personnel, we do not expect those persons to remain in those roles after the Escrow
Closing Date.

Directors and Executive Officers

The businesses of Alsacia are managed by a board of directors. Alsacias Estatutos (bylaws) require that
the board of directors consist of five directors. Elections for the entire board of directors are held every three
years. Alsacias executive officers are appointed by the board of directors and hold office at its discretion.
Scheduled meetings of the board of directors are held once a month. The directors and executive officers of
Alsacia are listed below.
Tenure
Name as Director Position Age
Carlos Ros . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years President and Chairman of the Board 47
Ruben Ros . . . . . . . . . . . . . . . . . . . . . . . . . . 4 years Director 51
Heriberto Urza . . . . . . . . . . . . . . . . . . . . . . 4 years Director 48
Andrs Echeverra . . . . . . . . . . . . . . . . . . . . Less than 1 year Director 45
Jaime Maldonado . . . . . . . . . . . . . . . . . . . . . Less than 1 year Director 52
Juan Antonio Guzmn (1) . . . . . . . . . . . . . . 4 years Director of Express 62

(1) Mr. Guzmn is a director of Express elected by the controlling shareholders of GPS Group.

The principal executive officers of Alsacia and the chief executive officers of each area or department of
Alsacia are listed below.
Years
Name with Alsacia Position Age
Carlos Ros . . . . . . . . . . . . . . . . . . . . . . . . 5 years President and Chairman of the Board 47
Vlamir Domic . . . . . . . . . . . . . . . . . . . . . . 1 year Chief Executive Officer 42
Carlos Marn . . . . . . . . . . . . . . . . . . . . . . . 1 year Chief Financial Officer 40
Carlota Fritsch . . . . . . . . . . . . . . . . . . . . . 5 years General Counsel 34
Gabriel Morales . . . . . . . . . . . . . . . . . . . . 2 years Vice President of Human Resources 50
Jorge Grez . . . . . . . . . . . . . . . . . . . . . . . . . 1 year Vice President of Maintenance 45
Edgar Mac Allister . . . . . . . . . . . . . . . . . . 5 years Vice President of Transportation 50
Services
Fernando Iribarren . . . . . . . . . . . . . . . . . . Less than 1 year Vice President of Fleet Operations and
Vice President of Operations 33

Set forth below is a brief biographical description of the directors and executive officers of Alsacia.

Directors

Carlos Ros has served as President and Chairman of the Board of Alsacia since 2005. Mr. Ros has
extensive experience in the development and management of public services concession companies. He is a
principal founder, promoter and shareholder of Alsacia; Express de Santiago; Express del Futuro, a parent

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company of Express; and Transporte Alimentador de Occidente S.A., an urban public transport company in the
Transmilenio System in Bogot, Colombia. Together with his wife, he also owns Rioma Consultores
Empresariales Limitada, a company that gives financial, strategic and development advice to the companies
where he has shareholding participation. He was the Chairman of the Board of Consorcio Aseo Capital S.A. from
1996 to 2001 and a director of Ecocapital Internacional S.A. from 2004 to 2005, both of which are companies
holding long-term waste management concessions in Bogot, Colombia. Mr. Ros has also previously served as a
director of various other companies, including Express, Express del Futuro S.A. and Transporte Alimentador de
Occidente S.A. In addition, Mr. Ros previously worked as a European Commission Consultant for World Bank,
as a Manager Director of the Vehicular Gas Project in Santa Fe de Bogot and as a professor and director of the
Multilateral Organism and Sustainable Development Department, Research Center and Special Projects, CIPE, at
Universidad Externado de Colombia, Santa Fe de Bogot. Mr. Ros received a Bachelors degree in Economics
from the University of the Andes in Bogot, Colombia, a Masters degree in Economics from Sorbonne
University in Paris, France, and a Doctorate degree in Economics from cole des Hautes tudes en Sciences
Sociales (EHESS) in Paris, France.

Ruben Ros has been a member of Alsacias board of directors since 2006. Mr. Ros sits on the board of
numerous Colombian companies, including Trash Busters S.A. and Central Parking System Colombia. He was
previously a director of Servigenerales S.A., Enelar Pereira S.A. and Aseo Capital S.A. He is currently the
General Manager of Gold Gate Caro S.A., the General Director of National Technical Control and Aerial
Security of the Colombian Aeronautical Authority and the General Manager of Del Prado Zonas Verdes S.A. He
previously served as a General Manager for Consorcio Aseo Capital S.A., a Colombian public waste
management company, and he founded Recycle Enterprises, Panama. He received a Bachelors degree in
Economics from the University of the Andes in Bogot.

Heriberto Urzua has been a member of Alsacias board of directors since 2006. Mr. Urzua has been
Vice chairman of Empresas La Polar, a publicly traded Chilean company, since 2007, and Chief Executive
Officer of Patagonia Inversiones since 2005. He has served as a director of Empresa Portuaria Talcahuano San
Vicente since 2010; Inverotero since 2008; Empresas La Polar since 2007; Forus S.A., a publicly traded Chilean
company, since 1995; Embotelladora Andina S.A., a bottling company of Coca-Cola, which is traded on the New
York Stock Exchange through ADRs, with operations in Chile, Brazil and Argentina, since 2006; Armacero since
2006; Relsa S.A., a leasing company with operations in Chile, Peru and Brazil, since 2006; Fundacin Chile
Unido since 2005; Agrcola Arizta S.A. since 2005; and Hortifrut S.A., the largest producer and exporter of
blueberries in South America, since 2000. He has also served as part of the Consejo Consultivo of Claro in Chile,
a telecommunications company (previously known as TELMEX), since 2005. From 1996 to 2005 he served as
Vice Chairman of Forus, where he directly managed brand and retail operations in Chile, Peru and Uruguay.
From 1989 to 1995, he served as VP, Head of Equity Investments and Capital Markets of Chase Manhattan
Bank. In addition, from 1993 to 1995, he served as a director of Pesquera Coloso. He also served as a director of
Entel from 1991 to 1992. He received a Bachelors degree in Business Administration from the Pontifical
Catholic University of Chile and an MBA from the IESE Business School of the University of Navarra in
Barcelona, Spain.

Andres Echeverria has been a member of Alsacias board of directors since 2010. Mr. Echeverria
cofounded ECG Partners S.A., an investment management company, in 2009 and was the CEO of Bicecorp S.A.
from 2005 to 2009. He has previously worked for Deutsche Bank, where he was a Vice Chairman, Bankers
Trust Chile and Citicorp. He has served as a director of CMPC Papeles S.A., Banco BICE, Bicecorp S.A. and
Inversiones Aledan S.A. He is also a member of the Icare Finance Circle. He received a Bachelors degree in
Business Administration from the Pontifical Catholic University of Chile and a Masters degree in Business
Administration from the University of California Los Angeles Anderson School of Management.

Jaime Maldonado has been a member of Alsacias board of directors since 2010. Mr. Maldonado has
been a partner at Arcadia Capital Partners S.A. since 2008, and he was a partner at Booz Allen Hamilton, Inc.
from 1997 to 2006. At Booz Allen Hamilton, Inc., he worked in various capacities, including as the Lead Partner

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for Northern Latin America, General Director for Booz Allen Hamilton de Mxico S.A. de C.V., General
Manager for Booz Allen Hamilton de Colombia Ltda., and Legal Representative for Booz Allen Hamilton de
Per S.A, Booz Allen Hamilton International (Panama) and Booz Allen Hamilton de Venezuela. He is currently a
director of Express del Futuro S.A., Data Tools S.A., Central Parking Systems Colombia and Seceyo Chile, and
he was previously a director of Correval S.A. and Ecocapital S.A. He received a Bachelors degree in Civil
Engineering from the University of the Andes in Bogot, Colombia, a Masters of Science in Transportation
Engineering from Ohio State University and a Masters of Science in Technology and Policy from the
Massachusetts Institute of Technology.

Juan Antonio Guzmn is a director of Express elected by the controlling shareholders of GPS Group.
Mr. Guzmn has vast experience in managing public and private organizations. He is currently an active director
of several companies, including Express, Compaa General de Electricidad S.A. and Sonda S.A. He is also the
Chairman of the board of directors of Cemento Polpaico S.A. and Indisa S.A. He is an active shareholder in
companies in a variety of sectors, including energy, education, health and real estate. He spent twelve years as
Chief Executive Officer of Gener S.A. and three years as Chancellor of Universidad Andres Bello. He was also
Chiles Minister of Education. Mr. Guzmn received a Bachelors degree in Civil Engineering from the
Pontifical Catholic University of Chile and a Ph.D. from Polytechnic of North London.

Executive Officers

Vlamir Domic has served as the Chief Executive Officer of Alsacia since 2009. Mr. Domic previously
served as the Chief Executive Officer of LAN Airlines. Mr. Domic received a Bachelors degree in Business
Administration from the Pontifical Catholic University of Chile. He also attended the Stanford Executive
Program at the Stanford Graduate School of Business.

Carlos Marin has served as the Chief Financial Officer of Alsacia since 2009. Mr. Marin previously
served as the Chief Financial Officer and Chief Operating Officer of Grupo Nueva from 2005 to 2009 and, prior
to that, as the CFO of Masisa S.A. from 2002 to 2004. Mr. Marin also previously served as a director of Masisa
S.A., Amanco Holding, Inc. and The Plycem Company. He received a Bachelors degree in Business
Administration from the Adolfo Ibaez University in Chile and a Masters in Business Administration from
Stanford Universitys Graduate School of Business.

Carlota Fritsch has served as the General Counsel of Alsacia since 2005. From 2003 to 2005,
Ms. Fritsch was a partner at Fritsch & Salgado Abogados Asociados. She received a Law Degree from the
Andres Bello University in Chile and a Masters degree in Business Law from the Adolfo Ibanez University in
Chile.

Gabriel Morales has served as the Vice President of Human Resources of Alsacia since 2008. From
2002 to 2008, Mr. Morales served as Human Resources Director of Ripley S.A., a retailer in Chile, and from
1994 to 2001, he served as Human Resources Director for Lan Airlines, a leading Latin American airline. He
received his Bachelors degree in Business Administration from the Pontifical Catholic University of Chile and a
diploma in Business Management from the Pontifical Catholic University of Chile. He also completed a
negotiation program at Harvard University.

Jorge Grez has served as the Vice President of Engineering and Maintenance for Alsacia since 2009.
From 2008 to 2009, Mr. Grez served as Post-Sales Senior Manager for Gildemeister Machinery Division. From
1996 to 2008, he worked for LAN Airlines in various capacities, including Fleet Director, from December 2005
to June 2007, and Line Maintenance Director, from June 2007 to October 2008, during which time he oversaw all
line maintenance operations for LAN Airlines fleet in Latin America, Europe and Oceania. He was an Officer in
the Chilean Navy from 1986 to 1996. He received a Bachelors degree in Naval Engineering at the Naval
Polytechnic Academy in Chile, a Masters in Business Administration from the University of Chile and a
Masters degree in Aeronautical Maintenance at cole Nationale Superieure dIngenieurs de Constructions
Aeronautiques (ENSICA) in France.

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 Edgar Mac Allister has served as the Vice President of Transportation Services of Alsacia since 2005.
From 2004 to 2005, Mr. Mac Allister was the General Manager of Transporte Alimentador de Occidente S.A. in
Bogot, Colombia, prior to which he performed several public transport consulting works for major Colombian
cities. Beginning in 1999, he worked for Bogot City developing the new rapid transit project Transmilenio,
and from 2000 to 2001, he was the Operational Director of Transmilenio. From 1990 to 1998, he was Planning
Manager of Empresa Colombiana de Vas Frreas in Colombia, where he worked in the design and
implementation of the concession of the main Colombian railroad. Mr. Mac Allister began his career in 1984 as a
professor and administrative coordinator at the School of Mathematics at the University of the Andes in Bogot,
Colombia. Mr. Mac Allister received a Bachelors degree in Mathematics, with a minor in Systems Engineering,
a Masters degree in Mathematics and a Ph.D.(C) in Molecular Biology from the University of the Andes in
Bogot, Colombia.

Fernando Iribarren has served as the Vice President of Control and Fleet Operations for Alsacia since
2009. From 2008 to 2009, Mr. Iribarren served as Development Manager for Inmovet, an affiliate of Grupo
Moller and Prez-Cotapos. From 2003 to 2009, he served as Operations Manager for Redbus Urbano S.A., an
affiliate of Veolia Multinational. He received a Bachelors degree in Civil Industrial Engineering from the
University of Chile.

Directors Committees

Pursuant to the Corporations Act, Alsacia has no statutory obligation in terms of forming or
incorporating any Directors Committees. Nevertheless, it has considered it appropriate to create a Finance
Committee, which monitors and makes recommendations to the board of directors regarding accounting and
financing matters, financial performance, financial risk and tax related issues; a Labor Committee, which
monitors human resource management and labor relationships within the company; and an Operational
Committee, which evaluates operational performance and resource management. The members of these
committees are selected by the board of directors and each of these committees gathers in regular sessions. Other
than the committees described above, there is no other committees of the board.

Compensation of Directors and Officers

As agreed upon during the Annual General Meeting of Shareholders of Alsacia held on April 30, 2010,
the remuneration of each member of the board of directors shall be Ch$1.0 million and the remuneration of the
Chairman shall be Ch$2.0 million.

The total amount of compensation paid to executive officers in 2009 was Ch$1,030 million for Alsacia
and Ch$1,555 million for Express.

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 PRINCIPAL SHAREHOLDERS

The only outstanding equity securities of Alsacia are 36,535 shares of common stock of a single series,
without nominal (par) value. The table below summarizes the current shareholders of Alsacia:

Share
Total Ownership
Shareholder Shares Percentage
Carlos Ros Velilla . . . . . . . . . . . . . 13,443 36.79%
Javier Ros Velilla . . . . . . . . . . . . . . 10,873 29.76%
Desarrollo y Soluciones
Informticas S.A. . . . . . . . . . . . . 12,219 33.44%

Desarrollo y Soluciones Informticas S.A. is a holding company directly or indirectly owned and
controlled by Carlos Rios, Javier Rios and other members of their family.

Upon completion of the Escrow Closing Date, each of the stockholders above have agreed to transfer all
of their shares of Alsacia to GPS Group, except for one share which will be retained by a second shareholder,
Desarrollo y Soluciones Informticas S.A., as required under Chilean law in order to maintain the corporate
existence of Alsacia.

Upon completion of the Acquisition and the Escrow Closing Date, the relationship of the Issuer, the
Guarantors and GPS Group will be as shown in the diagram below.

GPS Group
(Panam)
(Panama)

100% 100% 100%

Panamerican Alsacia
EDTM
(Bermuda)) (Chile)
(Bermuda (Colombia) ISSUER
GUARANTOR
GUARANTOR

1 0 0% 100% 100% 100%

Ursus Ferro Panamerican EDTM

(Panam) (Panam) (Chilean (Chilean
Branch) Branch)

60%

2% 10% Eco Uno 11.7% 16% 0.3%

(Chile)
GUARANTOR
GUARANTOR

99.998%

Express 0.002%
(Chile)
GUARANTOR
GUARANTOR

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 RELATED PARTY TRANSACTIONS

In the ordinary course of our business, we engage in transactions at arms-length terms with certain
related parties. For information concerning these transactions, see Note 5 and Note 6 to the audited consolidated
financial statements of Express and Alsacia, respectively, found elsewhere in this Offering Memorandum.

Under Chilean law, any transactions with related parties must be carried out on an arms-length basis. In
addition, any transaction (i) in which a director has an interest or is acting on behalf of a third party, (ii) that
involves more than the higher of U.S.$95,000 or 1% of the companys assets, (iii) not considered, based on
policies passed by the board, to be carried out in the ordinary course of business and (iv) where neither company
involved owns at least 95% of the other must be on an arms-length basis and previously approved by the
directors committee, if any, and presented to the board of directors for approval by those directors who do not
have an interest in the transaction. The directors committee must prepare a report regarding the transaction,
which must be read to the members of the board of directors, who have the authority to approve or reject the
transaction. The resolution of the board of directors regarding the transaction must be disclosed at the following
shareholders meeting. In the absence of approval of the board of directors, an extraordinary shareholders
meeting may be called in order to approve the transaction.

Directors and executive officers of companies that breach these duties may face administrative sanctions
or criminal prosecution and may be liable for losses resulting from such violation.

Alsacia

Since January 1, 2008, Alsacia has entered into the transactions with related parties described below:

On May 27, 2005, Alsacia and Express entered into a bus lease agreement, which was subsequently
amended on October 4, 2005 and October 5, 2005, under which Alsacia leases 162 buses from Express for
Ch$1.9 million per month per bus, plus taxes.

Since May 2005, Alsacia and Express have shared the services of certain employees and divided the
costs associated with shared employees between the two companies. In connection with this arrangement,
Alsacia recognized net receivables from Express of Ch$152 million, Ch$16 million and Ch$16 million in 2008,
2009 and the first nine months of 2010, respectively. A dispute has arisen between Alsacia and Express regarding
the amount owed by Express to Alsacia. See note 6 to the financial statements of each of Alsacia and Express
appearing elsewhere in this Offering Memorandum for more information regarding this dispute.

On October 12, 2010, Alsacia sold its rights in connection with certain receivables from Express, which
have a book value estimated by Alsacia of between U.S.$4.4 million and U.S.$5.0 million, to GPS International
of Panam (Chile) S.A. (GPS International), a company under common control with Alsacia by GPS Group. In
connection with the purchase of these rights, GPS International agreed to pay Alsacia U.S.$50,000, plus one
percent of any amount recovered from Express.

On August 10, 2005, Alsacia issued a promissory note to Fanach Corporation (Fanach) in the amount
of U.S.$1.0 million, at an annual interest rate of 1.0% and payable on August 28, 2012. On March 7, 2007,
Fanach subordinated its right to payment under this promissory note to the rights of several of Alsacias
non-related party creditors.

On September 30, 2005, Alsacia issued a promissory note to Data Tools S.A. (Data Tools), a
corporation in which Mr. Javier Ros has 70% interest and for which Jaime Maldonado, a director of Alsacia, is
currently a director, in the amount of U.S.$1.6 million, at an annual interest rate of 1.0% and payable on
August 28, 2012. On February 28, 2007, Data Tools subordinated its right to payment under this promissory note
to the rights of several of Alsacias non-related party creditors.

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 On March 31, 2006, Alsacia issued a promissory note to Aseo Capital S.A. E.S.P. (Aseo), a company
that was principally owned at that time by Carlos Ros and Javier Ros, in the amount of U.S.$0.5 million, at an
annual interest rate of 1.0% and payable on August 28, 2012. On February 28, 2007, Aseo subordinated its right
to payment under this promissory note to the rights of several of Alsacias non-related party creditors.

On October 30, 2006, Alsacia issued a promissory note to Maraya Enterprises LLC (Maraya), a
corporation in which Mr. Javier Ros has 80% interest, in the amount of U.S.$170,000, at an annual interest rate
of 1.0% and payable on August 28, 2012. On February 28, 2007, Maraya subordinated its right to payment under
this promissory note to the rights of several of Alsacias non-related party creditors.

On October 30, 2006, Alsacia issued a promissory note to Carlos Augusto Toro Prez in the amount of
U.S.$200,000, at an annual interest rate of 1.0% and payable on August 28, 2012. On February 28, 2007,
Mr. Toro subordinated his right to payment under this promissory note to the rights of several of Alsacias
non-related party creditors.

On March 5, 2007, Alsacia loaned U.S.$350,965 to EDTM Konsultores E.U. (EDTM). EDTM owns
40% of Desarrollo y Soluciones Informticas S.A., which owns 33% of Alsacia. The loan had an annual interest
rate of 7.7%. In December 2009, EDTM repaid this loan in full.

On July 26, 2007, Alsacia entered into two services agreements with Rioma Consultores Empresariales
Limitada (Rioma), a company owned by Carlos Ros Velilla, one of Alsacias owners. Pursuant to the first
services agreement, we provide Rioma with legal, accounting and office management advisory services. In
exchange for these advisory services, Rioma pays us UF 300 monthly, plus expenses. Pursuant to the second
services agreement, Rioma provides us with financial and strategic advisory services. In exchange for these
advisory services, we pay Rioma Ch$8.5 million monthly, plus related expenses up to U.S.$20,000. The services
agreements are month-to-month and terminable at will by either party.

On December 21, 2009, Alsacia entered into a loan agreement with Inversiones Dakota SpA (Dakota),
a company owned by Laurence Golborne Riveros, who was one of Alsacias directors, and in which GPS Group
has a 10% interest. Pursuant to the loan agreement, Dakota lent us UF 195,480, at an annual interest rate of
12.5%, payable in 110 monthly payments beginning in January 2010. UF 185,575 of unpaid principal was
outstanding under the loan agreement as of September 30, 2010. The loan agreement is supported by a pledge
agreement between EDTM and Dakota, for which we paid EDTM Ch$409.1 million on December 22, 2009.

On January 5, 2010, Alsacia entered into a consulting agreement with Dakota. Pursuant to the consulting
agreement, Dakota provided strategic and financial consulting services to our management with respect to the
administration and investment of the funds lent to us by Dakota on December 21, 2009. For these services, we
paid Dakota a one-time fee of Ch$41 million. The consulting agreement expired on January 4, 2011.

On September 27, 2007, Alsacia entered into a supply agreement with MCS Tech S.A., a company
owned in part by Edgar Mac Allister. Pursuant to the supply agreement, MCS Tech S.A. supplies Alsacia with
certain computer equipment, for which Alsacia has paid MCS Tech S.A. a total of Ch$180.1 million, as of
December 31, 2010.

On April 27, 2010, Alsacia entered into a consulting agreement with EGC Partners S.A., a company
owned by Andrs Echeverra. Pursuant to this agreement, EGC Partners S.A. provides Alsacia with debt
financing consulting services. In exchange for these consulting services, Alsacia pays EGC Partners S.A.
U.S.$20,000 per month beginning in May 2010, plus a transaction fee of 0.1% of the value of any debt financing
raised by Alsacia, with a minimum transaction fee of U.S.$285,000.

Beginning on June 1, 2008, Alsacia engaged Asesoras e Inversiones Ro Piedras Limitada, a company
owned by Jos Ferrer, a former director of Alsacia, to provide Alsacia with investment advisory services. In

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exchange for these advisory services, Alsacia paid Ro Piedras Limitada Ch$1.0 million monthly, plus expenses,
except in the first month of the contract, during which Alsacia paid Ro Piedras Limitada Ch$3.0 million. This
arrangement was month-to-month and has been terminated.

Alsacia has consulting agreements with several of its directors through entities owned by the respective
directors. Fees paid by Alsacia under these agreements are in addition to the compensation these directors receive
directly for their service on Alsacias board. From January 1, 2008 to December 31, 2010, Alsacia paid
Inversiones y Asesoras Ltda., a company owned by Heriberto Urza, Ch$104.5 million for consulting services;
during 2010, Alsacia paid Inversiones Rinconada Ltda., a company owned by Andrs Echeverra, Ch$60.6
million for consulting services; and during 2009 and 2010, Alsacia paid Arcadia Capital Partners S.A., a
company owned by Jaime Maldonado, Ch$141.5 million for consulting services.

During 2008, Alsacia paid Ch$177.7 million in interest expenses to Express del Futuro S.A. in
connection with a loan from Express del Futuro S.A. to Eco Uno. Alsacia has recorded this amount as a
receivable from Eco Uno. This receivable does not bear interest and does not have a fixed payment date, though
Alsacia expects the total amount to be paid by June 2018.

Express

Since January 1, 2008, Express has entered into the transactions with related parties described below:

On May 27, 2005, Express and Alsacia entered into a bus lease agreement, which was subsequently
amended on October 4, 2005 and October 5, 2005, under which Alsacia leases 162 buses from Express for
Ch$1.9 million per month per bus, plus taxes.

Since May 2005, Express and Alsacia have shared the services of certain employees and divided the
costs associated with shared employees between the two companies. In connection with this arrangement,
Express recognized net payables to Alsacia of Ch$183 million, Ch$224 million and Ch$223 million in 2008,
2009 and the first nine months of 2010, respectively. A dispute has arisen between Express and Alsacia regarding
the amount owed by Express to Alsacia. See note 6 to the financial statements of each of Express and Alsacia
appearing elsewhere in this Offering Memorandum for more information regarding this dispute.

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 THE ESCROW

The Initial Temporary Issuer is a special purpose company formed in 2011 under the laws of the
Republic of Chile that has been established to facilitate the issuance by Alsacia of the Notes. The Initial
Temporary Issuer is owned by two special purpose companies formed in 2011 under the laws of the British
Virgin Islands, which special purpose companies are in turn owned by a trust formed in 2011 under the laws of
the British Virgin Islands which is independent of Alsacia, the Guarantors, the Principal Shareholder and their
affiliates.

The Initial Temporary Issuer will issue the Notes (the date of such issuance, the Note Closing Date)
pursuant to an indenture (as supplemented from time to time, the Indenture) by and between the Initial
Temporary Issuer and The Bank of New York Mellon, not in its individual capacity, but solely as trustee (the
Trustee), principal paying agent, transfer agent and registrar. The Notes are initially being issued by the Initial
Temporary Issuer due to restrictions on the part of Alsacia and Express to incur indebtedness pending the
repayment of certain existing indebtedness described in Appendix B and Appendix C of this Offering
Memorandum (the Existing Indebtedness) and the release of the liens securing the Existing Indebtedness. In
order to address these restrictions, The Bank of New York Mellon, not in its individual capacity, but as escrow
agent (the Escrow Agent), will hold the proceeds of the issuance of the Notes (the Note Proceeds), in escrow
in New York (the Escrow) pursuant to an escrow agreement or agreements, dated as of the date of this Offering
Memorandum (the Escrow Agreement), among the Initial Temporary Issuer, Alsacia, Banco Internacional
(BI) and the Escrow Agent.

In addition, and as a condition to the closing of the Notes on the Note Closing Date, the Escrow Agent
will receive and hold in Escrow U.S. $12.0 million of net proceeds (the Loan Proceeds) from the U.S.$12.5
million Bus Terminal Loan to the Initial Temporary Issuer from BI and an additional amount of approximately
U.S.$2.0 million payable by Alsacia in cash such that the funds in Escrow are in an amount sufficient to
(i) redeem in cash the Notes at a redemption price equal to 100.00% of the aggregate issuance price of the Notes,
(ii) pay interest on the Notes at the stated rate from and including the Note Closing Date and to and excluding
March 3, 2011 and the related Additional Amounts, (iii) repay the Bus Terminal Loan in full, and (iv) pay
interest on the Bus Terminal Loan at the stated rate from and including the date it is disbursed into the Escrow
and to and excluding March 3, 2011 (collectively with the Note Proceeds and the Loan Proceeds, the Escrowed
Amounts).

Upon receipt by the Escrow Agent of the Escrowed Amounts and approval of the form of all closing
documents, irrevocable notices will be delivered to the lenders of the Existing Indebtedness indicating the
Concessionaires intention to repay all of the Existing Indebtedness owed to such lenders, and related hedging
termination payments on or before February 28, 2011. On the date scheduled for such repayment (the Escrow
Closing Date), the following will be deemed to occur simultaneously, as certified by Alsacia and the Guarantors
pursuant to an Officers Certificate delivered to the Escrow Agent and the Trustee:

(a) Alsacia will acquire 100% of the common stock of the Initial Temporary Issuer, which will result
in the automatic dissolution of the Initial Temporary Issuer and the assumption by Alsacia of the
Initial Temporary Issuers obligations under the Notes, the Indenture, the Bus Terminal Loan and
the Escrow by operation of Chilean law;

(b) affiliates of Alsacia will consummate the pending acquisition of Express and Eco Uno as described
under Use of ProceedsThe Acquisition without any provision of the related Acquisition
Agreement having been amended or waived in any manner that would be material and adverse to
the Noteholders;

(c) Alsacia and Express will repay the Existing Indebtedness in full;

(d) all liens securing the Existing Indebtedness will be released and terminated and the liens securing
the Notes and the Notes Hedge Agreement as part of the Collateral will become effective, subject

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 to perfection as contemplated by Description of Notes and Finance AgreementsAffirmative
Covenants of the Issuer and the GuarantorsPerfection of Security Interests under Chilean
Security Documents;

(e) Alsacia will expressly assume the Initial Temporary Issuers obligations and position under the
Notes and the Indenture, and Express, Eco Uno and Panamerican will become guarantors
thereunder, pursuant to a supplemental indenture (the Supplemental Indenture);

(f) Alsacia and the Guarantors will enter into a collateral trust agreement in connection with the
Collateral (the Collateral Trust Agreement) by and among themselves, Banco Santander Chile, as
collateral trustee with respect to collateral located in or governed by the laws of Chile (the Chilean
Collateral Agent) and The Bank of New York Mellon, not in its individual capacity, but solely as
collateral trustee for all other collateral (the U.S. Collateral Agent and, together with the Chilean
Collateral Agent and the Trustee, the Secured Party Agents);

(g) Express and Eco Uno will accede to the purchase agreement relating to the Notes;

(h) Express and Eco Uno will certify to the Escrow Agent that each of them has not, between the Note
Closing Date and the Escrow Closing Date, except in connection with the consummation of the
Transactions and the Acquisition as described in this Offering Memorandum: (i) incurred any Debt,
(ii) created or, to the best of their knowledge, suffered to exist any Liens (except Permitted Liens)
on any of its assets or property, (iii) sold, assigned, leased, transferred or otherwise disposed of any
interest in its assets or property, (iv) created or acquired any Subsidiaries or made any Investment,
(v) consolidated or merged with or into any other Person or sold, leased or otherwise transferred,
directly or indirectly, all or any part of its assets or property to any other Person, (vi) made any
Restricted Payments, (vii) entered into any Sale and Lease-Back Transaction, (viii) entered into an
Affiliate Transaction, (ix) granted any powers of attorney in connection with its assets or property,
(x) incurred or committed any CAPEX, except in each case in the ordinary course of business, on
an arms-length basis (except Affiliate Transactions that would otherwise be permitted by the
Indenture), and that could not be reasonably expected to result in a material adverse change in, or a
material adverse effect on, the financial position, results of operations or business of Express and
Eco Uno, considered as a whole;

(i) Alsacia and Panamerican will certify to the Escrow Agent that each of them has not, between the
Note Closing Date and the Escrow Closing Date, except in connection with the consummation of
the Transactions and the Acquisition as described in this Offering Memorandum: (i) incurred any
Debt, (ii) created or, to the best of their knowledge, suffered to exist any Liens (except Permitted
Liens) on any of its assets or property, (iii) sold, assigned, leased, transferred or otherwise disposed
of any interest in its assets or property (except the contribution of the Excluded Depot to Lorena
SpA), (iv) created or acquired any Subsidiaries or made any Investment (except the contribution of
the Excluded Depot to Lorena SpA), (v) consolidated or merged with or into any other Person or
sold, leased or otherwise transferred, directly or indirectly, all or any part of its assets or property to
any other Person, (vi) made any Restricted Payments, (vii) entered into any Sale and Lease-Back
Transaction (except the contribution to Lorena SpA of the Excluded Depot and lease thereof to
Alsacia), (viii) entered into an Affiliate Transaction, (ix) granted any powers of attorney in
connection with its assets or property, (x) incurred or committed any CAPEX, except in each case
in the ordinary course of business, on an arms-length basis (except Affiliate Transactions that
would otherwise be permitted by the Indenture), and that could not be reasonably expected to result
in a material adverse change in, or a material adverse effect on, the financial position, results of
operations or business of Alsacia and Panamerican, considered as a whole; in addition, Alsacia and
Panamerican will certify that (i) they have been in compliance in all material respects during the
period from the Note Closing Date to the Escrow Closing Date with all of the provisions of the

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 Indenture, and (ii) that there has been no event or occurrence that as of such date would constitute
an Event of Default or would, with the passage of time or otherwise, constitute an Event of Default
had the Indenture been in effect and applicable to them from and after the Note Closing Date, but
subject to all cure periods provided for in the Indenture, except in each case for (A) any
noncompliance resulting from implementation of any of the transactions contemplated in Use of
Proceeds in the Offering Memorandum relating to the Acquisition or other matters described
therein and (B) those reasonably relating to establishment of accounts and related payment
priorities, payment provisions and pledges of collateral and similar provisions contemplated by the
Indenture which by necessity are to become operative only from and after the Escrow Closing
Date;

(j) the Escrow Agent will receive customary opinions from counsels and certificates from officers of
Alsacia and the Guarantors;

(k) Alsacia will enter into the Notes Hedge Agreement with the Notes Hedge Counterparty;

(l) Lorena SpA will grant a first priority security interest (or the closest equivalent thereof under
applicable Chilean law) on the Huechuraba terminal (the Excluded Depot) and Alsacia will grant
a first priority security interest (or the closest equivalent thereof under applicable Chilean law) on
Lorena SpAs capital stock to secure Alsacias obligations under the Bus Terminal Loan (see Use
of ProceedsSecured Subordinated Bus Terminal Loan), subject to perfection thereof; and

(m) the Escrow Agent, will distribute the Escrowed Amounts as set forth in Use of Proceeds (the
foregoing clauses (a) through (m) being referred to as the Closing Conditions).

In the event the Closing Conditions cannot be met, the Escrow may be terminated prior to February 28,
2011 by giving notice to the Noteholders, at which time the Escrowed Amounts shall be paid to the Noteholders
three business days thereafter (the Escrow Redemption Date). If no notice is given and the Closing Conditions
shall have not been satisfied on or prior to February 28, 2011, the Escrow Redemption Date shall be March 3,
2011. If the Escrow Redemption Date occurs, then the Escrowed Amounts shall be paid to the Noteholders on a
pro rata basis based on the principal amount of Notes held by such Noteholders (the Escrow Redemption) in an
amount equal to the initial purchase price therefor together with interest at the stated rate therefor from and
including the date of initial issuance and through and excluding the date of any such redemption, and the Notes
shall be deemed to have been repaid in full and no longer be outstanding or having any effect or liability attached
thereto. In addition, the Bus Terminal Loan will become due and payable immediately and will be repaid with
funds in the Escrow. In the event that the other Closing Conditions shall not have been satisfied on or prior to
February 28, 2011, Alsacia and an affiliate of Alsacia will acquire 100% of the common stock of the Initial
Temporary Issuer no later than March 3, 2011.

As long as Escrowed Amounts are deposited in Escrow, they will be invested in accordance with the
terms of the Escrow Agreement in institutional money market funds. No provisions of the Escrow Agreement
(including, without limitation, those relating to the release of the Escrowed Amounts) may be waived or modified
in any manner materially adverse to the Noteholders without the consent of the Controlling Party.

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 EXCHANGE RATE HEDGE

Our payment obligations under the Notes will be denominated in U.S. dollars while our receipts under
the Concession Agreements will be denominated in Chilean pesos. In order to partially hedge against the
fluctuation and volatility in the Chilean peso/U.S. dollar exchange rate, on the Escrow Closing Date, Alsacia
expects to enter into one or more derivatives transactions pursuant to which it will acquire series of call options
that will allow it to purchase U.S. dollars at a strike price ranging from 570 to 585 Chilean pesos per U.S. dollar.
The options will be subject to a cap rate of 750 Chilean pesos per U.S. dollar or, if the options are not subject to a
cap, Alsacia will sell a series of call options obligating it to sell U.S. dollars at a price of 750 Chilean pesos per
U.S. dollar in the same quantities (effectively capping the call options bought by Alsacia), except that the options
will be capped (or effectively capped) at 685 Chilean pesos per U.S. dollar during the final period. The call
options will have semiannual terms which match the scheduled amortization of the Notes so that their net effect
is to hedge the exchange rate risk associated with scheduled principal and interest payments under the U.S. dollar
denominated Notes in the event the U.S. dollar / Chilean peso exchange rate increases between the strike prices
and the cap rates specified above. If the exchange rate increases above 750 Chilean pesos / U.S. dollar (or, during
the final period, 685 Chilean pesos / U.S. dollar), the call options will act as a partial hedge to reduce our
exchange rate risk by up to 180 Chilean pesos / U.S. dollar, which is the difference between the strike price of the
call options and either the cap rate or the exercise price of the call options sold by Alsacia, as applicable.

Based on current exchange rates, Alsacia expects to pay a total of approximately U.S.$39.4 million to
purchase the call options, of which approximately U.S.$4.6 million is expected to be paid in the first year after
the offering. The foregoing amounts exclude any amounts that Alsacia would get as a result of exercising the call
options.

We expect that Merrill Lynch Capital Services, Inc. (MLCS) or such other financial institutions that
have a long-term credit rating for senior debt not less than that applicable to MLCS will be the Notes Hedge
Counterparty. MLCS is a Delaware corporation with its principal place of business located at One Bryant Park,
New York, New York, 10036. It is a wholly owned subsidiary of Merrill Lynch & Co, Inc. MLCS primarily acts
as a counterparty for certain derivative financial products, including interest rate, currency, and commodity
swaps, caps and floors, currency options, and credit derivatives.

Merrill Lynch & Co., Inc. was incorporated under the laws of the State of Delaware, U.S.A. in
1973. Pursuant to an Agreement and Plan of Merger dated as of September 15, 2008, between Bank of America
Corporation and Merrill Lynch & Co., Inc. (as amended by Amendment No. 1 dated as of October 21, 2008), on
January 1, 2009, Merrill Lynch & Co., Inc. merged with and into a wholly-owned subsidiary of Bank of
America, with Merrill Lynch & Co., Inc. continuing as the surviving corporation and a subsidiary of Bank of
America Corporation.

Merrill Lynch & Co., Inc. is a holding company that, through its subsidiaries and affiliates, is one of the
worlds leading capital markets, advisory and wealth management companies and is a leading global trader and
underwriter of securities and derivatives across a broad range of asset classes, and serves as a strategic advisor to
corporations, governments, institutions and individuals worldwide. Its parent, Bank of America Corporation, is a
bank holding company and a financial holding company incorporated in the State of Delaware, U.S.A. in
1998. Bank of America Corporation provides a diversified range of banking, investing, asset management and
other financial services and products to consumers across the United States and in more than 40 countries. Bank
of America Corporation provides these services and products through six business segments: (i) Deposits, (ii)
Global Card Services, (iii) Home Loans and Insurance, (iv) Global Banking, (v) Global Markets, and (vi) Global
Wealth and Investment Management.

Moodys Investors Service, Inc. (Moodys) currently rates Merrill Lynch & Co., Inc.s long-term debt
as A2 and short-term debt as P-1. Standard and Poors Ratings Services (Standard and Poors) currently
rates Merrill Lynch & Co., Inc.s long-term debt as A and short-term debt as A-1. Fitch, Inc. (Fitch)
currently rates Merrill Lynch & Co., Inc.s long-term debt as A+ and short-term debt as F1+. Further

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information with respect to such ratings may be obtained from Moodys, Standard & Poors and Fitch,
respectively. No assurances can be given that the current ratings of Merrill Lynch & Co., Inc.s debt will be
maintained.

The principal place of business of Merrill Lynch & Co., Inc. is located at One Bryant Park, New York,
NY 10036, United States of America. Merrill Lynch & Co., Inc.s registered office in the State of Delaware is c/o
The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801,
United States of America.

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 DESCRIPTION OF NOTES AND FINANCE AGREEMENTS

The following summary of certain provisions of the Finance Agreements does not purport to be
complete and is qualified in its entirety by reference to the provisions of the applicable Finance Agreements. The
Noteholders will be entitled to the benefits of, be bound by, and be deemed to have notice of, all of the provisions
of the Finance Agreements, including, without limitation, the immunities and rights of the Trustee. Copies of the
Finance Agreements will be on file at the corporate trust office of the Trustee in the City of New York and may be
inspected upon request. Capitalized terms not otherwise defined herein have the respective meanings ascribed to
them in the Indenture.

General

Assuming that the Escrow is released and the Closing Conditions have been satisfied, then the terms of
the Notes shall have the terms and conditions set forth herein. The Notes:

will be senior secured obligations of the Issuer;

will be fully and unconditionally guaranteed by Panamerican, Eco Uno and Express as the
Guarantors;

will have semi-annual principal payments on February 18 and August 18 of each year (each such
date, a Payment Date), beginning February 18, 2012, with expected final maturity on August 18,
2018, unless redeemed or amortized prior thereto;

will be issued in denominations of U.S.$150,000 and integral multiples of U.S.$1,000 in excess

thereof;

will be represented by one or more registered Notes in global form and may be exchanged for Notes
in definitive form only in limited circumstances;

will be secured by first priority liens on the Collateral (subject to Permitted Liens) pursuant to the
terms of the Finance Agreements, including the Indenture and the Security Documents; and

will not be required to be registered under the Securities Act.

Interest on the Notes:

will accrue at the rate of 8.00% per annum;

will accrue from the date of issuance or from the most recent interest payment date;

will be payable in U.S. dollars semi-annually in arrears in cash on each Payment Date beginning
August 18, 2011;

will be payable to the holders of record on February 5 and August 5 immediately preceding the
related interest payment dates; and

will be computed on the basis of a 360 day year comprised of twelve 30 day months.

The Indenture limits and restricts the Issuer and the Guarantors from taking certain actions or engaging
in certain activities or transactions. See Covenants.

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Additional Notes

The Issuer is entitled, without the consent of the Noteholders, to issue additional Notes under the
Indenture on the same terms and conditions as the Notes being offered hereby in an unlimited aggregate principal
amount, which we refer to as the Additional Notes. The Notes and the Additional Notes, if any, will be treated
as a single class for all purposes of the Indenture, including waivers and amendments. Unless the context
otherwise requires, for all purposes of the Indenture and this Description of Notes and Finance Agreements,
references to the Notes include any Additional Notes actually issued.

Final Maturity Date

Unless redeemed or amortized prior thereto, the final payment on the Notes is expected to be made on
August 18, 2018.

Scheduled Amortization

Principal payments under the Notes (the Scheduled Principal Amounts) will be made on the Payment
Dates listed below in accordance with the following schedule (except as provided for under Early
Amortization Period below):

Scheduled Principal
Payment Date Amount (U.S.$)
August 18, 2011 . . . . . . . . . . . . . . . . . .
February 18, 2012 . . . . . . . . . . . . . . . . 16,000,000
August 18, 2012 . . . . . . . . . . . . . . . . . . 13,900,000
February 18, 2013 . . . . . . . . . . . . . . . . 29,300,000
August 18, 2013 . . . . . . . . . . . . . . . . . . 21,900,000
February 18, 2014 . . . . . . . . . . . . . . . . 35,600,000
August 18, 2014 . . . . . . . . . . . . . . . . . . 25,700,000
February 18, 2015 . . . . . . . . . . . . . . . . 36,100,000
August 18, 2015 . . . . . . . . . . . . . . . . . . 28,000,000
February 18, 2016 . . . . . . . . . . . . . . . . 39,500,000
August 18, 2016 . . . . . . . . . . . . . . . . . . 29,600,000
February 18, 2017 . . . . . . . . . . . . . . . . 47,300,000
August 18, 2017 . . . . . . . . . . . . . . . . . . 38,800,000
February 18, 2018 . . . . . . . . . . . . . . . . 55,400,000
August 18, 2018 . . . . . . . . . . . . . . . . . . 46,900,000

Guarantees

All payments and obligations under the Notes due by the Issuer will be fully and unconditionally
guaranteed on a senior secured basis by each Guarantor pursuant to a guarantee agreement included in the
Indenture (each, a Guarantee). Under each Guarantee, each Guarantor, jointly and severally, will pay directly
and unconditionally all amounts due under the Notes, without the need of any presentment, demand of payment,
protest or notice to the Issuer.

Until the Indenture is discharged and all of the Notes are discharged and paid in full, each Guarantor
irrevocably waives and agrees not to exercise any claim or other rights which it may have at the time its
Guarantee is made or may thereafter acquire against the Issuer or any other Guarantor that arise from the
existence, payment, performance or enforcement of the Issuers obligations under the Notes or such other
Guarantors obligations under its Guarantee, including, without limitation, any right of subrogation,

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reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy of
the Noteholders or the Notes Hedge Counterparty against the Issuer or any other Guarantor.

Notes Hedge Agreement

The Issuer will enter into the Notes Hedge Agreement with the Notes Hedge Counterparty to hedge
against changes in the value of the Chilean peso against the U.S. dollar, as described under Managements
Discussion and Analysis of Financial Condition and Results of Operations for Alsacia and ExpressQuantitative
and Qualitative Disclosures About Market and Operating RisksExchange Rate Hedge.

Default Interest

The Issuer shall pay interest on overdue principal or installments of interest, to the extent lawful, at the
rate borne by the Notes plus 1% per annum from and including the date when such amounts were due and
through and including the date of payment by the Issuer.

Ranking

Notes. The Notes will be senior obligations of the Issuer, secured by the Collateral. The obligations of
the Issuer under the Notes will also rank:

(a) senior in right of payment to any Subordinated Indebtedness of the Issuer; and effectively senior to
unsecured Senior Indebtedness issued in accordance with the Indenture, to the extent of the value
of the Collateral;

(b) pari passu with other Senior Indebtedness issued in accordance with the Indenture that is secured
by the Collateral; and

(c) effectively subordinated to the debt and other obligations (including Subordinated Indebtedness
and trade payables) of any future subsidiaries of the Issuer that are not Guarantors and to other
secured debt and other secured obligations of the Issuer to the extent of such security created in
compliance with the Indenture (including Vendor Financings secured by property and assets other
than the Collateral and the Bus Terminal Loan secured by the Excluded Depot).

Guarantees. Each Guarantee will be the senior obligations of each Guarantor, secured by the Collateral.
The obligations of each Guarantor will rank effectively subordinated to the debt and other obligations (including
Subordinated Indebtedness and trade payables) of any future subsidiaries of that Guarantor that are not
Guarantors and to other secured debt and other secured obligations of that Guarantor to the extent of such
security created in compliance with the Indenture.

Payments

The Issuer will make all payments on the Notes exclusively in U.S. dollars.

Payments on the Notes are payable only to the person in whose name the applicable Note is registered at
the close of business (New York time) on the applicable Record Date. Payments on the Notes will be made by
electronic funds transfer in immediately available funds to an account maintained by such Noteholder with a
bank having electronic fund capability, except for the final payment payable with respect to a Note, which will be
payable upon presentation and surrender of such Note to the corporate trust office of the Trustee.

The Trustee will initially be designated as the paying agent for payments with respect to the Notes. The
Issuer may at any time designate additional co-paying agents or rescind the designation of any co-paying agent.

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 The Indenture provides that all money received by the Trustee or any co-paying agent will, until used or
applied as provided in the Indenture, be held in trust for the purposes for which they were received.

Principal of, and interest and any Additional Amounts (as defined below) on, the Notes will be payable,
and the transfer of Notes will be registrable, at the office of the Trustee, and at the offices of the paying agents
and transfer agents, respectively. If the Notes are accepted for listing on the Euro MTF, the Issuer will maintain a
listing agent, paying agent and transfer agent in Luxembourg for so long as the Notes are so listed and the rules
of that stock exchange so require.

Redemption

The Notes will not be redeemable, except for the Escrow Redemption described above and as described
below. Notice of any redemption to each Noteholder must be made by the Issuer in the manner provided under
Notices, not less than 15 days nor more than 30 days prior to the redemption date.

Mandatory Redemption

Subject to the provisions of the Indenture, the Notes will be redeemed prior to maturity, in whole or, to
the extent of available funds, in part, upon the occurrence of a Termination Event or any Expropriatory Action, to
the extent of the Expropriation Compensation received. In such a redemption, the redemption price of the Notes
to be redeemed will be equal to (a) the principal amount of such Notes, plus (b) interest on such principal amount
accrued through the redemption date, plus (c) Additional Amounts, if any, payable in respect of such Notes.

In connection with any mandatory redemption, the aggregate amount of funds on deposit and available for
distribution to the Noteholders on the date of such redemption in the Payment Account will be applied, pro rata
based on the outstanding principal balance of the Notes, to satisfy payment, in whole or in part, of the redemption
price referred to in the immediately preceding paragraph.

Optional Redemption

At any time prior to February 18, 2015, the Issuer and the Guarantors may on any one or more occasions
redeem up to 35% of the original aggregate amount of Notes and Additional Notes at a redemption price of
108.00% of the principal amount, plus accrued and unpaid interest to the applicable redemption date (subject to
the right of the holders of record on the relevant record date to receive interest due on the relevant interest
payment date), with the net cash proceeds of one or more Equity Offerings; provided that: (a) at least 65% of the
aggregate principal amount of Notes remains outstanding immediately after the occurrence of such redemption
(excluding Notes held by the Issuer or any Guarantor) and (b) the redemption occurs within 120 days of the date
of the closing of such Equity Offering.

At any time prior to February 18, 2015, the Issuer and the Guarantors may redeem all or a part of the
Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest, if any, to the applicable redemption date (subject to the rights of
holders of record on the relevant record date to receive interest due on the relevant interest payment date).

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 On or after February 18, 2015, the Issuer and the Guarantors may redeem all or a part of the Notes on
any one or more occasions, at the redemption prices (expressed as percentages of principal amount of the Notes
to be redeemed) set forth below plus accrued and unpaid interest on the Notes redeemed, to the applicable
redemption date (subject to the rights of holders of record on the relevant record date to receive interest due on
the relevant interest payment date), if redeemed during the 12-month period beginning on February of each of the
years indicated below:

Year Percentage
2015 . . . . . . . . . . . . . . . . . . . 104.00%
2016 . . . . . . . . . . . . . . . . . . . 102.00%
2017 and thereafter . . . . . . . 100.00%

Redemption Solely for Tax Reasons

The Issuer and the Guarantors may redeem the Notes at their option in whole, but not in part, at any
time, at a redemption price equal to 100% of their principal amount outstanding, plus Additional Amounts, if
any, and any accrued and unpaid interest up to the date of redemption, if:

(a) the Issuer or the Guarantors have or will become obligated to pay any Additional Amounts with
respect to such Notes (provided, however, that if the Additional Amounts are payable due to
Chilean withholding taxes imposed on interest payable on the Notes, the Additional Amounts shall
be in excess of the Additional Amounts that would be payable were payments of interest on such
Notes subject to a 4.0% withholding tax) (Excess Additional Amounts), as a result of any change
in or amendment to the laws, treaties or regulations of Chile or any jurisdiction from or through
which any payment under the Notes is made on behalf of the Issuer or any Guarantor (or any
political subdivision or governmental authority thereof or therein having power to tax), each a
Relevant Taxing Jurisdiction, or any change in the application or official interpretation of such
laws or regulations, which change or amendment occurs after the date of issuance of the Notes; and

(b) such obligation cannot be avoided by the Issuer or the Guarantors taking reasonable measures (and,
for the avoidance of doubt, reasonable measures includes changing jurisdiction of any payment
agent other than the Trustee) available to the Issuer or the Guarantors; provided, however, that the
notice of redemption will not be given earlier than 90 days before the earliest date on which the
Issuer or the Guarantors would be obligated to pay such Excess Additional Amounts if a payment
in respect of the Notes were then due.

Before giving any notice of redemption as described in the preceding paragraph, the Issuer or the
Guarantors will deliver an Officers Certificate to the Trustee stating that the Issuer or the Guarantors are entitled
to effect such redemption in accordance with the terms of the Indenture and setting forth in reasonable detail a
statement of facts relating thereto. The statement will be accompanied by a written opinion of recognized
independent counsel to the effect that the Issuer or the Guarantors have or will become obligated to pay the
Excess Additional Amounts as a result of such change or amendment.

The foregoing provisions will apply mutatis mutandis to any successor to the Issuer or any Guarantor
after such successor person becomes a party to the Indenture.

Repurchase of Notes upon a Change of Control

Upon the occurrence of a Change of Control (the date of each such occurrence, a Change of Control
Date), the Issuer and the Guarantors will notify the Noteholders in the manner provided under Notices of
such occurrence and shall make an offer to purchase (a Change of Control Offer) to all of the Noteholders, for
cash, on a Business Day (a Change of Control Payment Date) not later than 60 days following the Change of

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Control Date, all of such Noteholders Notes then outstanding at a purchase price (the Change of Control
Purchase Price) equal to 101% of the principal amount thereof plus accrued interest to the Change of Control
Payment Date. The Issuer and the Guarantors will not be required to make a Change of Control Offer following a
Change of Control if (a) a third party makes a Change of Control Offer that would be in compliance with the
provisions described in this paragraph if it were made by the Issuer and the Guarantors and (b) such third party
has purchased all the Notes validly tendered and not withdrawn pursuant to such Change of Control Offer. Notice
of a Change of Control Offer shall be given by the Issuer and the Guarantors not less than 30 days nor more than
60 days before the Change of Control Payment Date. The Change of Control Offer will remain open for at least
20 Business Days and until the close of business on the Business Day next preceding the Change of Control
Payment Date.

The Issuer and the Guarantors will comply, to the extent applicable, with the requirements of
Section 14(e) under the Exchange Act, and all other applicable United States and Chilean securities laws or
regulations and the applicable rules of the principal securities exchange, if any, on which the Notes are listed in
connection with the repurchase of any Notes pursuant to a Change of Control Offer, and, in the case of any
partial tender offer, shall be prorated among accepting Noteholders pro rata in proportion to the principal amount
of their Notes.

For purposes of the foregoing, Change of Control means the occurrence of any of the following
events:

(i) the sale, transfer, conveyance or other disposition (other than by way of a merger or consolidation
transaction permitted by the covenant Limitations on Consolidation, Merger or Transfer of
Assets) of all or substantially all of the properties or assets of the Issuer and the Guarantors, taken
as a whole, to any Person (other than to (a) Carlos Rios, Javier Rios, their respective spouses or
direct descendants, or (b) any Affiliate of the persons listed in (a)); or

(ii) Carlos Rios, Javier Rios, their respective spouses or direct descendants cease to own, directly or
indirectly, securities representing more than 50% of the Voting Stock of the Issuer and each
Guarantor; or

(iii) Carlos Rios, Javier Rios, their respective spouses or direct descendants cease to have, directly or
indirectly, the power to elect, or shall not have elected, the managing partner or similar entity
directing the management or operation of the Issuer and each Guarantor or a majority of the Board
of Directors of the Issuer and each Guarantor.

Open Market Purchases

The Issuer and any Guarantor may at any time, or from time to time, subject to the terms and conditions
of the Indenture, purchase Notes through Open Market Purchases, by tender or by private agreement; provided,
however, that the Issuer and the Guarantors may not purchase any Notes if they are in default on any payment
due pursuant to the Notes. Any purchase by tender by the Issuer and the Guarantors shall be made available to all
Noteholders alike. All Notes so purchased shall be cancelled immediately. In determining whether the holders of
the requisite principal amount of outstanding Notes have given any request, demand, authorization, direction,
consent, notice or waiver under the Indenture, Notes owned by the Issuer and the Guarantors, by any other
obligor upon the Notes or by an affiliate of the Issuer and the Guarantors or of such other obligor shall be
disregarded and deemed not to be outstanding.

Collateral

The Notes, the Guarantees and the Notes Hedge Agreement will be secured, equally and ratably, by a
first priority perfected security interest (or the closest equivalent thereof under applicable Chilean law) held by
the Chilean Collateral Agent (with respect to collateral located in or governed by the laws of Chile) and the U.S.
Collateral Agent (with respect to all other collateral) in the rights and interests of the Issuer and the Guarantors in

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the following categories of existing and after-acquired personal property and assets (all of the foregoing being
referred to as the Collateral) in each case subject to Permitted Liens:

(a) all the outstanding shares of Express pursuant to one or more share pledge agreements (the
Express Share Pledge Agreements);

(b) the Concessions and all the Concessionaires rights under the Concession Agreements pursuant to
one or more concession pledge agreements (the Concession Pledge Agreements) and under the
other Operating Agreements pursuant to one or more additional pledge agreements (the Other
Pledge Agreements);

(c) all buses owned by the Concessionaires (excluding any buses acquired out of the proceeds of any
Subordinated Indebtedness and, if so elected by the Issuer and the Guarantors, any buses acquired
out of the proceeds of a Vendor Financing, in each case incurred after the date hereof in accordance
with the Indenture), pursuant to one or more asset pledge agreements (the Asset Pledge
Agreements);

(d) the intercompany notes payable to Alsacia from Panamerican and Express entered into on the
Escrow Closing Date pursuant to one or more pledge agreements (the Intercompany Debt Pledge
Agreements);

(e) all owned bus terminals, owned depot stations (except the Excluded Depot) and other owned real
estate assets used by the Concessionaires in connection with the Concessions, including any
buildings, offices and fixtures therein, pursuant to one or more first priority real property
mortgages (the Mortgages);

(f) the NY Accounts and the money deposited therein (and investments thereof) from time to time
pursuant to one or more account pledge agreements (the NY Account Pledge Agreements);

(g) the Chilean Accounts (other than the Transaction Checking Accounts) and the money deposited
therein (and investments thereof) from time to time pursuant to one or more money pledges (the
Chilean Money Pledges); the Chilean Accounts (other than the Transaction Checking Accounts)
will be in the name of the Chilean Collateral Agent; the Transaction Checking Accounts will be in
the name of each Concessionaire;

(h) one or more irrevocable powers of attorney granted by the Concessionaires to the Chilean
Collateral Agent, exercisable only by the Chilean Collateral Agent as instructed by the Controlling
Party if an Event of Default shall have occurred and is continuing beyond applicable grace periods,
for the purpose of enforcing the Concessionaires rights under the Operating Agreements (the
Powers of Attorney);

(i) insurance proceeds (only to the extent not deposited in the Accounts, in which case such insurance
proceeds will be part of the Collateral pursuant to the NY Account Pledge Agreements and Chilean
Money Pledges) pursuant to one or more appointments of the U.S. Collateral Agent or the Chilean
Collateral Agent, as applicable, as additional insured and beneficiary (beneficiario) under the
insurance policies of (and for the benefit of) the Concessionaires (and by Panamerican and Eco
Uno in the event that either of them carries any insurance) (the Insurance Appointments, and
together with the NY Account Pledge Agreements, the Chilean Money Pledges, the Concession
Pledge Agreements, the Intercompany Debt Pledge Agreements, the Other Pledge Agreements and
the Asset Pledge Agreements, the Pledge Agreements) (excluding, for the avoidance of doubt,
the Excluded Depot and any collateral securing Vendor Financings that are not secured by the
Collateral); and

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 (j) all proceeds, products, rents, profits, income, benefits, substitutions and replacements of any and all
of the foregoing including, without limitation, cash (excluding any release from the Collateral in
accordance with the Transaction Documents, such as purchases of assets that are not in the
categories listed in (a) through (i) above with funds from the Accounts and transfers of funds from
the Accounts (other than the Transaction Checking Accounts) to the Transaction Checking
Accounts).

Although the Notes and the Notes Hedge Agreement will not be guaranteed by the Issuers shareholders,
the Notes and the Notes Hedge Agreement will be secured by a first priority perfected security interest (or the
closest equivalent thereof under Chilean law) granted by the Issuers shareholders in all the outstanding shares of
the Issuer pursuant to one or more share pledge agreements (together with the Express Share Pledge Agreements,
the Share Pledge Agreements).

The Collateral will secure the Noteholders and the Notes Hedge Counterparty equally and ratably on a
pari passu basis. The Issuer and the Guarantors may incur either secured or unsecured Senior Indebtedness in
compliance with the Indenture. If such Senior Indebtedness is secured, the collateral thereof will secure the Notes
and the Notes Hedge Agreement, and such Senior Indebtedness will be secured by the Collateral, equally and
ratably on a pari passu basis in accordance with the Collateral Trust Agreement); provided that if such Senior
Indebtedness is a Vendor Financing, the collateral securing such Vendor Financing may not secure the Notes and
the Notes Hedge Agreement at the election of the Issuer and the Guarantors, in which case the Collateral will not
secure such Vendor Financing.

All Liens securing the Notes, the Notes Hedge Agreement and all future secured Senior Indebtedness
permitted under the Indenture will be held by the Secured Party Agents and administered pursuant to the
Collateral Trust Agreement. See Collateral Trust Agreement.

Collateral Trust Agreement

On the Escrow Closing Date, the Issuer and the Guarantors will enter into the Collateral Trust
Agreement with the Secured Party Agents. The Collateral Trust Agreement will set forth the terms on which the
Secured Party Agents will receive, hold, administer, maintain, enforce and distribute the proceeds of all Liens
upon the Collateral at any time held by it, in trust for the benefit of the Noteholders, the Notes Hedge
Counterparty and, if applicable, the present and future holders of any other secured Senior Indebtedness.

The Secured Party Agents

Banco Santander Chile will be appointed pursuant to a separate appointment letter (which appointment
has been confirmed pursuant to the Collateral Trust Agreement) to serve as the Chilean Collateral Agent, and
The Bank of New York Mellon has been appointed pursuant to the Collateral Trust Agreement to serve as the
U.S. Collateral Agent, for the benefit of the holders of: (i) the Notes; (ii) the Notes Hedge Agreement; and (iii)
certain other secured Senior Indebtedness incurred in accordance with the Indenture.

The Secured Party Agents will hold (directly or through co-trustees or agents), and will be entitled to
enforce, all Liens on the Collateral created by the applicable Security Documents in accordance with the terms of
the Collateral Trust Agreement.

Except as provided in the Collateral Trust Agreement or as directed by an Act of Required Debtholders
in accordance with the Collateral Trust Agreement, the Secured Party Agents will not be obligated: (i) to act
upon directions purported to be delivered to it by any Person; (ii) to foreclose upon or otherwise enforce any
Lien; or (iii) to take any other action whatsoever with regard to any or all of the Security Documents, the Liens
created thereby or the Collateral.

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 The Secured Party Agents, the Notes Hedge Counterparty and each present and future holder of secured
Senior Indebtedness will agree that notwithstanding: (i) anything to the contrary contained in the Security
Documents; (ii) the time of incurrence of any secured Senior Indebtedness; (iii) the order or method of
attachment or perfection of any Liens securing any secured Senior Indebtedness; (iv) the time or order of filing of
financing statements or other documents filed or recorded to perfect any Lien upon any Collateral; (v) the time of
taking possession or control over any Collateral; (vi) that any Lien of the Secured Party Agents may not have
been perfected or may be or have become subordinated, by equitable subordination or otherwise, to any other
Lien; or (vii) the rules for determining priority under any law governing relative priorities of Liens: (a) all Liens
granted to the Secured Party Agents at any time by the Issuer or any Guarantor will secure, equally and ratably,
the Notes, the Notes Hedge Agreement and, if applicable, all present and future secured Senior Indebtedness
incurred in accordance with the Indenture; and (b) all proceeds of all Liens granted to the Secured Party Agents
at any time by the Issuer or any Guarantor will be allocated and distributed equally and ratably on account of the
Notes, the Notes Hedge Agreement and, if applicable, all present and future secured Senior Indebtedness
incurred in accordance with the Indenture, in accordance with the Collateral Trust Agreement.

These provisions are intended for the benefit of, and will be enforceable as a third party beneficiary by,
the Secured Party Agents, the Noteholders, the Notes Hedge Counterparty and, if applicable, the present and
future holders of any other secured Senior Indebtedness incurred in accordance with the Indenture. The Issuer
and the representative or agent for each future series of secured Senior Indebtedness will be required to deliver,
among other things, a joinder to the Collateral Trust Agreement (including a Lien sharing and priority
confirmation), in the form attached as an exhibit to the Collateral Trust Agreement, to the Secured Party Agents
at the time of incurrence of such series of secured Senior Indebtedness.

For purposes of the foregoing:

Act of Required Debtholders means a direction in writing delivered to the Secured Party Agents by or
with the written consent of the Noteholders, the Notes Hedge Counterparty and the holder of any other secured
Senior Indebtedness incurred in accordance with the Indenture representing the Required Parity Lien
Debtholders. For purposes of this definition: (i) secured obligations registered in the name of, or beneficially
owned by, the Issuer or any affiliate of the Issuer will be deemed not to be outstanding and (ii) votes will be
determined in accordance with Voting.

Discharge of Parity Lien Obligations means: (a) with respect to any given series of secured
obligations, the occurrence of all of the following: (i) termination or expiration of all commitments to extend
credit that would, if extended, constitute secured obligations of such series of secured obligations; (ii) payment in
full in cash of the principal of and interest and premium (if any) on such series of secured obligations (other than
any undrawn letters of credit): (iii) discharge or cash collateralization (at the lower of (A) 103% of the aggregate
undrawn amount and (B) the percentage of the aggregate undrawn amount required for release of liens under the
terms of the applicable Parity Lien Document) of all outstanding letters of credit constituting secured obligations
of such series of secured obligations; and (iv) payment in full in cash of all other obligations with respect to such
series of secured obligations that are outstanding and unpaid at the time the secured obligations is paid in full in
cash (other than any obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities
in respect of which no claim or demand for payment has been made at such time); and (b) otherwise, the
occurrence of each of the items set forth in clauses (a)(i) through (iv) with respect to each series of secured
obligations.

Required Parity Lien Debtholders means, at any time, the holders of more than 50% of the sum of:
(i) the aggregate outstanding principal amount (or in the case of the Notes and the Notes Hedge Agreement
considered together, the Voting Balances thereof) of the Notes, the Notes Hedge Agreement and any other
secured Senior Indebtedness incurred in accordance with the Indenture (including outstanding letters of credit
whether or not then available or drawn); and (ii) other than in connection with the exercise of remedies, the
aggregate unfunded commitments to extend credit which, when funded, would constitute secured Senior

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Indebtedness in accordance with the Collateral Trust Agreement; provided, however, that after the Discharge of
Parity Lien Obligations, the term Required Parity Lien Debtholders will mean the holders of more than 50% of
the sum of the aggregate settlement amount (or similar term) (as defined in the applicable document relating to
obligations consisting of a Hedging Obligation (other than Hedging Obligations in respect of the Notes Hedge
Agreements)) or, with respect to any such Hedging Obligation that has been terminated in accordance with its
terms, the amount then due and payable (including any termination payments then due) under such Hedging
Obligation, under all obligations consisting of Hedging Obligations (other than Hedging Obligations in respect of
the Notes Hedge Agreements); provided that the settlement amount (or similar term) as of the last business day
of the month preceding any date of determination shall be calculated by the appropriate swap counterparties and
reported to the Secured Party Agents upon request; provided further, that any such Hedging Obligation with a
settlement amount (or similar term) that is a negative number shall be disregarded for purposes of all
calculations required by the term Required Debtholders. For purposes of this definition: (i) secured obligations
registered in the name of, or beneficially owned by, the Issuer or any affiliate of the Issuer will be deemed not to
be outstanding and (ii) votes will be determined in accordance with Voting.

Order of Application of Proceeds; Deficiency Claims under the Collateral Trust Agreement

The Collateral Trust Agreement will provide that if the Secured Party Agents receive any proceeds of
any title insurance with respect to any Collateral or any other insurance with respect to any Collateral or if any
Collateral is sold or otherwise realized upon by the Secured Party Agents in connection with any foreclosure,
collection, sale or other enforcement of Liens granted to such Secured Party Agents in the applicable Security
Documents, the proceeds (including distributions of cash, securities or other property on account of the value of
the Collateral in a bankruptcy, insolvency, reorganization or similar proceedings) received by such Secured Party
Agents from such insurance or foreclosure, collection, sale or other enforcement will be distributed by such
Secured Party Agents in the following order of application:

first, to the payment of all amounts payable under the Collateral Trust Agreement on account of the
Secured Party Agents fees and expenses and any reasonable legal fees, costs and expenses or other
liabilities of any kind incurred by such Secured Party Agents or any co-trustee or agent of the
Secured Party Agents in connection with any Security Document (including, but not limited, to
indemnification obligations);

second, to the repayment of Debt and other Obligations (other than the Notes, the Notes Hedge
Agreement and any other secured Senior Indebtedness secured on an equal and ratable basis with
the Notes and such Notes Hedge Agreement), secured by a Permitted Lien on the Collateral sold or
realized upon to the extent that such other Debt or obligation is required to be discharged in
connection with such sale;

third, equally and ratably, to the Secured Party Agents and each other applicable representative or
agent for any other series of secured Senior Indebtedness, for application to the payment of all
outstanding Notes, the Notes Hedge Agreement and any other outstanding secured Senior
Indebtedness, and any other related obligations that are then due and payable in such order as may
be provided in the Indenture, the Notes Hedge Agreement and any other applicable document
governing such other secured Senior Indebtedness, in an amount sufficient to pay in full in cash all
such obligations (including all interest accrued thereon after the commencement of any insolvency
or liquidation proceeding at the rate, including any applicable post-default rate, specified in the
Indenture, the Notes Hedge Agreement or any other applicable document governing such other
secured Senior Indebtedness, even if such interest is found not enforceable, allowable or allowed as
a claim in such proceeding, and including, if applicable, the discharge or cash collateralization (at
the lower of (i) 103% of the aggregate undrawn amount and (ii) the percentage of the aggregate
undrawn amount required for release of Liens under the terms of the Indenture, the Notes Hedge
Agreement or any other applicable document governing such other secured Senior Indebtedness) of
all outstanding letters of credit constituting secured Senior Indebtedness); and

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 fourth, any surplus remaining after the payment in full in cash of the amounts described in the
preceding clauses will be paid to the Issuer or the applicable Guarantor, as the case may be, its
successors or assigns, or as a court of competent jurisdiction may direct.

The Secured Party Agents, the Noteholders, the Notes Hedge Counterparty and any holders of other
secured Senior Indebtedness will agree that to the extent such Person collects or receives any proceeds of
insurance, of Collateral, on account of the value of Collateral or otherwise that should have been applied in
accordance with the priority of payments set forth above, whether after the commencement of an insolvency or
liquidation proceeding or otherwise, such Person will deliver the same to the Secured Party Agents for the
account of the Noteholders, the Notes Hedge Counterparty and any other holders of secured Senior Indebtedness,
to be applied as set forth above.

The provisions set forth above under this caption Order of Application of Proceeds; Deficiency
Claims are intended for the benefit of, and will be enforceable, subject to the provisions of the Collateral Trust
Agreement, as a third party beneficiary by, the Secured Party Agents, the Noteholders, the Notes Hedge
Counterparty and, if applicable, the present and future holders of any other secured Senior Indebtedness.

Voting under the Collateral Trust Agreement

In connection with any matter under the Collateral Trust Agreement requiring a vote of Noteholders and
Notes Hedge Counterparty, the Noteholders and Notes Hedge Counterparty will cast their votes in accordance
with the Indenture. In connection with any matter under the Collateral Trust Agreement requiring a vote of other
holders of secured Senior Indebtedness, each series of secured Senior Indebtedness will cast its votes in
accordance with the documents governing such series of secured Senior Indebtedness. Following and in
accordance with the outcome of the applicable vote under documents governing each series of secured Senior
Indebtedness, the agent or representative of each such series will cast all of its votes under such series as a block
in respect of any vote under the Collateral Trust Agreement.

The Secured Party Agents shall not have any obligation or duty to determine whether the vote of the
requisite holders of the applicable series of secured Senior Indebtedness was obtained as required in the
Collateral Trust Agreement.

Release of Liens on Collateral under the Collateral Trust Agreement

The Collateral Trust Agreement will provide that the Secured Party Agents Liens on the Collateral will
be released:

(a) in whole, upon (i) payment in full and discharge of all Notes, the Notes Hedge Agreements and all
other secured Senior Indebtedness and (ii) termination or expiration of all commitments to extend
credit under any applicable documents governing any such secured Senior Indebtedness and the
cancellation or termination or cash collateralization (at the lower of (x) 103% of the aggregate
undrawn amount and (z) the percentage of the aggregate undrawn amount required for release of
Liens under the terms of the applicable documents governing such secured Senior Indebtedness) of
all outstanding letters of credit issued pursuant to any such document;

(b) as to any Collateral that is sold, transferred or otherwise disposed of by the Issuer or any Guarantor
to a Person that is not (either before or after such sale, transfer or disposition) the Issuer or a
Guarantor in either (i) a foreclosure sale or other transaction approved by an Act of Required
Debtholders or (ii) a transaction or other circumstance that complies with the asset disposition
provisions of the Indenture and is permitted by all of the other applicable documents governing any
secured Senior Indebtedness, at the time of such sale, transfer or other disposition, to the extent of
the interest sold, transferred or otherwise disposed of;

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 (c) as to any Collateral of the Issuer or any Guarantor to the extent all of the Capital Stock of such
Guarantor owned by the Issuer or any other Guarantor is sold (to a Person other than the Issuer or a
Guarantor) in a transaction permitted pursuant to the Indenture and any other applicable document
governing any secured Senior Indebtedness (it being understood that (i) the sale of all of the
Capital Stock in any Person that owns, directly or indirectly, all of the Capital Stock in any
Guarantor shall be deemed to be a sale of all of the Capital Stock in such Guarantor for purposes of
this clause (c) and (ii) such release of the Collateral of such Guarantor shall also release such
Guarantor and its Subsidiaries from its obligations under the Security Documents);

(d) as to a release of less than all or substantially all of the Collateral, if (i) the requisite percentage or
number of holders of each series of secured Senior Indebtedness at the time outstanding as
provided for in the Indenture or the applicable documents governing such other series of secured
Senior Indebtedness or (ii) such release is in connection with a transaction or circumstance that
complies with the asset disposition provisions of the Indenture and is permitted by all of the other
applicable documents governing any other series of secured Senior Indebtedness at the time of such
sale, transfer or other disposition; and

(e) as to a release of all or substantially all of the Collateral, if (i) the requisite percentage or number of
holders of each series of secured Senior Indebtedness at the time outstanding as provided for in the
Indenture or the applicable documents governing such other series of secured Senior Indebtedness
and (ii) the Issuer has delivered an Officers Certificate to the applicable Secured Party Agent
certifying that any such necessary consents have been obtained.

Release of Liens in respect of Notes and Notes Hedge Agreements under the Indenture and the Collateral
Trust Agreement

The Indenture and the Collateral Trust Agreement will provide that the Secured Party Agents Liens
upon the Collateral will no longer secure the Notes and the Notes Hedge Agreements, and the right of the holders
of the Notes and the Notes Hedge Counterparties to the benefits and proceeds of the Secured Party Agents Liens
on the Collateral will terminate and be discharged: (i) upon satisfaction and discharge of the Indenture as set
forth under the caption Satisfaction and Discharge and payment in full of the Notes Hedge Agreement; (ii)
upon a defeasance or covenant defeasance of the Notes as set forth under the caption Defeasance and
payment in full of the Notes Hedge Agreement; (iii) upon payment in full and discharge of all outstanding Notes
and all other obligations that are outstanding, due and payable under the Indenture at the time the Notes are paid
in full and discharged, and payment in full of the Notes Hedge Agreement; or (iv) with the consent of the
Noteholders and the Notes Hedge Counterparty and to the extent as set forth in the Indenture.

Enforcement of Liens under the Collateral Trust Agreement

If any Secured Party Agents at any time receives written notice that any event has occurred that
constitutes a default under the Indenture, the Notes Hedge Agreement or any other document governing any
secured Senior Indebtedness entitling such Secured Party Agent to foreclose upon, collect or otherwise enforce
any of its Liens under the Security Documents, it will promptly deliver written notice thereof to the Secured
Party Agents, the Trustee, the Notes Hedge Counterparty and each agent or representative in respect of each
other series of secured Senior Indebtedness. Thereafter, the Secured Party Agents may await direction by an Act
of Required Debtholders and will act, or decline to act, as directed by an Act of Required Debtholders, in the
exercise and enforcement of such Secured Party Agents interests, rights, powers and remedies in respect of the
Collateral or under the Security Documents or applicable law and, following the initiation of such exercise of
remedies, the Secured Party Agents will act, or decline to act, with respect to the manner of such exercise of
remedies as directed by an Act of Required Debtholders. Unless it has been directed to the contrary by an Act of
Required Debtholders, the Secured Party Agents in any event may (but will not be obligated to) take or refrain
from taking such action with respect to any such default as it may deem advisable and in the best interest of the

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Noteholders, the Notes Hedge Counterparty and the other holders of secured Senior Indebtedness. The Secured
Party Agents, the Noteholders, the Notes Hedge Counterparty and the other holder of secured Senior
Indebtedness will not be able to exercise rights or remedies with respect to the Collateral; only the Secured Party
Agents will be able to exercise such rights or remedies.

The Collateral Trust Agreement will provide that, notwithstanding any prior termination of the
Indenture, the Secured Party Agents, the Notes Hedge Counterparty and the other holders of secured Senior
Indebtedness will not, before the date that is one year and one day after all Notes (including all interest and
premium, if any, thereon) have been paid in full, acquiesce, petition or otherwise invoke or cause the Issuer or
any Guarantor to invoke the process of any court or other governmental authority for the purpose of commencing
or sustaining a case against the Issuer or any Guarantor under any bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer,
any Guarantor or any substantial part of their respective property, or ordering the winding up or liquidating of the
affairs of the Issuer or any Guarantor.

Additional Amounts

All payments under the Notes will be made free and clear of, and without withholding or deduction for
or on account of, any present or future taxes, penalties, duties, fines, assessments or other governmental charges
(or interest on any of the foregoing) of whatsoever nature (collectively, Taxes) imposed, levied, collected,
withheld or assessed by, within or on behalf of any Relevant Taxing Jurisdiction, unless such withholding or
deduction is required by law or the interpretation or administration thereof. In such event, the Issuer or the
Guarantors, as applicable, will pay to each holder such additional amounts (Additional Amounts) as may be
necessary to ensure that the amounts received by the holder of such Note after such withholding or deduction,
including withholding or deduction with respect to such Additional Amounts, equal the amounts of principal and
interest and premium, if any, and Additional Amounts, if any, that would have been receivable in respect of such
Note in the absence of such withholding or deduction. However, the obligation to pay Additional Amounts will
not apply:

(a) to any Taxes that would have not been imposed:

(i) in the case where presentation of a Note is required for payment, but for the fact that the Note
is presented more than 30 days after the later of (1) the date on which such payment first
became due and (2) the date on which the relevant payment is first made available to the
holder, except to the extent that the holder of such Note would have been entitled to such
Additional Amounts on presenting such Note for payment on the last day of such 30-day
period;

(ii) but for the existence of any present or former, direct or indirect, connection between the
holder (or between a fiduciary, settler, beneficiary, member or shareholder of the holder, if the
holder is an estate, a trust, a partnership, a limited liability company or a corporation) and the
Relevant Taxing Jurisdiction (including, without limitation, being or having been a national
domiciliary, or resident of such Relevant Taxing Jurisdiction or having been physically
present or engaged in a trade or business therein, other than the mere ownership or holding of
such Note or the receipt of principal, interest or other amounts in respect thereof; or

(iii) but for the failure by the holder, the beneficial owner of the Note of any payment in respect of
such Note or the Trustee to (1) make a declaration of residence or non-residence, or any other
claim or filing for exemption, to which it is entitled or (2) comply with any certification,
identification, information, documentation or other reporting requirement concerning its
nationality, residence, identity or connection with the Relevant Taxing Jurisdiction; provided,
however, that at least 30 days before the first Payment Date with respect to which the Issuer or

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 the Guarantors with respect to a payment shall apply this clause (iii), such Issuer or Guarantor
shall have notified such recipient in writing that such recipient will be required to comply with
such requirement;

(b) in respect of any estate, inheritance, gift, value added, sales, use, excise, transfer, personal property
or similar taxes, duties, assessments or other governmental charges;

(c) by presenting the Notes (when presentation is required) to another paying agent;

(d) in respect of taxes or other levies that are imposed other than by withholding or deduction;

(e) in respect of any payment to a holder that is a fiduciary or partnership or any person other than the
sole beneficial owner of such payment or Note, to the extent that a beneficiary or settlor with
respect to such fiduciary, a member of such partnership or the beneficial owner of such payment or
Note would not have been entitled to the Additional Amounts had such beneficiary, settlor,
member or beneficial owner been the actual holder of such Note; or

(f) any combination of (a) through (e) above.

The Issuer and the Guarantors will pay any present or future stamp, court or documentary taxes or any
excise or property taxes, charges or similar levies which arise in any jurisdiction from the execution, delivery,
enforcement or registration of the Notes or any other document or instrument relating thereto, excluding any such
taxes, charges or similar levies imposed by any jurisdiction other than: (a) Chile; (b) any jurisdiction where the
paying agent is organized or otherwise considered by a taxing authority to be a resident for tax purposes, any
jurisdiction from or through which the paying agent makes a payment on the Notes, or any political organization
or governmental authority thereof or therein having the power to tax in respect of any payments under the Notes;
or (c) any jurisdiction imposing such taxes, charges or similar levies as a result of, or as a requirement in
connection with, the enforcement of the Notes or any other such document or instrument related to the Notes
following the occurrence of any Event of Default with respect to the Notes.

Wherever there is mentioned, under this caption Description of Notes and Finance Agreements, in any
context, the payment of principal of, or interest on, or any other amount payable on or with respect to, any Notes,
such mention will be deemed to include mention of the payment of Additional Amounts to the extent that, in
such context, Additional Amounts are, were or would be payable in respect thereof.

Form and Denomination and Title

The Global Notes (and beneficial interests therein) will be issued in registered form only without
interest coupons in denominations of U.S.$150,000 and integral multiples of U.S.$1,000 in excess thereof. No
Notes will be issued in bearer form. See Definitive Notes. Notes offered and sold in reliance upon
Rule 144A will be issued in the form of a single Rule 144A Global Note. Notes offered and sold in reliance on
Regulation S will be issued in the form of a single Regulation S Global Note. Each of the Global Notes will be
registered in the name of DTC or its nominee and deposited with the Trustee as custodian for DTC. Beneficial
interest in the Global Notes will be shown on, and transfers thereof will be affected only through, the book entry
records maintained by DTC and its direct and indirect participants (including Euroclear and Clearstream).

Transfers between participants in Euroclear and Clearstream or DTC will be conducted in accordance
with the applicable rules and procedures of Euroclear and Clearstream or DTC, as the case may be, and will be
settled in immediately available funds. These rules may change from time to time. Any secondary market-trading
activity in beneficial interests in the Global Notes is expected to occur through the account holders and
intermediaries, as the case may be, of Euroclear and Clearstream or DTC, and the securities custody accounts of
investors will be credited with their holdings against payment in same-day funds on the settlement date.

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 Beneficial interests in the Global Notes will be subject to certain restrictions on transfer set forth therein
and described under Notice to Investors. In addition, transfers of beneficial interests in the Global Notes will
be subject to the applicable rules and procedures of Euroclear and Clearstream and/or DTC, which may change
from time to time. See Clearing and Settlement.

Title to the Global Notes will pass by registration in the register. The holder of any Global Note will
(except as otherwise required by law) be treated as its absolute owner for all purposes (whether or not it is
overdue and regardless of any notice of ownership, trust or any interest in it, writing on, or theft or loss of, the
definitive Note issued in respect of it) and no person will be liable for so treating the holder.

Definitive Notes

If (i) DTC notifies the Trustee in writing that it is unwilling or is unable to continue as depositary for a
Global Note or that it ceases to be a clearing agency registered under the Exchange Act, (ii) the Issuer, the
Guarantors and the Trustee are unable to locate a qualified successor depositary within 90 days of such notice,
and (iii) if an Event of Default has occurred and is continuing, then the Trustee will notify all applicable Note
Owners of the occurrence of any such event and (a) of the availability of definitive Notes to such Note Owners,
or (b) at the election of the Issuer, that definitive Notes will be issued to all Note Owners. Upon the giving of
such notice and the surrender of such Global Notes by DTC, accompanied by registration instructions, the Issuer
will issue (and the Guarantors will guarantee) definitive Notes for the applicable Notes. Any definitive Notes
shall only be issued in registered form for U.S. federal income tax purposes.

In the case of definitive Notes issued in exchange for the Rule 144A Global Note, such definitive Notes
will bear the legend set forth on the Rule 144A Global Note (unless counsel to the Issuer and the Guarantors
determine otherwise in accordance with applicable law and the procedures set forth in the Indenture). Definitive
Notes will be exchangeable or transferable for interests in other definitive Notes as described under
Replacement, Exchange and Transfers.

Replacement, Exchange and Transfers

If any Note at any time is mutilated, destroyed, stolen or lost, such Note may be replaced at the cost of
the applicant (including fees and expenses of the Trustee) upon provision of evidence satisfactory to the Trustee
and the Issuer that such Note was destroyed, stolen or lost, together with such indemnity as the Trustee and the
Issuer may require. Mutilated Notes must be surrendered before replacements will be issued.

Transfers by an owner of a beneficial interest in the Regulation S Global Note to a transferee who takes
delivery of such beneficial interest through the Rule 144A Global Note will be made only in accordance with
applicable procedures and upon receipt by the Trustee of a written certification from the DTC participant
transferor of the beneficial interest in the form provided in the Indenture to the effect that such transfer is being
made to a purchaser whom the DTC participant transferor reasonably believes is a QIB in a transaction meeting
the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United
States or any other jurisdiction.

Transfers by an owner of a beneficial interest in the Rule 144A Global Note to a transferee who takes
delivery of such beneficial interest through the Regulation S Global Note will be made only in accordance with
applicable procedures and upon receipt by the Trustee of a written certification from the DTC participant
transferor in the form provided in the Indenture to the effect that such transfer is being made in accordance with
Regulation S.

Transfers of beneficial interests in the Global Notes between participants in DTC will be effected in
accordance with DTCs procedures and will be settled in same-day funds. Transfers between participants in
Euroclear and Clearstream will be effected in the ordinary manner in accordance with their respective rules and
operating procedures.

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 Notes may be exchanged or transferred in whole or in part in the amount of authorized denominations
by surrendering such Notes at the office of the Trustee with a written instrument of transfer as provided in the
Indenture. In addition, additional certifications to the effect that such exchange or transfer is in compliance with
the restrictions contained in the applicable legend will be required. Each new Note to be issued upon exchange of
Notes or transfer of Notes will be mailed at the risk of the Noteholder entitled to the bond to such address as may
be specified in such request or form of transfer.

Notes will be subject to certain restrictions on transfer as more fully set out in the Indenture. See
Notice to Investors.

Transfers of Notes will be effected by or on behalf of the Issuer, the registrar or the transfer agents,
without charge to the Noteholder except for any tax or governmental charges or insurance charges which may be
imposed in relation to such transfer or any expenses of delivery other than regular mail. The Issuer is not required
to transfer or exchange any individual definitive Notes selected for redemption.

No Noteholder may require the transfer of a Note to be registered during the period of 15 days ending
on the due date for any payment of principal or interest on that Notes.

Establishment of Accounts

The Concessionaires will establish and maintain the following accounts in the name of the U.S.
Collateral Agent and, in the case of the Chilean Accounts, in the name of the Chilean Collateral Agent, for the
benefit of the Noteholders and the Notes Hedge Counterparty, and, if applicable, the holders of any other secured
Senior Indebtedness:

(a) a revenue account (the Revenue Account) for both Concessionaires;

(b) an operations and maintenance account for each Concessionaire (the O&M Accounts); and

(c) an overhaul account for each Concessionaire (the Overhaul Accounts).

In addition, the Concessionaires will establish and maintain the following accounts in the name of the
U.S. Collateral Agent and, in the case of the Chilean Accounts, in the name of the Chilean Collateral Agent, for
the exclusive benefit of the Noteholders and the Notes Hedge Counterparty but not any holder of any other
Senior Indebtedness:

(a) a payment account (the Payment Account);

(b) a reserve account (the Reserve Account);

(c) an open market purchases account (the Open Market Purchases Account); and

(d) the Coverage Reserve Account.

Panamerican and Eco Uno will establish and maintain an operations and transfer account for each of
themselves (the Transfer Accounts) in the name of the Chilean Collateral Agent for the benefit of the
Noteholders and the Notes Hedge Counterparty, and, if applicable, the holders of any other secured Senior
Indebtedness permitted pursuant to the Indenture. Transfers of funds from the Transfer Accounts will be limited
to transfers to the Revenue Account but no other Person shall be permitted to have any interest therein.

Each Concessionaire will establish and maintain two transaction checking accounts in its name in
respect of its O&M Account (the O&M Transaction Checking Accounts) and its Overhaul Account (the

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Overhaul Transaction Checking Accounts and, together with the O&M Transaction Checking Accounts, the
Transaction Checking Accounts).

Funds on deposit in the Accounts may be invested in Permitted U.S. Investments and Permitted Chilean
Investments, as applicable, provided that all funds received in respect of such Investments upon sale or
repayment of such Investments shall be available to be transferred to other Accounts on each Transfer Date or
otherwise disbursed as required by the Indenture and the other Transaction Documents.

The balance of the Accounts remaining after the Notes and all other amounts owing in respect of the
Indenture, the other Transaction Documents and, if applicable, any other Senior Indebtedness have been paid in
full will be released to the Concessionaires.

Treatment of Funds

Deposits of Funds to and Distribution of Funds from the Revenue Account

By irrevocable instructions to the AFT on or before the Escrow Closing Date, the Concessionaires will
cause to be deposited directly into the Revenue Account all amounts which they are entitled to receive under, in
connection with or pursuant to the Operating Agreements or ancillary agreements related thereto and, in any
event, shall immediately deposit in the Revenue Account any funds that they shall receive from the AFT in
respect of the Concessions. The Concessionaires shall also cause to be deposited directly into the Revenue
Account:

(a) all amounts required to be transferred thereto from other Accounts in accordance with the
Indenture as described below;

(b) revenues from Permitted Investments and distributions received by the Issuer or any Guarantor in
respect of any other Investments;

(c) cash proceeds from any Debt permitted to be incurred under the Indenture, except for:

(i) the Notes, whose proceeds will be applied as set forth in Use of Proceeds;

(ii) Vendor Financings, whose proceeds will be applied to purchase, or enter into capital leases in
respect of, buses for the Bus Network from the company providing such Vendor Financing or
an affiliate or related party thereof;

(iii) Subordinated Indebtedness incurred in connection with Early Amortization, provided that
the proceeds are applied as set forth in Early AmortizationCoverage Reserve Account;

(iv) Permitted Investments funded with Subordinated Indebtedness incurred by the Issuer or any
Guarantor as contemplated in clause (g) of the definition of Permitted Investments, provided
that the proceeds are applied as set forth therein;

(v) Subordinated Indebtedness incurred in connection with Negative Covenants of the Issuer and
the GuarantorsCAPEX Costs, provided that the proceeds are applied as set forth therein,
and intercompany Subordinated Indebtedness solely between the Issuer and the Guarantors
(provided that transfers from either Revenue Account in connection therewith to any Transfer
Account shall only be permitted pursuant to Deposits of Funds to and Distribution of
Funds from the Revenue Account-sixth); and

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 (vi) Permitted Refinancing Indebtedness, provided that the proceeds are immediately applied to
extend, refinance, renew, replace, defease or refund the Debt being extended, refinanced,
renewed, replaced, defeased or refunded;

(d) common equity issuances for cash or cash capital contributions, except for common equity
issuances for cash or cash capital contributions in connection with:

(i) Early Amortization, whose proceeds will be applied as set forth in Early
AmortizationCoverage Reserve Account;

(ii) Negative Covenants of the Issuer and the GuarantorsCAPEX Costs, provided that the
proceeds are applied as set forth therein; and

(iii) clause (g) of the definition of Permitted Investments, provided that the proceeds are applied
as set forth therein;

(e) cash proceeds from any Asset Disposition and Permitted Disposition; and

(f) cash proceeds payable to the Concessionaires in respect of any insurance policies maintained by
the Concessionaires.

For the avoidance of doubt, cash proceeds from any Debt permitted to be incurred under the Indenture
described in point (c)(i) through (vi) above and common equity issuances for cash or cash capital contributions
described in point (d)(i) through (iii) above will not be deposited in the Revenue Account but applied as
described therein. Although cash proceeds in connection with certain Repair Payments and Asset Dispositions
will be deposited in the Revenue Account pursuant to clauses (c) and (d) under Repair Payments and clause
(h) under Limitations on Sale of Assets, respectively, they will not be subject to the order of priority set
forth under Deposits of Funds to and Distribution of Funds from the Revenue Account but they may be
applied as described in such clauses. In addition, the Concessionaires will cause payments due by the Notes
Hedge Counterparty to the Concessionaires under the Notes Hedge Agreement to be directly deposited into the
Payment Account.

The Revenue Account will be maintained in Chile by the Concessionaires with the Chilean Collateral
Agent.

Bi-monthly Distributions

On the day immediately following the Escrow Closing Date and, thereafter, on the 15th and last day of
each month during any period that the Notes shall be outstanding (or if any such day is not a Business Day, on
the following Business Day) (each such date, a Transfer Date, and the period from but excluding such Transfer
Date until and including the next Transfer Date, a Transfer Period), the Concessionaires will cause funds in the
Revenue Account to be disbursed in the following order of priority:

first, into the O&M Accounts, until the balance in such accounts equals the aggregate amount of
(i) fees, expenses and any other amounts due and payable to the Secured Party Agents during the
following Transfer Period, plus (ii) O&M Costs then due and payable or reasonably expected to be
due and payable during the following two Transfer Periods, plus (iii) Repair Payments then due and
payable or reasonably expected to be due and payable during the following two Transfer Periods in
an aggregate amount not to exceed U.S.$3.0 million of Unsettled Claims at any time outstanding as
set forth under Repair Payments below; provided that no Repair Payments may be made from
the O&M Accounts during any Early Amortization Period or Cash Trapping Period if, after giving
effect thereto, the aggregate amount of Unsettled Claims outstanding would exceed U.S.$1.5
million as set forth under Repair Payments below;

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 second, into the Overhaul Accounts, until the balance in such accounts equals the Overhaul Costs;

third, to the Agents and the Rating Agencies the amount of fees and expenses due and payable to
each of them during the following Transfer Period;

fourth, to the Notes Hedge Counterparty and any other Hedge Counterparty, the aggregate amount
of the Hedge Payments in respect of the Notes and any other Senior Indebtedness, respectively, due
and payable to the Notes Hedge Counterparty and such Hedge Counterparty during the following
Transfer Period;

fifth, pro rata to (i) the L/C Bank, the aggregate amount of any fees due and payable to the L/C
Bank under the Letter of Credit during the following Transfer Period, and (ii) to BI, the aggregate
amount of interest and fees due and payable to BI under the Bus Terminal Loan during the
following Transfer Period; and

sixth, into the Transfer Accounts and from the Transfer Accounts into the Revenue Account as
determined by the Concessionaires to be necessary; provided that, any balance in the Transfer
Accounts will be transferred pursuant to first to seventeenth under Deposits of Funds to and
Distribution of Funds from the Revenue Account on each Payment Transfer Date.

Semi-annual and Special Distributions

On the Transfer Date prior to any (i) Payment Date during any period that the Notes shall be outstanding
(each such date, a Payment Transfer Date, and the period from but excluding such Payment Transfer Date until
and including the next Payment Transfer Date, a Payment Period), and (ii) (A) payment date of Repair
Payments to be made pursuant to clause (ii) of Semi-annual and Special Distributionseleventh,
(B) payment date of CAPEX Costs incurred or committed pursuant to Negative Covenants of the Issuer and the
GuarantorsCAPEX Costs and to be made pursuant to clause (ii) of Semi-annual and Special
Distributionseleventh and (C) payment date of any Permitted Investment made pursuant to clause (ii) of
Semi-annual and Special Distributionsfifteenth (each such date in clauses (ii)(A) through (ii)(C), a
Special Transfer Date), the Concessionaires will cause funds in the Revenue Account to be disbursed, after
disbursement pursuant to first through sixth above, in the following order of priority:

seventh, pro rata into (i) the Payment Account, until the balance in such account equals the amount
of (A) the Scheduled Principal Amount (or the Early Amortization Principal Amount during an
Early Amortization Period), accrued interest and any other payment due under the Notes in the
order of priority set forth in the Indenture on the next Payment Date to the Noteholders, plus
(B) any Contingent Hedge Payment and Accelerated Hedge Payments due and payable to the Notes
Hedge Counterparty during the current Payment Period; and (ii) any other payment account or
accounts pledged for the benefit of the creditors under any other Senior Indebtedness (the
Additional Payment Accounts), until the balance in such accounts equals the amount of (A) the
payments due under such other Senior Indebtedness on the payment dates thereof during the current
Payment Period, plus (B) any Contingent Hedge Payment due and payable to any Hedge
Counterparty in respect of such other Senior Indebtedness during the current Payment Period;

eighth, to any Hedge Counterparty, the aggregate amount of the Hedge Payments in the form of put
options for the purpose of offsetting declines in revenue pursuant to the revenue formula under the
Concession Agreements that the Concessionaires reasonably expect may exceed the
Concessionaires reductions in actual fuel expenses due and payable to such Hedge Counterparty
during the following Transfer Period, in an aggregate amount not to exceed U.S.$2.0 million in any
fiscal year;

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 ninth, pro rata into (i) the Reserve Account, until the balance in such account equals the Debt
Service Reserve Amount; and (ii) any other reserve account or accounts pledged for the benefit of
the creditors under any other Senior Indebtedness (the Additional Reserve Accounts), until the
balance in such accounts equals the amount of debt service reserve provided for thereunder;

tenth, pro rata to (i) BI, the aggregate amount of principal due and payable to BI under the Bus
Terminal Loan on such Payment Date, and (ii) the L/C Bank, the aggregate amount of interest and
principal due and payable to the L/C Bank under the Letter of Credit during the current Payment
Period;

eleventh, as instructed by each Concessionaire, in each case on the conditions set forth under
Repair Payments below:

(i) on any Payment Transfer Date, to make Repair Payments exceeding the amount permitted
pursuant to Bi-monthly Distributionsfirst that are then payable or reasonably expected to
be payable during the following Payment Period; and

(ii) on any Special Transfer Date, (A) in the event that the amount deposited in the Reserve
Account and any Additional Reserve Account pursuant to Semi-annual and Special
Distributionsninth and in the Payment Account and any Additional Payment Accounts
pursuant to Semi-annual and Special Distributionsseventh equals the aggregate amount of
payments due from such accounts on the next Payment Date, to make Repair Payments exceeding
the amount permitted pursuant to Bi-monthly Distributionsfirst that are payable on such
Special Transfer Date or reasonably expected to be payable during the following Transfer Period;
and (B) in the event that the amount deposited in the Reserve Account and any Additional Reserve
Account pursuant to Semi-annual and Special Distributionsninth equals the aggregate
amount of payments due from such accounts on the next Payment Date and the amount deposited
in the Payment Account and any Additional Payment Accounts pursuant to Semi-annual and
Special Distributionsseventh equals the aggregate amount of payments due on the next
Payment Date from such accounts, calculated in proportion to the number of days elapsed in the
then-current Payment Period through such Special Transfer Date, to make Repair Payments in an
aggregate amount not exceeding U.S.$1.5 million of Unsettled Claims at any time outstanding in
addition to the Repair Payments made pursuant to Bi-monthly Distributionsfirst; for the
avoidance of doubt, the Concessionaires may make Repair Payments at this level of priority as
described in the foregoing clause (B) even if the Payment Account and any Additional Payment
Accounts, which are at a higher level of priority, are not fully funded but proportionally funded as
described herein;

twelfth, as instructed by each Concessionaire, in each case on the conditions set forth under
CAPEX Costs below:

(i) on any Payment Transfer Date, the portion of CAPEX Costs reasonably expected to be due and
payable during the following Payment Period; and

(ii) on any Special Transfer Date, in the event that the amount deposited in the Reserve Account
and any Additional Reserve Account pursuant to Semi-annual and Special Distributions
ninth equals the aggregate amount of payments due from such accounts on the next Payment
Date and the amount deposited in the Payment Account and any Additional Payment Accounts
pursuant to Semi-annual and Special Distributionsseventh equals the aggregate amount of
payments due on the next Payment Date from such accounts, calculated in proportion to the
number of days elapsed in the then-current Payment Period through such Special Transfer Date, to
pay the CAPEX Costs due and payable on such Special Transfer Date or during the following
Transfer Period; for the avoidance of doubt, the Concessionaires may pay CAPEX Costs at this

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 level of priority as described in the foregoing clause (ii) even if the Payment Account and any
Additional Payment Accounts, which are at a higher level of priority, are not fully funded but
proportionally funded as described herein;

thirteenth, to the Notes Hedge Counterparty and any other Hedge Counterparty, the aggregate
amount of any Excluded Contingent Hedge Payments due and payable to the Notes Hedge
Counterparty and such Hedge Counterparty during the current Payment Period;

fourteenth, pro rata to the holders of any Subordinated Indebtedness, the aggregate amount due and
payable under the Subordinated Indebtedness during the current Payment Period provided that any
cash payment under such Subordinated Indebtedness shall be made in compliance with
Limitations on Restricted Payments (all payments due by the Concessionaires under any
Subordinated Indebtedness will be subordinated to payments under the Notes and any other Senior
Indebtedness, and, except for intercompany payments between the Issuer and the Guarantors within
the Revenue Account or pursuant to Deposits of Funds to and Distribution of Funds from the
Revenue Account-sixth, will be made only from the Revenue Account according to the foregoing
order of priority; no event, request, demand, direction, notice, consent, waiver or other action under
any Subordinated Indebtedness will have any effect or consequence under the Notes or any other
Senior Indebtedness);

fifteenth, as instructed by each Concessionaire:

(i) on any Payment Transfer Date, to use funds to make Permitted Investments (other than clause
(d) of the definition of Permitted Investments, which will be made from the O&M Accounts); and

(ii) on any Special Transfer Date, in the event that the amount deposited in the Reserve Account and
any Additional Reserve Account pursuant to Semi-annual and Special Distributionsninth and
in the Payment Account and any Additional Payment Accounts pursuant to Semi-annual and
Special Distributionsseventh equals the aggregate amount of payments due from such accounts on
the next Payment Date, to use funds to make Permitted Investments pursuant to clause (j) of the
definition thereof on such Special Transfer Date;

sixteenth, as instructed by each Concessionaire, into the Open Market Purchases Account to effect
redemptions of the Notes under the Indenture (excluding, for the avoidance of doubt, redemptions
effected with Permitted Refinancing Indebtedness or pursuant to a defeasance or satisfaction and
discharge in accordance with the Indenture), Open Market Purchases or to consummate any tender
offers for the Notes in accordance with the Indenture during the following Payment Period; and

seventeenth, subject to Limitations on Restricted Payments, to make payments in respect of

Restricted Payments, in accordance with the Concessionaires written instructions, and to make all
other payments required to be made not payable at a higher level of priority set forth hereunder, or
deposited into reserves, by the Concessionaires in accordance with the Indenture and the other
Transaction Documents.

Notwithstanding the foregoing, transfers on any Special Transfer Date will be limited to Semi-
annual and Special Distributionsfirst through fifteenth on the terms set forth therein.

If an Event of Default has occurred and is continuing, the Concessionaires will continue to disburse
funds from the Accounts as specified in the Indenture except to the extent otherwise instructed by the Trustee
acting at the direction of the Controlling Party as contemplated by the Indenture; provided that such instructions
will not limit or restrict the rights of the Secured Party Agents to receive payments under the Indenture.

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 During any Early Amortization Period or Cash Trapping Period, the Concessionaires will disburse funds
from the Accounts as specified in Early Amortization and Cash Trapping Upon any Event of Default,
respectively, as contemplated by the Indenture except to the extent otherwise instructed by the Trustee acting at
the direction of the Controlling Party. The Trustee may instruct the Concessionaires to make such disbursements
at any time, but only (a) to pay amounts owing in respect of the Notes and under the Indenture, or (b) in
accordance with the payment priorities set forth in the Indenture.

Deposits of Funds to and Distribution of Funds from the O&M Accounts

The Concessionaires will deposit or cause to be deposited into the O&M Accounts all amounts required
to be transferred thereto from the Revenue Account. The O&M Accounts will be maintained in Chile by the
Concessionaires with the Chilean Collateral Agent.

The Concessionaires will cause funds in each O&M Account to be disbursed at any time to pay in the
following order of priority:

first, as instructed by each Concessionaire, the aggregate amount of fees and expenses due and
payable to the Secured Party Agents during the current Transfer Period;

second, as instructed by each Concessionaire, the aggregate amount of O&M Costs due and payable
during the current Transfer Period;

third, as instructed by each Concessionaire, the aggregate amount of Repair Payments payable from
the O&M Accounts due and payable during the current Transfer Period;

fourth, between the O&M Accounts as determined by the Concessionaires to be necessary; and

fifth, into the Revenue Account, to the extent any remaining funds in the O&M Accounts exceed the
O&M Costs required to be deposited therein.

The Concessionaires will not make or direct the Secured Party Agents to make, and the Secured Party
Agents will not make, any withdrawal from either O&M Account to the extent that the aggregate amount of all
requested withdrawals from such O&M Account to pay O&M Costs (other than fuel costs to be incurred by the
Concessionaires in the ordinary course of business) in any semi-annual budgetary period exceeds 115% of the
amount budgeted for O&M Costs (other than fuel costs to be incurred by the Concessionaires in the ordinary course
of business) for such semi-annual budgetary period as set forth in the then-current semi-annual expense budget
applicable to such O&M Account (the Expense Budget) completed by the Concessionaires and submitted to the
Secured Party Agents and each Rating Agency unless such Concessionaire has delivered to the Secured Party
Agents an Officers Certificate executed by its respective chief financial officer and chief executive officer setting
forth, in reasonable detail, the purpose and nature of such exceptional O&M Costs (other than fuel costs to be
incurred by the Concessionaires in the ordinary course of business) and certifying that such exceptional O&M Costs
are reasonable and necessary and are required to maintain the safe and economic operation of the Bus Network, to
satisfy a legal obligation or to avoid a breach of or default under the Operating Agreements and that such
exceptional O&M Costs have been or will be incurred in good faith and on an arms-length basis.

The Concessionaires will not make or direct the Secured Party Agents to make, and the Secured Party
Agents will not make, any withdrawal from either O&M Account in respect of Repair Payments payable from
the O&M Accounts unless such withdrawal is in compliance with Repair Payments below.

In any case, the Concessionaires will also deliver to the Secured Party Agents, within ten days after the
end of each fiscal quarter, an Officers Certificate certifying all O&M Costs and Repair Payments payable from
the O&M Accounts incurred and paid during the applicable fiscal quarter and attaching an account statement.

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 Unless otherwise instructed by the Controlling Party in a notice of acceleration, the Concessionaires
may cause funds in each O&M Account to be transferred to and from the respective O&M Transaction Checking
Account at any time to pay O&M Costs; provided that, the aggregate amount deposited in the O&M Transaction
Checking Accounts may not exceed at any time the lesser of (i) U.S.$12.0 million (considered together with the
aggregate amount deposited in the Overhaul Transaction Checking Accounts) and (ii) the sum of O&M Costs
which will be paid in the following seven calendar days from the O&M Transaction Checking Accounts, plus
any outstanding checks issued from such account that has not yet been paid plus U.S.$3.0 million. The
Controlling Party may, together with the delivery of a notice of acceleration to the Concessionaires and the
Trustee in accordance with the Indenture, request the Trustee to instruct the Chilean Collateral Agent to transfer
all amounts deposited in the O&M Transaction Checking Accounts to the O&M Accounts, at which time the
Concessionaires will not make further transfers to the O&M Transaction Checking Accounts unless such notice
of acceleration is rescinded in accordance with the Indenture. The O&M Transaction Checking Accounts will be
deemed sub-accounts of the O&M Accounts and subject to the same aggregate limits, reporting and certification
obligations.

Deposits of Funds to and Distribution of Funds from the Overhaul Accounts

The Overhaul Accounts will be funded on the Escrow Closing Date with part of the proceeds from the
issuance of the Notes. On the Escrow Closing Date, the Concessionaires will deposit or cause to be deposited an
amount equal to Ch$3,316 million into the Overhaul Accounts, which amount represents the initial expected
Overhaul Costs. The required balance of each Overhaul Account will be adjusted on each Transfer Date
thereafter so that such amount at such time will equal the Overhaul Costs reasonably expected to be expended
over the next six months following such Transfer Date on a rolling basis. The Overhaul Accounts will be
maintained in Chile by the Concessionaires with the Chilean Collateral Agent.

The Concessionaires will cause funds in each Overhaul Account to be disbursed at any time to pay in
the following order of priority:

first, as instructed by each Concessionaire, the portion of Overhaul Costs due and payable during
the current Transfer Period;

second, between the Overhaul Accounts as determined by the Concessionaires to be necessary; and

third, into the Revenue Account, to the extent any remaining funds in the Overhaul Accounts
exceed the Overhaul Costs required to be deposited therein.

The Concessionaires will not make or direct the Secured Party Agents to make, and the Secured Party
Agents will not make, any withdrawal from either Overhaul Account to the extent that the aggregate amount of
all requested withdrawals from such Overhaul Account to pay Overhaul Costs in any semi-annual budgetary
period exceeds 115% of the then-current semi-annual overhaul budget applicable to each Concessionaire (the
Overhaul Budget) completed by the Concessionaires and submitted to the Secured Party Agents and each
Rating Agency unless such Concessionaire has delivered to the Secured Party Agents an Officers Certificate
executed by its respective chief financial officer and chief executive officer setting forth, in reasonable detail, the
purpose and nature of such exceptional Overhaul Costs and certifying that such Overhaul Costs are reasonable
and necessary and are required to maintain the safe and economic operation of the Bus Network or to avoid a
breach of or default under the Operating Agreements and that such Overhaul Costs have been or will be incurred
in good faith and on an arms-length basis.

In any case, the Concessionaires will also deliver to the Secured Party Agents, within ten days after the
end of each fiscal quarter, an Officers Certificate certifying all Overhaul Costs incurred and paid during the
applicable fiscal quarter and attaching an account statement.

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 Unless otherwise instructed by the Controlling Party in a notice of acceleration, the Concessionaires
may cause funds in each Overhaul Account to be transferred to and from the respective Overhaul Transaction
Checking Account at any time to pay Overhaul Costs; provided that, the aggregate amount deposited in the
Overhaul Transaction Checking Accounts may not exceed at any time the lesser of (i) U.S.$12.0 million
(considered together with the aggregate amount deposited in the O&M Transaction Checking Accounts) and
(ii) the sum of Overhaul Costs which will be paid in the following seven calendar days from the Overhaul
Transaction Checking Accounts, plus any outstanding checks issued from such account that has not yet been paid
plus U.S.$3.0 million. The Controlling Party may, together with the delivery of a notice of acceleration to the
Concessionaires and the Trustee in accordance with the Indenture, request the Trustee to instruct the Chilean
Collateral Agent to transfer all amounts deposited in the Overhaul Transaction Checking Accounts to the
Overhaul Accounts, at which time the Concessionaires will not make further transfers to the Overhaul
Transaction Checking Accounts unless such notice of acceleration is rescinded in accordance with the
Indenture. The Overhaul Transaction Checking Accounts will be deemed sub-accounts of the Overhaul Accounts
and subject to the same aggregate limits, reporting and certification obligations.

Deposits of Funds to and Distribution of Funds from the Payment Account

The Concessionaires will deposit or cause to be deposited into the Payment Account all amounts
required to be transferred thereto from the Revenue Account and payments due by the Notes Hedge Counterparty
to the Concessionaires under the Notes Hedge Agreement. The Payment Account will be maintained in New
York by the Concessionaires with the U.S. Collateral Agent.

The Concessionaires will instruct the U.S. Collateral Agent to disburse funds in the Payment Account
on each Payment Date (or payment dates under the Notes Hedge Agreement) in the following order of priority:

first, pro rata to the Noteholders and each Notes Hedge Counterparty, respectively, the aggregate
amount (i) of the Scheduled Principal Amount (or the Early Amortization Principal Amount during
an Early Amortization Period), accrued interest and any other payment due and payable under the
Notes in the order of priority set forth in the Indenture on such Payment Date, and (ii) of the
Contingent Hedge Payments and Accelerated Hedge Payments due and payable under the Notes
Hedge Agreements on the applicable payment dates; and

second, into the Revenue Account, to the extent any remaining funds in the Payment Account
exceed the amounts required to be deposited therein.

Deposits of Funds to and Distribution of Funds from the Additional Payment Accounts

The Concessionaires will deposit or cause to be deposited into any Additional Payment Account all
amounts required to be transferred thereto from the Revenue Account and payments due by any Hedge
Counterparty to the Concessionaires under any foreign exchange contract, currency swap agreement or other
similar agreement or arrangement entered into in connection with any Senior Indebtedness (other than the Notes).
The Payment Account will be maintained as provided for under the applicable instruments. The Concessionaires
will instruct the collateral agent thereunder to disburse funds in the Additional Payment Account on each
applicable payment date in the following order of priority:

first, pro rata to any Hedge Counterparty and the creditors under any other Senior Indebtedness, the
aggregate amount (i) of the Contingent Hedge Payment due and payable with respect thereto on the
applicable payment date, and (ii) due and payable under such other Senior Indebtedness on the
applicable payment date; and

second, into the Revenue Account, to the extent any remaining funds in the Additional Payment
Accounts exceed the amounts required to be deposited therein.

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 Any such Additional Payment Accounts may not provide for more favorable benefits or be on more
favorable terms to the creditors under such other Senior Indebtedness than the Payment Account to the
Noteholders and the Hedge Counterparty, as determined by the boards of directors of the Concessionaires in
good faith.

Deposits of Funds to and Distribution of Funds from the Reserve Account

The Reserve Account will be funded on the Escrow Closing Date with either or a combination of
(a) part of the proceeds from the issuance of the Notes, and/or (b) a Letter of Credit. On the Escrow Closing
Date, the Concessionaires will deposit or cause to be deposited into the Reserve Account an aggregate amount
equal to U.S.$22.0 million. The required balance of the Reserve Account will be adjusted on each Payment
Transfer Date and each Special Transfer Date thereafter so that such amount at such Payment Transfer Date and
Special Transfer Date, as applicable, will equal the sum of the amount (which amount will be set forth in a
schedule to the Indenture) representing the interest, Scheduled Principal Amount and Hedge Payments to be paid
in respect of the Notes on the immediately succeeding Payment Date or on the next succeeding Payment Date,
whichever sum is the higher (such required amount being the Debt Service Reserve Amount). The Reserve
Account will be maintained by the Concessionaires in New York with the U.S. Collateral Agent.

As an alternative to depositing and/or maintaining the Debt Service Reserve Amount in cash, the
Concessionaires may deliver to the U.S. Collateral Agent one or more direct-pay on-demand irrevocable letters
of credit for the benefit of the Trustee, the Noteholders and the Notes Hedge Counterparty from a bank (the L/C
Bank) with an international rating of at least A by S&P, A by Fitch or A2 by Moodys, or a Chilean
domestic rating of at least AA or equivalent by any of such rating agencies (the Letter of Credit), in an
amount equal to, when combined with any amounts on deposit in the Reserve Account, the Debt Service Reserve
Amount.

All payments due by the Concessionaires to the L/C Bank under the Letter of Credit (other than fees due
to the L/C Bank under the Letter of Credit payable pursuant to Deposits of Funds to and Distribution of Funds
from the Revenue AccountBi-monthly Distributionfifth) will be subordinated to payments under the Notes
and any other Senior Indebtedness as permitted pursuant to the terms of the Indenture and will be made only
from the Revenue Account according to the order of priority set forth above.

On each Payment Date, so long as no Event of Default is continuing, the U.S. Collateral Agent will
disburse funds in the Reserve Account or draw on the Letter of Credit in the following order of priority:

first, pro rata to the Trustee for the benefit of the Noteholders and to the Notes Hedge
Counterparty, to the extent that the Payment Account would not be fully funded on such Payment
Date (or the Early Amortization Principal Amount during an Early Amortization Period to the
extent available in the Reserve Account and/or Letter of Credit); and

second, to the Revenue Account, to the extent any remaining funds in the Reserve Account exceed
the Debt Service Reserve Amount (not including drawing on the Letter of Credit).

Additional Reserve Accounts

Any other Senior Indebtedness may provide for Additional Reserve Accounts, provided that such
Additional Reserve Accounts may not provide for more favorable benefits or be on more favorable terms to the
creditors under such other Senior Indebtedness than the Reserve Account to the Noteholders and the Notes
Hedge Counterparty, as determined by the boards of directors of the Concessionaires in good faith.

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 Deposits of Funds to and Distribution of Funds from the Open Market Purchases Account

The Concessionaires will deposit or cause to be deposited into the Open Market Purchases Account any
amount that they determine at their sole discretion, which amount may be zero. The Concessionaires may direct
any funds in the Open Market Purchases Account to be transferred to the Revenue Account at any time. The
Open Market Purchases Account will be maintained in New York by the Concessionaires with the U.S.
Collateral Agent.

The Concessionaires will instruct the U.S. Collateral Agent to disburse funds in the Open Market
Purchases Account on any Transfer Date as follows:

first, to effect any redemption of the Notes under the Indenture, Open Market Purchases of the
Notes or to consummate any tender offer for the Notes in accordance with the Indenture; and

second, into the Revenue Account, any balance at the end of the applicable Payment Period.

For the avoidance of doubt, the Concessionaires may make Open Market Purchases with funds on
deposit in the Open Market Purchases Account during the applicable Payment Period even if at the time of such
purchases there would not have been funds available to run through the waterfall at Semi-annual and Special
Distributionssixteenth.

Affirmative Covenants of the Issuer and the Guarantors

Pursuant to the Indenture, the Issuer and the Guarantors, as applicable, will agree to the following:

Use of Proceeds

On the Escrow Closing Date, the Issuer will apply the proceeds as described under Use of Proceeds in
this Offering Memorandum.

Maintenance of Corporate Existence

The Issuer and each Guarantor will maintain and preserve its existence as a company in the place of its
respective formation, except as permitted by the covenant described under Limitations on Consolidation,
Merger or Transfer of Assets.

Compliance with Legal Requirements

The Issuer and each Guarantor will, to the extent applicable to them, own, lease, operate and maintain
the Bus Network and any Permitted Business in compliance with all applicable law, including without limitation
Corrupt Practices Laws, and comply with, all governmental authorizations required for the ownership,
construction, financing, maintenance or operation of the Bus Network and any Permitted Business, except in
each case where the failure to do so could not be reasonably expected to result in a Material Adverse Change.

Maintenance of Properties

The Issuer and each Guarantor will, to the extent applicable to them, obtain and maintain in force good
and valid title and/or rights to such properties as are necessary for (a) the maintenance and operation of the Bus
Network and any Permitted Business, and (b) the use of its property, assets and revenues, except in each case
where the failure to do so could not be reasonably expected to result in a Material Adverse Change, in each case
in compliance with and except as otherwise limited by Negative CovenantsCAPEX Costs and any other
provisions set forth in the Indenture.

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 Repayment of Obligations

The Issuer and each Guarantor will pay, discharge or otherwise satisfy all its payment obligations of
whatever nature, except where the amount or validity thereof is currently being contested in good faith, and
except where the failure to do so could not be reasonably expected to result in a Material Adverse Change.

Maintenance of Insurance

Each Concessionaire will: (a) maintain all insurance, with its current insurers or financially sound and
reputable insurers, required under the Concessions in accordance with the requirements set forth therein;
(b) maintain all other insurance in respect of any material risk, with its current insurers or financially sound and
reputable insurers, that is otherwise required by any applicable law and that is generally accepted as customary in
regard to property and business of like character; and (c) make all premium and other payments due in respect of
the required insurance policies promptly when due and take such other action as may be necessary to cause such
policies to be in full force and effect at all times. All insurance proceeds required to be deposited in any Account
will be applied solely as set forth in the Indenture.

Operation and Maintenance

Each Concessionaire will use, operate and maintain the Bus Network and any Permitted Business (a) in
good working order and condition and in accordance with the Concession Agreements and prudent industry
practices, and (b) in a manner that ensures the conditions set forth in any warranty provisions provided by any
manufacturer, supplier, vendor or licensor of any equipment or process incorporated into the Bus Network and
any Permitted Business (whether in such manufacturers, suppliers, vendors or licensors operating manuals or
otherwise) are not violated, in each case except where the failure to do so could not be reasonably expected to
result in a Material Adverse Change.

Budgets

Prior to the beginning of each fiscal year, each Concessionaire will deliver to the Trustee:

(a) an annual budget (the Annual Budget) for such upcoming fiscal year, including budgeted
statements of income and sources and uses of cash (including without limitation any Restricted
Payment) and balance sheets; each Annual Budget will contain good faith estimates of the
revenues, capital expenditures (including buses, technology and infrastructure), overhaul expenses,
expenses and projected working capital requirements of the Concessionaires and any Permitted
Business for each calendar quarter covered by such Annual Budget based on each Concessionaires
good faith projections at such time; and

(b) a three-year budget (the Three-Year Budget) covering the next succeeding three fiscal years;
each Three-Year Budget will contain good faith estimates of the capital expenditures (including
buses, technology and infrastructure), overhaul expenses, expenses and projected working capital
requirements of the Concessionaires and any Permitted Business for each fiscal year covered by
such Three-Year Budget based on each Concessionaires good faith projections at such time.

In addition, prior to the beginning of each quarterly or semi-annual budgetary period, as applicable, each
Concessionaire will deliver to the Trustee the Expense Budget, Overhaul Budget and the CAPEX Budget for
such period. Such quarterly or semi-annual budgets will be in a form agreed upon by the Issuer, Guarantors, the
Secured Party Agents and the Rating Agencies and attached to the Indenture. Once delivered to the Trustee, such
quarterly or semi-annual budgets will not be amended or replaced.

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 Base Case Model

Concurrently with the submission of each Annual Budget and any amendment thereto, the
Concessionaires will provide an updated version of its base case financial projections that is substantially in the
form of the Base Case Model and consistent with the Annual Budget.

In addition, the Concessionaires will deliver to the Trustee, promptly, and in any event (a) within thirty
days after a material change (which change must be reasonably justified) to one or more assumptions in the Base
Case Model, written notice of such change(s) and (b) within 90 days after the end of each fiscal year, (i) a written
and electronic update of all changed assumptions (if any) in the Base Case Model from the immediately
preceding calendar year, together with the underlying assumptions (including, without limitation, assumptions
regarding demand, revenue formula variables and expenses), each certified by an Officer of each Concessionaire
as having been prepared in good faith.

Accounts

The Concessionaires, Panamerican and Eco Uno, as applicable, will establish and maintain the
Accounts.

Compliance with Concessions

Each Concessionaire will comply with the provisions of and perform all obligations under the
Concession Agreements and maintain and enforce its rights thereunder, except in each case where the failure to
do so could not be reasonably expected to result in a Material Adverse Change.

Books and Records

The Issuer and each Guarantor will: (a) maintain internal accounting, management information and cost
control systems adequate to ensure compliance with applicable law and (b) maintain books, accounts and records
in compliance with all applicable law, and, with respect to financial statements, in accordance with GAAP or
other accounting principles that may be applicable to the Issuer or each Guarantor, consistently applied.

Notices

The Issuer and the Guarantors will provide written notice to the Secured Party Agents and the
Noteholders promptly, and no later than three days, after any Officer of the Issuer or any Guarantor becoming
aware of any of the following:

(a) the occurrence of an Event of Default, Early Amortization Event, Material Adverse Change,
Termination Event or Expropriation Action;

(b) deposits in and withdrawals from the Coverage Reserve Account;

(c) any replacement, termination, cancelation, nullification, rescission or revocation of, or material
amendment to, any Transaction Document (and any new Operating Agreement entered into in
connection therewith or related thereto) attaching an Officers Certificate executed by the
Concessionaires chief financial officers and chief executive officers setting forth, in reasonable
detail, the reason, nature and effects of such action and stating whether such action could
reasonably be expected to result in a Material Adverse Change and the basis for their conclusion;
provided, however, that the Issuer and each Guarantor will provide to the Secured Party Agents and
the Noteholders written notice of any amendment (other that a material amendment) to any
Transaction Document made during a fiscal quarter within ten days after the end of such fiscal
quarter attaching the Officers Certificate referred to above;

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 (d) any initiation of litigation, claims, investigations, judicial or arbitral proceedings (including,
without limitation, with respect to environmental matters) involving such Concessionaire that it
reasonably expects to result in a Material Adverse Change;

(e) any cancellation or material change in or any notice of non-payment of premiums with respect to
any insurance policy required to be maintained under the Indenture;

(f) any event of force majeure claimed by any person under any Transaction Document that is
reasonably expected to result in a Material Adverse Change;

(g) any event or occurrence that reasonably could be expected to render the Issuer or any Guarantor
incapable of, or prevent the Issuer or any Guarantor from, meeting any of its material obligations
under any Transaction Document;

(h) any amendment to any Transaction Document (when such amendment requires the consent of the
Controlling Party pursuant to the Indenture);

(i) any proceeding or threat to initiate a proceeding that could reasonably be expected to result in an
Expropriation Event or Expropriatory Action;

(j) any Lien on the assets or property of the Issuer or any Guarantor (other than Permitted Liens);

(k) prior to adoption thereof, any proposed material change in the nature or scope of the Bus Network,
Permitted Business or the business or operations of the Issuer or any Guarantor that is proposed for
adoption by the Board of Directors thereof;

(l) receipt by either Concessionaire of written notice of any noncompliance with or any suspension,
termination or non renewal of a governmental authorization or other license or authorization
necessary for the performance by the each Concessionaire of its material obligations under any
Transaction Document;

(m) any ongoing strike, slowdown or work stoppage by the employees of the Concessionaires or any
other person affiliated with the Bus Network or any Permitted Business that is reasonably expected
to result in a Material Adverse Change;

(n) any decision by either Concessionaire to cease or suspend all or substantially all operations of the
Bus Network or any Permitted Business; and

(o) any material dispute under the Concessions that either Concessionaire reasonably expects to result
in the appointment of an arbitrator thereunder;

provided that, the Issuer may provide such written notice on behalf of any Guarantor.

Quarterly Reports

On February 10, April 10, July 10 and October 10 of each year, the Issuer and the Guarantors will
provide the Secured Party Agents, the Rating Agencies and the Noteholders with a quarterly report (the
Quarterly Report) setting forth the following:

(a) all information necessary to calculate (in reasonable detail and providing calculations necessary to
determine) the Debt Service Coverage Ratio and the Debt to Equity Ratio as of the last day of the
Reporting Period most recently ended, and certifying that the Issuer and each Guarantor is in
compliance with the covenant and restriction relating to the Debt Service Coverage Ratio or
specifying any noncompliance;

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 (b) the balance in each of the Accounts as of the last day of the Reporting Period most recently ended;

(c) certification as to whether any Cash Trapping Period, Early Amortization Event or Event of
Default has occurred and/or is occurring during the Reporting Period most recently ended;

(d) for the quarters ended June 30 and December 31, a detailed set of information which is necessary
for, and relevant to, the distributions on the next Payment Transfer Date, that is capable of
determination as of the date of preparation of such Quarterly Report; and

(e) complete information as to the distributions made in the Reporting Period most recently ended,
specifying the aggregate amount of payments made per category at each level of payment priority
under the Indenture.

The Quarterly Reports will be in a form agreed upon by the Issuer, Guarantors, the Secured Party
Agents and the Rating Agencies and attached to the Indenture.

Financial Statements

The Issuer and each Guarantor will, upon request, furnish to the Noteholders and to prospective
purchasers of Notes any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities
Act so long as the Notes are not freely transferable under the Securities Act. In addition, so long as the Notes
remain outstanding, each Concessionaire (or, if the Concessionaires are consolidated, the Issuer) will provide the
Trustee and the Noteholders with:

(a) annual information in English consisting of (i) such Concessionaires annual audited consolidated
financial statements prepared in accordance with GAAP, or, if required under GAAP or if the
Issuer so elects, annual audited consolidated financial statements combining the Concessionaires
including a report thereon by such Concessionaires (or, if the Concessionaires are then
consolidated, the Issuers) certified independent auditors, (ii) a managements discussion and
analysis of financial condition and results of operations for that period, and (iii) a Compliance
Certificate, all of which shall be provided no more than 90 days following the end of the related
fiscal year; and

(b) periodic information in English consisting of (i) quarterly consolidated financial statements of such
Concessionaire prepared in accordance with GAAP, (or, if required under GAAP or if the Issuer so
elects, unaudited quarterly consolidated financial statements combining the Concessionaires) which
may be unaudited, for the three-month periods ending March 31, June 30 and September 30 of each
year, (ii) a managements discussion and analysis of financial condition and results of operations
for that period, and (iii) a Compliance Certificate, all of which shall be provided no more than 75
days following the end of the related quarter; provided, that such quarterly information may consist
of, and be in the same format as, the information (translated into English) that would be required to
be provided to the Chilean regulatory authorities on a quarterly basis by companies that are
required to report quarterly;

provided, in each case, that the Concessionaires will not be required pursuant to this paragraph to
provide disclosure which is qualitatively more explicit or precise than that which is provided in this
Offering Memorandum. So long as the Notes are listed on the Luxembourg Stock Exchange, the Issuer
and each Guarantor will make available the information specified in the preceding sentence at the office
of the Luxembourg transfer and paying agent.

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 Visits and Inspections

Once per year, each Concessionaire will permit representatives of the Trustee and one representative of
the Controlling Party, upon reasonable notice and at reasonable times, to visit and inspect properties related to its
operations and the business, accounts, operations, properties and financial and other conditions of the
Concessionaires with Officers of the Concessionaires. At any time when an Event of Default has occurred and is
continuing, each Concessionaire will permit representatives of the Trustee and one representative of the
Controlling Party, upon reasonable notice and at reasonable times, to (a) visit and inspect the properties related to
its operations, (b) examine or audit and make abstracts from any of its books, accounts and records and to make
copies and memoranda thereof, and (c) discuss the business, accounts, operations, properties and financial and
other conditions of the Concessionaires with Officers and employees of the Concessionaires and (to the extent
the auditors agree to participate) with their auditors. Upon reasonable notice and at reasonable times, each
Concessionaire will grant the Trustee and one representative of the Controlling Party access to all new contracts
that such Concessionaire has entered into and all new amendments to any contract, including any transaction with
affiliates.

Taxes

The Issuer and each Guarantor will timely pay and discharge or cause to be paid and discharged all
material taxes imposed upon the Issuer, such Guarantor or its respective income or profits or any of the
Collateral, all material utility and other governmental charges incurred in the ownership, operation, maintenance,
use, occupancy and upkeep of the Bus Network or any Permitted Business that, if unpaid, would become a Lien
(other than a Permitted Lien) upon the Collateral, or upon any part thereof, except if such charge or claim is
being contested in good faith by appropriate proceedings and if such reserves or other appropriate provision, if
any, as shall be required by GAAP shall have been made therefor.

Expropriation Event or Termination Action

If an Expropriation Event or Termination Action is threatened in writing with respect to all or any
material portion of the Bus Network, the Concessionaires (a) will diligently contest such claim or proceeding if,
in the Concessionaires reasonable judgment, they have a legal basis to do so and (b) will not, without the written
consent of the Controlling Party, compromise or settle any claim against the relevant government instrumentality.

If an Expropriation Event or Termination Action occurs, the Concessionaires (a) will diligently pursue
all its rights to compensation against the relevant governmental instrumentality in respect of such Expropriation
Event or Termination Action, (b) will not compromise or settle any claim against such governmental
instrumentality without the written consent of the Controlling Parties and (c) will pay or apply all amounts or
proceeds in respect of such Expropriation Event or Termination Action in accordance with the Indenture. The
Concessionaires will consent to the participation of the Trustee acting for the benefit of the Noteholders in any
proceedings regarding an Expropriation Event or Termination Action, or a threatened Expropriation Event or
Termination Action.

Cash Flow

From and after the Escrow Closing Date, the Issuer and each Guarantor will instruct each person
remitting cash to or for the account of the Issuer or such Guarantor to deposit such cash in accordance with the
terms of the Indenture and will otherwise comply with its covenants and agreements in the Finance Agreements.

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 Repair Payments

When the Concessionaires experience losses they reasonably believe to be covered by an insurance
policy in effect (except for deductibles), they may make Repair Payments subject to the following:

(a) in the event that any Repair Payment is not reasonably expected to exceed U.S.$1.0 million, the
Concessionaires may (i) transfer funds from the Revenue Account to the O&M Accounts and
disburse funds in the O&M Accounts, subject to the limitations on the amount of Unsettled Claims
that may be funded at any time pursuant to Deposits of Funds from the Revenue AccountBi-
Monthly Distributionsfirst, or (ii) disburse funds in the Revenue Account pursuant to, and
subject to the limitations of Deposits of Funds to and Distribution of Funds from the Revenue
AccountSemi-annual and Special Distributionseleventh above, as applicable, in each case to
cover such Repair Payment irrespective of the time that the insurance proceeds are received in the
Revenue Account;

(b) in the event that any Repair Payment is reasonably expected to exceed U.S.$1.0 million but is not
reasonably expected to exceed U.S.$25.0 million, subject to the delivery by the Concessionaires to
the Trustee and the Rating Agencies of an Officers Certificate setting forth, in reasonable detail,
the purpose and nature of such Repair Payment and that it will be used in good faith and on an
arms-length basis, the Concessionaires may (i) transfer funds from the Revenue Account to the
O&M Accounts and disburse funds in the O&M Accounts, subject to the limitations on the amount
of Unsettled Claims that may be funded at any time pursuant to Deposits of Funds from the
Revenue AccountBi-Monthly Distributionsfirst, or (ii) disburse funds in the Revenue Account
pursuant to, and subject to the limitations of Deposits of Funds to and Distribution of Funds
from the Revenue AccountSemi-annual and Special Distributionseleventh above, as
applicable, in each case to cover such Repair Payment irrespective of the time that the insurance
proceeds are received in the Revenue Account;

(c) in the event that the Repair Payment is reasonably expected to exceed U.S.$25.0 million, the
Repair Payment may not be made prior to the receipt of insurance proceeds except pursuant to
(d) below; within 180 days after the receipt of any such insurance proceeds in the Revenue
Account, the Concessionaires will apply an amount equal to such proceeds at their option: (i) to
invest, or to enter into a binding agreement to invest within 30 days, in Replacement Assets; (ii) to
repay any other Senior Indebtedness and, in the case of any such Senior Indebtedness which
constitutes a revolving credit facility, to cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased;
(iii) to make an offer to purchase Notes at 100% of the principal amount thereof plus accrued
interest; or (iv) a combination of (i) through (iii). Any such Repair Payment proceeds so deposited
in the Revenue Account will not be subject to the order of priority set forth under Deposits of
Funds to and Distribution of Funds from the Revenue Account above, but they will be segregated
and applied in due time to the purposes provided for from (i) through (iv) above subject to the
delivery by the Concessionaires to the Trustee and the Rating Agencies of an Officers Certificate
setting forth, in reasonable detail, the purpose and nature of such Repair Payment and that it will be
used in good faith and on an arms-length basis; in addition, any purchase of Replacement Assets
with such insurance proceeds will not be subject to the covenant restrictions applicable to CAPEX
Costs; and

(d) irrespective of the amount of the Repair Payment and irrespective of any Event of Default, Early
Amortization Event or Cash Trapping Period, if such Repair Payment has been funded with common
equity for cash issued by, cash capital contributions made to or Subordinated Indebtedness incurred
by the Concessionaires in anticipation of their receiving insurance proceeds, subject to the delivery by
the applicable Concessionaire to the Trustee and the Rating Agencies of an Officers Certificate

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 setting forth, in reasonable detail, the purpose and nature of such Repair Payment and that it has been
so funded into the Revenue Account and will be used in good faith and on an arms-length basis, the
Concessionaires may disburse funds in the Revenue Account to cover such Repair Payment. Any
proceeds so deposited in the Revenue Account will not be subject to the order of priority set forth
under Deposits of Funds to and Distribution of Funds from the Revenue Account above. Upon
receipt of the insurance proceeds corresponding to such Repair Payment in the Revenue Account,
subject to the delivery by the Concessionaires to the Trustee of an Officers Certificate setting forth
the purpose and nature of the withdrawal, the Concessionaires may use such funds in the Revenue
Account to repay such Subordinated Indebtedness or return such common equity or cash capital
contributions to the extent of the insurance proceeds received in the Revenue Account for that Repair
Payment (which shall not be considered a Restricted Payment), with any remaining balance payable
in accordance with the Indenture and the order of priority set forth therein; provided that no such
repayment or return may be made, even after receipt of the insurance proceeds corresponding to such
Repair Payment in the Revenue Account, during the period that an Event of Default, Early
Amortization Event or Cash Trapping Period is continuing.

In each case, the Concessionaires will deliver to the Trustee, within ten days after the end of each fiscal
quarter, an Officers Certificate certifying all such Repair Payments paid during the applicable fiscal quarter and
attaching an account statement.

Perfection of Security Interests under Chilean Security Documents

The Issuer and the Guarantors, as applicable, shall, as promptly as practicable, (a) register in the
relevant registries or offices, the relevant recording information for each of the Chilean Security Documents
required to be so registered for the priority and perfection of the security interests granted by such documents,
(b) deliver any notices in the form of judicial notifications or acceptances to third parties for each of the Chilean
Security Documents which requires such notification for the priority and perfection of the security interests
granted by such documents, (c) subject to Permitted Liens, cause a valid and fully perfected first priority security
interest in and lien upon the properties and rights covered by the Chilean Security Documents in favor of the
Noteholders and the Notes Hedge Counterparty to be created and (d) deliver to the Chilean Collateral Agent a
certified copy of (i) the certificate of registration for the Mortgages and each of the Chilean Security Documents
which are required to be so registered, (ii) any notices to third parties for each of the Chilean Security Documents
which requires such notification; provided that, in any event the Issuer and the Guarantors, as applicable, shall
have performed each of its obligations hereunder no later than 30 days after (A) the Escrow Closing Date, with
respect to Collateral owned on the Escrow Closing Date and (B) the date of acquisition, in respect of Collateral
acquired after the Escrow Closing Date. If at any time prior to the creation of the security interest described
above, in the reasonable judgment of the Chilean Collateral Agent, the Issuer and the Guarantors, as applicable,
cannot be reasonably expected to satisfy their respective obligations as and when provided under the immediately
preceding sentence, the Chilean Collateral Agent may (but shall not be required to) instruct their attorney-in-fact
to register or publish (as applicable) any Chilean Security Documents in favor of the Chilean Collateral Agent for
the benefit of the Noteholders and the Notes Hedge Counterparty, and any related expenses shall be paid for by
the Issuer and the Guarantors.

Creation and Perfection of Money Pledges

On the Escrow Closing Date, on each date funds are deposited in the Revenue Account from the AFT
and on any date funds in excess of U.S.$1.0 million are deposited on any Chilean Accounts (other than the
Transaction Checking Accounts), the Chilean Collateral Agent will create and perfect a Chilean Money Pledge
on such Chilean Accounts (other than the Transaction Checking Accounts) in accordance to a schedule to the
applicable account agreement, which schedule shall be amended from time to time as the Secured Party Agents
may reasonably request in order to reflect any change in the requirements of registration, publication,
notification, annotation and other applicable procedures required to create or perfect such security interest under

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Chilean Law. The Chilean Collateral Agent shall take all actions required to be taken by it in order to accomplish
the foregoing in accordance with the schedule, and shall otherwise have no duty or liability with respect to the
perfection or creation of the Money Pledges.

Negative Covenants of the Issuer and the Guarantors

Pursuant to the Indenture, the Issuer and the Guarantors, as applicable, will agree to the following:

Incurrence of Senior Indebtedness

The Issuer and the Guarantors will not incur any Senior Indebtedness during the first two Reporting
Periods after the date of the Indenture. After the first two Reporting Periods, the Issuer and the Guarantors will
not, directly or indirectly, Incur any Senior Indebtedness unless each of the following conditions is satisfied:

(a) no Default or Event of Default has occurred and is continuing;

(b) (i) satisfaction of a backwards looking Debt Service Coverage Ratio requirement of not less than
1.50:1.00 for each of the two immediately preceding Reporting Periods for which consolidated
financial statements have been submitted to the Trustee, (ii) satisfaction of, after giving pro forma
effect to the incurrence of such Senior Indebtedness and the application of the proceeds thereof, a
forward looking Debt Service Coverage Ratio requirement of (x) an average of 1.50:1:00 until the
final maturity of the Notes and (y) a minimum of 1.35:1.00 for each of the remaining Reporting
Periods until the final maturity of the Notes, (iii) rating confirmation by each Rating Agency, and
(iv) that any collateral of any Senior Indebtedness (other than a Vendor Financing if so elected by
the Issuer and the Guarantors) secure the holders of the Notes equally and ratably on a pari passu
basis; provided, however, that the Indenture will permit the Issuer and the Guarantors to incur
Vendor Financings in an aggregate amount at any time outstanding (a) not to exceed U.S.$10.0
million, subject to satisfaction of (A) a backwards looking Debt Service Coverage Ratio
requirement of not less than 1.20:1.00 for each of the two immediately preceding Reporting
Periods for which consolidated financial statements have been submitted to the Secured Party
Agents, and (B) after giving pro forma effect to the incurrence of such Vendor Financings and the
application of the proceeds thereof, (x) a forward looking Debt Service Coverage Ratio
requirement of an average of 1.20:1.00 for the remaining Reporting Periods until the final maturity
of the Notes and (y) a forward looking Debt Service Coverage Ratio requirement of a minimum of
1.15:1.00 for each of the remaining Reporting Periods until the final maturity of the Notes; and
(b) exceeding U.S.$10.0 million but not to exceed U.S.$20.0 million, subject to satisfaction of (i) a
backwards looking Debt Service Coverage Ratio requirement of not less than 1.35:1.00 for each of
the two immediately preceding Reporting Periods for which consolidated financial statements have
been submitted to the Trustee, and (ii) after giving pro forma effect to the incurrence of such
Vendor Financings and the application of the proceeds thereof, a forward looking Debt Service
Coverage Ratio requirement of a minimum of 1.35:1.00 for each of the remaining Reporting
Periods until the final maturity of the Notes;

(c) prior to the applicable date on which Senior Indebtedness is Incurred (an Incurrence Date) the
Issuer and the Guarantors will have delivered to the Trustee an Officers Certificate executed by its
respective chief financial officer and chief executive officer setting forth all information necessary
to calculate the Debt Service Coverage Ratio and certifying that the Issuer and the Guarantors are
in compliance with all of the conditions required for the Incurrence of Senior Indebtedness under
the Indenture; and

(d) prior to the applicable Incurrence Date, the Issuer and the Guarantors will have delivered to the
Trustee an Officers Certificate executed by its respective chief financial officer and chief

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 executive officer certifying that: (i) as of the applicable Incurrence Date, and after giving effect to
such Incurrence, no Default or Event of Default has occurred and is continuing; (ii) such
Incurrence complies in all respects with this clause; and (iii) such Incurrence complies with all
applicable laws.

Notwithstanding the foregoing, the Issuer may incur (i) Hedging Obligations for the purpose of fixing,
hedging or swapping interest rate or foreign currency exchange rate, in the ordinary course of business and not
for speculative purposes, in respect of any Senior Indebtedness, (ii) Hedging Obligations only in the form of put
options for the purpose of offsetting declines in revenue pursuant to the revenue formula under the Concession
Agreements that the Concessionaires reasonably expect may exceed the Concessionaires reductions in actual
fuel expenses, in the ordinary course of business and not for speculative purposes, (iii) the Bus Terminal Loan,
and (iv) Permitted Refinancing Indebtedness subject to compliance with the limitations in the definition thereof.

Limitations on Restricted Payments

The Issuer and the Guarantors will not make any Restricted Payment during the first two Reporting
Periods after the date of the Indenture. After the first two Reporting Periods, the Issuer and the Guarantors will
not make any Restricted Payment unless each of the following conditions has been satisfied:

(a) no Default or Event of Default has occurred and is continuing;

(b) (i) a backwards looking Debt Service Coverage Ratio requirement of not less than 1.35:1.00 for
each of the two immediately preceding Reporting Periods for which consolidated financial
statements have been submitted to the Trustee, and (ii) a forward looking Debt Service Coverage
Ratio requirement of a minimum of 1.35:1.00 for each of the remaining Reporting Periods until the
final maturity of the Notes; provided, however, that the Indenture will permit the Issuer and the
Guarantors to make a Restricted Payment up to the excess of the Revenue Account balance over
U.S.$30.0 million subject to the satisfaction of (A) a backwards looking Debt Service Coverage
Ratio requirement of not less than 1.25:1.00 for each of the two immediately preceding Reporting
Periods for which consolidated financial statements have been submitted to the Trustee, (B) a
forward looking Debt Service Coverage Ratio requirement of a minimum of 1.25:1.00 for each of
the remaining Reporting Periods until the final maturity of the Notes, (C) rating confirmation by
each Rating Agency), and (D) a Debt to Equity Ratio of a minimum of 75:25;

(c) prior to the applicable date on which a Restricted Payment is made (a Restricted Payment Date)
the Issuer and the Guarantors will have delivered to the Trustee (i) an Officers Certificate executed
by its respective chief financial officer and chief executive officer setting forth all information
necessary to calculate the Debt Service Coverage Ratio and the Debt to Equity Ratio (if applicable)
and certifying that the Issuer and the Guarantors are in compliance with all of the conditions
required for Restricted Payments under the Indenture, and (ii) a written and electronic update of all
changed assumptions (if any) in the Base Case Model from the immediately preceding calendar
year; and

(d) prior to the applicable Restricted Payment Date, the Issuer and the Guarantors will have delivered
to the Trustee an Officers Certificate executed by its respective chief financial officer and chief
executive officer certifying that: (i) as of the applicable Restricted Payment Date, and after giving
effect to such Restricted Payment, no Default or Event of Default has occurred and is continuing;
(ii) such Restricted Payment complies in all respects with this clause; and (iii) such Restricted
Payment complies with all applicable laws.

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 Limitations on Liens

The Issuer and the Guarantors will not, and will not agree to, create, assume or permit to exist any Lien
upon any of the assets or properties of the Issuer or the Guarantors, whether now owned or hereafter acquired, or
any of its Capital Stock, other than Permitted Liens.

For purposes of the foregoing, Permitted Liens means:

(a) Liens created under or pursuant to any of the Security Documents;

(b) Liens imposed by any Governmental Authority for taxes, assessments or other similar charges not
yet due or which are being contested in good faith by appropriate proceedings, if adequate reserves
or other appropriate provision with respect thereto are maintained on the books of the Issuer and
the Guarantors to the extent required by GAAP;

(c) statutory Liens such as carriers, warehousemens, mechanics, suppliers, contractors,

materialmens, repairmens or other like Liens arising in the ordinary course of business that secure
amounts not overdue for a period of more than 90 days or which are being contested in good faith
by appropriate proceedings, if adequate reserves or other appropriate provision with respect thereto
are maintained on the books of the Issuer and the Guarantors, to the extent required by GAAP;

(d) any easements, rights of way, and other similar restrictions and encumbrances incurred in the
ordinary course of business that do not, individually or in the aggregate, impair the operation of the
Bus Network or any Permitted Business in any material respect;

(e) pledges or deposits in connection with workers compensation, unemployment insurance and other
social security legislation;

(f) deposits to secure the performance of bids, trade contracts (other than for borrowed money),
performance bonds and other obligations of a like nature incurred in the ordinary course of
business;

(g) Liens and/or deposits to secure statutory obligations, surety and appeal bonds, judgments,
attachments or awards not giving rise to an Event of Default related to litigation being contested in
good faith by appropriate proceedings and for which adequate reserves have been made or other
appropriate provision with respect thereto are maintained on the books of the Issuer and the
Guarantors, to the extent required by GAAP;

(h) any interest or title of a lessor or sublessor under any lease entered into by the Issuer or any
Guarantor, as lessees/sub-lessees, in the ordinary course of business and covering only the assets so
leased;

(i) any interest or title of a licensor or sublicensor under any license entered into by the Issuer or any
Guarantor, as licensees/sub-licensees, in the ordinary course of business and covering only the
assets subject thereto;

(j) Liens on property of a Person existing at the time such Person is merged with or into or
consolidated with the Issuer or any Guarantor provided that such Liens were in existence prior to
the contemplation of such merger or consolidation and do not extend to any assets other than those
of the Person merged into or consolidated with the Issuer or the Guarantor;

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 (k) Liens on property existing at the time of acquisition thereof by the Issuer or any Guarantor as
permitted under the Indenture provided that such Liens were in existence prior to the contemplation
of such acquisition and do not extend to any property other than the property so acquired by the
Issuer or the Guarantor;

(l) Liens existing on the Escrow Closing Date as set forth in a schedule to the Indenture (including for
the avoidance of doubt a mortgage on the Excluded Depot and a pledge on the capital stock of
Lorena SpA and insurance proceeds on the Excluded Depot to secure the Bus Terminal Loan);

(m) Liens on property or assets securing Debt incurred to fully defease or to fully satisfy and discharge
the Notes; provided that (i) the Incurrence of such Debt was not prohibited by the Indenture and
(ii) such defeasance or satisfaction and discharge is not prohibited by the Indenture;

(n) Liens on property or assets securing Senior Indebtedness or Vendor Financings Incurred in
accordance with the Indenture;

(o) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with importation of goods in the ordinary course of business;

(p) any extension, renewal, refinancing or replacement, in whole or in part, of any Lien described in
the foregoing clauses (a) through (o); provided that any such Lien is limited to all or part of the
same property or assets (plus improvements, accessions, proceeds or dividends or distributions in
respect thereof) that secured (or, under the written arrangements under which the original Lien
arose, could secure) the original Lien, including any Permitted Refinancing Indebtedness; and

(q) Liens securing obligations that do not exceed U.S.$1.0 million at any one time outstanding.

Limitations on Sale of Assets

The Issuer and the Guarantors will not convey, sell, lease, assign, transfer or otherwise dispose of any of
its property, business or assets, including its interest in the Bus Network or any Permitted Business, having a fair
market value for any such disposition or series of related dispositions in excess of U.S.$100,000, whether now
owned or hereafter acquired (an Asset Disposition), except:

(a) to the extent permitted under any Transaction Document to which it is a party;

(b) sales of obsolete, worn out or defective property or property no longer used in connection with the
operation of the Bus Network or any Permitted Business for an amount not in excess of
U.S.$500,000 for a single transaction or U.S.$2.0 million in the aggregate for all such transfers or
dispositions in any fiscal year;

(c) property transferred or disposed of as a result of an Expropriation Event or Termination Action that
does not constitute an Event of Default under the Indenture;

(d) any Permitted Disposition;

(e) any such conveyance, sale, lease, assignment, transfer or disposition among the Issuer and the
Guarantors, in each case subject to the Indenture;

(f) any dispositions of Permitted Investments for cash or in exchange for other Permitted Investments;

(g) any Restricted Payments made in compliance with the Indenture; or

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 (h) unless within 270 days of the later of the date of such Asset Disposition and the receipt of the Net
Available Cash, the Issuer or any Guarantor, as applicable, applies an amount equal to 100% of the
Net Available Cash from such Asset Disposition:

(i) to invest, or to enter into a binding agreement to invest within 30 days, in Replacement
Assets;

(ii) to repay any other Senior Indebtedness and, in the case of any such Senior Indebtedness which
constitutes a revolving credit facility, to cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid, repaid or
purchased;

(iii) to make an offer to purchase Notes at 100% of the principal amount thereof plus accrued
interest; or

(iv) any combination of (i) through (iii);

provided that, any Net Available Cash pursuant to the foregoing clause (h) will be deposited in the
Revenue Account and will not be subject to the order of priority set forth under Deposits of Funds to
and Distribution of Funds from the Revenue Account above, but it will be segregated and applied in
due time to the purposes provided for from (i) through (iv) above subject to the delivery by the
Concessionaires to the Trustee and the Rating Agencies of an Officers Certificate setting forth, in
reasonable detail, the purpose and nature of the utilization of such Net Available Cash and that it will be
used in good faith and on an arms-length basis. Any purchase of Replacement Assets with such Net
Available Cash proceeds will not be subject to the covenant restrictions applicable to CAPEX Costs.

Limitation on Sale and Lease-Back Transactions

The Issuer and the Guarantors will not enter into any Sale and Lease-Back Transaction unless either:

(i) the Issuer and the Guarantors would be entitled (A) pursuant to the provisions of the covenant
described in Negative Covenants of the Issuer and the GuarantorsIncurrence of Senior
Indebtedness, to incur Senior Indebtedness in a principal amount equal to or exceeding the Value
of such Capitalized Lease Obligation and (B) pursuant to the provisions of the covenant in
Negative Covenants of the Issuer and the GuarantorsLimitations on Liens, to incur a Lien to
secure such Senior Indebtedness; or

(ii) the Issuer and the Guarantors, during or immediately after the expiration of four months after the
effective date of such Sale and Lease-Back Transaction (whether made by the Issuer or any of the
Guarantors), will apply the proceeds in accordance with Negative Covenants of the Issuer and the
GuarantorsLimitations on Sale of Assets.

Abandonment of Project

Each Concessionaire will not voluntarily (a) suspend its commercial activities for more than 24 hours
other, to the extent consistent with such Concessionaires obligations under its Concession Agreement, than due
to safety concerns, at the insistence of such Concessionaires insurer or any governmental instrumentality or
consistent with prudent industry practices, (b) suspend any activities that would result in a loss of 15% of
revenues of the Concessionaires on a combined basis for more than 30 days, or (c) permanently close the Bus
Network or any Permitted Business or cease, abandon or agree to abandon the operation of the Bus Network or
any Permitted Business.

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 Change of Fiscal Year; Nature of Business; Subsidiaries

The Concessionaires will not change their fiscal years, except as required by law, or engage in any
business other than a Permitted Business. The Issuer and Guarantors shall not have, directly or indirectly, any
Restricted Subsidiary (except for subsidiaries existing on the Escrow Closing Date to be dissolved pursuant to
Covenants Relating to Existing Subsidiaries, the Guarantors and Lorena SpA).

Bank Accounts

The Issuer and the Guarantors will not open or maintain any bank accounts other than the Accounts and
will promptly, and no later than 30 Business Days from the Escrow Closing Date, close any such accounts that
existed prior to the Escrow Closing Date and cause any balances therein to be transferred to the Revenue
Account.

Assignment

Other than as set forth in the Security Documents, the Issuer and the Guarantors will not assign or
otherwise transfer their rights or obligations under any Transaction Document or governmental authorization to
any Person, provided that the Concessionaires may assign or otherwise transfer their rights or obligations under
any Operating Agreement or governmental authorization only between themselves in compliance with the terms
and conditions set forth therein.

Limitations on Affiliate Transactions

The Issuer and the Guarantors will not, directly or indirectly, enter into any transaction or series of
related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) with, or for the benefit of, any of the Issuers or the Guarantors respective affiliates
(each such transaction, an Affiliate Transaction), unless:

(a) the terms of such Affiliate Transaction are no less favorable than those that could reasonably be
expected to be obtained in a comparable transaction at such time on an arms-length basis from a
person that is not its affiliate;

(b) in the event that such Affiliate Transaction involves aggregate payments, or transfers of property or
services with a Fair Market Value in excess of U.S.$5.0 million, the terms of such Affiliate
Transaction will be approved by a majority of the members of the Board of Directors of the Issuer
or any Guarantor party to such Affiliate Transaction, the approval to be evidenced by a board
resolution stating that the Board of Directors has determined that such transaction complies with
clause (a) above; and

(c) in the event that such Affiliate Transaction involves aggregate payments, or transfers of property or
services with a Fair Market Value in excess of U.S.$10.0 million, the Issuer and any Guarantor
will, prior to the consummation thereof, obtain a favorable opinion as to the fairness of such
Affiliate Transaction to the Issuer or any Guarantor party to such Affiliate Transaction from a
financial point of view from an independent financial advisor and provide the same to the Trustee.

The foregoing requirements will not apply to:

(a) transactions with or among the Issuer and any Guarantor, or between or among Guarantors;

(b) reasonable fees and compensation paid to, and any indemnity provided on behalf of, and
employment contracts and benefit plans for the benefit of, and reimbursement of reasonable
business expenses of, the Issuers and the Guarantors officers, directors, employees, consultants or
agents as determined in good faith by the Board of Directors of the Issuer and any applicable
Guarantor;

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 (c) any transactions undertaken pursuant to any contractual obligations or rights in existence on the
Note Closing Date and described in this Offering Memorandum (as in effect on the Note Closing
Date) (including the consulting agreement with Rioma and the Assigned Receivables both
described in this Offering Memorandum) or any renewal or amendment thereto after the Note
Closing Date (so long as such renewal or amendment is not disadvantageous to the Issuer or the
Guarantors, as applicable, in any material respect);

(d) any Restricted Payments made in compliance with Restricted Payments;

(e) any issuance of Capital Stock (other than Disqualified Stock) of the Issuer or any Guarantor to
Affiliates of the Issuer or any Guarantor; provided that such Capital Stock required to be pledged
pursuant to any Share Pledge Agreement is so pledged simultaneously with such issuance; and

(f) the Transactions and the Acquisition.

No Other Powers of Attorney

The Issuer and the Guarantors will not execute or deliver any power of attorney (other than powers of
attorney for signatories of documents permitted by the Transaction Documents and limited purpose powers of
attorney in the ordinary course of its business), fiduciary transfer agreements or similar documents, instruments
or agreements, except to the extent such documents, instruments or agreements comprise part of the Security
Documents or relate to the consummation of the Transactions and the Acquisition or the performance of
ministerial or operational tasks in the ordinary course of business.

Dispositions

The Issuer and the Guarantors will not cause or suffer to exist any direct or indirect sale, transfer,
assignment, pledge or other disposition (a Disposition) of any Capital Stock of the Issuer or the Guarantors
unless such Disposition is a Permitted Disposition.

Investment Company Act

The Issuer and the Guarantors will not take (nor permit any affiliate) to take any action that could result
in the Issuer or any Guarantor being required to register as an investment company or being a company
controlled by a company required to register as an investment company, under and within the definitions set
forth in the Investment Company Act.

CAPEX Costs

The Issuer and the Guarantors will not incur, commit or pay any CAPEX Costs during the first two
Reporting Periods after the date of the Indenture, except to the extent permitted to be paid from the O&M
Account or with proceeds from common equity issuances for cash, cash capital contributions or Subordinated
Indebtedness in accordance with the Indenture. After the first two Reporting Periods, the Concessionaires will
not make or direct the Secured Party Agents to make, and the Secured Party Agents will not make, any
withdrawal from the Revenue Account to the extent that the aggregate amount of all requested withdrawals from
the Revenue Account to pay CAPEX Costs from the Deposits of Funds to and Distribution of Funds from the
Revenue AccountSemi-annual and Special Distributionseleventh in any quarterly budgetary period exceeds
100% of the amount budgeted for CAPEX Costs for such quarterly budgetary period (excluding, for the
avoidance of doubt, CAPEX Costs paid from the O&M Account in accordance with the Indenture) as set forth in
the then-current quarterly CAPEX budget (the CAPEX Budget) completed by the Concessionaires and
submitted to the Secured Party Agents and each Rating Agency; provided that such CAPEX Costs will be
subject, at the time they are incurred or committed, to (a) a backwards looking Debt Service Coverage Ratio

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requirement of not less than 1.20:1.00 for each of the two immediately preceding Reporting Periods for which
consolidated financial statements have been submitted to the Secured Party Agents, (b) a forward looking Debt
Service Coverage Ratio requirement of an average of 1.20:1.00 for the remaining Reporting Periods until the
final maturity of the Notes, and (c) a forward looking Debt Service Coverage Ratio requirement of a minimum of
1.15:1.00 for each of the remaining Reporting Periods until the final maturity of the Notes.

Notwithstanding the foregoing, if the Concessionaires fund any CAPEX Costs by the issuance of
common equity for cash, cash capital contributions or Subordinated Indebtedness, then such CAPEX Costs will
not be subject to any ratios and such funds will not be required to be deposited into the Revenue Account.

The Concessionaires will deliver to the Secured Party Agents, within ten days after the end of each
fiscal quarter, an Officers Certificate certifying all CAPEX Costs incurred and paid during the applicable fiscal
quarter and attaching an account statement.

Limitations on Consolidation, Merger or Transfer of Assets

None of the Issuer or Guarantor will consolidate or merge with or into, or assign, transfer, convey lease
or otherwise dispose of all or substantially all of its assets to, any person, unless:

(a) the resulting, surviving or transferee person or persons (if not an Issuer or Guarantor) will be a
person or persons organized and existing under the laws of Chile, the United States, the District of
Columbia, Canada or any other country that is a member country of the European Union or of the
Organization for Economic Co-operation and Development on the date of the Indenture, and such
person or persons expressly assume, by a supplemental indenture to the Indenture, executed and
delivered to the Trustee, all the obligations of such Issuer or Guarantor under the Indenture;

(b) the resulting, surviving or transferee person or persons (if not a an Issuer or Guarantor), if not
organized and existing under the laws of Chile undertakes, in such supplemental indenture, to pay
such additional amounts in respect of principal (and premium, if any) and interest as may be
necessary in order that every net payment made in respect of the Notes or the guarantees, as
applicable, after deduction or withholding for or on account of any present or future tax, penalty,
duty, assessment, fee or other governmental charge (and any fines, penalties, interest or other
liabilities related thereto) imposed by the jurisdiction under the laws of which such person (or
persons) is organized or existing or any jurisdiction from or through which any payment under the
Notes is made on behalf of the Issuer or any Guarantor (or any political subdivision or taxing
authority thereof or therein) will not be less than the amount of principal (and premium, if any) and
interest then due and payable on the Notes, subject to the same exceptions set forth under clauses
(a) (i), (ii) and (iii) under Additional Amounts but adding references to such other jurisdiction to
the existing references in such clause to Relevant Taxing Jurisdiction;

(c) immediately prior to such transaction and immediately after giving effect to such transaction, no
Default or Event of Default will have occurred and be continuing; and

(d) the Issuer and Guarantor will have delivered to the Trustee an Officers Certificate and an Opinion
of Counsel of recognized standing, each stating that such consolidation, merger, conveyance,
transfer or lease and such supplemental indenture, if any, comply with the Indenture and that all
conditions precedent under the Indenture to the consummation of such transaction have been
satisfied.

Nothing in the Indenture shall prevent (i) Panamerican or Eco Uno from consolidating with, merging
into or transferring all or substantially all of its properties and assets to either Concessionaire, or (ii) any such
transaction between the Concessionaires.

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 The Trustee will accept such certificate and opinion as sufficient evidence of the satisfaction of the
conditions precedent set forth in this covenant, in which event it will be conclusive and binding on the
Noteholders.

Additional Covenants Related to Panamerican, Eco Uno, Lorena SpA and the Bus Terminal Loan

Nature of Business. Panamerican and Eco Uno will not engage in any business activity other than (i) the
direct or indirect ownership of shares of the Issuer and/or one or more of the Guarantors held by them on the date
of the Indenture or any additional shares provided that the same are promptly pledged to secure their Guarantees
to the extent contemplated by the Share Pledge Agreements, (ii) establishment and maintenance of the Transfer
Accounts, and (iii) as otherwise required or contemplated in connection with the Finance Agreements and
intercompany transfers pursuant thereto and, as applicable, intercompany obligations owing to or from the Issuer
and/or one or more of the Guarantors.

Lorena SpA. Alsacia will cause Lorena SpA not to engage in any business activity other than ownership
of the Excluded Depot and guarantee of the Bus Terminal Loan, the lease of the Excluded Depot to Alsacia and
related administrative activities. In addition, Lorena SpA shall not (i) incur any Debt (except its guarantee of the
Bus Terminal Loan and intercompany Subordinated Debt payable to Alsacia), (ii) create or suffer to exist any
Liens on any of its assets or property (except Permitted Liens), (iii) sell, assign, lease, transfer or otherwise
dispose of any interest in its assets or property (except its lease of the Excluded Depot to Alsacia, which shall
accrue and not be payable in cash while any Notes are outstanding, and in connection with any foreclosure on the
Excluded Depot, (iv) create or acquire any Subsidiaries or make any Investment, (v) consolidate or merge with or
into any other Person or sell, lease or otherwise transfer, directly or indirectly, all or any part of its assets or
property to any other Person (except the Issuer or a Guarantor), in each case except as otherwise expressly
permitted under the Finance Agreements. For the avoidance of doubt, the Excluded Depot shall be operated by
Alsacia, and O&M Expenses, Repair Costs and other payments in respect of the Excluded Depot and such
operations shall be paid out of the Accounts as Concessionaire payments. Alsacia shall operate the Excluded
Depot in accordance with the covenants of this Indenture applicable to other operations of Alsacia.

Bus Terminal Loan. Alsacia and any Guarantor will not consent to or otherwise provide for any
amendment, supplement, novation or renewal of the Bus Terminal Loan on terms that are more favorable than
the current terms thereof, nor any such amendment, supplement, novation or renewal will be on terms materially
adverse to the Noteholders or the Notes Hedge Counterparty.

Covenants Relating to Existing Subsidiaries

Dissolution and Liquidation of Existing Subsidiaries. Alsacia and the Guarantors will liquidate and
dissolve their then existing subsidiaries (other than Lorena SpA and subsidiaries which are Guarantors) as soon
as practicable after the Escrow Closing Date.

Nature of Business. Until the time they are dissolved and liquidated, Alsacia and the Guarantors will
cause each of their then existing subsidiaries (other than Lorena SpA and subsidiaries which are Guarantors) not
to: (i) engage in any business activity; (ii) Incur any Debt; (iii) create or suffer to exist any Liens on any of its
Properties; and (iv) create or acquire any subsidiaries or make any Investments.

Early Amortization

General. During the period (the Early Amortization Period) beginning on the day on which an Early
Amortization Period is declared to have commenced or automatically commences pursuant to the provisions
under Early Amortization Events below, and continuing to and including the date on which principal,
interest and all other amounts due under the Notes have been paid in full (or such earlier date as the Controlling
Party of the Notes so determines), the remaining unpaid principal balance under the Notes will be due and
payable on each Payment Date with the Available Funds (the Early Amortization Principal Amounts).

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 During any Early Amortization Period, the Concessionaires will transfer or cause to be transferred the
Available Funds (in addition to funds for accrued interest and any other payment under the Notes in the order of
priority set forth in the Indenture, and Contingent Hedge Payments) from the Revenue Account to the Payment
Account on each Transfer Date for payment of the Early Amortization Principal Amounts on the next Payment
Date(s). Additionally, during any Early Amortization Period, the Concessionaires will transfer funds in the
Reserve Account and/or under the Letter of Credit to the Trustee for the benefit of the Noteholders and the Notes
Hedge Counterparty on the next Payment Date, which funds will be applied to the payment of the Early
Amortization Principal Amounts, accrued interest and any other payment under the Notes in the order of priority
set forth in the Indenture on such Payment Date.

Amounts thus applied to reduce the principal of the Notes will result in a pro rata reduction of the
remaining Scheduled Amortization Amounts for the Notes.

Early Amortization Events. Each of the following will be designated as an Early Amortization Event
for the Notes:

(a) the occurrence of an Event of Default;

(b) the occurrence of an early amortization event with respect to any other Senior Indebtedness of the
Issuer or any Guarantor; and

(c) failure to maintain a minimum Debt Service Coverage Ratio of 1.10:1.00 in any Reporting Period
(the Early Amortization Debt Service Coverage Ratio), except for the Reporting Periods through
March 31, 2012.

Upon the occurrence of an Early Amortization Event, the Controlling Party, by notice then given in
writing to the Issuer, the Guarantors and the Secured Party Agents, may declare that the Early Amortization
Period has commenced; provided that, the written notice in respect of an Event of Default (other than an Event of
Default described in clause (h) under Events of Default) must be given by the Controlling Party to the Issuer,
the Guarantors and the Secured Party Agents within six months of the Noteholders receiving notice of such Event
of Default; provided further that, (A) upon the occurrence of an Event of Default described in clause (h) under
Events of Default, an Early Amortization Period will automatically commence, and (B) the specific event,
occurrence or omission that resulted in the Event of Default that caused such Early Amortization Event shall not
be the basis for declaration of any other Early Amortization Events for six months following the end of such
six-month period.

Coverage Reserve Account. Notwithstanding anything herein to the contrary, upon the occurrence of an
Early Amortization Event related to the failure to satisfy the Early Amortization Debt Service Coverage Ratio,
the Issuer and the Guarantors may cure such breach by either:

(a) electing (by written notice to the Secured Party Agents) to have all amounts then and thereafter
payable to the Noteholders under the Finance Agreements to be deposited into a segregated trust
account in the United States held by the Secured Party Agents in the name of Secured Party Agents
for the benefit of the Noteholders (the Coverage Reserve Account); and/or

(b) depositing, or causing to be deposited, into the Coverage Reserve Account (which shall be funded
by the issuance of common equity for cash, cash capital contributions or Subordinated
Indebtedness, and which shall not be required to be deposited into the Revenue Account) an
amount of U.S. dollars such that, had such amount been received as collections in the Revenue
Account during the applicable Transfer Period, such breach would not have occurred (the
Coverage Reserve Account Deposit Amount). If so elected by the Issuer and the Guarantors, the
Issuer and the Guarantors shall deposit, or cause to be deposited, into the Coverage Reserve

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 Account an amount equal to the Coverage Reserve Account Deposit Amount, which must have
been funded with Subordinated Indebtedness incurred by or cash capital contributions made to the
Issuer or the Guarantors for specific deposit therein.

If the Coverage Reserve Account is funded as described herein, notwithstanding anything to the
contrary described herein, an Early Amortization Event related to the failure to satisfy any Early Amortization
Debt Service Coverage Ratio will be deemed not to have occurred (regardless of whether the Controlling Party
for the Notes has declared that an Early Amortization Period has commenced with respect to the failure to meet
the Early Amortization Debt Service Coverage Ratio); provided that if the Early Amortization Debt Service
Coverage Ratio continues to fail to be met for each of the next three respective Reporting Periods, then,
notwithstanding the funding of the Coverage Reserve Account, an Early Amortization Event shall occur.

Pending application in accordance with the Indenture, amounts in the Coverage Reserve Account will be
invested by the Secured Party Agents in U.S. Permitted Investments. The Issuer and the Guarantors may exercise
such right to cure up to three times through the final maturity of the Notes; provided that they may not exercise
such right more than once during any period of 12 consecutive calendar months.

Amounts in the Coverage Reserve Account will be distributed by the Secured Party Agents as follows:

(a) on each Payment Date occurring after the exercise by the Issuer and the Guarantors of the option to
fund the Coverage Reserve Account, if amounts on deposit in the Payment Account for the Notes
on such Payment Date are less than the aggregate amount due and payable on such date, then the
amount of such shortfall will (to the extent available) be transferred from the Coverage Reserve
Account to the Payment Account and then paid to the Noteholders, the Notes Hedge Counterparty
and other parties entitled to such amounts as set forth in the Indenture; and

(b) if the Early Amortization Debt Service Coverage Ratio for the Notes is met with respect to any two
consecutive Reporting Periods after such election, then the balance of funds on deposit in the
Coverage Reserve Account may be used by the Issuer and the Guarantors to cancel the related
Subordinated Indebtedness or return the related capital contribution (which, in each case, shall not
constitute a Restricted Payment), with any remaining balance under the Subordinated Indebtedness
or the capital contribution payable in accordance with the Indenture and the order of priority set
forth above; additional funds need no longer be deposited into the Coverage Reserve Account
unless and until the Issuer and the Guarantors exercise such option again.

If a balance remains in the Coverage Reserve Account after all of the Notes have been paid in full, then
such balance will be paid at the Issuers and the Guarantors instructions.

Additional Coverage Reserve Account. Any other Senior Indebtedness may provide for an account to
serve the same purpose as the Coverage Reserve Account (the Additional Coverage Reserve Accounts),
provided that such Additional Coverage Reserve Accounts may not provide for better benefits or be on more
favorable terms to the creditors under such other Senior Indebtedness than the Coverage Reserve Account to the
Noteholders and the Notes Hedge Counterparty, as determined by the board of directors of the Concessionaires in
good faith.

Events of Default

Each of the following is an Event of Default under the Indenture:

(a) a failure by the Issuer or any Guarantor to pay any principal of the Notes, when due and payable,
whether at maturity, upon redemption or otherwise;

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(b) a failure by the Issuer or any Guarantor for 30 days to pay interest or any Additional Amounts
when due and payable on any Notes;

(c) any default of any of the following covenants by the Issuer or any Guarantor will constitute an
immediate Event of Default:

(i) CovenantsUse of Proceeds;

(ii) CovenantsMaintenance of Corporate Existence;

(iii) Repurchase of Notes upon a Change of Control;

(iv) Mandatory Redemption; and

(v) CovenantsNotices only with respect to notices relating to any Event of Default, Early
Amortization Event, Termination Event or Expropriation Action.

(d) a default in the observance or performance of any covenant or agreement of the Issuer or any
Guarantor made in the Indenture (other than as contemplated in clauses (a) through (c) above) or
any other Finance Agreement and, other than a default that cannot be cured in a 30-day period (or,
in the case of Affirmative Covenants of the Issuer and the GuarantorsBooks and Records and
Negative Covenants of the Issuer and the GuarantorsLimitations on Liens, a 45-day period),
such default continues for 30 days (or, in the case of Affirmative Covenants of the Issuer and the
GuarantorsBooks and Records and Negative Covenants of the Issuer and the Guarantors
Limitations on Liens, 45 days) after the earlier of (i) any Officer of the Issuer or any Guarantor
becoming aware of such default and (ii) the Secured Party Agents or the Controlling Party giving
notice of default;

(e) the application of any fines or discounts under the Concession Agreements which could reasonably
be expected to result in a Material Adverse Change;

(f) any default under any Transaction Document, including any failure to deposit any funds to the
extent available as provided therein or withdrawal, except as expressly permitted thereunder,
including express provision for default if any Transaction Document (other than Additional
Agreements) is terminated, canceled or materially amended, and in each case could reasonably be
expected to result in a Material Adverse Change;

(g) any representation or warranty made by the Issuer or any Guarantor in any Finance Document to
which such person is a party or in any Officers Certificate delivered in connection with the release
of the Escrow, is found to be false and misleading in any material respect when made, unless, in the
case of any false or misleading representation or warranty as to which the condition giving rise
thereto is capable of being cured, such condition has been cured and such representation or
warranty is no longer false or misleading in any material respect within 30 days after the Issuer or
such Guarantor first has knowledge or should have had knowledge, after due inquiry, that such
representation or warranty was false or misleading in such material respect;

(h) the Issuer or any Guarantor (collectively, the Subject Persons):

(i) institutes a voluntary case or undertake actions to form an arrangement with its creditors
generally for the purpose of paying past due debts or seeking liquidation, reorganization or
moratorium of payments, under any bankruptcy law (or any similar statute in any relevant
jurisdiction), or consents to the institution of an involuntary case thereunder against it;

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 (ii) files a petition, answer or consent or otherwise institutes any similar proceeding under any
other legal requirements, or consents thereto;

(iii) applies for, or by consent or acquiescence there is, the appointment of a receiver, liquidator,
sequestrator, trustee or other official with similar powers, or any of the Subject Persons makes
an assignment for the benefit of creditors generally;

(iv) admits in writing its inability to pay its debts generally as they become due;

(v) has an involuntary case commenced against it seeking the liquidation or reorganization of
such Subject Person under any bankruptcy law (or any similar statute under any relevant
jurisdiction) or any similar proceeding is commenced against such Subject Person under any
other legal requirements and (A) the petition commencing the involuntary case is not timely
controverted, (B) the petition commencing the involuntary case is not dismissed within ninety
days of its filing, (C) an interim trustee is appointed to take possession of all or a portion of
the property, and/or to operate all or any part of the business of Subject Person and such
appointment is not vacated within ninety days, or (D) an order for relief has been issued or
entered therein; or

(vi) has entered against it a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee or other officer having similar
powers of such Subject Person or of all or a part of its property;

(i) any final, non-appealable judgments, decisions or orders for the payment of money in an aggregate
amount exceeding U.S.$10.0 million (or the equivalent in another currency) (to the extent such
judgments, decisions or orders are not paid or covered by insurance provided by a reputable
carrier) are entered against the Issuer or any Guarantor and (A) enforcement proceedings are
commenced by any creditor upon such judgments, decisions or orders or (B) there is a period of 30
consecutive days during which a stay of enforcement of such judgments, decisions or orders, by
reason of a pending appeal or otherwise, is not in effect;

(j) any Expropriatory Action of the Concessions or any portion, material to the Issuer and the
Guarantors considered as a whole, of the assets used by the Issuer and/or any Guarantor and their
affiliates in connection with the operation of the Concessions, except to the extent that an
Expropriatory Action results in the immediate payment to the Trustee of Expropriation
Compensation sufficient, in the opinion of the Trustee, to repay the Notes and all amounts then due
and payable to the Noteholders;

(k) any suspension, revocation, cancellation, loss or termination of any of the Operating Agreements
and that in each case could reasonably be expected to result in a Material Adverse Change;

(l) the Noteholders or the Notes Hedge Counterparty cease to have a perfected first-priority security
interest in any Collateral having an aggregate Fair Market Value in excess of U.S.$10.0 million
except as released in accordance with the Transaction Documents;

(m) any revocation or withdrawal of any material government authorization that could reasonably be
expected to result in a Material Adverse Change; or

(n) default under any mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Senior Indebtedness (other than the Bus Terminal Loan) by
the Issuer or any Guarantor (or the payment of which is guaranteed by the Issuer or any Guarantor)
whether such Senior Indebtedness or guarantee now exists, or is created after the issuance of the

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 Notes, if that default: (A) is caused by a failure to make any payment when due at the final
maturity of such Senior Indebtedness (a Payment Default); or (B) results in the acceleration of
such Senior Indebtedness prior to its express maturity, and, in each case, the amount of any such
Senior Indebtedness, together with the amount of any other such Senior Indebtedness under which
there has been a Payment Default or the maturity of which has been so accelerated, aggregates
U.S.$10.0 million or more.

The Indenture provides that (a) if an Event of Default (other than an Event of Default described in
clause (h) above) will have occurred and be continuing with respect to the Notes, either the Trustee or the
Controlling Party may declare the principal of, and Additional Amounts, if any, and accrued and unpaid interest
on all the outstanding Notes to be due and payable immediately by notice in writing to the Concessionaires and
the Trustee specifying the Event of Default and that it is a notice of acceleration and (b) if an Event of Default
described in clause (h) above will have occurred, the principal of all the outstanding Notes and the interest
accrued thereon, if any, will become and be immediately due and payable without any declaration or other act on
the part of the Trustee or any holder of such Notes. The Indenture provides that the Notes owned by the Issuer or
the Guarantors or any of their affiliates will be deemed not to be outstanding for, among other purposes,
declaring the acceleration of the maturity of the Notes.

Upon the satisfaction by the Issuer and Guarantors of certain conditions, the declaration described in
clause (a) of the preceding paragraph may be rescinded by the Controlling Party. No rescission will affect any
subsequent Default or impair any rights relating thereto. Past defaults, other than non-payment of principal,
interest and compliance with certain covenants, may be waived by the Controlling Party.

The Trustee must give to the Noteholders notice of all uncured defaults actually known to it with respect
to the Notes within 30 days after the Trustee has actual knowledge of such a default (unless such default will
have been cured); provided, however, that, except in the case of default in the payment of principal, interest or
Additional Amounts, the Trustee will be protected in withholding such notice if it in good faith determines that
the withholding of such notice is in the interest of the Noteholders.

The Indenture provides that, subject to the duty of the Trustee during default to act with the required
standard of care, the Trustee will be under no obligation to exercise any of its rights or powers under the
Indenture at the request or direction of any Noteholders, unless such holders will have offered to the Trustee
indemnity satisfactory to it. Subject to the provisions of the Indenture and applicable law, Controlling Party has
the right to direct the time, method and place of conducting any remedy available to the Trustee or exercising any
trust or power conferred on the Trustee.

Cash Trapping Upon any Event of Default

During the period (the Cash Trapping Period) beginning on the day any Event of Default has
occurred, and continuing to and including the date on which principal, interest and all other amounts due under
the Notes have been paid in full (or such earlier date as the Controlling Party so determines, or as set forth in the
provisos below), except in the limited circumstances provided in the Indenture that permit transfer of cash
proceeds of common equity issuances, capital contributions or Subordinated Indebtedness, the Concessionaires
will make no transfers pursuant to tenth through seventeenth under Deposits of Funds to and Distribution
of Funds from the Revenue Account; provided that, if such Event of Default has been cured or waived, or if the
Controlling Party does not declare an Early Amortization Period in respect of an Event of Default (other than an
Event of Default described in clause (h) under Events of Default) to have commenced pursuant to the
provisions under Early Amortization Events within six months of the Noteholders receiving notice of such
Event of Default, then in either case the Cash Trapping Period shall end and shall not recommence until the
occurrence or continuance of another Event of Default (or new circumstances or events resulting in the same type
of Event of Default) that would automatically trigger or permit the Controlling Party to declare an Early
Amortization Event; provided further that, (i) upon the occurrence of an Event of Default described in clause

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(h) under Events of Default, or (ii) upon a notice of acceleration being given under Events of Default,
the Cash Trapping Period will continue to and including the date on which principal, interest and all other
amounts due under the Notes have been paid in full irrespective of any other notice being given (unless such
acceleration has been rescinded in accordance with the Indenture or the Controlling Party determines otherwise).

For the avoidance of doubt, a Cash Trapping Period in connection with an Event of Default (other than
an Event of Default described in clause (h) under Events of Default) shall end and shall not recommence
until the occurrence or continuance of another Event of Default (or new circumstances or events resulting in the
same type of Event of Default) that would automatically trigger or permit the Controlling Party to declare an
Early Amortization Event, unless the Controlling Party declares an Early Amortization Period in respect of such
Event of Default within six months of the Noteholders receiving notice of such Event of Default.

Defeasance

The Issuer or any Guarantor may at any time terminate all of their obligations with respect to the Notes,
which we refer to as defeasance, except for certain obligations, including those regarding any trust established
for a defeasance and obligations to register the transfer or exchange of the Notes, to replace mutilated, destroyed,
lost or stolen Notes and to maintain agencies in respect of Notes. The Issuer or any Guarantor may at any time
terminate their obligations under certain covenants set forth in the Indenture, and any omission to comply with
such obligations will not constitute a Default or an Event of Default with respect to the Notes issued under the
Indenture, which we refer to as covenant defeasance. In order to exercise either defeasance or covenant
defeasance, the Issuer or any Guarantor must irrevocably deposit in trust, for the benefit of the Noteholders, with
the trustee money or U.S. government obligations, or a combination thereof, in such amounts as will be
sufficient, in the opinion of an internationally recognized firm of independent public accountants expressed in a
written certificate delivered to the Trustee, without consideration of any reinvestment, to pay the principal of, and
interest on the Notes to redemption or maturity and comply with certain other conditions, including the delivery
of an opinion of counsel as to certain tax matters (which in the case of defeasance only must be based on a ruling
of the Internal Revenue Service or a change in U.S. federal income tax law).

Satisfaction and Discharge

The Indenture will be discharged and will cease to be of further effect (except as to the surviving rights
or registration or transfer or exchange of the Notes, except as otherwise therein expressly provided for), and the
Collateral will be released, as to all Notes and the Notes Hedge Agreement when:

(a) either (i) all Notes theretofore executed, authenticated and delivered (except (A) lost, stolen or
destroyed Notes which have been replaced or paid and (B) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid
to the Issuer or discharged from such trust) have been delivered to the Trustee for cancellation; or
(ii) all Notes not theretofore delivered to the Trustee for cancellation have become due and payable
or subject to redemption as set forth above under Optional Redemption, and the Issuer has
irrevocably deposited or caused to be irrevocably deposited with the Trustee U.S. dollars or U.S.
Government Obligations sufficient to pay and discharge the entire Debt on the Notes not theretofor
delivered to the Trustee for cancellation, for principal of and interest on the Notes to the date of
maturity or redemption, together with irrevocable instructions from the Issuer directing the Trustee
to apply such funds to the payment thereof at maturity or redemption, as the case may be;

(b) the Issuer has paid all other sums payable under the Indenture and the Notes; and

(c) the Issuer has delivered to the Trustee an Officers Certificate and an Opinion of Counsel stating
that all conditions precedent under the Indenture relating to the satisfaction and discharge of the
Indenture have been complied with.

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Notices

Any notice or communication to a Noteholder shall be deemed to have been duly given (i) upon the
mailing of such notice by first class mail to such Noteholder at its registered addresses as recorded in the Register
not later than the latest date, and not earlier than the earliest date, prescribed in the Indenture for the giving of
such notice, such notice being deemed validly given on the fourth Business Day following such mailing, and
(ii) for so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange, upon publication
via the website of the Luxembourg Stock Exchange at www.bourse.lu, such notices being deemed given on the
date of such publication. In the case of Global Notes, held in book-entry form at DTC, such notices shall be sent
to DTC or its nominees (or any successors), as the holders thereof, and DTC will communicate such notices to
the DTC participants in accordance with its standard procedures. Any requirement of notice hereunder may be
waived by the Person entitled to such notice before or after such notice is required to be given.

Amendments, Supplements and Waivers

The Issuer, the Guarantors and the Secured Party Agents may, without notice to or the consent or vote of
any Noteholder or the Notes Hedge Counterparty, amend or supplement the Finance Agreements or the Notes for
the following purposes:

(a) to cure any ambiguity, omission, defect or inconsistency, provided that such amendment or
supplement does not materially and adversely affect the rights of any Noteholder or any Note
Hedge Counterparty;

(b) to comply with the covenant described under Limitations on Consolidation, Merger or Transfer
of Assets;

(c) to add guarantees or collateral with respect to the Notes or the Notes Hedge Agreement;

(d) to add to the covenants of any of the Issuer and the Guarantors for the benefit of the Noteholders;

(e) to surrender any right conferred upon any of the Issuer of the Guarantors;

(f) to evidence and provide for the acceptance of an appointment by a successor trustee or collateral
agent;

(g) to provide for the issuance of Additional Notes if otherwise permitted under the Indenture; or

(h) to make any other change that does not materially and adversely affect the rights of any Noteholder
or the Notes Hedge Counterparty, as determined in good faith by the Board of Directors of the
Issuer and any applicable Guarantor.

Subject to the terms of the immediately succeeding paragraph and only with the written consent of the
Controlling Party, the Issuer, the Guarantors and the Secured Party Agents may, from time to time and at any
time, enter into a written supplemental indenture for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Finance Agreements, any supplemental indenture or any Note
or of modifying in any manner the rights of the Noteholders in respect thereof. Without limitation of the
foregoing, the Controlling Party may terminate or suspend any Early Amortization Event or Cash Trapping
Period, in whole or in part.

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 Changes or additions to, or eliminations or waivers of, provisions of the Finance Agreements and
modifications to the rights of the Noteholders may be made with the consent of the Controlling Party except in
the following cases where the consent of all (except to the limited extent provided in clause (h) below) of the
affected Noteholders and affected Notes Hedge Counterparty is required:

(a) reduce the amount of Voting Balances necessary to consent to an amendment, waiver, or
modification of any section in the Indenture relating to amendments, supplements and waivers;

(b) reduce the rate of or change the time of payment of interest, including defaulted interest on any
Notes or Notes Hedge Agreement;

(c) reduce the principal of or change or have the effect of changing the fixed maturity of any Notes or
Notes Hedge Agreement, or change the date on which any Notes may be subject to redemption, or
reduce the redemption prices therefore;

(d) make any change in provisions of the Finance Agreements entitling each Noteholder to receive
payment of, premium (including Additional Amounts), if any, and interest on any Note on or after
the due date thereof, including any change in the obligation to repurchase the Notes following a
Change of Control or an Asset Disposition or under Affirmative Covenants of the Issuer and the
GuarantorsRepair Payments(c) that is made after any such obligation has arisen;

(e) change the currency for payment of principal of or interest on any Note or Notes Hedge
Agreement;

(f) impair the right to institute a suit for the enforcement of any right to payment on or with respect to
any Note or Notes Hedge Agreement;

(g) modify provisions relating to waiver of certain defaults, waiver of certain covenants and the
provisions summarized in this paragraph, except to increase any such percentage or to provide that
certain other provisions of the Finance Agreements cannot be modified or waived without the
consent of the Noteholder and Notes Hedge Counterparty affected by the modification;

(h) release or terminate any of the Security Documents or any Lien purported to be created thereby;
provided that, with the written consent of the Noteholders and Notes Hedge Counterparty that, in
the aggregate, hold at least 80% of the Voting Balances, the Issuer, the Guarantors and the Secured
Party Agents may, from time to time and at any time, enter into a written agreement to release or
terminate the Liens created by the Asset Pledge Agreements and Mortgages in respect of assets
with an aggregate Fair Market Value not to exceed, on a cumulative basis, 10% of the total fixed
assets of the Issuer and the Guarantors, taken as a whole, as set forth in the latest consolidated
financial statements submitted to the Trustee; or

(i) reduce in any manner the amount of, or alter the priority of, or delay the timing of, any payment or
distributions that are required to be made on any Note or Notes Hedge Agreement.

For the avoidance of doubt, pursuant to clause (h) above, Noteholders and Notes Hedge Counterparty
that, in the aggregate, hold at least 80% of the Voting Balances may provide their written consent to release or
terminate certain Liens on the Collateral, which release or termination will be binding upon all Noteholders and
the Notes Hedge Counterparty.

The Noteholders will receive prior notice as described under Notices of any proposed amendment
to the Notes or the Indenture or any waiver described in this paragraph. The Notes Hedge Counterparty will
receive notice as provided for in the Notes Hedge Agreement. After an amendment or waiver described in the
preceding paragraph becomes effective, the Issuer is required to mail to the Noteholders a notice briefly
describing such amendment or waiver. However, the failure to give such notice to all holders of the Notes, or any
defect therein, will not impair or affect the validity of the amendment or waiver.

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 The consent of the Noteholders or Notes Hedge Counterparty is not necessary to approve the particular
form of any proposed amendment or waiver. It is sufficient if such consent approves the substance of the
proposed amendment or waiver.

Governing Law

The Issuers and Guarantors capacity and corporate authorization to execute and deliver the
Transaction Documents are governed by applicable Chilean laws. The Mortgages, the Asset Pledge Agreements,
the Concession Pledge Agreements, the Chilean Money Pledges, the Intercompany Debt Pledge Agreements and
the Share Pledge Agreements will be governed by, and construed in accordance with, the laws of Chile. The
Notes, the Indenture and the NY Account Pledge Agreements will be governed by, and construed in accordance
with, the laws of the State of New York.

Consent to Jurisdiction; Process Agent; Waivers

The Issuer and each Guarantor will irrevocably and unconditionally submit to the jurisdiction of: (a) the
United States District Court for the Southern District of New York or of any New York State court (in either case
sitting in Manhattan, New York City) and (b) the courts of its own corporate domicile, in each case with all
applicable courts of appeal therefrom, with respect to actions brought against it as a defendant, for purposes of all
legal proceedings arising out of or relating to the Indenture (including any supplemental indenture) or the
transactions contemplated hereby. The Issuer and each Guarantor will irrevocably waive, to the fullest extent
permitted by applicable law, any objection that it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court, any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum and any objection based on place of residence or domicile.

The Issuer and each Guarantor will irrevocably appoint Corporation Service Company (CSC) as its
authorized agent on which any and all legal process may be served in any such action, suit or proceeding brought
in the United States District Court for the Southern District of New York or in any New York State court (in
either case sitting in Manhattan, New York City). The Issuer and each Guarantor will agree that service of
process in respect of it upon such agent, together with written notice of such service sent to it in the manner
provided for in the Indenture (or in any supplemental indenture), will be deemed to be effective service of
process upon it in any such action, suit or proceeding. The Issuer and each Guarantor will agree that the failure of
such agent to give notice to it of any such service of process will not impair or affect the validity of such service
or any judgment rendered in any action, suit or proceeding based thereon. If for any reason such agent will cease
to be available to act as such (including by reason of the failure of such agent to maintain an office in New York
City), then the Issuer and each Guarantor will agree promptly to designate a new agent in New York City, on the
terms and for the purposes of the Indenture (including any supplemental indenture). Nothing contained in the
Indenture (or in any supplemental indenture) will in any way be deemed to limit the ability of the Trustee to
serve any such legal process in any other manner permitted by applicable law or to obtain jurisdiction over the
Issuer and each Guarantor or bring actions, suits or proceedings against it in such other jurisdictions, and in such
manner, as may be permitted by applicable law.

To the extent that the Issuer and each Guarantor has or may acquire any immunity from jurisdiction of
any court or from any legal process (whether through service of notice, attachment prior to judgment, attachment
in aid of execution or execution, on the ground of sovereignty or otherwise) with respect to itself or its property,
it will irrevocably waive, to the fullest extent permitted by applicable law, such immunity in respect of its
obligations under the Indenture.

The Issuer and each Guarantor will irrevocably waive, to the fullest extent permitted by applicable law,
any claim that any action or proceeding relating in any way to the Indenture (or any supplemental indenture or
Note) should be dismissed or stayed by reason, or pending the resolution, of any action or proceeding
commenced by the Issuer and each Guarantor relating in any way to the Indenture (or such supplemental

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indenture or Note) whether or not commenced earlier. To the fullest extent permitted by applicable law, the
Issuer and each Guarantor will take all measures necessary for any such action or proceeding to proceed to
judgment before the entry of judgment in any such action or proceeding commenced by each of the Issuer or the
Guarantors.

Each of the parties to the Indenture and any supplemental indenture (and each Noteholder and Note
Owner, by its acceptance of a Global Note or a beneficial interest therein, will be deemed to) will irrevocably and
unconditionally waive trial by jury in any legal action or proceeding relating to the Indenture and any
supplemental indenture and for any counterclaim relating thereto.

Trustee

The Bank of New York Mellon is the Trustee under the Indenture.

The Indenture contains provisions for the indemnification of the Trustee and for its relief from
responsibility. The obligations of the Trustee to any holder are subject to such immunities and rights as are set
forth in the Indenture.

Except during the continuance of an Event of Default, the Trustee need perform only those duties that
are specifically set forth in the Indenture and no others, and no implied covenants or obligations will be read into
the Indenture against the Trustee or the principal paying agent. In case an Event of Default has occurred and is
continuing, the Trustee shall exercise those rights and powers vested in it by the Indenture, and use the same
degree of care and skill in such exercise, as a prudent person would exercise or use under the circumstances in
the conduct of his own affairs. No provision of the Indenture will require the Trustee or the principal paying
agent to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties
thereunder, or in the exercise of its rights or powers, unless it receives indemnity satisfactory to it against any
loss, liability or expense.

The Issuer and the Guarantors and their respective affiliates may from time to time enter into normal
banking and Trustee relationships with the Trustee and its affiliates. The address of the Trustee is 101 Barclay
Street, New York, New York 10286.

Listing

The Issuer and the Guarantors will apply to list the Notes on the Official List of the Luxembourg Stock
Exchange and to trade them on the Euro MTF Market of that exchange.

Currency Indemnity

U.S. dollars are the sole currency of account and payment for all sums payable by the Issuer and the
Guarantors under or in connection with the Notes, including damages. Any amount received or recovered in a
currency other than U.S. dollars (whether as a result of a judgment or the enforcement of a judgment or order of a
court of any jurisdiction, in the winding-up or dissolution of any of the Issuer or the Guarantors or otherwise) by
any holder of a Note in respect of any sum expressed to be due to it from any of the Issuer and the Guarantors
will only constitute a discharge of such sum to the extent of the amount of U.S. dollars that the recipient is able to
purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery
(or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so).
If that U.S. dollar amount is less than the U.S. dollar amount expressed to be due to the recipient under any Note,
the Issuer and the Guarantors will jointly and severally indemnify such holder against any loss sustained by it as
a result; and if the amount of U.S. dollars so purchased is greater than the sum originally due to such holder, such
holder will, by accepting a Note, be deemed to have agreed to repay such excess. In any event, the Issuer and the
Guarantors will jointly and severally indemnify the recipient against the cost of making any such purchase.

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 For the purposes of the preceding paragraph, it will be sufficient for the holder of a Note to certify in a
satisfactory manner (indicating the sources of information used) that it would have suffered a loss had an actual
purchase of U.S. dollars been made with the amount so received in that other currency on the date of receipt or
recovery (or, if a purchase of U.S. dollars on such date had not been practicable, on the first date on which it
would have been practicable, it being required that the need for a change of date be certified in the manner
mentioned above). These indemnities constitute a separate and independent obligation from the other obligations
of the Issuer and the Guarantors, will give rise to a separate and independent cause of action, will apply
irrespective of any indulgence granted by any holder of a Note and will continue in full force and effect despite
any other judgment, order, claim or proof for a liquidated amount in respect of any sum due under any Note.

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 PLAN OF DISTRIBUTION

Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC are acting as
representatives of each of the initial purchasers named below. Subject to the terms and conditions set forth in a
purchase agreement among us and the representatives, on behalf of the initial purchasers, we have agreed to sell
to the initial purchasers, and each of the initial purchasers has agreed, severally and not jointly, to purchase from
us, the principal amount of Notes set forth opposite its name below.
Principal
Initial Purchaser Amount of Notes
Merrill Lynch, Pierce, Fenner &
Smith Incorporated . . . . . . . . . . U.S.$232,000,000
J.P. Morgan Securities LLC . . . . . . . . 232,000,000
Total . . . . . . . . . . . . . . . . . . . . . . U.S.$464,000,000

Subject to the terms and conditions set forth in the purchase agreement, the initial purchasers have
agreed, severally and not jointly, to purchase all of the Notes sold under the purchase agreement if any of these
Notes are purchased. If an initial purchaser defaults, the purchase agreement provides that the purchase
commitments of the non-defaulting initial purchasers may be increased or the purchase agreement may be
terminated.

We have agreed to indemnify the initial purchasers against certain liabilities, including liabilities under
the Securities Act, or to contribute to payments the initial purchasers may be required to make in respect of those
liabilities. The initial purchasers have agreed to be paid their discounts, fees and commissions at the Escrow
Closing Date. In the event that (i) the proceeds of the Notes at the Escrow Closing Date after application thereof
pursuant to Use of Proceeds are not sufficient to cover the discounts, fees and commissions and all related
expenses, including the fees and expenses of their counsels or (ii) the amounts on deposit in the Escrow are
returned to the investors because the Closing Conditions shall not have been satisfied, then in each case such
discounts, fees, commissions and expenses will be paid to the initial purchasers and their counsels pursuant to a
credit arrangement provided by one of the members of Grupo GPS.

Commissions and Discounts

The representatives have advised us that the initial purchasers propose initially to offer the Notes at the
offering price set forth on the cover page of this Offering Memorandum. After the initial offering, the offering
price or any other term of the offering may be changed. The initial purchasers may offer and sell the Notes
through their affiliates.

Notes Are Not Being Registered

The Notes have not been registered under the Securities Act or any state securities laws. The initial
purchasers propose to offer the Notes for resale in transactions not requiring registration under the Securities Act
or applicable state securities laws, including sales pursuant to Rule 144A and Regulation S. The initial purchasers
will not offer or sell the Notes except to persons they reasonably believe to be qualified institutional buyers or
pursuant to offers and sales to non-U.S. persons that occur outside of the United States within the meaning of
Regulation S. In addition, until 40 days following the commencement of this offering, an offer or sale of Notes
within the United States by a dealer (whether or not participating in the offering) may violate the registration
requirements of the Securities Act unless the dealer makes the offer or sale in compliance with Rule 144A or
another exemption from registration under the Securities Act. Each purchaser of the Notes will be deemed to
have made acknowledgments, representations and agreements as described under Transfer Restrictions.

The Notes are being issued outside Chile. The initial purchasers will not offer or sell the Notes directly
or indirectly to the public in Chile.

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New Issue of Notes

The Notes are a new issue of securities with no established trading market. We do not intend to apply
for listing of the Notes on any national securities exchange or for inclusion of the Notes on any automated dealer
quotation system. We have been advised by the initial purchasers that they presently intend to make a market in
the Notes after completion of the offering. However, they are under no obligation to do so and may discontinue
any market-making activities at any time without any notice. We cannot assure the liquidity of the trading market
for the Notes. If an active trading market for the Notes does not develop, the market price and liquidity of the
Notes may be adversely affected. If the Notes are traded, they may trade at a discount from their initial offering
price, depending on prevailing interest rates, the market for similar securities, our operating performance and
financial condition, general economic conditions and other factors.

No Sales of Similar Securities

We have agreed that, for a period of 180 days after the date of this Offering Memorandum, we will not
without first obtaining the prior written consent of Merrill Lynch, Pierce, Fenner & Smith Incorporated and
J.P. Morgan Securities LLC, directly or indirectly, issue, sell, offer to contract or grant any option to sell, pledge.
transfer or otherwise dispose of, any debt securities or securities exchangeable for or convertible into debt
securities, except for the Notes sold to the initial purchasers pursuant to the purchase agreement.

Short Positions

In connection with the offering, the initial purchasers may purchase and sell the Notes in the open
market. These transactions may include short sales and purchases on the open market to cover positions created
by short sales. Short sales involve the sale by the initial purchasers of a greater principal amount of Notes than
they are required to purchase in the offering. The initial purchasers must close out any short position by
purchasing Notes in the open market. A short position is more likely to be created if the initial purchasers are
concerned that there may be downward pressure on the price of the Notes in the open market after pricing that
could adversely affect investors who purchase in the offering.

Similar to other purchase transactions, the initial purchasers purchases to cover the syndicate short
sales may have the effect of raising or maintaining the market price of the Notes or preventing or retarding a
decline in the market price of the Notes. As a result, the price of the Notes may be higher than the price that
might otherwise exist in the open market.

Neither we nor any of the initial purchasers make any representation or prediction as to the direction or
magnitude of any effect that the transactions described above may have on the price of the Notes. In addition,
neither we nor any of the initial purchasers make any representation that the representatives will engage in these
transactions or that these transactions, once commenced, will not be discontinued without notice.

Notice to Prospective Investors in the EEA

In relation to each Member State of the European Economic Area (EEA) which has implemented both
the Prospectus Directive and the 2010 PD Amending Directive (each, a Relevant Member State), with effect
from and including the date on which the Prospectus Directive is implemented in that Relevant Member State
(the Relevant Implementation Date), an offer to the public of any Notes which are the subject of the offering
contemplated by this offering memorandum may not be made in that Relevant Member State, except that an offer
to the public in that Relevant Member State of any Notes may be made at any time under the following
exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:

(a) to investors with a minimum total consideration per investor of 100,000;

(b) to any legal entity which is a qualified investor as defined in the Prospectus Directive;

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 (c) to fewer than 150 natural or legal persons (other than qualified investors as defined in the
Prospectus Directive) subject to obtaining the prior consent of Merrill Lynch, Pierce, Fenner &
Smith Incorporated and J.P. Morgan Securities LLC; or

(d) in any other circumstances falling within Article 3(2) of the Prospectus Directive.

provided that no such offer of Notes shall result in a requirement by us or any representative to publish a
prospectus pursuant to Article 3 of the Prospectus Directive, or supplement a prospectus pursuant to Article 16 of
the Prospectus Directive.

For the purposes of this provision, the expression an offer to the public in relation to any Notes in any
Relevant Member State means the communication in any form and by any means of sufficient information on the
terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe to the
Notes, as the same may be varied in that Relevant Member State by any measure implementing the Prospectus
Directive in that Relevant Member State, the expression Prospectus Directive means Directive 2003/71/EC
(and the amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the
Relevant Member State in question) and includes any relevant implementing measure in that Relevant Member
State, and the expression 2010 PD Amending Directive means Directive 2010/73/EU.

Notice to Prospective Investors in Switzerland

This document, as well as any other material relating to the Notes which are the subject of the offering
contemplated by this Offering Memorandum, do not constitute an issue prospectus pursuant to Article 652a of the
Swiss Code of Obligations. The Notes will not be listed on the SWX Swiss Exchange and, therefore, the documents
relating to the Notes, including, but not limited to, this document, do not claim to comply with the disclosure
standards of the listing rules of SWX Swiss Exchange and corresponding prospectus schemes annexed to the listing
rules of the SWX Swiss Exchange. The Notes are being offered in Switzerland by way of a private placement, i.e. to
a small number of selected investors only, without any public offer and only to investors who do not purchase the
Notes with the intention to distribute them to the public. The investors will be individually approached by us from
time to time. This document, as well as any other material relating to the Notes, is personal and confidential and do
not constitute an offer to any other person. This document may only be used by those investors to whom it has been
handed out in connection with the offering described herein and may neither directly nor indirectly be distributed or
made available to other persons without our express consent. It may not be used in connection with any other offer
and shall in particular not be copied and/or distributed to the public in (or from) Switzerland.

Notice to Prospective Investors in the Dubai International Financial Centre

This document relates to an exempt offer in accordance with the Offered Securities Rules of the Dubai
Financial Services Authority. This document is intended for distribution only to persons of a type specified in
those rules. It must not be delivered to, or relied on by, any other person. The Dubai Financial Services Authority
has no responsibility for reviewing or verifying any documents in connection with exempt offers. The Dubai
Financial Services Authority has not approved this document nor taken steps to verify the information set out in
it, and has no responsibility for it. The Notes which are the subject of the offering contemplated by this Offering
Memorandum may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the Notes
offered should conduct their own due diligence on the Notes. If you do not understand the contents of this
document you should consult an authorised financial adviser.

Peru

The Notes and the information contained in this offering memorandum have not been and will not be
registered with or approved by CONASEV or the Lima Stock Exchange. Accordingly, the Notes cannot be
offered or sold in Peru, except if such offering is a private offering under the securities laws and regulations of
Peru. The Peruvian securities market law establishes that any offering may qualify as private offering if it is
directed exclusively to institutional investors.

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Other Relationships

The initial purchasers and their respective affiliates are full service financial institutions engaged in
various activities, which may include securities trading, commercial and investment banking, financial advisory,
investment management, investment research, principal investment, hedging, financing and brokerage
activities. Certain of the initial purchasers and their respective affiliates have, from time to time, performed, and
may in the future perform, various financial advisory and commercial and investment banking services for us, for
which they received or will receive customary fees and expenses. In connection with the issuance of the Notes,
we currently expect that an affiliate of Merrill Lynch, Pierce, Fenner & Smith Incorporated will be a Notes
Hedge Counterparty and an affiliate of J.P.Morgan Securities LLC may be a Notes Hedge Counterparty. See
Exchange Rate Hedge.

In the ordinary course of their various business activities, the initial purchasers and their respective
affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related
derivative securities) and financial instruments (including bank loans) for their own account and for the accounts
of their customers, and such investment and securities activities may involve securities and/or instruments of the
issuer. The initial purchasers and their respective affiliates may also make investment recommendations and/or
publish or express independent research views in respect of such securities or instruments and may at any time
hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

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 TAXATION

General

This section summarizes the principal Chilean tax and U.S. federal income tax considerations relating to
the purchase, ownership and disposition of the Notes. This summary does not provide a comprehensive
description of all tax considerations that may be relevant to a decision to purchase the Notes. This summary does
not describe any tax consequences arising under the laws of any state, locality or taxing jurisdiction other than
the United States and Chile. The convention for the avoidance of double taxation between the United States and
Chile has been signed on February 4, 2010. However such convention is not yet in effect since the approval of
the Congresses of the respective countries is still outstanding.

This summary is based on the tax laws of Chile and the United States as in effect on the date of this
Offering Memorandum, as well as regulations, rulings and decisions of Chile and the United States available on
or before that date and now in effect. Those laws, rules, regulations and decisions are subject to change and
changes could apply retroactively, which could affect the continued accuracy of this summary.

Prospective purchasers of the Notes should consult their own tax advisors as to the Chilean, U.S. or
other tax consequences of the purchase, ownership and disposition of the Notes. They should especially consider
how the tax considerations discussed below, as well as the application of state, local, foreign or other tax laws,
could apply to them in their particular circumstances.

Chilean Tax Disclosure

The following is a general summary of the material consequences under Chilean Tax Law, as currently
in effect, of an investment in the Notes made by a Foreign Holder. For purposes of this summary, the term
Foreign Holder means (i) an individual not resident or domiciled in Chile or (ii) a legal entity that is not
organized under the laws of Chile, unless the Notes are assigned to a branch or an agent, representative or,
permanent establishment of such entity in Chile. For purposes of Chilean taxation (a) an individual is a resident
of Chile if such individual has resided in Chile for more than six consecutive months in one calendar year, or a
total of more than six consecutive months in two consecutive fiscal years; or (b) an individual is domiciled in
Chile if he or she resides in Chile with the purpose of staying in Chile (such purpose to be evidenced by
circumstances such as the acceptance of employment in Chile or the relocation of ones family to Chile).

Under Chilean Tax Law, payments of interest or premium, if any, made by us in respect of the Notes to
a Foreign Holder will generally be subject to a Chilean withholding tax currently assessed at a rate of 4%.
However, the same interest and premium that qualify for the referred 4% withholding tax rate is subject to a
special additional tax equal to the difference between the withholding tax paid and a 35% tax rate to the extent
paid to entities related to us, on the portion of our indebtedness considered to be excessive. Our indebtedness will
be considered to be excessive (Excessive Indebtedness) when in the commercial year in which the Notes are
issued we have an indebtedness with entities related to us qualifying for the 4% withholding tax rate that exceeds
three times our net worth, as calculated for Chilean tax purposes. Consequently, such qualifying interest or
premium paid to entities related to us with respect to debt that exceeds the Excessive Indebtedness ratio will be
subject to a 35% tax rate (4% withholding tax plus the difference between the withholding tax paid and a 35%
rate). Under the Excessive Indebtedness rules, a lender or creditor, such as a holder of the Notes, will be deemed
to be related to the payor or debtor, if: (i) the lender or creditor is incorporated, domiciled or resident in a tax
haven (qualified as such by the Chilean Ministry of Finance, based on the list of harmful preferential tax regimes
and tax havens published by the Organization for Economic Co-Operation and Development (OECD)) at the
time of granting the loan; (ii) the lender or debtor, directly or indirectly, owns or participates in 10% or more of
the capital or the profits of the other or if lender and debtor have a common partner or shareholder which,
directly or indirectly, owns or participates in 10% or more of the capital or the profits of both; or (iii) the debt is
guaranteed directly or indirectly in cash or in any financial instruments or securities evidencing payment

235
obligations (excluding any financial instruments or securities evidencing obligations of the borrower with any of
its related entities) by a third party, for the amount effectively guaranteed. The debtor will be required to issue a
sworn statement in this regard in the form set forth by the Chilean tax authorities.

As described above, we have agreed, subject to specific exceptions and limitations, to pay Additional
Amounts to the Foreign Holders of the Notes in respect of the Chilean interest withholding tax in order that any
interest or premium the Foreign Holder receives, net of the Chilean interest withholding tax, equals the amount
which would have been received by such Foreign Holder in the absence of such Chilean interest withholding tax.
See Description of Notes and Finance AgreementsAdditional Amounts.

From a Chilean Law perspective, the terms and conditions of the issuance indicate that the lender or
creditor is the holder of record of the Global Note, and therefore the beneficiary of the interest payments to be
remitted abroad. In that regard, if the holder of the Global Note continues to be an entity which is not
incorporated, domiciled or resident in a tax haven, as defined by the Chilean Financial authority based on the list
prepared by OECD, it will not be deemed to be related to the payor or debtor.

Under Chilean Tax Law and regulations thereunder, payments of principal made by us with respect to
the Notes to a Foreign Holder will not be subject to any Chilean taxes.

Any capital gains realized on the sale or other disposition by a Foreign Holder of the Notes generally
will not be subject to any Chilean income taxes provided that the sale or other disposition of such Notes will be
effected outside of Chile by a Foreign Holder. Any premium payable on redemption of the Notes will be treated
as interest and subject to the Chilean interest withholding tax as described above.

A Foreign Holder will not be liable for estate, gift, inheritance or similar taxes with respect to the Notes
unless such Notes (i) are located in Chile at the time of such Foreign Holders death or (ii) were purchased or
acquired with money obtained from Chilean sources.

The initial issuance of the Notes is subject to stamp tax at a rate of 0.6% of the aggregate principal
amount of the Notes, which will be payable by us within five business days following that in which the Notes are
issued. If the stamp tax is not paid when due, Chilean Tax Law requires payment of the tax due plus adjustments
and 1.5% interest per each month or portion thereof and a penalty of up to three times the amount of the tax due.
In addition, until such tax (and any penalty) is paid, Chilean courts will not enforce any action based on the
Notes.

United States Tax Disclosure

Certain United States Federal Income Tax Considerations

TO COMPLY WITH INTERNAL REVENUE SERVICE CIRCULAR 230, PROSPECTIVE

INVESTORS ARE HEREBY NOTIFIED THAT: (A) ANY DISCUSSION OF U.S. FEDERAL TAX
ISSUES CONTAINED OR REFERRED TO IN THIS OFFERING MEMORANDUM IS NOT
INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED BY PROSPECTIVE INVESTORS,
FOR THE PURPOSES OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THEM UNDER
THE U.S. INTERNAL REVENUE CODE OF 1986; (B) SUCH DISCUSSION IS BEING USED IN
CONNECTION WITH THE PROMOTION OR MARKETING BY US OF THE TRANSACTIONS OR
MATTERS ADDRESSED HEREIN; AND (C) PROSPECTIVE INVESTORS SHOULD SEEK ADVICE
BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

The following discussion is a summary of certain U.S. federal income tax consequences of the purchase,
ownership and disposition of the Notes by a U.S. holder (defined below), but does not purport to be a complete
analysis of all potential tax effects. This summary is based upon the U.S. Internal Revenue Code of 1986, as

236
amended (the Code), Treasury regulations issued thereunder, and judicial and administrative interpretations
thereof, each as in effect on the date hereof, and all of which are subject to change, possibly with retroactive
effect. No rulings from the Internal Revenue Service (IRS) have been or are expected to be sought with respect
to the matters discussed below. There can be no assurance that the IRS will not take a different position
concerning the tax consequences of the purchase, ownership or disposition of the Notes or that any such position
would not be sustained.

This discussion does not address all of the U.S. federal income tax consequences that may be relevant to
a holder in light of such holders particular circumstances or to holders subject to special rules, such as financial
institutions, U.S. expatriates, insurance companies, dealers in securities or currencies, traders in securities, U.S.
holders whose functional currency is not the U.S. dollar, tax-exempt organizations, regulated investment
companies, real estate investment trusts, partnerships or other pass through entities (or investors in such entities),
persons liable for alternative minimum tax and persons holding the Notes as part of a straddle, hedge,
conversion transaction or other integrated transaction. In addition, this discussion is limited to persons who
purchase the Notes for cash at original issue and at their issue price (i.e., the price at which a substantial
amount of the Notes is sold for money to initial investors, other than underwriters, placement agents or
wholesalers) and who hold the Notes as capital assets within the meaning of section 1221 of the Code.

For purposes of this discussion, a U.S. holder is a beneficial owner of a Note that is, for U.S. federal
income tax purposes, (i) an individual who is a citizen or resident of the United States; (ii) a corporation or any
entity taxable as a corporation created or organized in the United States or under the laws of the United States,
any state thereof or the District of Columbia; (iii) any estate the income of which is subject to U.S. federal
income taxation regardless of its source; or (iv) any trust if a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S. persons have the authority to
control all substantial decisions of the trust, or if a valid election is in place to treat the trust as a U.S. person. If
any entity treated as a partnership for U.S. federal income tax purposes holds the Notes, the tax treatment of a
partner in the partnership will generally depend upon the status of the partner and the activities of the partnership.
A holder that is a partnership, and partners in such partnerships, should consult their tax advisors regarding the
tax consequences of the purchase, ownership and disposition of the Notes.

Prospective purchasers of the Notes should consult their tax advisors concerning the tax
consequences of holding Notes in light of their particular circumstances, including the application of the
U.S. federal income tax considerations discussed below, as well as the application of U.S. federal estate and
gift tax laws and state, local, foreign or other tax laws.

Effect of the Escrow Closing Date

We believe that the transactions that will occur in connection with the Escrow Closing Date, as
described above under Introductory Note, should not result in a taxable event for U.S. federal income tax
purposes. It is possible, however, that the IRS could take a contrary view, and seek to treat U.S. holders as
exchanging the Notes for new Notes in a deemed taxable exchange occurring in connection with the Escrow
Closing Date. If such a view were to be sustained, a U.S. holder would recognize capital gain or loss in an
amount equal to the issue price of the new Notes and such U.S. holders adjusted tax basis in the Notes. The
issue price of the new Notes would equal their principal amount, or, if the Notes or new Notes are treated as
publicly traded for U.S. federal income tax purposes, the fair market value of such Notes on the date of the
Escrow Closing Date. In addition, a U.S. holder could be treated as acquiring the new Notes with original issue
discount (OID) for U.S. federal income tax purposes if the principal amount of the Notes exceeded the issue
price of the new Notes by more than a statutorily defined de minimis amount. In such case, U.S. holders would
be required to include such OID in gross income under a constant yield method before cash attributable to such
OID is received. The remainder of this discussion assumes that a taxable event will not result from the
transactions that will occur in connection with the Escrow Closing Date. U.S. holders are urged to consult their
tax advisors regarding the U.S. federal income tax consequences to them of the Escrow Closing Date.

237
Characterization of the Notes

We are required to pay Additional Amounts as described under Description of Notes and Finance
AgreementsAdditional Amounts. In addition, in certain circumstances (see Description of Notes and Finance
AgreementsRedemptionOptional Redemption, and Description of Notes and Finance Agreements
Repurchase of Notes upon a Change of Control, we may be obligated to make certain other payments on the
Notes in excess of stated principal and interest. We believe (and the rest of this discussion assumes) that the
amount of Additional Amounts we will be required to pay on the Notes will generally be constant throughout the
term of the Notes and that there is only a remote possibility that we will be obligated to make any other
additional payments. Accordingly, we believe that the Notes should not be treated as contingent payment debt
instruments. Assuming such position is respected, a U.S. holder would be required to include in income the
amount of any such additional payments at the time such payments are received or accrued in accordance with
such U.S. holders method of accounting for U.S. federal income tax purposes. Our position is binding on a
holder, unless the holder discloses in the proper manner to the IRS that it is taking a different position. If the IRS
successfully challenged this position, and the Notes were treated as contingent payment debt instruments, U.S.
holders could be required to accrue interest income at a rate higher than their yield to maturity and to treat as
ordinary income, rather than capital gain, any gain recognized on a sale, exchange, retirement or redemption of a
Note. This disclosure assumes that the Notes will not be considered contingent payment debt instruments. U.S.
holders are urged to consult their own tax advisors regarding the potential application to the Notes of the
contingent payment debt instrument rules and the consequences thereof.

Payments of Interest

Payments of stated interest on the Notes (including any Chilean or other foreign income tax withheld on
such payments and any Additional Amounts with respect thereto) generally will be taxable to a U.S. holder as
ordinary income at the time that such payments are received or accrued, in accordance with such U.S. holders
method of accounting for U.S. federal income tax purposes.

Foreign Tax Credit

Interest income on a Note generally will constitute foreign source income and generally will be
considered passive category income or, in the case of certain U.S. holders, general category income in
computing the foreign tax credit allowable to U.S. holders under U.S. federal income tax laws. A U.S. holder
should be able to claim a foreign tax credit for U.S. federal income tax purposes (or, in lieu of such credit, a
deduction) with respect to the foreign income tax withheld from the payment of interest on the Note at the rate
applicable to such holder, subject to applicable limitations. U.S. tax rules governing the foreign tax credit are
complex. U.S. holders should consult their tax advisors regarding the availability of the foreign tax credit and
relevant limitations.

Sale, Exchange, Redemption, Retirement or Other Taxable Disposition of Notes

Generally, upon the sale, exchange, redemption, retirement or other taxable disposition of a Note, a U.S.
holder will recognize taxable gain or loss equal to the difference between the amount realized on the disposition
(less any amount attributable to accrued but unpaid interest not previously included in income, which will be
taxable as such) and such U.S. holders adjusted tax basis in the Note. A U.S. holders adjusted tax basis in a
Note is generally the cost therefor decreased by any payment on the Note other than stated interest.

Gain or loss recognized upon the sale, exchange, redemption, retirement or other taxable disposition of a
Note generally will be U.S. source gain or loss and generally will be capital gain or loss and will be long-term
capital gain or loss if at the time of the sale, exchange, redemption, retirement or other disposition the Note has
been held by such U.S. holder for more than one year. Long-term capital gain realized by a non-corporate U.S.
holder will generally be subject to taxation at a reduced rate. The deductibility of capital losses is subject to

238
limitation. Because such gain will be U.S. source gain, in the event any foreign income tax is withheld thereon,
the U.S. holder may not be able to benefit from the foreign tax credit for the tax unless the U.S. holder can apply
the credit against its U.S. federal income tax payable on other income from foreign sources. Alternatively, the
U.S. holder may take a deduction for the foreign income tax if the U.S. holder elects to deduct (rather than credit)
all foreign income taxes paid or accrued during the taxable year. The rules governing foreign tax credits are
complex and U.S. holders should consult their tax advisors regarding the availability of foreign tax credits in
their particular circumstances.

Information Reporting and Backup Withholding

In general, payments of interest and the proceeds from sales or other dispositions (including retirements
or redemptions) of Notes held by a U.S. holder may be required to be reported to the IRS unless the U.S. holder
is an exempt recipient and, when required, demonstrates this fact. In addition, a U.S. holder that is not an exempt
recipient may be subject to backup withholding unless it provides a taxpayer identification number and otherwise
complies with applicable certification requirements.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited
against a holders U.S. federal income tax liability and may entitle the holder to a refund, provided that the
appropriate information is timely furnished to the IRS.

New Legislation

For taxable years beginning after March 18, 2010, new legislation requires certain U.S. holders who are
individuals to report information relating to an interest in our Notes, subject to certain exceptions (including an
exception for Notes held in accounts maintained by certain financial institutions). U.S. holders should consult
their tax advisors regarding the effect, if any, of this legislation on their ownership and disposition of the Notes.

239
 CERTAIN ERISA CONSIDERATIONS

ERISA imposes certain requirements on employee benefit plans subject to Title I of ERISA and on
entities that are deemed to hold the assets of such plans (ERISA Plans), and on those persons who are
fiduciaries with respect to ERISA Plans. Investments by ERISA Plans are subject to ERISAs general fiduciary
requirements, including, but not limited to, the requirement of investment prudence and diversification and the
requirement that an ERISA Plans investments be made in accordance with the documents governing the plan.

Section 406 of ERISA and Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the
Code), prohibit certain transactions involving the assets of an ERISA Plan, as well as those plans that are not
subject to ERISA but which are subject to Section 4975 of the Code, such as individual retirement accounts, and
entities that are deemed to hold the assets of ERISA Plans or plans subject to Section 4975 of the Code
(collectively, Plans)) and certain persons (referred to as parties in interest or disqualified persons) having
certain relationships to such Plans, unless a statutory or administrative exemption is applicable to the transaction.
A party in interest or disqualified person who engages in a prohibited transaction may be subject to excise taxes
and other penalties and liabilities under ERISA and the Code.

Any Plan fiduciary which proposes to cause a Plan to purchase and hold the Notes should consult with
its counsel regarding the applicability of the fiduciary responsibility and prohibited transaction provisions of
ERISA and Section 4975 of the Code to such an investment, and to confirm that such purchase and holding will
not constitute or result in a breach of fiduciary duty, non-exempt prohibited transaction or any other violation of
an applicable requirement of ERISA.

Non-U.S. plans, governmental plans and certain church plans, while not subject to the fiduciary
responsibility provisions of ERISA or the prohibited transaction provisions of ERISA and Section 4975 of the
Code, may nevertheless be subject to non-US, state, local or other federal laws or regulations (Applicable
Laws). Fiduciaries of any such plans should consult with their counsel before purchasing the Notes to determine
the need for, and the availability, if necessary, of any exemptive relief under Applicable Laws or regulations.

Prohibited Transactions

The fiduciary of a Plan that proposes to purchase and hold any Notes should consider, among other
things, whether such purchase and holding may involve (i) the direct or indirect lending of money or other
extension of credit between a Plan and a party in interest or a disqualified person, (ii) the sale or exchange of any
property between a Plan and a party in interest or a disqualified person, (iii) the transfer to, or use by or for the
benefit of, a party in interest or disqualified person, of any Plan assets, or (iv) other prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code. Such parties in interest or disqualified persons could include,
without limitation, the Issuer, Guarantors, initial purchasers and the trustee or any of their respective affiliates.
Depending on the satisfaction of certain conditions which may include the identity of the Plan fiduciary making
the decision to acquire or hold the Notes on behalf of a Plan, Section 408(b)(17) of ERISA or Prohibited
Transaction Class Exemption (PTCE) 84-14 (relating to transactions effected by a qualified professional asset
manager), PTCE 90-1 (relating to investments by insurance company pooled separate accounts), PTCE 91-38
(relating to investments by bank collective investment funds), PTCE 95-60 (relating to investments by insurance
company general accounts) or PTCE 96-23 (relating to transactions directed by an in-house asset manager)
(collectively, the Class Exemptions) could provide an exemption from the prohibited transaction provisions of
ERISA and Section 4975 of the Code. However, there can be no assurance that any of these Class Exemptions or
any other exemption will be available with respect to any particular transaction involving the Notes, and a
fiduciary of a Plan should consult with its counsel regarding the applicability of such Class Exemptions or any
other exemptions.

By its purchase of any Note, the purchaser thereof will be deemed to have represented and warranted,
and will be deemed to have agreed, that during the period such purchaser holds any Note, that either (i) no assets

240
of a Plan or non-U.S., governmental or church plan have been used to acquire such Notes or an interest therein
and such Notes and any interest therein will not constitute the assets of a Plan or non-U.S., governmental or
church plan or (ii) the purchase and holding of such Notes or an interest therein by such person do not constitute
a non-exempt prohibited transaction under ERISA or the Code or violation of ERISA or Applicable Laws.

Each Plan fiduciary (and each fiduciary or other person acting for non-U.S., governmental or church
plans subject to Applicable Laws) should consult with its legal advisor concerning the potential
consequences to the Plan or the plan under ERISA, the Code or Applicable Laws of an investment in the
Notes.

241
 TRANSFER RESTRICTIONS

The Notes are subject to restrictions on transfer as summarized below. By purchasing Notes you will be
deemed to have made the following acknowledgements, representations to and agreements with the initial
purchasers and us:

1. You acknowledge that:

the Notes and the related Guarantees have not been registered under the Securities Act or any other
securities laws and are being offered for resale in transactions that do not require registration under
the Securities Act or any other securities laws; and

unless so registered, the Notes and the related Guarantees may not be offered, sold or otherwise
transferred except under an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act or any other applicable securities laws, and in each case in
compliance with the conditions for transfer set forth in paragraph (4) below.

2. You represent that you are not an affiliate (as defined in Rule 144 under the Securities Act) of ours, that
you are not acting on our behalf and that either:

you are a qualified institutional buyer (as defined in Rule 144A under the Securities Act) and are
purchasing Notes for your own account or for the account of another qualified institutional buyer,
and you are aware that the initial purchasers are selling the Notes to you in reliance on Rule 144A;
or

you are not a U.S. person (as defined in Regulation S under the Securities Act) or purchasing for the
account or benefit of a U.S. person, other than a distributor, and you are purchasing Notes in an
offshore transaction in accordance with Regulation S.

3. You acknowledge that neither we, the Guarantors nor the initial purchasers nor any person representing
us, the Guarantors or the initial purchasers has made any representation to you with respect to us or the
offering of the Notes, other than the information contained in this Offering Memorandum. You
represent that you are relying only on this Offering Memorandum in making your investment decision
with respect to the Notes. Accordingly, you acknowledge that no representation or warranty is made by
the initial purchasers as to the accuracy or completeness of such materials. You agree that you have had
access to such financial and other information concerning us and the Notes as you have deemed
necessary in connection with your decision to purchase Notes, including an opportunity to ask questions
of and request information from us.

4. You represent that you are purchasing Notes for your own account, or for one or more investor accounts
for which you are acting as a fiduciary or agent, in each case not with a view to, or for offer or sale in
connection with, any distribution of the Notes in violation of the Securities Act, subject to any
requirement of law that the disposition of your property or the property of that investor account or
accounts be at all times within your or their control and subject to your or their ability to resell the Notes
pursuant to Rule 144A or any other available exemption from registration under the Securities Act. You
agree on your own behalf and on behalf of any investor account for which you are purchasing Notes,
and each subsequent holder of the Notes by its acceptance of the Notes will agree, that until the end of
the Resale Restriction Period (as defined below), the Notes may be offered, sold or otherwise transferred
only:

to us or any of our subsidiaries;

under a registration statement that has been declared or become effective under the Securities Act;

242
 for so long as the Notes are eligible for resale under Rule 144A, to a person the seller reasonably
believes is a qualified institutional buyer that is purchasing for its own account or for the account of
another qualified institutional buyer and to whom notice is given that the transfer is being made in
reliance on Rule 144A;

through offers and sales that occur outside the United States within the meaning of Regulation S
under the Securities Act; or

under any other available exemption from the registration requirements of the Securities Act;

subject in each of the above cases to any requirement of law that the disposition of the sellers property or the
property of an investor account or accounts be at all times within the sellers or accounts control.

You also acknowledge that:

the above restrictions on resale will apply from the closing date until the date that is one year (in the
case of Rule 144A Notes) or 40 days (in the case of Regulation S Notes) after the later of the
closing date and the last date that we or any of our affiliates was the owner of the Notes or any
predecessor of the Notes (the Resale Restriction Period), and will not apply after the applicable
Resale Restriction Period ends;

we and the trustee reserve the right to require in connection with any offer, sale or other transfer of
Notes under clause (e) above prior to the end of the Resale Restriction Period the delivery of an
opinion of counsel, certifications and/or other information satisfactory to us and the trustee; and

each Note will contain a legend substantially to the following effect:

THIS NOTE AND THE RELATED GUARANTEE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS NOTE, THE
RELATED GUARANTEE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE
HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED NOTES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
AND THE RELATED GUARANTEE, PRIOR TO THE DATE (THE RESALE RESTRICTION
TERMINATION DATE) THAT IS: ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS
THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO THE ISSUER
OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED OR BECOME EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE NOTES AND THE RELATED GUARANTEES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUERS AND THE TRUSTEES RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (E) TO REQUIRE THE DELIVERY OF AN

243
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.

5. You agree that you will give to each person to whom you transfer Notes notice of any restrictions on
transfer of such security.

6. You acknowledge that we, the initial purchasers and others will rely upon the truth and accuracy of the
above acknowledgments, representations and agreements. You agree that if any of the
acknowledgments, representations or agreements you are deemed to have made by your purchase of
Notes is no longer accurate, you will promptly notify us and the initial purchasers. If you are purchasing
any Notes as a fiduciary or agent for one or more investor accounts, you represent that you have sole
investment discretion with respect to each of those accounts and that you have full power to make the
above acknowledgments, representations and agreements on behalf of each account.

7. If you are a purchaser in a sale that occurs outside the United States within the meaning of Regulation S,
you acknowledge that until the expiration of the 40-day distribution compliance period within the
meaning of Rule 903 of Regulation S, any offer or sale of the Notes shall not be made by it to a U.S.
person or for the account or benefit of a U.S. person within the meaning of Rule 902(k) of the Securities
Act except in accordance with Regulation S.

8. You acknowledge that the trustee will not be required to accept for registration of transfer any Notes
acquired by you, except upon presentation of evidence satisfactory to the Company and the trustee that
the restrictions set forth herein have been complied with.

9. You represent, warrant and agree that during the period you hold any Note, that either (i) no assets of a
Plan or non-U.S., governmental or church plan have been used to acquire such Notes or an interest
therein and such Notes and any interest therein will not constitute the assets of a Plan or non-U.S.,
governmental or church plan or (ii) your purchase and holding of such Notes or an interest therein do
not constitute a non-exempt prohibited transaction under ERISA or the Code or a violation of ERISA or
Applicable Laws.

244
 GENERAL INFORMATION

For so long as any of the Notes remain outstanding, copies of the following documents will be
obtainable and available during normal business hours at our principal office at Av. Santa Clara 555,
Huechuraba, Santiago, Chile.

the Indenture relating to the Notes

our by-laws (estatutos);

the financial statements included in this Offering Memorandum; and

all of our future annual and quarterly interim consolidated financial statements.

The Rule 144A Global Note has been assigned ISIN No. US05572UAA88 and CUSIP No.
05572UAA8. The Regulation S Global Note has been assigned ISIN No. USP1911CAA01 and CUSIP No.
P1911CAA0.

VALIDITY OF NOTES AND GUARANTEES

The validity of the Notes and Guarantees will be passed upon for us by Latham & Watkins LLP, Los
Angeles, California, as to certain matters of New York law, and for the initial purchasers by Shearman & Sterling
LLP, New York, New York, as to certain matters of New York law. The validity of the Notes and Guarantees
will be passed upon for us by Bofill Mir & Alvarez Jana as to certain matters of Chilean law, and for the initial
purchasers by Philippi, Yrarrzaval, Pulido & Brunner Ltda. as to certain matters of Chilean law.

INDEPENDENT AUDITORS

The consolidated financial statements of Inversiones Alsacia S.A. as of December 31, 2007 and 2008,
which have been prepared in Chilean pesos in accordance with Chilean GAAP and included in this Offering
Memorandum, have been audited by KPMG Auditores Consultores Limitada, Inversiones Alsacia S.A.s prior
independent auditors, as stated in their report appearing herein.

The consolidated financial statements of Inversiones Alsacia S.A. as of December 31, 2009, which have
been prepared in Chilean pesos in accordance with Chilean GAAP and included in this Offering Memorandum,
have been audited by Ernst & Young Servicios Profesionales de Auditoria y Asesorias, Inversiones Alsacia
S.A.s independent auditors, as stated in their report appearing herein.

The consolidated financial statements of Express as of December 31, 2008 and 2009 and for each of the
three years in the period ended December 31, 2009, included in this Offering Memorandum, have been audited
by PricewaterhouseCoopers Consultores, Auditores y Compaa Limitada, independent accountants, as stated in
their report appearing herein.

245
 INDEX TO FINANCIAL STATEMENTS

Inversiones Alsacia S.A.

Interim Consolidated Balance Sheets, Interim Consolidated Statements of Income, Interim Consolidated
Statements of Cash Flows and Notes to Interim Consolidated Financial Statements as of and for the
nine months ended September 30, 2010 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-2
Consolidated Balance Sheet, Consolidated Statement of Income, Consolidated Statement of Cash Flows
and Notes to Consolidated Financial Statements as of and for the year ended December 31, 2009 . . . . F-50
Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Cash
Flows and Notes to Consolidated Financial Statements as of and for the years ended December 31,
2008 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-101
Express de Santiago Uno S.A.
Interim Consolidated Balance Sheets, Interim Consolidated Statements of Income, Interim Consolidated
Statements of Cash Flows and Notes to Interim Consolidated Financial Statements as of and for the
nine months ended September 30, 2010 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-152
Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Cash
Flows and Notes to Consolidated Financial Statements as of and for the years ended December 31,
2009, 2008 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-199

Eco Uno and Panamerican

No financial or operating information is provided in this Offering Memorandum for either Eco Uno or
Panamerican, which are additional Guarantors of the Notes. Eco Uno is a holding company with the sole purpose
of holding 99.998% of the common shares of Express. Panamerican is a holding company formed for the sole
purpose of acquiring and consolidating the ownership of 99.7% of the common shares of Eco Uno through the
Acquisition. Both Eco Uno and Panamerican lend or borrow intercompany debt to or from affiliates from time to
time, and neither will have any employees or other activities except as described herein. See Description of
Notes and Finance AgreementsAdditional Covenants Related to Panamerican and Eco Uno. As a result,
Alsacia does not believe any information concerning Eco Uno or Panamerican would be material to prospective
investors.

Initial Temporary Issuer

No financial or operating information is provided in this Offering Memorandum for the Initial Temporary Issuer
because it has never had, and currently does not have, any assets, liabilities or operations. It is a special purpose
company established to facilitate the issuance of the Notes as described under The Escrow.

F-1
 Consolidated Financial Statements
Inversiones Alsacia S.A.
September 30, 2009 and 2010

Ch$ = Chilean pesos

ThCh$ = Thousands of Chilean pesos
US$ = United States dollars
ThUS$ = Thousands of United States dollars
UF = Unidades de Fomento, an inflation-indexed, peso-denominated monetary unit. The UF rate is set
daily based on changes in the Chilean Consumer Price Index.

(A free translation from the original prepared in Spanish)

F-2
 INVERSIONES ALSACIA S.A.
CONSOLIDATED BALANCE SHEET
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation from the original prepared in Spanish)
As of September 30,
NOTE 2009 2010
ThCh$ ThCh$
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728,279 33,314
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5,706,858 5,430,520
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 506,110
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 449,988 944,872
Accounts receivables from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1,023,253 790,786
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 61,075 43,614
Taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,035 454,359
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724,488 2,757,631
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 119,368 341,597
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7,308,955 6,776,910
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,955,409 17,573,603
PROPERTY, PLANT AND EQUIPMENT
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3,731,750 3,707,034
Buildings and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 15,755,362 16,018,624
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 64,471,432 67,987,444
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 5,776,749 6,733,528
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 (25,516,638) (33,727,011)
TOTAL PROPERTY, PLANT AND EQUIPMENT . . . . . . . . . . . . . . . . . 64,218,655 60,719,619
OTHER ASSETS
Investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3,970,681 3,719,741
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 794,990
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 16,884,539 15,652,239
TOTAL ADDITIONAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,650,210 19,371,980
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,824,274 97,665,202

The accompanying notes 1 to 28 form an integral part of these financial statements

F-3
 INVERSIONES ALSACIA S.A.
CONSOLIDATED BALANCE SHEET
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation from the original prepared in Spanish)
As of September 30,
NOTE 2009 2010
ThCh$ ThCh$
LIABILITIES
CURRENT LIABILITIES
Short-term loans with banks and financial institutions . . . . . . . . . . . . . . . . . . 12 8,951,890 8,367,263
Long-term bank borrowingsshort-term portion . . . . . . . . . . . . . . . . . . . . . . 12 15,429,102 9,977,150
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 8,073,774 6,340,940
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198,902 1,357,050
Accounts payable to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 182,029 421,105
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 962,013 1,367,253
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653,975 887,638
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,451,685 28,718,399
LONG-TERM LIABILITIES
Obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . . . . 13 60,620,598 47,583,254
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497,362 4,530,183
Accounts payable to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2,037,075 5,458,878
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1,955,422 3,056,595
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 647,406
TOTAL LONG-TERM LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,110,457 61,276,316
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SHAREHOLDERS EQUITY
Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 10,814,815 10,308,365
Capital revaluation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 (302,815) 206,167
Retained earnings (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 (12,391,697) (5,698,573)
Net income (loss) for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3,141,829 2,854,528
TOTAL SHAREHOLDERS EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,262,132 7,670,487
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,824,274 97,665,202

The accompanying notes 1 to 28 form an integral part of these financial statements

F-4
 INVERSIONES ALSACIA S.A.
CONSOLIDATED STATEMENT OF INCOME
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation from the original prepared in Spanish)
For the nine-month period
ended on
September 30,
NOTE 2009 2010
ThCh$ ThCh$
STATEMENT OF INCOME
OPERATING INCOME
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 50,311,188 54,732,442
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 (45,303,560) (46,738,798)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,007,628 7,993,644
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 (4,593,415) (4,552,459)
TOTAL OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414,213 3,441,185
NON-OPERATING INCOME (EXPENSES)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,759 149,747
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 86,987 382,943
Loss from investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 (720,803) (552,931)
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,700,764) (3,136,097)
Other non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 (47,046) (140,430)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 (2,445,278) 1,312,043
Foreign exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 10,990,929 2,170,550
TOTAL NON-OPERATING INCOME (EXPENSES) . . . . . . . . . . . . . . . 4,331,784 185,823
INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY
ITEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,745,997 3,627,008
INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (1,604,168) (772,480)
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET INCOME (LOSS) FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . 3,141,829 2,854,528

The accompanying notes 1 to 28 form an integral part of these financial statements

F-5
 INVERSIONES ALSACIA S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation from the original prepared in Spanish)
For the nine-month period
ended on
September 30,
2009 2010
ThCh$ ThCh$
CASH FLOWS FROM OPERATING ACTIVITIES
Collection of trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,763,078 46,820,458
Interest income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,186 149,747
Other income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,987 1,000,797
Payment to suppliers and employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,535,008) (41,337,315)
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,319,122) (3,068,064)
Other expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (589,361) (140,430)
Value added tax and other taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (596,512) (584,730)
TOTAL NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . 7,057,248 2,840,463
CASH FLOWS FROM FINANCING ACTIVITIES
Loans received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,416,450 6,973,000
Payment of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,882,136) (12,543,072)
Payment of loans related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (189,667)
TOTAL NET CASH FLOW USED IN FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,465,686) (5,759,739)
NET CASH FLOWS FROM INVESTMENT ACTIVITIES
Others Investments Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,303,064 9,891,734
Acquisition of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,710,954) (2,658,600)
Investments in financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,773,560) (8,388,978)
TOTAL NET CASH FLOW PROVIDED BY INVESTMENT ACTIVITIES . . . . . . . . . . . . . . . . . . . . (3,181,450) (1,155,844)
TOTAL NET CASH FLOW FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,112 (4,075,120)
EFFECT OF INFLATION ON CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,166) 77,518
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,946 (3,997,602)
OPENING BALANCE OF CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,333 4,030,916
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728,279 33,314
Net Income (Loss) for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,141,829 2,854,528
Charges (credits) to income which do not represent cash flows
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,313,235 6,469,523
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,944,078 1,246,587
Write-offs and provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,955,422 1,541,036
Loss from investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720,803 552,931
Price-level restatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,445,278 (1,312,043)
Foreign exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,990,930) (2,170,550)
Charges to income which do not represent cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,604,169 772,480
Total charges (credits) to income which do not represent cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,992,055 7,099,964
Changes in assets affecting cash flows decrease (increase)
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (875,295) (2,438,668)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,677 (116)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198,172 (597,852)
Total changes in assets affecting cash flows decrease (increase) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,355,554 (3,036,636)
Changes in liabilities affecting cash flows (decrease)
Accounts payable related to operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,818,477 (2,644,624)
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,301,671) (935,050)
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,841)
Other accounts payable related to non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,845 (497,719)
Total changes in liabilities affecting cash flows (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,432,191) (4,077,393)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,057.248 2,840,463

The accompanying notes 1 to 28 form an integral part of these financial statements

F-6
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

(A free translation from the original prepared in SpanishSee Note 2(c))

1. Corporate Information
Registration in the Securities and Trade Registry
Inversiones Alsacia S.A. is listed in the Securities and Trade Registry of the Office of the Superintendency of
Securities and Insurance of Chile (SVS), under No 883 dated January 27, 2005, and is subject to the supervision
of the SVS.

With the entry into effect of law 20,382, from October 2009, this registration No. 883 in the Trade Registry was
cancelled, and the Company bcame part of the Registry of Reporting Companies under No. 126 on May 9, 2010.

Incorporation and operations:

Inversiones Alsacia S.A. was founded as a closely-held corporation by public deed on November 27, 2004. The
principal activity of the Company is providing public transportation services to passengers on the roads granted
to it in the Metropolitan region and any other related activity in connection with that service.

At the Shareholders Meeting held on December 9, 2004, it was agreed to extend the line of business to include
static and dynamic advertisement through the use of advertising spaces on buses and other services related to the
main activity.

On October 23, 2005, the Corporation stated providing public transportation services associated with The Trunk
Line No 1, which involved the operation of 533 buses at the beginning of the transition stage that reached the
same amount at the beginning of the Normal Operatig Stage(February 2007).

2. Summary of Significant Accounting Principles

(a) Accounting period
These financial statements include the period January 1 to September 30, 2009 and 2010.

(b) Basis of preparation

The consolidated financial statements as of September 30, 2009 and 2010 have been prepared in accordance with
generally accepted accounting principles in Chile (Chilean GAAP), issued by the Chilean Institute of
Accountants A.G., and instructions of the Superintendency of Securities and Insurance of Chile.

Certain accounting practices applied by the Company that conform to Chilean GAAP may not conform to
generally accepted accounting principles in the United States (US GAAP) or International Financial Reporting
Standards.

(c) Basis of presentation

For comparative purposes, the financial statements as of September 30, 2009 and their related notes have been
restated for accounting purposes by 2.5%.

F-7
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

The financial statements as of September 30, 2009, include certain reclassifications in order to make them
conform with the classifications used in 2010.

In these consolidated financial statements, certain reclassifications have been made in the Statements of Cash
Flows for the periods 2009 and 2010, in order to make the criteria used uniform. These reclassifications do not
affect total cash flows for the periods.

For the convenience of the reader, these financial statements and their accompanying notes have been translated
from Spanish to English.

(d) Price-level restatement

The financial statements have been price-level restated in order to reflect the variation in purchasing power of the
Chilean peso during each fiscal year. The adjustments have been determined based on the official indices of the
National Institute of Statistics, which show a variation of 2,0% for 2010 (-2,8% in 2009).

The effect of the foreign exchange adjustment for the year between January 1st and September 30 , 2010, has
been recognized in net income

(e) Basis of translation

The assets and liabilities in foreign currency and in Unidades de Fomento are valued at the exchange rate
effective as of the closing date of each period. Effects have been recognized directly in the income statement.
The exchange rates effective as of the closing date of each period are the following:
2010 2009
$ $
US dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483,65 550,36
Unidad de Fomento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.339,99 20.834,45

(f) Time deposits

Investments in time deposits are presented at acquisition cost plus any readjustment and interest accrued as of
each closing date. Time deposits are presented under other current assets.

(g) Allowance for Doubtful Accounts

Allowance for doubtful accounts has been calculated based on aging and current regulations. These allowances
are shown on a deduction of the related receivable.

(h) Inventories
The fuel stock is shown at its price level restated cost, which does not exceed its net realizable value.

Spare parts and materials for maintenance of buses have been classified in other property, plant and equipment.

F-8
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

The Company has established an allowance for obsolescence for replacement parts and materials that have a
rotation greater than one year.

(i) Prepaid expenses

Prepaid expenses includes expenses related to insurance policies, which are amortized over the insurance policy
term.

(j) Property, plant and equipment

The Companys Property, plant and equipment mainly corresponds to buses held for public transportation, which
are valued at price-level restated acquisition price adjusted by inflation, including all the expenses incurred up to
the date in which they available for use. Other property, plant and equipment items are accounted for at their
purchasing price adjusted by inflation.

Expenditures related to the purchase of software packages are recognized at price-level restated acquisition cost
and amortized over a three-year period.

Goods subject to a sale-and-leaseback agreement are capitalized as a property, plant and equipment of the
Company; corresponding obligations are accounted for as part of other short-term and long-term payables.

The Company has made a provision for maintenance related to its buses.

(k) Depreciation of property, plant and equipment

The annual depreciation has been estimated using the straight-line method, considering the remaining estimated
useful life of the respective goods.

(l) Property, plant and equipment under finance lease

Items of property, plant and equipment leased on the basis of contracts which include a purchase option and
which fulfill all criteria of a financial lease agreement are capitalized as if they were acquired. The sum of the
annual lease payments is recognized as liability and lease interest is recorded on accrual basis. Such assets are
not legally owned by the Company, so, as long as the purchase option is not exercised, the Company cannot
freely dispose of them.

(m) Investments in associates

Investments in associates are accounted for using the equity method.

The share in the associates income is recognized in the Companys income statement on an accrual basis over the
corresponding holding period.

(n) Income taxes and deferred taxes

According to the current legal regulations, the Company has not accrued any provision for First-category income
tax, because it shows a negative taxes base in the respective periods.

F-9
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

In accordance with what is set forth in Technical Bulletin No 60 and the complementary bulletins issued by the
Chilean Association of Accountants, and the standards provided in Circular No 1,466 of the Chilean
Superintendency of Securities and Insurance, the Company accounts for deferred taxes originated by timing
differences, benefits due to taxes losses and other events that generate differences between accounting and tax
income.

(o) Vacation accrual

At each period end, the Company sets up an accrual for unused vacations days of its employees.

(p) Operating Income

On February 10, 2007, the new regimen period began, and from this date on the earnings are calculated in
accordance with the concession agreement with the Ministry for Transportation and Telecommunications, that is,
the price per transported passenger (PTP) multiplied by the adjusted demand.

Income is recognized in accordance with generally accepted accounting principles in Chile, on an accrual basis.
As of the date of the financial statements, provisions have been established for services provided and not billed.

Income from static and dynamic advertising originates from renting out advertising spaces on buses.

(q) Technical operating reserve (TOR)

The Technical Operating Reserve is an allowance incorporated in the fare paid by users to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system. The amounts paid to the Transantiago Financial Administrator (FMT) for this concept in relation to the
Trunk Line N 1 business unit, are recorded as a deferred asset that will be amortized with a charge to operating
income, during the concessions operating period, based on projected income to be obtained from providing
transportation services.

(r) Statements of Cash Flows

The Company considers as cash equivalents all highly-liquid financial investments agreed with a maximum
maturity of 90 days, and with minimum risk of loss in value. Cash flows from operating activities include all
business-related cash flows, as well as paid interest, interest income and, in general, all cash flows not defined as
from investment or financing activities. It is important to emphasize that the operating concept used in the
statements of cash flows is more comprehensive than the one considered in the statement of income.

Amortization associated to technical operating reserve and capitalized financing expenses have been classified as
amortization of intangibles in the reconciliation of the cash flows.

(s) Capital Expenditures

According to the ordinary official letter No. 11,808 of October 31, 2006, the Office of the Superintendency of
Securities and Insurance authorized the Company to accrue and subsequently amortize capital expenditures

F-10
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

directly associated with the bank loans used to finance the purchase of the bus fleet. For this purpose, such
expenditures are distributed based on the development of actual earnings obtained, considering the total projected
earnings. These expenditures are capitalized as part of the line item Other Long-Term Assets.

(t) Companies Included in the Consolidation

Ownership Percentage
30-09-2010 30-09-2009
Taxpayer No. Company Name Direct Indirect Total Total

0-E IASA de Colombia Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.999 99.999 99.999

3. Accounting Changes
During the period from January 1 to September 30, 2010, no significant changes have been made to the generally
accepted accounting principles of Chile

4. Short- and long-term receivables

Composition of short and long-term receivables as of September 30, 2009 and 2010:
2009 2010
ThCh$ ThCh$
Trade receivables
Deferred income (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,158,602 5,014,313
AFT (Exempted Resolution 1985) (2) . . . . . . . . . . . . . . 2,583,247 2,583,247
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,520 106,337
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837 83,459
Allowance for doubtful accounts (3) . . . . . . . . . . . . . . . (127,348) (2,356,836)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,706,858 5,430,520
Other receivables
Promissory Note AFT Transantiago (4) . . . . . . . . . . . . 506,110
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506,110
Other receivables
Accounts receivable from employees . . . . . . . . . . . . . . 298,570 408,453
Prepayments to suppliers . . . . . . . . . . . . . . . . . . . . . . . . 104,802 454,896
Accounts receivable from Volvo (5) . . . . . . . . . . . . . . . 25,739 25,111
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,877 56,412
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449,988 944,872

(1) For the most part corresponds to the passenger revenue accrued by rendering public transportation services
during the regimen period that are liquidated every two weeks by the Transantiago Financial Administrator.
(2) The Company has recorded as receivables the amounts withheld by the Ministry of Transportation and
Telecommunications through Exempt Resolution 1985 of 2008, which establishes a fine for non-compliance

F-11
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

4. Short- and long-term receivables(Continued)

with regularity and frequency indices. According to the Exempt Resolutions mentioned in note 26 the
amounts should be accounted for in the pertinent account as debts of the system that the Company expects
to recover in 2010.
(3) As stated in note 2 g), the Company has estimated an accrual for ThCh$ 2,232,594 corresponding to revenue
withheld by the Ministry of Transport and Telecommunication for the application of Exempt Resolution
1938, where the fines relating to regularity, frequency and ICPKH indices are set.
(4) Corresponds to the balance of the compensation from the Transantiago Financial Administrator (FMT)
equivalent to UF 221,208 plus accrued interest, of which UF 200,000 were transferred in January 2007. This
compensation is due to lower revenue and higher costs derived from delaying the operating regime stage
from October 23, 2006 to February 10, 2007. On November 2, 2009, the Company received the remaining
balance of the promissory note owed by the Transantiago Financial Administrator.
(5) This line item relates to warranty claims against Volvo Sweden Co. in the form of spare parts for the bus
fleet.

Short-term Long-term
Up to 90 days < 90 days > 1 year Total Current (net)
2009 2010 2009 2010 Subtotal 2009 2010 2009 2010

Trade receivables . . . . . . . . . . . 5,834,206 7,787,356 7,787,356 5,706,858 5,430,520

Allowance for doubtful
accounts trade receivables . . 2,356,836
Notes receivable . . . . . . . . . . . . 506,110 506,110
Other receivables . . . . . . . . . . . 449,988 944,872 944,872 449,988 944,872
Total long-term
receivables . . . . . . . . . .

F-12
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

5. Related party disclosures

The sales to and purchases from related parties are made at terms equivalent to those prevailing in arms length
transactions.

Short-term receivables from related parties are detailed as follows:

2009 2010
ThCh$ ThCh$
Express de Santiago Uno S.A. (1) . . . . . . . . . . . . . . . . . . . 198,458 194,027
Carlos Rios V. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,416 55,235
EDTM Consultores.E.U. (3) . . . . . . . . . . . . . . . . . . . . . . . 311,980 172,176
Rioma Ltda. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,853 231,327
Desarrollo y Soluciones Informticas (5) . . . . . . . . . . . . . 132,028 128,850
Inversiones Eco Uno Ltda. (6) . . . . . . . . . . . . . . . . . . . . . . 176,518 136,079
Holding Alsacia S.A. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . 5,078
Seceyco Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561
GPS International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Silvia de Narvaez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,023,253 923,901

Long-term payables to related parties are detailed as follows:

2009 2010
ThCh$ ThCh$
Data Tools S.A. (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942,257 815,743
Fanach Corp. (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587,812 508,867
Aseo Capital S.A. (11) . . . . . . . . . . . . . . . . . . . . . . . . . . 292,080 252,868
Carlos Toro (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,164 100,575
Maraya E.U. (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,762 85,508
Dakota SPA (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,695,317
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,037,075 5,458,878

(1) As of September 30, 2009 and 2010, the receivable and payable balances recorded by the Company with
Express de Santiago Uno S.A., correspond to balances generated in the context of the allocation of expenses
and operating costs, amount to ThCh$16,438 and, ThCh$16,429 respectively.
Moreover, there exists an adjustment account for the financial years of 2005 and 2006, determined on
conservative basis, which amounts to ThCh$1,515,343 (historic value), increasing the balance in favor of
Inversiones Alsacia S.A. as of June 30, 2010 to ThCh$1,531,781.
The value of the adjustment account is based on the instructions of Official Letter No. 06354 dated June 11,
2007, of the Superintendency of Securities and Insurance. The Company followed the guidelines of the
granted Official Letter and altered the balances receivable from and payable to Express de Santiago Uno SA
to the amounts of ThCh$611,317 and ThCh$2,126,660, respectively (historic net amount of
ThCh$1,515,343 in favor of Inversiones Alsacia S.A.).

F-13
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

5. Related party disclosures(Continued)

Adjusted balances originated from:
The pre-operational period: ThCh$611,317 (historic value) in favor of Express. referring to the period
between January 10 and December 31, 2005.
The operational period: ThCh$2,126,660 (historic value) in favor of Inversiones Alsacia S.A. referring to
the period between January 10th and August 31, 2006.
Inversiones Alsacia S.A. has 2 independent third party reports confirming the figures cited.
The companies involved have been in negotiations to resolve the situation, as of the period-end no
resolution have been reached. For the fact that no agreement has yet been reached, the Company is
considering submitting the matter for arbitration. In the meantime, following the instructions of the Ordinary
Official Letter (Oficio Ordinario) published by the Superintendency of Securities and Insurance, the
balances above are considered as contingent income, without bearing interest or readjustments.
(2) Carlos Rios: Funds payable not generating interests.
(3) EDTM: Corresponds to accrued interest in the amount of ThCh$172,176, for the loan made to the Company
on March 5, 2007, destined to financing capitalization in Eco Uno Ltda.
(4) Rioma Ltda.: Recovery of expenses not generating interest with a maturity date of December 31, 2010.
(5) Desarrollo y Soluciones Informticas: Accounts receivable of US$ 258,160.96 corresponding to accrued
interest from external financing.
(6) Eco Uno Ltda.: Corresponds to contribution for interest.
(7) Holding Alsacia S.A.: Corresponds to recoveries of expenditures that do not generate interests with a
maturity date of 31/12/2010.
(8) Dakota SPA: Corresponds to a credit to finance working capital in the amount of UF195,480.00; the amount
is to be paid in 110 monthly installments and successive quotas payable from January 2010 and accrues an
interest of 12.5% annually.
(9) Data Tools: Corresponds to three loans obtained to finance Transantiago Operating Plan totaling of US$
1,610,000. The loans are in US dollars and accrue 1% of annual interest with a maturity date of 28/08/2012.
(10) Fanach: Corresponds to a credit in the amount of US$ 1,000,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. The loan is in US dollars and accrue an annual interest of 1% with a
maturity date of 28/08/2012.
(11) Aseo Capital: Corresponds to a credit in the amount of US$ 500,000 obtained to finance operations pursuant
to the Transantiago Operating Plan. The loan is in US dollars and accrues an annual interest of 1% with a
maturity date of 28/08/2012.
(12) Carlos Toro: Corresponds to a credit amounting to US$ 200,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. This loan is in US dollars and accrues an annual interest of 1% with a
maturity date of 28/08/2012.
(13) Maraya: Corresponds to a credit amounting to US$ 170,000 obtained to finance operations pursuant to the
Transantiago Operating Plan. This loan is in US dollars and accrues an annual interest of 1% with a maturity
date of 28/08/2012.

F-14
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

5. Related party disclosures(Continued)

Balances and transactions with related parties during the period January through September, 2009 and 2010 are
shown in tables below:

a) Documents and accounts receivable

Taxpayer ID
No. Corporation Short-term Long-term
2009 2010 2009 2010
ThCh$ ThCh$ ThCh$ ThCh$
99577390-2 Express de Santiago Uno S.A. . . . . . . . . . . . . . . . . 198,458 194,027
48095921-3 Carlos Rios V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,416 55,235
0-E Edtm Consultores . . . . . . . . . . . . . . . . . . . . . . . . . . 311,980 172,176
76452480-2 Rioma Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,853 231,327
0-E DSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,028 128,850
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . . . . . . 176,518 136,079
0-E Holding Alsacia S.A. . . . . . . . . . . . . . . . . . . . . . . . 5,078
78737390-9 Seceyco Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561
0-E GPS International . . . . . . . . . . . . . . . . . . . . . . . . . . 253
0-E Silvia de Narvez . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,023,253 923,901

b) Notes and accounts receivable

Taxpayer ID
No. Corporation Short-term Long-term
2009 2010 2009 2010
ThCh$ ThCh$ ThCh$ ThCh$
99577390-2 Express de Santiago Uno S.A. . . . . . . . . . . . . . . . . 182,029 177,589
0-E Aseo Capital De Colombia . . . . . . . . . . . . . . . . . . 292,080 252,868
0-E Data Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942,257 815,743
0-E Fanach Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587,812 508,867
0-E Carlos Toro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,164 100,575
0-E Maraya E.U. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,762 85,508
77080776-K Dakota Spa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,516 3,695,317
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,029 421,105 2,037,075 5,458,878

F-15
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

5. Related party disclosures(Continued)

c) Transactions

2009 2010
Effects on Effects on
Taxpayer id Income Income
Corporation no. Nature of the relationship Transaction description Amount (charge/credit) Amount (charge/credit)
ThCh$ ThCh$ ThCh$ ThCh$
Express de Santiago Uno S.A. . . . . . . . . . . . . . . 99577390-2 Related Company SHARED EXPENSES 83,893 83,893 409 409
Dakota Spa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7780776-K Related Company Delivery Of Loan 568,503 (380,146)
Holding Alsacia S.A . . . . . . . . . . . . . . . . . . . . . . 0-E Related Company CHECKING ACCOUNT 4,408
Carlos Rios V. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21922672-1 Shareholder/Director Various Payments 3,828 2,530
F-16

Ruben Rios V. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0-E Shareholder Board Of Directors Fees 6,208 (6,208) 6,000 (6,000)
Carlos Rios V. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21922672-1 Shareholder/Director Board Of Directors Fees 12,000 (12,000)
Luis Videla V. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7779468-9 Director Board Of Directors Fees 4,460 (4,460) 1,500 (1,500)
Laurence Goldborne . . . . . . . . . . . . . . . . . . . . . . 8170562-3 Director Board Of Directors Fees 1,000 (1,000)
Heriberto Urzua . . . . . . . . . . . . . . . . . . . . . . . . . . 6666825-8 Director Board Of Directors Fees 1,102 (1,102) 6,500 (6,500)
Andres Echeverria . . . . . . . . . . . . . . . . . . . . . . . . 9669081-9 Director Board Of Directors Fees 6,000 (6,000)
Asesorias Vsa Ltda. . . . . . . . . . . . . . . . . . . . . . . . 77127320-K Company Director Consultancies 36,000 (36,000) 5,000 (5,000)
Sociedad De Inversiones Santa Anita Ltda. . . . . 76939320-K Company Director Consultancies 10,763 (10,763) 9,000 (9,000)
Heriberto Urzua Inversiones y Asesorias
Ltda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76704540-9 Company Director Consultancies 36,000 (36,000) 20,000 (20,000)
Inversiones Rinconada Ltda. . . . . . . . . . . . . . . . . 78845440-6 Company Director Consultancies 10,500 (10,500)
Rioma Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76452480-2 Related Company Consultancies 113,495 (113,495) 117,558 (117,000)
Related Company Services Received 84,610 84,610
Seceyco Chile Ltda. . . . . . . . . . . . . . . . . . . . . . . . 78737390-9 Common owner Various payments 560
Arcadia Capital . . . . . . . . . . . . . . . . . . . . . . . . . . 1000-6 Company Director Consultancies 36,008 (36,008)
EGC Partners S.A. . . . . . . . . . . . . . . . . . . . . . . . . 76042210-K Company Director Consultancies 21,719 (21,719)
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

6. Inventories
Includes the inventories owned by the Company, valued according to the accounting policy of the Company
described in Note 2h).

The balances as of September 30, 2009 and 2010 are detailed as follows:
2009 2010
ThCh$ ThCh$
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,075 43,614
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,075 43,614

7. Deferred and Income Taxes

General information:
As of September 30, 2009 and 2010 as stated in Note 2 n), the Company has made no provision for First
Category income tax (Impuesto al la Renta de Primera Categora), according to current legal regulations in
force it has negative taxable income.

Retained loss as of September 30, 2010 amounts to ThCh$44,779,015 (ThCh$59,398,775 in 2009).

Deferred taxes
Concepts 2009 2010
Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability
Temporary Differences Short-term Long-term Short-term Long-term Short-term Long-term Short-term Long-term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Allowance for doubtful
accounts . . . . . . . . . . 21,649 400,661
Vacation accrual . . . . . . 121,826 103,873
Amortization of
intangible assets . . . . 1,970,300 1,772,161
Finance lease assets . . . 92,811 48,178
Depreciation of
property, plant and
equipment . . . . . . . . . 6,457,918 5,952,000
Other events . . . . . . . . . 348,760 603,186
Amortization of other
Assets . . . . . . . . . . . . 1,130,534 31,278 1,090,686
Prepayments . . . . . . . . . 24,107 131,659
Accrued Tax Loss . . . . . 10,097,793 7,612,432
Others
Complementary
accounts-net of
amortization . . . . . . .
Valuated Provisions . . .
Total . . . . . . . . . . . . . . . 143,475 10,446,553 24,107 9,651,563 504,534 8,215,619 162,937 8,863,025

F-17
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

7. Deferred and Income Taxes(Continued)

Income Taxes
Item 2009 2010
ThCh$ ThCh$
Effect on assets and liabilities due to fiscal years deferred tax . . . (1,604,168) (772,480)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,604,168) (768,477)

8. Other current assets

Other current assets balance as of September 30, 2009 and 2010 is the following:
2009 2010
ThCh$ ThCh$
Time deposits (1) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,607,985 5,037,844
AFT Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,736 175,694
Technical Reserve for Operations, short-term portion . . 995,299 1,012,340
Transantiagos guarantee (3) . . . . . . . . . . . . . . . . . . . . . . 222,555
Rental Security Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 127,332 149,399
HSBC Deferred Expenditures (4) . . . . . . . . . . . . . . . . . . 183,048 172,123
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229,510
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,308,955 6,776,910

(1) Correspond to time deposits obtained from the HSBC Bank and Bancolombia, to assure the payment of
interest for the loans granted by the same banks for the financial period between August 28, 2010 and
February 28, 2011. Details are as follows:
Currency Value of Annual Book value
Bank or Financial Institution Start Due date of Origin Subscription Rate 30/09/2010
ThCh$ ThCh$
HSBC BANK . . . . . . . . . . . . . . . 13-07-2010 28-02-2011 US$ 359,238 1,350 323,291
HSBC BANK . . . . . . . . . . . . . . . 31-08-2010 29-11-2010 US$ 2,010,101 1,000 1,948,875
HSBC BANK . . . . . . . . . . . . . . . 14-09-2010 28-02-2011 US$ 173,729 1,300 169,902
HSBC BANK . . . . . . . . . . . . . . . 24-09-2010 09-10-2010 US$ 124,124 0,800 122,564
HSBC BANK . . . . . . . . . . . . . . . 30-08-2010 29-10-2010 CH$ 271,186 0,150 271,606
HSBC BANK . . . . . . . . . . . . . . . 14-09-2010 28-02-2011 CH$ 94,649 0,021 94,756
INTERNACIONAL . . . . . . . . . . 27-07-2010 28-02-2011 US$ 343,425 1,400 320,379
INTERNACIONAL . . . . . . . . . . 29-06-2010 28-02-2011 US$ 356,070 1,350 321,294
INTERNACIONAL . . . . . . . . . . 11-06-2010 28-02-2011 US$ 358,719 1,500 324,086
INTERNACIONAL . . . . . . . . . . 11-08-2010 28-02-2011 US$ 340,411 2,200 321,639
INTERNACIONAL . . . . . . . . . . 26-08-2010 28-02-2011 US$ 338,116 1,950 322,914
INTERNACIONAL . . . . . . . . . . 27-09-2010 28-02-2011 US$ 315,521 1,500 314,060
INTERNACIONAL . . . . . . . . . . 27-09-2010 28-02-2011 CH$ 73,477 0,300 73,499
BANCOLOMBIA . . . . . . . . . . . 25-09-2010 25-10-2010 US$ 109,476 1,540 108,979
Total . . . . . . . . . . . . . . . . . . . . . . 5,268,242 5,037,844

F-18
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

8. Other current assets(Continued)

(2) Time deposit obtained from the HSBC Bank and BanColombia for the period of 2009 are the following:

Bank or Financial Currency Value of Annual Book value

Institution Start Due date of Origin Subscription Rate 30/09/2009
ThCh$ ThCh$
HSBC BANK . . . . . . 11-08-2009 26-02-2010 US$ 364,020 1,100 367,238
HSBC BANK . . . . . . 27-08-2009 26-02-2010 US$ 365,373 0,830 366,852
HSBC BANK . . . . . . 28-08-2009 27-10-2009 US$ 3,523,965 0,500 3,537,214
HSBC BANK . . . . . . 11-09-2009 26-02-2010 US$ 314,606 0,730 312,642
HSBC BANK . . . . . . 29-09-2009 26-02-2010 US$ 334,327 1,000 337,352
HSBC BANK . . . . . . 11-09-2009 26-02-2010 CH$ 3,946 0,700 3,964
HSBC BANK . . . . . . 29-09-2009 26-02-2010 CH$ 3,957 1,000 3,958
BANCOLOMBIA . . . 19-06-2009 19-12-2009 US$ 49,440 2,850 50,817
BANCOLOMBIA . . . 11-06-2009 19-12-2009 US$ 83,218 2,850 81,684
BANCOLOMBIA . . . 30-06-2009 19-12-2009 US$ 108,480 2,850 113,667
BANCOLOMBIA . . . 28-07-2009 19-12-2009 US$ 91,070 2,850 93,142
BANCOLOMBIA . . . 11-08-2009 19-12-2009 US$ 112,027 2,850 113,292
BANCOLOMBIA . . . 27-08-2009 19-12-2009 US$ 112,478 2,850 113,150
BANCOLOMBIA . . . 11-09-2009 19-12-2009 US$ 113,598 2,850 113,013
Total . . . . . . . . . 5,580,505 5,607,985

(3) Corresponds to the time deposits obtained from Banco Internacional in the amount of UF10,000, to
guarantee the insurance contract obtained from Aseguradora Magallanes S.A., to comply with the
Transantiago 2003 service contract. On November 2, 2009, according to the bid contract, the guarantee was
returned for an amount of ThCh$210,894 and no new guarantees have been granted in exchange.
(4) Corresponds to the expenditures paid for commissions, fees and other expenditures to HSBC Bank for
disbursements of loans granted to the Company to finance the purchase of buses, operating costs and
implementation of terminals. The expenses are amortized over the debt duration period. As of
September 30, 2010 the amortization amounted to ThCh$142,098 (ThCh$140,718 in 2009).

F-19
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

9. Property, plant and equipment

Property, plant and equipment as of September 30, 2009 and 2010, valued according to Note 2 j), is detailed as
follows:

Property, plant and equipment,

gross amount Accumulated Depreciation
2009 2010 2009 2010
ThCh$ ThCh$ ThCh$ ThCh$
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,731,750 3,707,034
Buildings and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,755,362 16,018,624 (522,451) (1,224,310)
Machinery & equipment:
Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,432,191 67,269,753 (22,011,797) (29,062,041)
Machinery & equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 1,039,241 717,692 (429,403) (273,968)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,471,432 67,987,444 (22,441,200) (29,336,009)
Other
Office furniture and equipment . . . . . . . . . . . . . . . . . . . . 298,808 325,185 (110,235) (160,058)
Computer Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744,132 980,013 (259,950) (424,249)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,990,603 2,161,858 (958,070) (1,387,525)
Spare parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,518,474 1,371,388
Improvements for transition . . . . . . . . . . . . . . . . . . . . . . . 700,224
Terminals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,224,732 1,194,860 (1,224,732) (1,194,860)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,776,749 6,733,528 (2,552,987) (3,166,692)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,735,293 94,446,630 (25,516,638) (33,727,011)
Total net property, plant and equipment . . . . . . . . . . . 64,218,655 60,719,619

Depreciation charges for the respective period have been imputed to the following accounts:

2009 2010
ThCh$ ThCh$
Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,901,787 6,023,165
Administrative and sales expenditures . . . . . . . . . . . . . . 411,448 446,358
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,313,235 6,469,523

10. Investment in associates

During the extraordinary shareholders meeting held on January 25, 2005, the shareholders agreed to modify
article one of the Companys statutes in order to pay 18,802 unpaid shares through contribution of non-monetary
assets. The shareholders meeting approved that the payment of above-mentioned shares would be made by
contributing a total of 16% of their rights in the Sociedad de Inversiones Eco Uno Ltda. (Eco Uno) in favor of
the Company. At that date, shareholders Mr. Carlos Ros V. and Mr. Francisco Ros V. held 14% of the voting
rights of Inversiones Eco Uno Ltda. The voting rights were valued at an amount of ThCh$ 1,880,202 (historic),
based on the carrying value of Inversiones Eco Uno Ltda..

F-20
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

10. Investment in associates(Continued)

On March 2, 2007, a sum of $262,061,908 (historic)a part of which consisted of capital owed by the
Companys partners was transferred to Eco Uno, in order to enable Eco Uno to increase the capital of its
subsidiary Express de Santiago Uno S.A..

F-21
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

10. Investment in associates(Continued)

Investment details
Cor-
Name Invest- porations Net Book
of the ment equity income Unrea- value
Taxpayer Cor- Country control No. of Share Corporations at fair at fair Accrued lized of the
ID No. poration of origin currency shares Percentage equity Net income value value income (loss) Equity method gains investment
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . . . . CHILE PESOS 16.00 16.00 24,816,758 23,248,385 (4,505,015)(3,455,819) (720,803)(552,931)3,970,681 3,719,741 3,970,681 3,719,741
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,970,681 3,719,741 3,970,681 3,719,741
F-22
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

11. Other (assets)

Other assets as of September 30, 2009 and 2010 are detailed as follows:

2009 2010
ThCh$ ThCh$
Technical Operating Reserve (1) . . . . . . . . . . . . . . . . . . . . 8,880,700 7,870,500
Reserve of Transantiagos Financial Administrator (2) . . . 1,541,266 1,365,942
Other long-term deferred expenditures (3) . . . . . . . . . . . . . 1,323,199 1,151,395
Capitalization of Financ. Expenditures Met Ing (4) . . . . . . 5,139,374 5,264,402
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,884,539 15,652,239

(1) Corresponds to the total amount of the contribution to the Technical Operating Reserve by the Trunk Line
No. 1 business unit, which is defined as an allowance incorporated into the tariff paid by the users to cover
possible temporary lags or mismatches between the revenue and costs. This amount is amortized in
accordance with the projected revenue curve, obtained from the transportation service rendering.
As of September 30, 2010, the accumulated amortization from the concept mentioned above amounted to
ThCh$4,326,392 (ThCh$3,330,051 in 2009). The annual amortization for the period amounted to
ThCh$746,927 (ThCh$734,355 in 2009) and it is part of the Companys operating cost.
(2) From the start of Stage I defined in the Transantiago 2003 Bidding Conditions, FMT will be the only ticket,
paid in coins, issuer that give access to the users of Transportation Services System. Inversiones Alsacia
S.A. buys the tickets from FMT at a price of $20 per ticket. Out of this amount, $16 correspond to a deposit
to increase the Systems OTR which FMT is supposed to deposit to the Temporary Account 2 of the system.
The remaining amount of $4 resembles cash available to FMT. The reserve corresponds to the total amount
related to all $16-deposits per ticket acquired by the Company during the financial years of 2006 and 2005.
This amount is amortized according to the projected income curve for rendering services of transportation.
As of September 30, 2010, the amortization for this concept amounts to ThCh$129,631 (ThCh$127,448 in
2009) and is presented as part of the Companys operating costs.
According to the modification of the Concession Agreement signed on June 30, 2006, between the
Company and the Ministry for Transportation and Telecommunication, pursuant to Article 4, from July 1,
2006, the $16-deposit per ticket bought from FMT is no longer needed to be paid.
(3) Corresponds to the deferred expenditures paid for commissions, fees and other expenditures to HSBC Bank
for disbursements of loans granted to the Company to finance the purchase of buses, operating costs and
implementation of terminals. The expenses are amortized over the debt duration period. As of
September 30, 2010 the amortization amounted to ThCh$93,283 (ThCh$93,375 in 2009).
(4) In accordance with what is set forth in Note 2 q) and according to the authorization of the Office of the
Superintendency of Securities and Insurance No. 11,808 dated on October 31, 2006, the Company
capitalized borrowing costs directly associated with the purchase of the bus fleet. For this purpose, such
expenditures are distributed based on the actual earnings obtained, considering the total of projected
earnings. This method is aimed at distributing the financial charge that the Company will have to cope with
along the period of debt amortization over the whole concession period, considering the remaining useful
life of the bus fleet. As of September 30, 2010, the accumulated capitalized costs for the concept amounted
to ThCh$142,098 (ThCh$140,718 in 2009).

F-23
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

12. Short-term obligations with banks and other financial institutions

As of September 30, 2009 and 2010, short-term obligations with banks and other financial institutions include the
following:
Short-term payables to banks and other financial institutions:
Includes short-term loans obtained from the National Bank. Interest is calculated on the balance of principal
outstanding of the promissory notes as of their signing dates until the date of its full and effective payment.

The amount of accrued interests as of September 30, 2010 amounts to ThCh$162,412 (ThCh$98,057 in 2009).

Long-term payables to banks and other financial institutions, short-term portion:

1. Installment: The total term of the HSBC EKNs credit was modified from 20 to 19 installments with
semi-annual installments on February 28 and August 28.
2. Accrued interests: Correspond to the long-term borrowings from HSBC EKN, NEXI, NIB, GNB
Sudameris and BANCOLOMBIA.

Interest is calculated on the balance of principal outstanding of the promissory notes as of their signing dates
until the date of its full and effective payment.

Interest expenses as of September 30, 2010 amount to ThCh$197,800 (ThCh$765,212 in 2009).

F-24
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

12. Short-term obligations with banks and other financial institutions(Continued)

Currency types and adjustment index
Taxpayer ID Other Foreign
No. Bank or Financial Institution Dollars Euros Yens Currencies UF Non Adjustable $ Totals
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
Short-Term (code 5.21.10.10) . . . . . .
97951000-4 HSBC BANK . . . . . . . . . . . . . . . . . . 4,747,218 4,669,876 4,747,218 4,669,876
97011000-3 BANCO INTERNACIONAL . . . . . . 3,048,837 1,361,466 3,048,837 1,361,466
97006000-6 BANCO CRDITO E 615,000 732,872 615,000 732,872
INVERSIONES . . . . . . . . . . . . . .
97032000-8 BBVA BANK . . . . . . . . . . . . . . . . . . 540,835 530,500 540,835 530,500
97051000-1 BANCO ITAU . . . . . . . . . . . . . . . . . 1,072,549 1,072,549
76645030-K OTHERS . . . . . . . . . . . . . . . . . . . . . .
F-25

TOTALS . . . . . . . . . . . . . . . . . . . . . . 8,951,890 8,367,263 8,951,890 8,367,263

AMOUNT OF DUE CAPITAL . . . . 8,853,833 8,056,944 8,853,833 8,056,944
Annual average interest rate . . . . . . .
Long-termShort-term (code
5.21.10.20) . . . . . . . . . . . . . . . . . .
97951000-4 HSBC EKN BANK . . . . . . . . . . . . . 5,487,004 4,594,059 5,487,004 4,594,059
0-E NEXI . . . . . . . . . . . . . . . . . . . . . . . . . 1,878,119 1,359,760 1,878,119 1,359,760
0-E BANCOLOMBIA . . . . . . . . . . . . . . . 7,426,353 2,642,784 7,426,353 2,642,784
0-E GNB SUDAMERIS . . . . . . . . . . . . . 583,702 505,534 583,702 505,534
0-E HSBC NIB . . . . . . . . . . . . . . . . . . . . 53,924 875,013 53,924 875,013
OTHERS . . . . . . . . . . . . . . . . . . . . . .
TOTALS . . . . . . . . . . . . . . . . . . . . . . 15,375,178 9,102,137 53,924 875,013 15,429,102 9,977,150
AMOUNT OF DUE CAPITAL . . . . 14,663,890 8,915,113 864,236 14,663,890 9,779,349
Average annual interest rate . . . . . . . . . . . . . . . 6,73% 4,56%
Percentage of payable foreign currency (%) . . . . . . . . . . . . . . . . . . . . . 684,400
Percentage of payable national currency (%) . . . . . . . . . . . . . . . . . . . . . 315,600
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

13. Long-term obligations with banks and other financial institutions

At September 30, 2010, the movements in obligations with banks and financial institutions are detailed as
follows:
Between August 17, 2005 and March 28, 2006, HSBC Bank (EKN) made three disbursements amounting to
ThCh$41,724,306, which corresponded to six promissory notes for a total sum of US$77,347,446. The amounts
must be paid in nineteen equal and successive semi-annual installments on February 28 and August 28, as of
August 28, 2007, at fixed annual rate of 5.38%. With the credits the Company financed approximately 85% of its
bus purchases.

On March 30, 2006, a credit amounting to ThCh$12,191,344 (equivalent to US$22,600,000) was obtained from
HSBC Tokyo, Japan and Sumitomo Bank, together with NEXI, a Japanese credit and insurance corporation. This
credit has been agreed upon at an 8-year term with a 5 year grace period, and a 180-day floating Libor rate plus
0.6%. The interests will be paid starting August 28, 2006 and the repayment will be in equal and successive
semi-annual installments on February 28 and August 28 starting from 2010.

On May 31, 2006, the Company obtained a credit from the HSBCNIB (Nordic Investment Bank) in the
amount of ThCh$6,360,000 at an 8-year term with 5 years of grace and at an interest rate of 6.36%. On June 13,
2006, the bank granted another credit of ThCh$1,060,000 subject to the same terms and conditions. Interest will
be paid starting from August 28, 2006 and the repayment will be in equal and successive semi-annual
installments on February 28 and August 28, starting from 2011.

On December 19, 2006, Bancolombia granted a credit of US$5,000,000, on December 20, 2006 other credit of
US$4,500,000 and on March 1, 2007, additional for US$2,500,000, and on June 4, 2007 credit of US$3,000,000,
all of them at a 5-year term with a 2-year grace period and at a 180-day Libor interest rate plus 3.5%, repayment
will be in equal semi-annual and successive installments on June 19 and December 19, starting from
December 19, 2008.

On January 29, 2008, a loan from GNB Sudameris Colombia was obtained in the amount of ThCh$3,000,000
with a grace period of one year, the loan installments will be paid in equal and successive semi-annual
installments of US$500,000, the first with a maturity of July 28, 2009 and the last of January 28, 2012.

On October 30, 2009, a credit was obtained from GNB Sudameris in the amount of US$1,000,000 payable in one
installment on April 09, 2012.

On March 3, 2008, a loan was obtained from HSBC bank in the amount of ThUS$11,107,836 (equivalent to
$5,042,401,694 historical). This loan has been agreed upon for a 10-year term, and at a floating rate of 6.81%.
The loan installments will be paid in equal and successive semi-annual installments on February 28 and
August 28 beginning in 2008.

On August 12, 2008 a loan was obtained from Bancolombia Puerto Rico Internacional INC. in the amount of
US$17,000,000, with variable interest rate and monthly and successive installments starting from the 13 month.
On August 28, 2008 and September 5, 2008 the Company received US$5,800,000 and US$11,200,000,
respectively.

F-26
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

13. Long-term obligations with banks and other financial institutions(Continued)

On September 25, 2009, the original credit conditions were modified, changing the spread Libor interest rate
from 5% to 5.5% annually, the amount of monthly payments and the final payment date.

On August 25, 2010 the company changed the terms of credit contracts one and two obtained from Bancolombia,
both will be paid in 41 successive monthly installments, the first on August 25, 2010 and the last on
December 25, 2013. Along with the above modified the annual interest rate of LIBOR plus 8.5%

Additionally, during the term of the contract, the following financial relationships should be maintained:
a) EBITDA/ Interest Expenses, greater than or equal to:
2 times for the year 2010
2.5 times for the year 2011
2.8 times for the year 2012
3.5 times for the year 2013

b) EBITDA / Debt Services, greater than or equal to 1 time

These financial indicators will be evaluated on a quarterly basis.

In case the subscriber does not pay the loan installments of these credits at any of their due dates, or in case the
interests of these promissory notes were not paid by the subscriber on the date they were due, and such
delinquency or simple delay in payment of interests continued for three or more working days, the bearer of the
promissory notes will be entitled to demand the total balance of owed capital and interest debt immediately and
integrally under promissory notes, which will be considered expired and payable on demand for all pertinent
purposes. The bank will be entitled to demand payment of the entire debt as set forth in promissory notes in
advance as if it was the due date whenever the subscriber does not comply with effective legislation, does not
have the corresponding governmental authorizations, in case of any changes in Company controlling
shareholders, in case of failure to comply with effective environmental regulations, whenever dividends are
distributed without the corresponding authorizations, or if the subscriber becomes notoriously insolvent,
understanding for all purposes the existence of notorious insolvency on its part when the subscriber or one or
more of its creditors requests bankruptcy, or when judicial or out-of-court composition of creditors are executed
or proposed.

Restrictions have been satisfactorily met as of September 30, 2010.

F-27
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

13. Long-term obligations with banks and other financial institutions(Continued)

Current period Previous period
Due in (years) closing date closing date
Long Term Average Long Term
Currency More More Total At Annual Total At
Taxpayer Bank Or Financial Readjustment Than 1 Than 2 More Than More Than More Than Balance Interest Balance
ID No. Institution Index Up To 2 Up To 3 3 Up To 5 5 Up To 10 10 Years Closing Rate Closing
AMOUNT TERM
97951000-4 HSBC BANK . . . . . . . . . . . . . . . . . . Dollars 4,538,380 4,538,380 9,076,760 5,344,227 23,497,747 5,38 32,700,739
Euros
Yens
UF
$ non readjusted
Other currencies
97951000-4 HSBC BANK/ NEXI & NIB . . . . . . Dollars 1,366,311 1,366,311 2,732,622 2,732,623 8,197,867 0,99 11,155,453
F-28

Euros
Yens
UF
$ non readjusted 864,236 864,236 1,728,472 2,592,710 6,049,654 1,81 7,086,736
Other currencies
0-E BANCOLOMBIA . . . . . . . . . . . . . . Dollars 3,699,922 3,845,018 1,233,999 8,778,939 3,95 8,421,491
Euros
Yens
UF
$ non readjusted
Other currencies
0-E GNB SUDAMERIS . . . . . . . . . . . . . Dollars 725,475 725,475 4,88 846,179
Euros
Yens
UF
$ non readjusted
Other currencies
97006000-6 CREDITO E INVERSIONES . . . . . Dollars
Euros
Yens
UF
$ non readjusted 333,572 333,572 410,000
Other currencies
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,527,896 10,613,945 14,771,853 10,669,560 47,583,254 60,620,598
PERCENTAGE OF PAYABLE FOREIGN CURRENCY (%) . . . . . . . . . . . . . 89.6282
PERCENTAGE OF PAYABLE NATIONAL CURRENCY (%) . . . . . . . . . . . 10.3718
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

14. Provisions
The balance of accrued expenses and sanctions as of September 30, 2009 and 2010 is detailed as follows:

a) Short-term
2009 2010
ThCh$ ThCh$
Vacation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716,628 611,015
Reserve for Labor Contingencies . . . . . . . . . . . . . . . . . . . . 96,112 396,110
Human resources reserves . . . . . . . . . . . . . . . . . . . . . . . . . 149,273 264,678
Spare Parts Obsolescence Provision . . . . . . . . . . . . . . . . . 95,450
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 962,013 1,367,253

b) Long-term

Reserve for Overhaul of Buses (a) . . . . . . . . . . . . . . . . . 1,955,422 3,056,595

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,955,422 3,056,595

(a) Corresponds to a reserve for the maintenance of buses (overhaul), calculated on the basis of travelled
kilometers of the buses, with an estimated maintenance cost for motors estimated to be performed when
550,000 kilometers are reached, and with maintenance performed at 600,000 kilometers for the gearboxes
and differentials.

During the first quarter of 2010, the overhaul that will be conducted on motors was added to the original reserve.

15. Minority interest

The Company consolidated its financial statements with those of its subsidiary Iasa de Colombia Ltda. Since the
subsidiary has negative shareholders equity, 100% of its loss has been consolidated in the current financial
statements.

16. Changes in Equity

Changes in equity for 2009 and 2010, are as follows:
Movements in Shareholders Equity:
Inversiones Alsacia S.A. was founded on November 22, 2004, through subscription and payment of ThCh$ 1,000
divided into 10 ordinary nominal shares without par value, with each share being of equal value.

During the Shareholders Meeting held on December 9, 2004, it was agreed to increase share capital to
ThCh$ 9,000,000, divided into 90,000 nominal shares, without par value and of a single series of common
shares, through issuance of 89,999 shares of the same characteristics.

During the Stockholders Meeting held on December 20, 2004, it was agreed to increase the share capital to
ThCh$18,000,000, divided into 180,000 nominal shares, without par value and of a single series of common
shares, through issuance of 90,000 shares of the same characteristics. It was additionally agreed that the
minimum price per shares should not be lower than ThCh$100.

F-29
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

16. Changes in Equity(Continued)

During the Stockholders Meeting held on January 25, 2005, it was agreed to approve the payment of 18,802
shares issued by the Company by means of the contribution of 16% of the voting rights of Inversiones Eco Uno
Ltda. It was also agreed to value the voting rights in the amount of ThCh$ 1,880,202 (historic), based on the
book value of the shares (see note No. 12).

In addition, during the accounting period of 2005, the amount of 20,234 stocks was paid in through contributions
in cash amounting to ThCh$2,023,377 (historic).

During the Extraordinary General Stockholders Meeting held on February 16, 2007, shareholders decided to
legally reduce the share capital from the amount of $18,000,000,000 to $1,916,000,000. In addition, it was
agreed to increase the share capital from the amount of $1,916,000,000 to $8,866,000,000 divided into 36,535
shares, through issuance of 17,375 new shares that would be issued, subscribed, and paid for February 28, 2007,
at a price per share not lower than $400,000. Later, as a result of a meeting of the Companys Board of Directors
held on February 20, 2007, the Board agreed to offer the 17,375 new shares on a preferred basis to the existing
shareholders, who decided to waive the option to obtain the shares they had the right to. Furthermore, it was
agreed to offer the remaining shares not subscribed by the shareholders to a Colombian company called
Desarrollo y Soluciones Informticas S.A..

2009

Capital Retained Net Income

Paid-In Revaluat. earnings (loss) for the
Items Capital Reserve (losses) period Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Initial Balance . . . . . . . . . . . . . . . . . . . . . . . . . . 10,551,035 (6,768,094) (5,669,621)
Distribution income previous year . . . . . . . . . . (5,669,621) 5,669,621
Revaluation of share capital . . . . . . . . . . . . . . . (295,429) 348,255
Fiscal year income . . . . . . . . . . . . . . . . . . . . . . . 3,065,199
Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,551,035 (295,429) (12,089,640) 3,065,199
Updated Balances . . . . . . . . . . . . . . . . . . . . . . . 10,814,815 (302,815) (12,391,697) (3,141,829)

2010

Capital Retained Net Income

Paid-In Revaluat. earnings (loss) for the
Items Capital Reserve (losses) period Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Initial Balance . . . . . . . . . . . . . . . . . . . . . . . . . . 10,308,365 (12,151,648) 6,564,812
Distribution income previous year . . . . . . . . . . 6,564,812 (6,564,812)
Revaluation of share capital . . . . . . . . . . . . . . . 206,167 (111,737)
Fiscal year income . . . . . . . . . . . . . . . . . . . . . . . 2,854,528
Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,308,365 206,167 (5,698,573) 2,854,528

F-30
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

16. Changes in Equity(Continued)

Number of shares

No. of paid-in
Series No. of subscribed shares shares No. of voting shares

ZZ 36,535 36,535 36,535

Capital (AmountThCh$)

Series Subscribed capital Fully-paid capital

ZZ 10,551,035 10,551,035

17. Other Non-Operating Income and Expenses

Other non-operating income and expenses as of September 30, 2009 and 2010 is detailed as follows:

2009 2010
ThCh$ ThCh$
Other non-operating income:
AFT Panel of Experts Recovery (1) . . . . . . . . . . . . . . . . . . . . 350,781
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,202 5,933
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,785 26,229
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,987 382,943

2009 2010
ThCh$ ThCh$
Other non-operating expenses
Other taxes expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,753
Rejected expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,666 15,142
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,380 109,535
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,046 140,430

(1) Corresponds to the recovery of the implementation costs of a communications contingency system for the
period from July 2007 to April 2008, as instructed in Resolution No. 45 of the Panel of Experts
Transantiago System.

F-31
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

18. Price-level Restatement

Adjustability
index 2009 2010

Assets (charges)/ credits

Property, plant and equipment . . . . . . . . . . . . . . . . CPI (1,629,017) 1,192,968
Investments in associates . . . . . . . . . . . . . . . . . . . . CPI (135,145) 63,251
Other non-monetary assets . . . . . . . . . . . . . . . . . . . CPI (732,135) 213,896
Accounts of expenses and costs . . . . . . . . . . . . . . . CPI (354,373) 521,870
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . (2,850,670) 1,991,985
Liabilities (charges) / credits
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 34,809 (94,430)
Non-monetary liabilities . . . . . . . . . . . . . . . . . . . . CPI 30,620 (81,393)
Revenue accounts . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 339,963 (504,119)
Total (charges)/ credits . . . . . . . . . . . . . . . . . . . . . 405,392 (679,942)
Profit (loss) due to foreign exchange
adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,445,278) 1,312,043

19. Foreign Exchange Differences

Amount
Items Currency 2009 2010
ThCh$ ThCh$
Assets (charges) /credits
Bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (2,242) (6,300)
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (1,141,064) (408,501)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (14,428) (2,963)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . (1,157,734) (417,764)
Liabilities (charges)/ credits
Bank obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 11,595,731 2,438,086
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 178,633 66,814
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 374,299 83,414
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . 12,148,663 2,588,314
Net Income (loss) from foreign exchange
differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,990,929 2,170,550

F-32
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions

1) Concession Agreement:
On January 28, 2005, Inversiones Alsacia S.A. entered into a Concession agreement with the Ministry of
Transport and Telecommunications to use the roads of the city of Santiago to render public bus transportation
services for passengers. The Concession agreement is subscribed as the result of a public bid for the use of the
roads of the city of Santiago according to article 30 of Law No.18,696.

The Company submitted an offer in the bidding process, where the Trunk line No. 1 business unit was awarded,
according to Exempted Resolution No. 109 from 2005 of the Sub-Secretariat of Transportation published in the
Official News on January 14, 2005.

The agreement was enforced from the publication date in the Official News of the administrative act that
approved it and will be in force until the termination of the Concession period. The duration of the Concession
agreement shall be 156 months, in accordance with the article 3.4.4.2.1 of the Concession agreement.

Within the Concession agreement, the Company committed to pay 615,010 U.F. for a Technical Operating
reserve, which corresponds to an amount incorporated into the tariff paid by users that is used to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system. On July 1, 2005, the Company paid the first of three installments on that contribution.

Non-payment of installments will lead to the use of the Warranty reserve set in accordance with the Concession
agreement.

Inversiones Alsacia has fully paid all the above-mentioned obligations. In fact, as of January 2, 2009, the
Company fully complied with the payment of the balance of the Technical Operating reserve, payable on
December 31, 2008 by (a) Bank transfer in the amount of Ch$2,365,577,273 to account number 17385-1 of
Banco Estado on behalf of the Transantiago Financial Administrator (FMT) and, (b) By bank deposit, dated
January 2, 2009 of Ch$550,000,000 to account number 17385-1 of Banco Estado on behalf of the Transantiago
Financial Administrator (FMT). Payments complied in full with the requirements and were certified by the
Ministry of Transportation and Telecommunications by Ordinary Issue (Oficio Ordinario) N2.783 dated July 2,
2009.

2) Modifications to the Concession Agreement:

2.1) On June 30, 2006, the following modifications of the Concession Agreement were made:
a) Starting date of the new regimen stage will begin from February 10, 2007.

b) Modifications to the calendar of contributions to the Technical Operating reserve (TOR),:

Installment 2: 191,309 U.F. maturity date July 1, 2007.
Installment 3: 170,836 U.F. maturity date July 1, 2008.

c) The elimination of the payment of $16 per ticket to FMT (Contribution to transitory account two of the
Transantiago system), from July 1, 2006, to December 31, 2006.

F-33
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

d) For the start date of phase II at the latest, the operator should accredit with the Ministry of Transportation and
Telecommunications before obtaining the planning permissions for different terminals. The dates of phase II
cannot be modified in any manner, additionally, within fifteen days after the termination of phase II, the Operator
shall provide the Ministry of Transportation and Telecommunications with a Gantt Chart or Schedule of the main
works that will be constructed or implemented in each terminal. Likewise, 120 days at the latest after the
commissioning date of services of the regime stage, the operator should prove to the Ministry of Transportation
and Telecommunications that it has obtained authorization for the operation of different terminals.

e) On June 30, 2006, the FMT signed a promissory note for 221,208 Unidades de Fomento (UF), in favor of the
Company, with a maturity date of October 31, 2009. UF 200,000 were transferred in January 2007, with a
remaining balance of UF 21,208, which shall accrue daily interests at the ratio of a fixed annual rate of 3.56%.
As stated in Note No 5, UF 200,000 was transferred in January 2007.

2.2) During February 2007, the Company signed a modification to the Road Use Concession Agreement with the
Ministry of Transportation and Telecommunications. The main aspects of this modification and its addendum
dated February 20, are detailed as follows:
a) For the period between February 10, 2007 and May 5, 2007, minimum guaranteed revenue is considered in
accordance with the referential demands in replacement of users validations.

b) mechanism is determined to regulate the fleet increase for the commencement of the regimen stage, as well as
the related payment.

c) Contributions to the Technical Operating Reserve (TOR) with maturity date of February 10, 2007 will be paid
in 3 installments, correspondingly 55% at March 10th, 22.5% at April 10, and 22.5% in May 10, 2007.

d) A procedure is established to regulate the situation of terminals and deposits with respect to the additional
fleet.

2.3) On May 9, 2007, the Company subscribed a modification to the Concession Agreement and on June 4, 2007,
an addendum to the modification to determine the Companys income for the period between May 6, and June 5,
2007, shall correspond 100% to the demand determined in the agreement and the Payment per Passenger
Transported, adjusted in accordance with the Bidding Conditions.

2.4) On June 29, 2007, the Company signed a modification and two addendums to the Concession Agreement
with the purpose of: i) altering the Companys payment dates from July 10 to 12; ii) delaying the contribution
date to Technical Reserve from July 1 to July 16, 2007 and; iii) regulating the payment terms of buses without
validating equipment.

2.5) On July 17 and August 17, 2007, the Company signed two new addendums related to the modifications
dated June 29 with the Ministry of Transport and Telecommunications, for which the payment date of the
Technical Reserve was postponed to August 17th and October 24, respectively.

2.6) On July 19, 2007, the Company subscribed an Agreement Protocol with the Ministry of Transport and
Telecommunications for the modification of the Concession Agreement, a modification that was implemented on

F-34
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

November 9, 2007 and two addendums to the modification, dated December 10 and 28, respectively and
April 21, June 30 and July 15 of 2008, respectively. In order to modify service hours; regulate payment of buses
without validation equipment; delay payment of TOR for 12 months; incorporate a Service Fulfillment Index
(ICPH) Regularity Compliance Index (ICR) to the formula; adjust calculation mechanism of the PPT; incorporate
the Additional and/or Complementary Fleet to the base fleet and to increase the bus fleet, which in the
transitional period do not necessarily need to be new.

2.7) On May 9, 2007, the Company signed a modification to the contract of Commercial Mandate of Collection
and Custody with the FMT.

2.8) On March 7, 2008, the Company signed a modification and addendum to the service and supply of
Technology equipment contract with the FMT, which establishes the calculation of the payment that the
concessionaires must make for the services rendered by the FMT until this date; determines the general terms and
conditions and the equipment remuneration of the denominated payment zones; adopts improvements oriented to
increase the actual service levels of the functionalities and; determined the transitory and permanent conditions
of the equipment, systems and services that the FMT has to supply and the conditions of remunerations derived
from rendering of services.

2.9) On March 18, 2008, the Company signed a contract amendment of Collection Mandate with the FMT in
order to authorize to the FMT the payment or reimbursement of costs, expenses or fees associated with the loan
agreements.

2.10) On July 3, 2009, the Company signed a modification to the Road Use Concession Agreement of the city of
Santiago with the Ministry of Transport and Telecommunications for the provision public bus transportation
services for passengers, which was aimed at formalizing the extension of the Concession term to which the
Company has rights from 48 months to 156 months. The foregoing was informed as an essential fact to the
Office of the Superintendency of Securities and Insurance.

2.11) On January 29, 2010, the Company s signed an Agreement Protocol with the Ministry of Transportation
and Telecommunications in order to incorporate a modification to the Road Use Concession Agreement to
provide public bus transportation services for passengers (Contrato de Concesin de Uso de Vas para la
Prestacin de Servicios Urbanos de Transporte Pblico Remunerado de Pasajeros mediante Buses), which was
signed by the Company on March 5, 2010 for the following purpose:

A Procedure for Modification of Routes, for the reasons of public interest to ensure continuity and
adequate coverage of public transportation services and a method for compensating the demand was
introduced.

In order to verify the effective, correct and adequate rendering of public transportation services, there
will be a measurement taken on the basis of the parameters for Incumplimiento de Plazas-Kilmetros-
Horas (ICPKH), Frequency Index (ICF) and Regularity Index (lCR).

New revenue calculation methodology is incorporated.

F-35
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

2.12) On July 30, 2010, the company signed with the Ministry of Transport and Telecommunications, an
addendum to the concession contract of way use for the provision of urban public transport of passengers by
buses paid and includes the following changes:
Increasing the fleet in 4.641 places.
The additional fleet buses, will become part of the fleet based, insofar as it consists of standard buses
and Technology Transantiago p EPA98 diesel Euro III or higher and have some form of post-treatment
to reduce emissions that at least 80%.
In response to increased fleet base, adjusting the demand of Inversiones Alsacia S.A. for their services
in the period between August and December 2010.

3) Other Contracts:
The Company signed a contract with a specialized Spanish Company Goal in the amount of ThUS$1,150, to
establish a development program to manage bus operations system.

4) Restrictions for bank loans

The Company has obligations and restrictions for loans contracted with various foreign and national banks.

By virtue of the credit agreements of the Company that exist to ensure compliance with the obligations therein
contained, and the 36,535 shares in which the Companys equity is divided are currently pledged. The pledge
contracts imply the prohibition to alienate, sale, promise to sell or dispose in any manner whatsoever of said
shares as far as the full compliance of the obligations resulting from the financing obligation with the HSBC
Bank are accredited. Likewise, each bus owned by the Company has been pledged, pledges that were duly
registered in the Registry of Motorized Vehicles of the Civil Registry Office.

On August 25, 2010 the Company modified the terms of credit agreements one and two obtained from the bank
Bancolombia. Additionally, during the term of the contract the following financial relationships must be
maintained:

a) EBITDA/Interest Expenses, greater than or equal to:

2 times for the year 2010
2.5 times for the year 2011
2.8 times for the year 2012
3.5 times for the year 2013

b) EBITDA/Debt Service greater than or equal to 1 time.

These financial indicators will be evaluated on a quarterly basis.

F-36
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

5) Pending Lawsuits:
The details of the Corporations main lawsuits are as follows:

Court: 18 Civil Court of Santiago; Rol 5,852-2007

Alsacia was sued for damages by a private person in an Ordinary Civil Trial. The compensation demanded
amounts to $398,000,000. The accusation is still being tried by the Court (responses to the suit and the SIAT
report are still pending). According to the background knowledge available, the matter has limited possibilities of
success.

Court: 15 Civil Court of Santiago; Rol: 16,299-2007

Alsacia was jointly sued for damages with other operatorsBuses Gran Santiago y Express de Santiago Uno
S.A. and the Financial Administrator of Transantiago (FMT) in an Ordinary Civil Trial by the I. Municipality
of Renca which accuses its counterparties of unfair enrichment. The compensation demanded amounts to
$154,600,000. A verdict was dictated rejecting the claim of the plaintiff.

Court: 23 Civil Court of Santiago; Rol: 16956-2007

Alsacia was sued for damages by a private person in an Ordinary Civil Trial. The compensation demanded
amounts to $25,500,000. The evidence stage is finished. A sentence was dictated requiring payment for a sum of
$2,800,000 with no costs.

I suggest to delete. Case completed

Court: 30 Civil Court of Santiago; Rol: 15.667-2007

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $15,000,000. A termination of the evidence period is still in effect.

Court: 2 Civil Court of Santiago; Rol: 66-2008

Alsacia was sued for damages in Ordinary Civil Trial by a third party. The compensation demanded amounts to
$110,550,000. A sentence was pronounced, obligating the Alsacia to pay $15,000,000, for which reason the
sentence is currently in the process of appeal.

Court: 5 Civil Court of Santiago; Rol: 16.327-2007

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $15,000,000. The case was declared null because the Bus operator being sued was not legally subpoenaed.
Alsacia presented a plea for abandonment of the proceedings, which was accepted by the court, and for which
reason the Trial has been concluded.

Court: 30 Civil Court of Santiago; Rol: 56.994-2008

F-37
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $716,000,000. A sentence was pronounced obligating payment of $170,000,000, for which reason both Alsacia
and the plaintiff presented appeals. This was resolved, finally obligating Inversiones Alsacia to pay $250,000 for
the concept of moral damages, plus adjustments, interest and costs, a sum which was paid by the Insurance
company.

Court: 21 Civil Court of Santiago; Rol: 2398-2008

Alsacia was sued for damages in Ordinary Civil Court by a third party. The sum requested amounts to
$300,000,000. The case was annulled, for which reason the hearing phase was given retroactive effect, currently
pending notification of evidence.

Court: 7 Civil Court of Santiago; Rol: 648-2009

Alsacia was sued for damages in Ordinary Civil Court by a third party. The sum requested amounts to
$20,000,000. Termination of the evidence period is pending.

Court: 28 Civil Court of Santiago; Rol: 97-2009

Alsacia was sued for damages in Civil Ordinary Court. The sum demanded amounts to $56,850,000. The case is
currently being tried.

Court: 30 Civil Court of Santiago; Rol: 8688-2009

The Company was sued for damages. The sum demanded amounts to $103,000,000. The Bus Operator has not
yet been notified, for which reason this trial is not currently being tried.

Court: 17 Civil Court of Santiago; Rol: 16704-2009

The Company was sued for damages. The sum demanded amounts to $80,000,000 for moral damages. It is being
tried. The company presented a plea for abandoment of the proceedings, which was rejected, without any useful
procedure having been tried as of the current date.

Court: 25 Civil Court of Santiago; Rol: 999-2009

The Company was sued for the damages. The sum demanded amounts to $180,000,000 for moral damages. The
case is currently being tried.

Court: 25 Civil Court of Santiago; Rol: 25258-2009

The Company was sued damages. The sum demanded amounts to $80,000,000 for moral damages. It is under
discussion period.

F-38
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

Court: 27 Civil Court of Santiago; Rol 21723-2009

The Company was sued for damages in summary proceedings. The sum demanded amounts to $602,304,540 for
moral damages. It is being tried and has a precautionary measure enacted, which is currently being appealed.

Court: 11 Civil Court of Santiago; Rol: 39429-2009

The Company was sued for damages. The sum demanded amounts to Ch$ 300,000,000. The case is being tried.
There is a precautionary measure decreed for the sum of $100,000,000. A plea for the raising of this sum was
rejected, for which reason the case is currently being appealed.

Court: 2 Civil Court of Santiago, Rol 4122-2010

The Company was sued by 10 persons for injuries and death, for an accident that occurred in 2006. The total
amount demanded is Ch$ 140,700,000, but there is little possibility that the case will be successful, as the action
has expired. Currently the case is being tried.

Court: 300 Civil Court of Santiago; Rol 39.115-2009

The Company was sued for civil responsibility for the serious injuries suffered by a pedestrian. The amount
demanded is Ch$ 29,581,350. The case is currently being tried.

La sociedad fue demandada por responsabilidad civil derivada de las lesiones graves sufridas por un peatn. El
monto demandado es la suma de $29.581.350. Se encuentra actualmente en etapa de discusin.

Court: 20 Civil Court of Santiago, Rol 5726-2010

The Company was sued by 13 persons for injuries and death, for an accident that occurred in 2005. The total
amount demanded is $158,000,000, but there is little probability that the case will be successful, since the action
would have expired. The case is currently being tried.

Court: 29 Civil Court of Santiago, Rol 26539-2010

The Company was sued by serious injury. The total amount demanded is $450,900,000. The case is currently
being tried.

Court: 25 Civil Court of Santiago, Rol 5328-2010

The Company was sued by serious injury. The total amount demanded is $51,000,000. The case is currently
being tried.

Court: 22 Civil Court of Santiago, Rol 16878-2010

F-39
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

The Company was sued by an accident resulting in death. The total amount demanded is $250,000,000. The case
is tried.

Court: 25 Civil Court of Santiago, Rol 14990-2010

The company was sued for quasi crime acts of serious injury. The total amount demanded is $61,976,250. The
bus driver had not been informed of the event. We present motion for dismissal of proceedings by lack of notice.

6) Direct and Indirect Guarantees

A compliance policy has been granted for the Concession agreement in favor of MTT according to the sixth
clause of the contract in the amount of UF 30,000.00. As a counter-guarantee to that policy, Inversiones Alsacia
S.A. took an indefinitely adjustable time deposit for an amount of UF 10,000.00 that was handed to Aseguradora
Magallanes S.A. The policy was returned to the Company on November 2, 2009.

The Company was awarded by HSBC Bank (Chile) a time deposit equivalent to 5% of the total debt that remains
in force with EKN Bank, for the purchase of buses. The deposit is placed by HSBC Bank (Chile) in HSBC Bank
(London) and the former undertakes to pay that value if the Company does not pay off its debt. The Company has
not signed any documents relating to this deposit.

The Company has no knowledge of other prohibitions, encumbrances, or contingencies that affect these financial
statements.

F-40
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

20. Contingencies and Restrictions(Continued)

Direct Guarantees

Outstanding payments of
outstanding payment
balances as of the closing
Debtor Assets involved of financial statements Release of guarantees
Accounting
Guarantee creditor Name Relation Guarantee type Type value 2009 2010 2011 Assets 2012 Assets 2013 Assets
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
HSBC . . . . . . . . . . . . . Inversiones MORTGAGE Land for Puente Alto 1,149,591 4,747,217 4,669,876
Alsacia S.A. terminal
BANCOLOMBIA . . . Inversiones MORTGAGE Land for Renca 616,322 15,847,844 11,421,723
F-41

Alsacia S.A. terminal

BANCOLOMBIA . . . Inversiones MORTGAGE Land for Huechuraba 1,966,736 15,847,844 11,421,723
Alsacia S.A. terminal
BANCOLOMBIA . . . Inversiones MORTGAGE Construction 3,866,506 15,847,844 11,421,723
Alsacia S.A.
HSBC . . . . . . . . . . . . . Inversiones MORTGAGE Construction 2,221,017 4,747,217 4,669,876
Alsacia S.A.
BANCOLOMBIA . . . Inversiones MORTGAGE High Construction 4,970,795 15,847,844 11,421,723
Alsacia S.A.
HSBC EKN . . . . . . . . Inversiones PLEDGE Huechuraba Buses 34,213,997 38,187,743 28,091,806
Alsacia S.A.
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

21. Securities obtained from third parties

As of September 30, 2009 and 2010 there are no effective securities granted by third parties in favor of the
Company, except for those mentioned in the notes to the financial statements.

22. Local and Foreign Currency

Assets

Line of business Currency 2009 2010

ThCh$ ThCh$
Current Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 707,398 23,921
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dollars 20,881 9,393
Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 5,706,857 5,430,520
Notes Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 506,110
Other Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 449,988 944,872
Documents And Accounts Receivable From Related Parties . . . Non Adjusted $ 1,023,253 790,786
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 61,075 43,614
Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 650,531 2,757,631
Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 73,957
Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 119,368 341,597
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 222,555 729,732
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 1,303,288 1,203,739
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dollar 5,600,064 4,597,983
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 183,048 245,456
Taxes Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 327,035 454,359
Property, Plant And Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 28,395
Property, Plant And Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 6,421,865 60,719,619
Investments In Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 3,970,681 3,719,741
Long-Term Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Adjusted $ 794,990
Other Long-Term Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 16,884,539 15,652,239
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 9,045,977 7,820,766
Dollars 5,620,945 4,607,376
Adjusted $ 29,557,939 84,507,328
Unidad de Fomento 802,622 729,732

F-42
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

22. Local and Foreign Currency(Continued)

Current Liabilities

Up to 90 days 90 days to 1 year

2009 2010 2009 2010
Annual Annual Annual Annual
aver. aver. aver. aver.
Description Currency Amount Int. Rate Amount Int. Rate Amount Int. Rate Amount Int. Rate
ThCh$ ThCh$ ThCh$ ThCh$
Long -term obligations with financial
institutionsshort term portion . . . Dollars 2,199,686 6.73% 145,095 6.75% 13,229,416 9,832,055 6.73%
Short term bank obligations . . . . . . . . Adjusted $ 8,951,890 8.12% 1,079,248 8.12% 7,621,587
F-43

Accounts payable . . . . . . . . . . . . . . . . Non Adjusted $ 7,682,145 5,945,895

Accounts payable . . . . . . . . . . . . . . . . Dollars 391,629 395,048
Other payables . . . . . . . . . . . . . . . . . . . Non Adjusted $ 1,082,506 715,416
Other payables . . . . . . . . . . . . . . . . . . . Unidad de Fomento 863,314 641,634
Other payables . . . . . . . . . . . . . . . . . . . Dollars 253,082
Provisions . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 962,013 1,367,253
Withholdings . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 653,975 887,638
OTROS OTHER CURRENT
LIABILITIES . . . . . . . . . . . . . . . . . Unidad de Fomento $
Deferred Taxes . . . . . . . . . . . . . . . . . . Adjusted $
Docs. & accounts payable
with rel. Co. . . . . . . . . . . . . . . . . . . . Unidad de Fomento 182,029 191,676 229,429
Total current liabilities . . . . . . . . . . . . Dollars 2,844,397 540,143 13,229,416 9,832,055
Adjusted $ 8,951,890 1,079,248 7,621,587
Non Adjusted $ 10,380,639 8,916,202
Unidad de Fomento 1,045,343 833,310 229,429
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

22. Local and Foreign Currency(Continued)

Long Term LiabilitiesCurrent period 30-09-2009

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Annual aver. Annual aver. Annual aver. Annual aver.
Line of business Currency Amount Int. Rate Amount Int. Rate Amount Int. Rate Amount Int. Rate
ThCh$ ThCh$ ThCh$ ThCh$
L/t obligations with banks & fin.
Entities . . . . . . . . . . . . . . . . . . . . Dollars 23,451,880 6.73% 13,774,211 6.73% 16,307,771 6.73%
L/t obligations with banks & fin.
Entities . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 1,771,684 6.73% 1,771,684 6.73% 3,543,368 6.73%
Other payables . . . . . . . . . . . . . . . . Unidad de Fomento 252,574
F-44

Other payables . . . . . . . . . . . . . . . . Dollars 244,788

Docs. & accounts payable with
rel. Co. . . . . . . . . . . . . . . . . . . . . Dollars 2,037,075
L/t Provision . . . . . . . . . . . . . . . . . . Non Adjusted $ 1,955,422
Total current liabilities . . . . . . . . . . Dollars 25,733,743 13,774,211 16,307,771
Non Adjusted $ 3,727,106 1,771,684 3,543,368
Unidad de Fomento 252,574
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

22. Local and Foreign Currency(Continued)

Long Term LiabilitiesPrevious Period 30-09-2010

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Annual aver. Annual aver. Annual aver. Annual aver.
Line of business Currency Amount Int. Rate Amount Int. Rate Amount Int. Rate Amount Int. Rate
ThCh$ ThCh$ ThCh$ ThCh$
Obligations with Banks & Fin.
Inst. . . . . . . . . . . . . . . . . . . . . Dollar 20,079,798 6.75% 13,043,381 6.75% 8,076,849 6.75%
Obligations with Banks & Fin.
Inst. . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 1,728,472 6.75% 1,728,472 6.75% 2,592,710 6.75%
Other payables . . . . . . . . . . . . . Unidad de Fomento 4,530,183
F-45

Other payables . . . . . . . . . . . . . Non Adjusted $

Docs. & accounts payable with
rel. Parties . . . . . . . . . . . . . . . Unidad de Fomento 1,102,888 2,343,349 249,081
Docs. & accounts payable with
rel. Parties . . . . . . . . . . . . . . . Dollars 1,763,560
Provisions . . . . . . . . . . . . . . . . . Non Adjusted $ 3,056,595
Long-Term Deferred Taxes . . . Non Adjusted $ 643,366
Total long term liabilities . . . . . Dollar 21,843,358 13,043,381 8,076,849
Non Adjusted $ 4,785,067 1,728,472 2,592,710
Unidad de Fomento 5,633,071 2,343,349 249,081
Non Adjusted $ 643,366
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

23. Sanctions
a) The Ministry of Transportation and Telecommunications applied the following penalties.

i) Through Exempt Resolution N69 dated January 11, 2010, in accordance with Exempt Resolution No. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in a sum equivalent to
UF 2,700 and ICPKH in the sum of Ch$ 132,358,812. The status of the appeal is pending.

ii) Through Exempt Resolution No. 372 on February 10, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,400 and for ICPKH in the amount of Ch$ 91,600,365. An appeal for reversal seeks the return of UF 200. A
Hierarchical Appeal was rejected and Exempt Resolution No. 911 was confirmed, in 2010, in all of its parts. As a
consequence, the UF 200 should be re-integrated; in the rest, the deductions applied are confirmed.

iii) Through Exempt Resolution N487 on March 2, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,000 and for ICPKH in the amount of Ch$ 65,604,414. An appeal for reversal seeks the return of UF 200. A
Hierarchical Appeal was rejected and Exempt Resolution No. 1078 was confirmed, in 2010, in all of its parts. As
a consequence, the UF 200 should be re-integrated; in the rest, the deductions applied are confirmed.

iv) Through Exempt Resolution N601 of March 10, 2010, in accordance with Exempt Resolution No. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts for a sum equivalent to
UF 400 and ICPKH in the sum of Ch$ 70,455,023. No appeal was filed since there is no information that would
allow reversal of the resolution.

v) Through Exempt Resolution N 772 on March 29, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
600 and for ICPKH in the amount of Ch$ 111,772,148. A Hierarchical Appeal was rejected and Exempt
Resolution No. 772/ 2010 was confirmed, in all of its parts. As a consequence, the the deductions are maintained.

vi) Through Exempt Resolution N930 on April 13, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
2,000 and for ICPKH in the amount of Ch$ 111,289,560. A Hierarchical Appeal was rejected and Exempt
Resolution N1935 declaring that the appeal for reversal is justified, ordering the return of 200 UF for ICF. A
hierarchical resolution is conceded, which is currently pending resolution.

vii) Through Exempt Resolution N1115 on April 28, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,200 and for ICPKH in the amount of Ch$ 104,635,822. Exempt Resolution No. 1115 resolves that the Appeal
for Reversal is justified, ordering the return of 200 UF for ICF. A hierarchical resolution is conceded, which is
currently pending resolution.

viii) Through Exempt Resolution N1267 on May 12, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,900 and for ICPKH in the amount of Ch$ 100,006,174. Exempt Resolution No. 2209 resolves that the Appeal
for Reversal is justified, ordering the return of 200 UF for ICF. A hierarchical resolution is conceded, which is
currently pending resolution.

F-46
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

23. Sanctions(Continued)
ix) Through Exempt Resolution N1414on May 27, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,200 and for ICPKH in the amount of Ch $105,626,034. The appeal for resolution by a higher authority was
rejected, and exempt resolution N 2270/2010 was confirmed in all of its parts. As a consequence, 100 UF should
be reintegrated.

x) Through Exempt Resolution N1663 on June 21, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,200 and for ICPKH in the amount of Ch$64,877,676. The case was not presented, as there was not sufficient
precedent to allow for a reversal of the resolution.

xii) Through Exempt Resolution N1803 on June 05, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,600 and for ICPKH in the amount of Ch$85,571,207. RE 2995/2010 resolved to the Reposition Resources.
Return UF 100. An Appeal for Reversal has been filed, which is pending resolution.

xiii) Through Exempt Resolution N1997 on July 20, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
200 and for ICPKH in the amount of Ch$66,552,604. RE 2985/2010 resolved that an appeal for reversal was not
merited. An appeal for resolution by a higher authority was granted, pending resolution. resolucin

xiv) Through Exempt Resolution N2197 on August 5, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,400 and for ICPKH in the amount of Ch$72,956,691. RE 3159/2010 resolved that an appeal for reversal was
merited. 300 UF was returned for ICG. An appeal for resolution by a higher authority was granted, pending
resolution.

xv) Through Exempt Resolution N2437 on August 5, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
800 and for ICPKH in the amount of Ch$60,792,358. An Appeal for Reversal has been filed, which is pending
resolution.

xvi) Through Exempt Resolution N2609 on September 8, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
1,800 and for ICPKH in the amount of Ch$101,409,549. An Appeal for Reversal has been filed, which is pending
resolution.

xvii) Through Exempt Resolution N2828 on September 24, 2010, in conformity with Exempt Resolution N.
1938, complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of
UF 1,900 and for ICPKH in the amount of Ch$80,654,091. An Appeal for Reversal has been filed, which is
pending resolution.

xviii) Through Exempt Resolution N2977 on October 8, 2010, in conformity with Exempt Resolution N. 1938,
complemented by Exempt Resolution No. 2230, the MTT applied ICR and ICF discounts in the amount of UF
2,150 and for ICPKH in the amount of Ch$136,417,281. An Appeal for Reversal has been filed, which is pending
resolution.

F-47
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

23. Sanctions(Continued)
c) Sesma

By resolution N457/09, the sanction process for non-compliance of the resolution that qualified environment
approving the project Depsito y Terminal de Vehculos Puente Alto Exp. N016/2006 is resolved, a verdict
was issued that ordered payment of the sum of 100 UTM. The Company presented an administrative
reconsideration appeal, pending resolution.

24. Subsequent Events

On November 2, 2010, a credit was received from HSBC EKN in the amount of US$7,593,205.00 for financing
the purchase of 43 new buses and the spare parts necessary for their proper functioning. This credit has an annual
floating Libor interest rate of 1.8%.

As of September 30, 2010 and the date of issue of these financial statements, the Companys Management is not
aware of other subsequent events.

25. Environment
No disbursements connected either directly or indirectly to environmental protection have been made as of
September 30, 2009 and 2010.

26. Operating Income

Operating income mainly consists of revenue related to public transportation corresponding to the Companys
Trunkline N1., which is detailed as follows:

2009 2010
ThCh$ ThCh$
Trunkline N1 Service Revenue . . . . . . . . . . . . . . . . . 45,151,589 49,381,023
Static and dynamic advertisement on buses . . . . . . . . 92,141 188,363
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,067,458 5,163,056
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,311,188 54,732,442

27. Operating Costs and Expenses

Operating costs as of September 30 for each year are detailed as follows:

2009 2010
ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,539,658 39,839,425
Depreciation and amortization . . . . . . . . . . . . . . . . . . 6,763,902 6,899,373
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,303,560 46,738,798

F-48
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in thousands of constant
Chilean pesos as of September 30, 2010)
(A free translation of financial statements issued in Spanish)

27. Operating Costs and Expenses(Continued)

Administrative and sales expenses as of September 30 of each year are detailed as follows:

2009 2010
ThCh$ ThCh$
Administrative Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,603,842 3,735,722
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . 989,573 816,737
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,593,415 4,552,459

28. Accounts Payable

Accounts payable as of September 30 for each year are detailed as follows:

2009 2010
ThCh$ ThCh$
National suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,710,437 5,778,838
Foreign suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369,683 416,002
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993,654 146,100
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,073,774 6,340,940

F-49
 Consolidated Financial Statements
Inversiones Alsacia S.A.
December 31, 2008 and 2009

Ch$ = Chilean pesos

ThCh$ = Thousands of Chilean pesos
US$ = United States dollars
ThUS$ = Thousands of United States dollars
UF = Unidades de Fomento, an inflation-indexed, peso-denominated monetary unit. The UF rate is set
daily based on changes in the Chilean Consumer Price Index.

(A free translation from the original prepared in Spanish)

F-50
 Report of Independent Accountants
(A free translation from the original report issued in Spanish)

To the Shareholders and Directors of

Inversiones Alsacia S.A.:
We have audited the consolidated balance sheet of Inversiones Alsacia S.A. (the Company) as of December 31,
2009 and the related consolidated statements of income and cash flows for the year then ended. These financial
statements are the responsibility of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. The financial statements of Inversiones Alsacia S.A. for the year
ended December 31, 2008 were audited by other auditors, who issued an unqualified opinion on their report
dated February 26, 2009. We have not reviewed the financial statements of subsidiary IASA de Colombia
Limitada which shows total assets of ThCh$227 as of December 31, 2009. In addition we have not reviewed the
financial statements of indirect associate Express de Santiago Uno S.A. (subsidiary of the direct associate
Inversiones Eco Uno S.A.) which as a result of the application of the equity method shows a total investment of
ThCh$4,196,640 and a loss of ThCh$403,962 for the year then ended. Those financial statements were reviewed
by other auditors whose reports have been furnished to us, and our opinion expressed herein, in reference to the
amounts used to calculate the equity value of those companies, is based solely on the reports issued by those
auditors.

We conducted our audit in accordance with generally accepted auditing standards in Chile. Those standards
require that we plan and perform our audit to obtain reasonable assurance that the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also involves assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audit and the report of other auditors, the consolidated financial statements referred
to above present fairly, in all material respects, the financial position of Inversiones Alsacia S.A. as of
December 31, 2009 and the results of its operations and cash flows for the year then ended, in conformity with
generally accepted accounting principles in Chile and the accounting instructions provided by the
Superintendency of Securities and Insurance.

For the convenience of the reader, these financial statements and their accompanying notes have been translated
from Spanish to English.

/s/ Ernst & Young Ltda.

Santiago, Chile, February 24, 2010

F-51
 INVERSIONES ALSACIA S.A.
CONSOLIDATED BALANCE SHEET
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)
As of December 31,
NOTE 2008 2009
ThCh$ ThCh$
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,942 2,795,845
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 36,063 1,080,043
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4,981,464 3,452,926
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 535,165 444,026
Accounts receivables from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 955,661 1,515,049
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 89,361 43,498
Taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311,717 454,358
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754,664 1,469,230
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 38,368
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9,322,678 8,369,978
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,262,715 19,663,321
PROPERTY, PLANT AND EQUIPMENT
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3,675,230 3,659,461
Buildings and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 13,389,388 15,577,834
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 63,004,416 62,867,269
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5,269,498 5,557,594
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 (18,764,536) (26,862,382)
TOTAL PROPERTY, PLANT AND EQUIPMENT . . . . . . . . . . . . . . . . 66,573,996 60,799,776
OTHER ASSETS
Investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4,600,602 4,196,640
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2,909,321 428,304
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 16,793,808 16,293,636
TOTAL OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,303,731 20,918,580
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,140,442 101,381,677

The accompanying notes 1 to 33 are an integral part of these financial statements

F-52
 INVERSIONES ALSACIA S.A.
CONSOLIDATED BALANCE SHEET(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

As of December 31,
NOTE 2008 2009
ThCh$ ThCh$
LIABILITIES
CURRENT LIABILITIES
Short-term loans with banks and financial institutions . . . . . . . . . . . . . 14 5,379,495 7,044,276
Long-term bank borrowingsshort-term portion . . . . . . . . . . . . . . . . . 14 13,455,598 14,355,974
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 7,172,988 8,774,470
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,447,255 1,532,668
Accounts payable to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 31,321 431,841
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 973,606 1,528,282
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518,662 712,993
Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,381
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 508,734
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 52,628
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,549,668 34,380,504
LONG-TERM LIABILITIES
Obligations with banks and financial institutions . . . . . . . . . . . . . . . . . 16 77,199,605 53,784,391
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,454 281,870
Accounts payable to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2,228,998 5,669,745
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2,543,639
TOTAL LONG-TERM LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,434,057 62,279,645
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SHAREHOLDERS EQUITY
Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 10,308,365 10,308,365
Retained earnings (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 (6,612.428) (12,151,648)
Net income (loss) for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 (5,539,220) 6,564,811
TOTAL SHAREHOLDERS EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,843,283) 4,721,528
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,140,442 101,381,677

The accompanying notes 1 to 33 are an integral part of these financial statements

F-53
 INVERSIONES ALSACIA S.A.
CONSOLIDATED STATEMENT OF INCOME
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos As of December 31, 2009)
(A free translation from the original prepared in Spanish)

For the year ended as of

December 31,
NOTE 2008 2009
ThCh$ ThCh$
STATEMENT OF INCOME
OPERATING INCOME
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 70,865,567 66,658,229
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 (56,528,310) (60,229,691)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,337,257 6,428,538
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 (4,988,842) (6,612,768)
TOTAL OPERATING PROFIT (LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . 9,348,415 (184,230)
NON-OPERATING INCOME (EXPENSES)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 692,043 170,487
Profit from investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 491,160
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 305,712 192,875
Loss from investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 (403,962)
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,001,080) (4,163,844)
Other non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 (436,526) (581,862)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 6,390,055 (1,975,261)
Foreign exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 (17,412,968) 15,501,036
TOTAL NON-OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,971,604) 8,739,469
INCOME (LOSS) BEFORE TAXES AND EXTRAORDINARY ITEMS . . (6,623,189) 8,555,239
INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1,083,969 (1,990,428)
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET INCOME (LOSS) FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . (5,539,220) 6,564,811

The accompanying notes 1 to 33 are an integral part of these financial statements

F-54
 INVERSIONES ALSACIA S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

For the year ended as of

December 31,
2008 2009
ThCh$ ThCh$
CASH FLOWS FROM OPERATING ACTIVITIES
Collection of trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,138,939 62,249,384
Interest income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793,407 170,492
Other income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,941 192,875
Payables to suppliers and employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (54,789,265) (46,850,810)
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,924,717) (4,942,392)
Other expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (294,433) (581,862)
Value Added Tax and other taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (246,642) (807,079)
TOTAL NET CASH FLOWS PROVIDED BY OPERATING
ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,848,230 9,430,608
CASH FLOWS FROM FINANCING ACTIVITIES
Loans received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,323,201 16,820,480
Loans from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,099,876
Other borrowings from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463,899
Payment of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,099,542) (23,241,668)
Acquisition of other loans from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (649,285)
TOTAL NET CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,038,273 (2,321,312)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Others Investments Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,197,891 10,147,260
Acquisition of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,842,385) (1,867,035)
Investments in financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,312,934) (11,818,292)
TOTAL NET CASH FLOWS PROVIDED BY INVESTMENT
ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,957,428) (3,538,067)
TOTAL NET CASH FLOWS FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . (70,925) 3,571,229
EFFECT OF INFLATION ON CASH AND CASH EQUIVALENTS . . . . . . . . . . . . 28,916 (7,346)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . (42,009) 3,563,883
OPENING BALANCE OF CASH & CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . 354,014 312,005
CLOSING BALANCE OF CASH & CASH EQUIVALENTS . . . . . . . . . . . . . . . 312,005 3,875,888

F-55
 INVERSIONES ALSACIA S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

For the year ended on

December 31,
2008 2009
ThCh$ ThCh$
Net income (Loss) for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,539,220) 6,564,811
Charges (credits) to income that do not represent cash flows
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,578,402 8,255,510
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,573,963 2,400,869
Write-offs and provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,913 3,899,395
Profit from investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (491,160)
Loss from investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403,962
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,390,055) 1,975,261
Foreign exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,412,969 (15,501,036)
Credits to income which do not represent cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . (2,691,217)
Charges to income which do not represent cash flows . . . . . . . . . . . . . . . . . . . . . . . . . 2,087,454
Total charges (credits) to income that do not represent cash flows . . . . . . . . 17,114,815 3,521,415
Changes in assets affecting cash flows decrease (increase)
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,841,681) 1,749,547
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,512) 47,967
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 909,836 (560,820)
Total changes in assets affecting cash flows decrease (increase) . . . . . . . . . . . (949,357) 1,236,694
Changes in liabilities affecting cash flows increase (decrease)
Accounts payable related to operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (216,332) 1,544,056
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890,255 (3,294,436)
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,382 (9,602)
Other accounts payable related to non-operating income . . . . . . . . . . . . . . . . . . . . . . . (6,461,313) (132,330)
Profit (Loss) of minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total changes in liabilities affecting cash flows increase (decrease) . . . . . . . . (5,778,008) (1,892,312)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . 4,848,230 9,430,608

F-56
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

1. Corporate Information
Registration in the Securities and Trade Registry
Inversiones Alsacia S.A. is listed in the Securities and Trade Registry of the Office of the Superintendency of
Securities and Insurance of Chile (SVS), under No 883 dated January 27, 2005, and is subject to the supervision
of the SVS.

Incorporation and operations:

Inversiones Alsacia S.A. was founded as a closely-held corporation by public deed on November 27, 2004. The
principal activity of the Company is providing public transportation services to passengers on the roads granted
to it in the Metropolitan region and any other related activity in connection with that service.

At the Shareholders Meeting held on December 9, 2004, it was agreed to extend the line of business to include
static and dynamic advertisement through the use of advertising spaces on buses and other services related to the
main activity.

On October 23, 2005, the Corporation started providing public transportation services associated with The Trunk
Line No 1, which involved the operation of 533 buses at the beginning of the transition stage that reached the
same amount at the beginning of the Normal Operatig Stage(February 2007).

2. Summary of Significant Accounting Principles

(a) Accounting period
These financial statements include the period January 1 to December 31, 2008 and 2009.

(b) Basis of preparation

The consolidated financial statements as of December 31, 2008 and 2009 have been prepared in accordance with
generally accepted accounting principles in Chile (Chilean GAAP), issued by the Chilean Institute of Certified
Accountants A.G., and with the specific rules and instructions issued by the Office of the Superintendency of
Securities and Insurance of Chile.

Certain accounting practices applied by the Company that conform to Chilean GAAP may not conform to
generally accepted accounting principles in the United States (US GAAP) or International Financial Reporting
Standards.

(c) Basis of presentation

The consolidated financial statements as of December 31, 2008, include certain reclassifications in order to make
them conform with the classifications used in 2009.

In these consolidated financial statements, certain reclassifications have been made in the Statements of Cash
Flows for the periods 2008 and 2009, in order to make the criteria used uniform. These reclassifications do not
affect total cash flows for the periods.

F-57
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

2. Summary of Significant Accounting Principles(Continued)

For comparative purposes, the consolidated financial statements as of December 31, 2008 and its corresponding
notes have been restated for accounting purposes by -2.3%.

(d) Price-level restatement

The consolidated financial statements have been price-level restated in order to reflect the variation in purchasing
power of the Chilean peso during each period. The adjustments have been determined based on the official index
of the National Institute of Statistics, which show a variation of -2.3% for 2009 (8.9% in 2008).

The effect of the foreign exchange adjustment for the periods between January 1 and December 31, 2009, has
been recorded in net income.

(e) Basis of foreign currency translation

The assets and liabilities in foreign currency and in Unidades de Fomento are valued at the exchange rate
effective as of the closing date of each period. Effects have been recognized directly in the income statement.
The exchange rates effective as of the closing date of each fiscal year are the following:

2008 2009
$ $
US dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636.45 507.10
Unidad de Fomento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,452.57 20,942.88

(f) Time deposits

Investments in time deposits are presented at the acquisition cost plus any readjustment and interest accrued as of
each closing date. Time deposits are presented under other current assets.

(g) Marketable Securities

Investments in mutual fund units are recorded at the unit value of the period and date.

(h) Allowance for Doubtful Accounts

Allowance for doubtful accounts has been calculated based on aging and current regulations. These allowances
are shown on a deduction of the related receivable.

(i) Inventories
The fuel stock is shown at its price-level restated cost, which does not exceed its net realizable value.

Spare parts and materials for maintenance of buses have been classified in other property, plant and equipment.

F-58
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

2. Summary of Significant Accounting Principles(Continued)

(j) Prepaid expenses
Prepaid expenses includes expenses related to insurances policies, which are amortized over the insurance policy
term.

(k) Property, plant and equipment

The Companys Property, plant and equipment mainly corresponds to buses held for public transportation, which
are valued at price-level restated acquisition price adjusted by inflation, including all the expenses incurred up to
the date in which they available for use. Other property, plant and equipment items are accounted for at their
purchasing price adjusted by inflation.

Expenditures related to the purchase of software packages are recognized at price-level restated acquisition cost
and amortized over a three-year period.

Goods subject to a sale-and-leaseback agreement are capitalized as a property, plant and equipment of the
Company; corresponding obligations are accounted for as part of other short and long-term payables.

The Company has made a provision for maintenance related to its buses.

(l) Depreciation of property, plant and equipment

The annual depreciation has been estimated using the straight-line method, considering the remaining estimated
useful life of the respective goods.

During the third quarter of 2008, the Company carried out a technical review of the buses in order to determine
the technical situation in the current operating situations. As a result of the review, the remaining useful life of
the buses was reduced from 13 yearsoriginally determined according to the duration of the concession
contractto 9 years.

This adjustment of the useful lives of the buses led to an increase in a depreciation charge for the financial period
of 2008 in the amount of ThCh$1,866,815. According to internal analysis the change in useful lives will have a
negative impact on future income for the period of 2009 and onwards in the amount of ThCh$2,309,741
annually.

(m) Property, plant and equipment under finance lease

Items of property, plant and equipment leased on the basis of contracts which include a purchase option and
which fulfill all criteria of a financial lease agreement are capitalized as if they were acquired. The sum of the
annual lease payments is recognized as liability and lease interest is recorded on accrual basis. Such assets are
not legally owned by the Company, so, as long as the purchase option is not exercised, the Company cannot
freely dispose of them.

(n) Investments in associates

Investments in associates are accounted for using the equity method.

F-59
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

2. Summary of Significant Accounting Principles(Continued)

The share in the associates income is recognized in the Companys income statement on an accrual basis over the
corresponding holding period.

(o) Income Tax and Deferred Taxes

According to the current legal regulations, the Company has not accrued any provision for First-category income
tax, because it shows a negative taxes base in the respective periods.

In accordance with what is set forth in Technical Bulletin No 60 and the complementary bulletins issued by the
Chilean Association of Accountants, and the standards provided in Circular No 1,466 of the Chilean
Superintendency of Securities and Insurance, the Company accounts for deferred taxes originated by timing
differences, benefits due to taxes losses and other events that generate differences between accounting and tax
income.

(p) Vacation accrual

At each period end, the Company sets up an accrual for unused vacations days of its employees.

(q) Operating Income

On February 10, 2007, the new regimen period began, and from this date on the earnings are calculated in
accordance with the concession agreement with the Ministry for Transportation and Telecommunications, that is,
the price per transported passenger (PTP) multiplied by the adjusted demand.

Income is recognized in accordance with generally accepted accounting principles in Chile, on an accrual basis.
As of the date of the financial statements, provisions have been established for services provided and not billed.

Income from static and dynamic advertising originates from renting out advertising spaces on buses.

(r) Technical Operating Reserve (TOR)

The Technical Operating Reserve is an allowance incorporated in the fare paid by users to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system. The amounts paid to the Transantiago Financial Administrator (AFT) for this concept in relation to the
Trunk Line N 1 business unit, are recorded as a deferred asset that will be amortized with a charge to operating
income, during the concessions operating period, based on projected income to be obtained from providing
transportation services.

(s) Statements of Cash Flows

The Company considers as cash equivalents all highly-liquid financial investments agreed with a maximum
maturity of 90 days , and with minimum risk of loss in value. Cash flows from operating activities include all
business-related cash flows, as well as paid interest, interest income and, in general, all cash flows not defined as
from investment or financing activities. It is important to emphasize that the operating concept used in the
statements of cash flows is more comprehensive than the one considered in the statement of income.

F-60
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

2. Summary of Significant Accounting Principles(Continued)

Amortization associated to technical operating reserve and capitalized financing expenses have been classified as
amortization of intangibles in the reconciliation of the cash flows.

(t) Capital Expenditures

According to the ordinary official letter No. 11,808 of October 31, 2006, the Office of the Superintendency of
Securities and Insurance authorized the Company to accrue and subsequently amortize capital expenditures
directly associated with the bank loans used to finance the purchase of the bus fleet. For this purpose, such
expenditures are distributed based on the development of actual earnings obtained, considering the total projected
earnings. These expenditures are capitalized as part of the line item Other Long-Term Assets.

(u) Companies Included in the Consolidation

Participation Percentage
12-31-2009 12-31-2008
Taxpayer No. Company Name Direct Indirect Total Total

0-E Iasa de Colombia Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.999 0 99.999 99.999

3. Accounting Changes
During the period from January 1 to December 31, 2009, no significant changes have been made to the generally
accepted accounting principles of Chile.

4. Marketable Securities

Book Value
2008 2009
ThCh$ ThCh$
Financial Instruments
Mutual fund units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,063 1,080,043
Total marketable securities . . . . . . . . . . . . . . . . . . . . . . . . 36,063 1,080,043

F-61
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

5. Short- and long-term receivables

Composition of short- and long-term receivables as of December 31, 2008 and 2009:

2008 2009
ThCh$ ThCh$
Trade receivables
Deferred income (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,020,565 1,605,686
FMT (Exempted Resolution 1985) (2) . . . . . . . . . . . . . . 2,864,126 2,583,247
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217,889 176,606
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 18,186
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . (121,913) (930,799)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,981,464 3,452,926
Other receivables
Accounts receivable from employees . . . . . . . . . . . . . . . 258,924 279,788
Prepayments to suppliers . . . . . . . . . . . . . . . . . . . . . . . . . 212,427 105,108
Accounts receivable from Volvo (4) . . . . . . . . . . . . . . . . 47,558 25,111
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,256 34,019
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535,165 444,026

(1) For the most part corresponds to the passenger revenue accrued by rendering public transportation services
during the regimen period that are liquidated every two weeks by the Transantiago Financial Administrator.
(2) The Company has recorded as receivables the amounts withheld by the Ministry of Transportation and
Telecommunications through Exempt Resolution 1985 of 2008, which establishes a fine for non-compliance
with regularity and frequency indices. According to the Exempt Resolutions mentioned in note 26 the
amounts should be accounted for in the pertinent account as debts of the system that the Company expects
to recover in 2010.
(3) As stated in note 2 h), the Company has estimated an accrual for ThCh$806,557 corresponding to revenue
withheld by the Ministry of Transport and Telecommunication for the application of Exempt Resolution
1938, where the fines relating to regularity, frequency and ICPKH indices are set.
(4) This line item relates to warranty claims against Volvo Sweden Co. in the form of spare parts for the bus
fleet.

Short-term Long-term
Up to 90 days < 90 days > 1 year Subtotal Total Current (net)
2008 2009 2008 2009 2008 2009 2008 2009

Trade receivables . . . . . . . . . . . . . 4,981,464 4,383,725 4,383,725 4,981,464 3,452,926

Allowance for doubtful
accounts . . . . . . . . . . . . . . . . . . 930,799
Trade receivables . . . . . . . . . . . . .
Other receivables . . . . . . . . . . . . . 535,165 444,026 444,026 535,165 444,026
Allowance for doubtful accounts
other receivables . . . . . . . . . . .
Total long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-62
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

6. Related party disclosures

The sales to and purchases from related parties are made at terms equivalent to those prevailing in arms length
transactions.

Short-term receivables from related parties are detailed as follows:

2008 2009
ThCh$ ThCh$
Express de Santiago Uno S.A. (1) . . . . . . . . . . . . . . . . . . . 183,317 193,619
Carlos Rios V. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,509 46,076
EDTM Consultores.E.U. (4) . . . . . . . . . . . . . . . . . . . . . . . 297,370 742,245
Rioma Ltda. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,367 231,418
Desarrollo y Soluciones Informticas (6) . . . . . . . . . . . . . 125,845 128,808
Inversiones Eco Uno Ltda. (7) . . . . . . . . . . . . . . . . . . . . . . 168,253 172,213
Holding Alsacia S.A. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . 670
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 955,661 1,515,049

Short-term payables to related parties are detailed as follows:

2008 2009
ThCh$ ThCh$
Express de Santiago Uno S.A. (1) . . . . . . . . . . . . . . . . . . . . . . 31,321 177,589
Dakota SPA (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,252
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,321 431,841

Long-term payables to related parties are detailed as follows:

2009 2008
ThCh$ ThCh$
Data Tools S.A. (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,031,029 848,400
Fanach Corp. (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643,212 529,257
Aseo Capital S.A. (12) . . . . . . . . . . . . . . . . . . . . . . . . . . 319,594 262,988
Carlos Toro (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,102 104,595
Maraya E.U. (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,061 88,926
Dakota SPA (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,835,579
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,228,998 5,669,745

(1) As of December 31, 2008 and 2009, the receivable and payable balances recorded by the Company with
Express de Santiago Uno S.A., correspond to balances generated in the context of the allocation of expenses
and operating costs, amount to ThCh$16,030 and ThCh$151,996, respectively.
Moreover, there exists an adjustment account for the financial years of 2005 and 2006, determined on
conservative basis, which amounts to ThCh$1,515,343 (historic value), increasing the balance in favor of
Inversiones Alsacia S.A. as of December 2009 to ThCh$1,531,373.

F-63
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

6. Related party disclosures(Continued)

The value of the adjustment account is based on the instructions of the Official Letter No. 06354 dated
June 11, 2007, of the Superintendency of Securities and Insurance. The Company followed the guidelines of
the granted Official Letter and altered the balances receivable from and payable to Express de Santiago Uno
SA to the amounts of ThCh$611,317 and ThCh$2,126,660, respectively (historic net amount of
ThCh$1,515,343 in favor of Inversiones Alsacia S.A.).
Adjusted balances originated from:
The pre-operational period: ThCh$611,317 (historic value) in favor of Express. referring to the period
between January 10 and December 31, 2005.
The operational period: ThCh$2,126,660 (historic value) in favor of Inversiones Alsacia S.A. referring to
the period between January 10 and August 31, 2006.
Inversiones Alsacia S.A. has 2 independent third party reports confirming the figures cited.
The companies involved have been in negotiations to resolve the situation, as of the period-end no
resolution have been reached. For the fact that no agreement has yet been reached, the Company is
considering submitting the matter for arbitration. In the meantime, following the instructions of the Ordinary
Official Letter (Oficio Ordinario) published by the Superintendency of Securities and Insurance, the
balances above are considered as contingent income, without bearing interest or readjustments.
(2) Carlos Rios: Funds payable not generating interests.
(3) EDTM: Corresponds to a loan of US$350,965 taken on March 05, 2007, to finance the capitalization of Eco
Uno Ltda. On February 29, 2008, the loan was renewed with a 180-day payment term, and an agreed-upon
maturity date of August 05, 2008 with an annual interest rate of 7.7%. The loan will be renewed
automatically for another term of 180 days at the date of maturity.
On December 22, 2009, $437,873,476 was paid to EDTM to contract the warranty of EDTM in favor of
Dakota SPA, which was incorporated as a pledge for part of its investments.
(4) Rioma Ltda.: Recovery of expenses not generating interest with a maturity date of December 31, 2010.
(5) Desarrollo y Soluciones Informticas: Accounts receivable of US$ 258,160.96 corresponding to interest
earned on external funding.
(6) Eco Uno Ltda.: Corresponds to contribution for interest.
(7) Holding Alsacia S.A.: Corresponds to recoveries of expenditures that do not generate interests with a
maturity date of 31/12/2010.
(8) Dakota SPA: Corresponds to a credit to finance working capital in the amount of UF195,480.00; the amount
is to be paid in 110 monthly installments and successive quotas payable from January 2010 and accrues an
interest of 12.5% annually.
(9) Data Tools: Corresponds to three loans obtained to finance Transantiago Operating Plan totaling of US$
1,610,000. The loans are in US dollars and accrue 1% of annual interest with a maturity date of 28/08/2012.
(10) Fanach: Corresponds to a credit in the amount of US$ 1,000,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. The loan is in US dollars and accrue an annual interest of 1% with a
maturity date of 28/08/2012.
(11) Aseo Capital: Corresponds to a credit in the amount of US$ 500,000 obtained to finance operations pursuant
to the Transantiago Operating Plan. The loan is in US dollars and accrues an annual interest of 1% with a
maturity date of 28/08/2012.

F-64
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

6. Related party disclosures(Continued)

(12) Carlos Toro: Corresponds to a credit amounting to US$ 200,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. This loan is in US dollars and accrues an annual interest of 1% with a
maturity date of 28/08/2012.
(13) Maraya: Corresponds to a credit amounting to US$ 170,000 obtained to finance operations pursuant to the
Transantiago Operating Plan. This loan is in US dollars and accrues an annual interest of 1% with a maturity
date of 28/08/2012.
Balances and transactions with related parties during the period January through December, 2008 and 2009
are shown in tables below:

a) Documents and accounts receivable

Taxpayer ID
No. Corporation Short-term Long-term
2008 2009 2008 2009
ThCh$ ThCh$ ThCh$ ThCh$
99577390-2 Express de Santiago Uno S.A. . . . . . . . . . . . . . . . . . . . . . . . 183,317 193,619
48095921-3 Carlos Rios V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,509 46,076
0-E Edtm Consultores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,370 742,245
76452480-2 Rioma Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,367 231,418
0-E DSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,846 128,808
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . 168,252 172,213
0-E Holding Alsacia S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 670
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 955,661 1,515,049

b) Notes and accounts receivable

Taxpayer ID
No. Corporation Short-term Long-term
2008 2009 2008 2009
ThCh$ ThCh$ ThCh$ ThCh$
99577390-2 Express de Santiago Uno S.A. . . . . . . . . . . . . . . . . . . 31,321 177,589
0-E Aseo Capital De Colombia . . . . . . . . . . . . . . . . . . . . . 319,594 262,988
0-E Data Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,031,029 848,400
0-E Fanach Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643,212 529,257
0-E Carlos Toro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,102 104,595
0-E Maraya E.U. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,061 88,926
77080776-K Dakota Spa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,252 3,835,579
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,321 431,841 2,228,998 5,669,745

F-65
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

6. Related party disclosures(Continued)

c) Transactions

2008 2009
Effects on Effects on
Taxpayer id Nature of the Income Income
Corporation no. relationship Transaction description Amount (charge/credit) Amount (charge/credit)
ThCh$ ThCh$ ThCh$ ThCh$
Express de Santiago Uno
S.A. . . . . . . . . . . . . . . . . . . . 99577390-2 Related Company Shared Expenditures 83,893 83,893 203,695 (203,695)
Iasa de Colombia Ltda. . . . . . . 0-E Related Company Nib Credit Interests Diff. 80,572 133,213
Edtm Consultores . . . . . . . . . . 0-E Related Company Current Account 410,089
F-66

Dakota Spa . . . . . . . . . . . . . . . . 77080776-K Related Company Delivery Of Loan 4,099,876

Holding Alsacia S.A . . . . . . . . 0-E Related Company Current Account 670
Edtm Consultores . . . . . . . . . . 0-E Related Company Loan Accrued Interests 27,784 27,784
Ruben Rios V. . . . . . . . . . . . . . 0-E Shareholder Board Of Directors Fees 6,208 (6,208) 6,012 (6,012)
Carlos Rios V. . . . . . . . . . . . . . 21922672-1 Shareholder/Dirctor Various Payments 3,828 851 (851)
Luis Videla V. . . . . . . . . . . . . . 7779468-9 Director Board Of Directors Fees 3,000 (3,000) 6,000 (6,000)
Laurence Goldborne . . . . . . . . 8170562-3 Director Board Of Directors Fees 4,000 (4,000)
Heriberto Urzua . . . . . . . . . . . . 6666825-8 Director Board Of Directors Fees 176 (176) 1,500 (1,500)
Asesorias Vsa Ltda. . . . . . . . . . 77127320-3 Company Director Consultancies 36,000 (36,000) 20,000 (20,000)
Sociedad De Inversiones Santa
Anita Ltda. . . . . . . . . . . . . . . 76939320-K Company Director Consultancies 9,000 (9,000) 24,000 (24,000)
Heriberto Urzua Inversiones y
Asesorias Ltda. . . . . . . . . . . 76704540-9 Company Director Consultancies 36,000 (36,000) 33,500 (33,500)
Rioma Ltda. . . . . . . . . . . . . . . . 76452480-2 Related Company Consultancies 110,727 (110,727) 133,333 (133,333)
Related Company Property, Plant And Equipment Purchase 22,000
Related Company Back Office 150,751 150,751 75,394 75,394
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

7. Inventories
Includes the inventories owned by the Company, valued according to the accounting policy of the Company
described in Note 2i).

The balances as of December 31, 2008 and 2009 are detailed as follows:
2008 2009
ThCh$ ThCh$
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,361 43,498

8. Deferred and Income Taxes

General information:

As of December 31, 2008 and 2009 as stated in Note 2 o), the Company has made no provision for First Category
income tax ( Impuesto al la Renta de Primera Categora), according to current legal regulations in force it has
negative tax results.

Retained loss as of December 31, 2009 amounts to ThCh$52,253,463 (ThCh$70,313,039 in 2008).

Deferred taxes
Concepts 2008 2009
Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability
Temporary Differences Short-term Long-term Short-term Long-term Short-term Long-term Short-term Long-term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Allowance for doubtful accounts . . 20,724 158,236
Deferred income . . . . . . . . . . . . . . .
Vacation accrual . . . . . . . . . . . . . . . 132,296 131,809
Amortization of intangible
assets . . . . . . . . . . . . . . . . . . . . . . 593,175 1,391,275 195,540 1,687,966
Finance lease assets . . . . . . . . . . . . 128,455 77,797
Manufacturing expenses . . . . . . . . .
Depreciation of property,plant and
equipment . . . . . . . . . . . . . . . . . . 6,552,722 6,117,319
Staff Severance Indemnities . . . . . .
Other events . . . . . . . . . . . . . . . . . . 510,249
Amortization of other Assets . . . . . 31,278 971,443 31,278 1,081,952
Accrued Interests of Mutual
Funds . . . . . . . . . . . . . . . . . . . . . 1
Prepayments . . . . . . . . . . . . . . . . . . 37,300 46,636
Accrued Tax Loss . . . . . . . . . . . . . . 11,953,216 8,883,089
Spare Parts Obsolescence
Provision . . . . . . . . . . . . . . . . . . . 21,777
Others
Complementary accounts- net of
amortization . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . 153,020 11,953,216 661,753 9,043,895 331,822 9,393,338 273,454 8,965,034

F-67
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

8. Deferred and Income Taxes(Continued)

Income Taxes
Item 2008 2009
ThCh$ ThCh$
Effect on assets and liabilities due to fiscal years deferred tax . . . . . . . . . . 1,083,969 (1,990,428)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,083,969 (1,990,428)

9. Other current assets

Other current assets balance as of December 2008 and 2009 is the following:
2008 2009
ThCh$ ThCh$
Short-term deposits (1) (2) . . . . . . . . . . . . . . . . . . . . . . . 7,681,903 6,911,527
AFT Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,281 170,104
Technical Reserve for Operations, short-term portion . . 963,865 980,131
Transantiagos guarantee (3) . . . . . . . . . . . . . . . . . . . . . . 211,528
Rental Security Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 114,111 124,226
HSBC Deferred Expenditures . . . . . . . . . . . . . . . . . . . . . 183,990 183,990
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,322,678 8,369,978

(1) Correspond to time deposits obtained from the HSBC Bank and Bancolombia, to assure the payment of
interest for the loans granted by the same banks for the financial period between August 28, 2009 and
February 28, 2010. Details are as follows:
Book
Currency Value of Annual value
Bank or Financial Institution Start Due date of Origin Subscription Rate 31/12/2008
ThCh$ ThCh$
HSBC BANK . . . . . . . . . . . . . . . . . . 11-08-2009 26-02-2010 US$ 358,800 0.110 331,035
HSBC BANK . . . . . . . . . . . . . . . . . . 27-08-2009 26-02-2010 US$ 357,227 0.083 330,463
HSBC BANK . . . . . . . . . . . . . . . . . . 11-09-2009 26-02-2010 US$ 305,254 0.070 281,560
HSBC BANK . . . . . . . . . . . . . . . . . . 29-09-2009 26-02-2010 US$ 328,840 0.073 304,021
HSBC BANK . . . . . . . . . . . . . . . . . . 02-10-2009 26-02-2010 US$ 81,345 0.100 73,638
HSBC BANK . . . . . . . . . . . . . . . . . . 14-10-2009 26-02-2010 US$ 411,355 0.600 377,726
HSBC BANK . . . . . . . . . . . . . . . . . . 27-10-2009 26-02-2010 US$ 3,738,374 0.550 3,561,877
HSBC BANK . . . . . . . . . . . . . . . . . . 11-11-2009 26-02-2010 US$ 378,385 0.500 376,859
HSBC BANK . . . . . . . . . . . . . . . . . . 27-11-2009 26-02-2010 US$ 371,644 0.580 376,519
HSBC BANK . . . . . . . . . . . . . . . . . . 11-12-2009 26-02-2010 US$ 368,789 0.600 376,556
HSBC BANK . . . . . . . . . . . . . . . . . . 29-12-2009 26-02-2010 US$ 376,381 0.450 375,867
HSBC BANK . . . . . . . . . . . . . . . . . . 11-09-2009 26-02-2010 CH$ 3,850 0.070 3,859
HSBC BANK . . . . . . . . . . . . . . . . . . 29-09-2009 26-02-2010 CH$ 3,860 0.100 3,871
HSBC BANK . . . . . . . . . . . . . . . . . . 14-10-2009 26-02-2010 CH$ 3,850 0.720 3,856
HSBC BANK . . . . . . . . . . . . . . . . . . 27-10-2009 26-02-2010 CH$ 3,750 0.108 3,757
HSBC BANK . . . . . . . . . . . . . . . . . . 11-11-2009 26-02-2010 CH$ 3,950 0.600 3,953
HSBC BANK . . . . . . . . . . . . . . . . . . 27-11-2009 26-02-2010 CH$ 3,850 0.960 3,853
HSBC BANK . . . . . . . . . . . . . . . . . . 11-12-2009 26-02-2010 CH$ 3,850 0.480 3,851
HSBC BANK . . . . . . . . . . . . . . . . . . 29-12-2009 26-02-2010 CH$ 20,500 0.480 20,501
BANCOLOMBIA . . . . . . . . . . . . . . . 29-12-2009 12-06-2010 US$ 98,032 0.285 97,905
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,221,886 6,911,527

F-68
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

9. Other current assets(Continued)

(2) Time deposit obtained from the HSBC Bank for the period of 2008 are the following:

Currency Value of Annual Book value

Bank or Financial Institution Start End of Origin Subscription Rate 2008
ThCh$ ThCh$
HSBC BANK . . . . . . . . . . . 18/11/2008 12/01/2009 US$ 443,274 0.187 438,206
HSBC BANK . . . . . . . . . . . 26/11/2008 27/02/2009 US$ 418,093 0.285 396,889
HSBC BANK . . . . . . . . . . . 27/11/2008 27/02/2009 US$ 360,322 0.295 346,816
HSBC BANK . . . . . . . . . . . 01/12/2008 27/02/2009 US$ 495,281 0.280 475,430
HSBC BANK . . . . . . . . . . . 09/12/2008 27/02/2009 US$ 23,684 0.243 22,419
HSBC BANK . . . . . . . . . . . 10/12/2008 27/02/2009 US$ 4,733,131 0.246 4,530,763
HSBC BANK . . . . . . . . . . . 11/12/2008 27/02/2009 US$ 361,214 2.250 346,207
HSBC BANK . . . . . . . . . . . 15/12/2008 27/02/2009 US$ 379,297 0.250 369,676
HSBC BANK . . . . . . . . . . . 29/12/2008 27/02/2009 US$ 364,411 0.105 369,377
HSBC BANK . . . . . . . . . . . 26/11/2008 27/02/2009 CH$ 81,059 0.700 81,722
HSBC BANK . . . . . . . . . . . 10/12/2008 27/02/2009 CH$ 82,435 0.670 82,821
HSBC BANK . . . . . . . . . . . 11/12/2008 27/02/2009 CH$ 27,356 0.700 25,707
HSBC BANK . . . . . . . . . . . 29/12/2008 27/02/2009 CH$ 25,695 0.700 27,484
BANCOLOMBIA . . . . . . . 19/12/2008 25/06/2009 US$ 23,158 0.209 23,553
BANCOLOMBIA . . . . . . . 29/12/2008 25/06/2009 US$ 142,876 0.209 144,833
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,961,286 7,681,903

(3) Corresponds to the time deposits obtained from Banco Internacional in the amount of UF10,000, to
guarantee the insurance contract obtained from Aseguradora Magallanes S.A., to comply with the
Transantiago 2003 service contract. On November 2, 2009, according to the bid contract, the guarantee was
returned for an amount of ThCh$210,894 and no new guarantees have been granted in exchange.
(4) Corresponds to the expenditures paid for commissions, fees and other expenditures to HSBC Bank for
disbursements of loans granted to the Company to finance the purchase of buses, operating costs and
implementation of terminals. The expenses are amortized over the debt duration period. As of December 31,
2009 the amortization amounted to ThCh$183,990 (ThCh$182,455 in 2008).

F-69
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

10. Property, plant and equipment

Property, plant and equipment as of December 31, 2008 and 2009, valued according to what is stated in
Note 2-k), is detailed as follows:
Property, plant and
equipment, gross amount Accumulated Depreciation
2008 2009 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,675,230 3,659,461
Buildings and Infrastructure . . . . . . . . . . . 13,389,388 15,577,834 (685,988)
Machinery & equipment:
Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,203,404 62,203,404 (16,399,603) (23,313,989)
Machinery & equipment . . . . . . . . . . . . . . 801,012 663,865 (321,447) (207,611)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . 63,004,416 62,867,269 (16,721,050) (23,521,600)
Other
Office furniture and equipment . . . . . . . . 226,989 302,374 (78,486) (119,787)
Computer Equipment . . . . . . . . . . . . . . . . 552,000 920,779 (96,150) (290,331)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,949,666 1,964,910 (703,831) (1,049,814)
Spare parts . . . . . . . . . . . . . . . . . . . . . . . . 1,375,824 1,174,669
Improvements for transition Terminals . . 1,165,019 1,194,862 (1,165,019) (1,194,862)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,269,498 5,557,594 (2,043,486) (2,654,794)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,338,532 87,662,158 (18,764,536) (26,862,382)
Total net property, plant and
equipment . . . . . . . . . . . . . . . . . . . . . . 66,573,996 60,799,776

Depreciation charges for the respective fiscal years have been imputed to the following accounts:
2008 2009
ThCh$ ThCh$
Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,060,409 7,758,263
Administrative and sales expenditures . . . . . . . . . . . . . . 517,993 497,247
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,578,402 8,255,510

11. Sale-and-leaseback Transactions

As of December 31, 2009, the Company does not have sales-leaseback transactions.

On June 28, 2006, a sale-leaseback agreement was signed with Citi Leasing Ltda. in which Inversiones Alsacia
sold and leased its computers and related equipment in the amount of UF 6,545.10, generating a loss of
ThCh$9,834 (historic value).

The agreement has a par value of UF7,514.4, accrues an annual interests of 6.45% and is payable in 31 equal and
successive monthly installments.

On December 19, 2008, Inversiones Alsacia S.A. has exercised the option to purchase the leased assets.

F-70
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

12. Investment in associates

During the extraordinary shareholders meeting held on January 25, 2005, the shareholders agreed to modify
article one of the Companys statutes in order to pay 18,802 unpaid shares through contribution of non-monetary
assets. The shareholders meeting approved that the payment of above-mentioned shares would be made by
contributing a total of 16% of their rights in the Sociedad de Inversiones Eco Uno Ltda. (Eco Uno) in favor of
the Company. At that date, shareholders Mr. Carlos Ros V. and Mr. Francisco Ros V. held 14% of the voting
rights of Inversiones Eco Uno Ltda. The voting rights were valued at an amount of ThCh$ 1,880,202 (historic),
based on the carrying value of Inversiones Eco Uno Ltda.

On March 2, 2007, a sum of $262,061,908 (historic)a part of which consisted of capital owed by the
Companys partnerswas transferred to Eco Uno, in order to enable Eco Uno to increase the capital of its
subsidiary Express de Santiago Uno S.A.

The value of the investment in ECO Uno, was recognized on the basis of unaudited financial statements.

F-71
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

12. Investment in associates(Continued)

Investment details
Invest Cor- Net
Name -ment Cor- porations income
Taxpayer of the Corpo Country control No. of Share porations equity at at fair Accrued Unrealized Book value of
ID No. -ration of origin currency shares Percentage equity Net income fair value value income (loss) Equity Method gains the investment
2008 2009 2008 2009 2008 2009m 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . . . CHILE PESOS 16.00 16.00 28,753,763 26,229,000 3,069,756 (2,524,763) 491,160 (403,962) 4,600,602 4,196,640 4,600,602 4,196,640
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600,602 4,196,640 4,600,602 4,196,640
F-72
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

13. Other (assets)

Other assets as of December 31, 2008 and 2009 are detailed as follows:

2008 2009
ThCh$ ThCh$
Technical Reserve for Operations (1) . . . . . . . . . . . . . 9,440,949 8,460,818
Reserve of Transantiagos Financial Manager (2) . . . 1,638,496 1,468,393
Other long-term deferred expenditures (3) . . . . . . . . . 1,435,560 1,251,569
Capitalization of Financ. Expenditures Met Ing (4) . . 4,278,803 5,112,856
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,793,808 16,293,636

(1) Corresponds to the total amount of the contribution to the Technical Operating Reserve by the Trunk Line
No. 1 business unit, which is defined as an allowance incorporated into the tariff paid by the users to cover
possible temporary lags or mismatches between the revenue and costs. This amount is amortized in
accordance with the projected revenue curve, obtained from the transportation service rendering.
As of December 31, 2009, the accumulated amortization from the concept mentioned above amounted to
ThCh$3,509,279 (ThCh$2,545,413 in 2008). The annual amortization for the period amounted to
ThCh$963,865 (ThCh$996,111 in 2008) and it is part of the Companys operating cost.
(2) From the start of Stage I defined in the Transantiago 2003 Bidding Conditions, FMT will be the only ticket,
paid in coins, issuer that give access to the users of Transportation Services System. Inversiones Alsacia
S.A. buys the tickets from FMT at a price of $20 per ticket. Out of this amount, $16 correspond to a deposit
to increase the Systems OTR which FMT is supposed to deposit to the Temporary Account 2 of the system.
The remaining amount of $4 resembles cash available to FMT. The reserve corresponds to the total amount
related to all $16-deposits per ticket acquired by the Company during the financial years of 2006 and 2005.
This amount is amortized according to the projected income curve for rendering services of transportation.
As of December 31st, 2009, the amortization for this concept amounts to ThCh$167,281 (ThCh$190,259 in
2008) and is presented as part of the Companys operating costs.
According to the modification of the Concession Agreement signed on June 30, 2006, between the
Company and the Ministry for Transportation and Telecommunication, pursuant to Article 4, from July 1,
2006, the $16-deposit per ticket bought from FMT is no longer needed to be paid.
(3) Corresponds to the deferred expenditures paid for commissions, fees and other expenditures to HSBC Bank
for disbursements of loans granted to the Company to finance the purchase of buses, operating costs and
implementation of terminals. As of December 31st, 2009 the amortization amounted to ThCh$183,990
(ThCh$182,455 in 2008).
(4) In accordance with what is set forth in Note 2 (letter q) and according to the authorization of the Office of
the Superintendency of Securities and Insurance No. 11,808 dated on October 31, 2006, the Company
capitalized borrowing costs directly associated with the purchase of the bus fleet. For this purpose, such
expenditures are distributed based on the actual earnings obtained, considering the total of projected
earnings. This method is aimed at distributing the financial charge that the Company will have to cope with
along the period of debt amortization over the whole concession period, considering the remaining useful
life of the bus fleet. As of December 31, 2009 the activation in relation to this concept amounted to
ThCh$733,324 (ThCh$1,011,576 in 2008).

F-73
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

14. Short-term obligations with banks and other financial institutions

As of December 31, 2008 and 2009, short-term obligations with banks and other financial institutions include the
following:
Short-term payables to banks and other financial institutions:
Includes short-term loans obtained from the National Bank. Interests is calculated on the balance of principal
outstanding of the promissory notes as of their signing dates until the date of its full and effective payment.

The amount of accrued interests as of December 31st, 2009 amounts to ThCh$221,942. (ThCh$35,059 in 2008).

Long-term payables to banks and other financial institutions, short-term portion:

1. Installment: The total term of the HSBC EKNs credit was modified from 20 to 19 installments with semi-
annual installments on February 28 and August 28.

2. Accrued interests: Correspond to the long-term borrowings from HSBC EKN, NEXI, GNB Sudameris and
BANCOLOMBIA.

Interests are calculated on the balance of principal outstanding of the promissory notes as of their signing dates
until the date of its full and effective payment.

Interest expenses as of December 31, 2009 amount to ThCh$1,073,322 (ThCh$1,701,711 in 2008).

F-74
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

14. Short-term obligations with banks and other financial institutions(Continued)

Currency types and adjustment index
Taxpayer ID Other Foreign
No. Bank or Financial Institution Dollars Euros Yens Currencies UF Non Adjustable $ Totals
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Short-Term (code 5.21.10.10) . . . . . . . . . . .
97951000-4 HSBC BANK . . . . . . . . . . . . . . . . . . . . . . . . 4,447,514 4,752,782 4,447,514 4,752,782
97011000-3 BANCO INTERNACIONAL . . . . . . . . . . . 566,519 1,150,539 566,519 1,150,539
97006000-6 BANCO CRDITO E INVERSIONES . . . . 365,462 606,468 365,462 606,468
97032000-8 BBVA BANK . . . . . . . . . . . . . . . . . . . . . . . . 534,487 534,487
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,379,495 7,044,276 5,379,495 7,044,276
Amount of due capital 5,344,436 6,822,334 5,344,436 6,822,334
Anual average interest rate
F-75

Long-termShort-term (code 5.21.10.20)

97951000-4 HSBC EKN BANK . . . . . . . . . . . . . . . . . . . 6,814,234 5,417,416 6,814,234 5,417,416
0-E NEXI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,164 1,581,931 183,164 1,581,931
0-E BANCOLOMBIA . . . . . . . . . . . . . . . . . . . . 5,816,210 6,600,522 5,816,210 6,600,522
0-E GNB SUDAMERIS . . . . . . . . . . . . . . . . . . . 447,299 556,830 447,299 556,830
0-E HSBC NIB . . . . . . . . . . . . . . . . . . . . . . . . . . 194,691 199,275 194,691 199,275
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,260,907 14,156,699 194,691 199,275 13,455,598 14,355,974
Amount of due capital . . . . . . . . . . . . . . . . . 11,753,887 13,282,652 11,753,887 13,282,652
Average annual interest rate . . . . . . . . . . . . . 6.73% 6.75%
Percentage of payable foreign currency (%) . . . . . . . . . . . . . . . . . . . . . . 68.4440
Percentage of payable national currency (%) . . . . . . . . . . . . . . . . . . . . . 31.5560
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

15. Other current liabilities

As of December 31, 2009, other current liabilities account does not have outstanding amounts.

As of December 31, 2008, the balance is detailed as follows:

2008
ThCh$
TOR payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537,350
Promissory Notes (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (484,722)
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,628

(1) On October 27, 2008, the Company paid the sum of UF 140.000 for the Technical Operating Reserve. The
balance payable was deposited with the Notary Public of Santiago, Mr. Eduardo Avello Concha, with
instructions to be delivered to the MTT, as agreed between the parties:
Amounts given correspond to:
a) Two short-term deposits of ThCh$800,000 each and a short-term deposit of ThCh$756,499, all with
maturities of 7 days (renewable).
b) An original promissory note of UF 21,208, plus accrued interest in the amount of UF1.918.97.
On January 2, 2009, the Company completed the full deposit into the Technical Operating Reserve due at
December 31, 2008.

16. Long-term obligations with banks and other financial institutions

At December 31, 2008, the movements in obligations with banks and financial institutions are detailed as
follows:
Between August 17, 2005 and March 28, 2006, HSBC Bank (EKN) made three disbursements amounting to
ThCh$41,724,306, which corresponded to six promissory notes for a total sum of US$77,347,446. The amounts
must be paid in nineteen equal and successive semi-annual installments on February 28 and August 28, as of
August 28, 2007, at fixed annual rate of 5.38%. With the credits the Company financed approximately 85% of its
bus purchases.

On March 30, 2006, a credit amounting to ThCh$12,191,344 (equivalent to US$22,600,000) was obtained from
HSBC Tokyo, Japan and Sumitomo Bank, together with NEXI, a Japanese credit and insurance corporation. This
credit has been agreed upon at an 8-year term with a 5 year grace period, and a 180-day floating Libor rate plus
0.6%. The interests will be paid starting August 28, 2006 and the repayment will be in equal and successive
semi-annual installments on February 28 and August 28 starting from 2010.

On May 31, 2006, the Company obtained a credit from the HSBCNIB (Nordic Investment Bank) in the
amount of ThCh$6,360,000 at an 8-year term with 5 years of grace and at an interest rate of 6.36%. On June 13,
2006, the bank granted another credit of ThCh$1,060,000 subject to the same terms and conditions. Interest will
be paid starting from August 28, 2006 and the repayment will be in equal and successive semi-annual
installments on February 28 and August 28, starting from 2011.

F-76
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

16. Long-term obligations with banks and other financial institutions(Continued)

On December 19, 2006, Bancolombia granted a credit of US$5,000,000, on December 20, 2006 other credit of
US$4,500,000 and on March 1, 2007, additional for US$2,500,000, and on June 4, 2007 credit of US$3,000,000,
all of them at a 5-year term with a 2-year grace period and at a 180-day Libor interest rate plus 3.5%, repayment
will be in equal semi-annual and successive installments on June 19 and December 19, starting from
December 19, 2008.

On January 29, 2008, a loan from GNB Sudameris Colombia was obtained in the amount of ThCh$3,000,000
with a grace period of one year, the loan installments will be paid in equal and successive semi-annual
installments of US$500,000, the first with a maturity of July 28, 2009 and the last of January 28, 2012.

On October 30, 2009, a credit was obtained from GNB Sudameris in the amount of US$1,000,000 payable in one
installment on April 09, 2012.

On March 3, 2008, a loan was obtained from HSBC bank in the amount of ThUS$11,107,836 (equivalent to
$5,042,401,694 historical). This loan has been agreed upon for a 10-year term, and at a floating rate of 6.81%.
The loan installments will be paid in equal and successive semi-annual installments on February 28 and
August 28.

On August 12, 2008 a loan was obtained from Bancolombia Puerto Rico Internacional INC. in the amount of
US$17,000,000, with variable interest rate and monthly and successive installments starting from the 13 month.
On August 28, 2008 and September 5, 2008 the Company received US$5,800,000 and US$11,200,000,
respectively.

On September 25, 2009, the original credit conditions were modified, changing the spread Libor interest rate
from 5% to 5.5% annually, the amount of monthly payments and the final payment date.

In case the subscriber does not pay the loan installments of these credits at any of their due dates, or in case the
interests of these promissory notes were not paid by the subscriber on the date they were due, and such
delinquency or simple delay in payment of interests continued for three or more working days, the bearer of the
promissory notes will be entitled to demand the total balance of owed capital and interest debt immediately and
integrally under promissory notes, which will be considered expired and payable on demand for all pertinent
purposes. The bank will be entitled to demand payment of the entire debt as set forth in promissory notes in
advance as if it was the due date whenever the subscriber does not comply with effective legislation, does not
have the corresponding governmental authorizations, in case of any changes in Company controlling
shareholders, in case of failure to comply with effective environmental regulations, whenever dividends are
distributed without the corresponding authorizations, or if the subscriber becomes notoriously insolvent,
understanding for all purposes the existence of notorious insolvency on its part when the subscriber or one or
more of its creditors requests bankruptcy, or when judicial or out-of-court composition of creditors are executed
or proposed. Restrictions have been satisfactorily met as of December 31, 2009.

F-77
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

16. Long-term obligations with banks and other financial institutions(Continued)

Current period Previous period
Due in (years) closing date closing date
Long
Term Average Long Term
Currency More More More More Total At Annual Total At
Taxpayer ID Bank Or Financial Readjustment Than 1 Than 2 Than 3 Than 5 More Than 10 Balance Interest Balance
No. Institution Index Up To 2 Up To 3 Up To 5 Up To 10 Years Closing Rate Closing
AMOUNT TERM
97951000-4 HSBC BANK . . . . . . . . . . . . . . . . . Dollars 4,758,426 4,758,426 14,275,277 5,603,343 29,395,472 5,38 41,879,889
Euros
Yens
UF
$ non readjusted
F-78

Other currencies
97951000-4 HSBC BANK/ NEXI & NIB . . . . . Dollars 1,432,558 1,432,558 4,297,673 2,865,114 10,027,903 3,68 14,052,943
Euros 0
Yens
UF
$ non readjusted 864,236 864,236 2,592,709 2,592,709 6,913,890 6,21 6,754,871
Other currencies
0-E BANCOLOMBIA . . . . . . . . . . . . . Dollars 6,179,376 6,179,376 8,80 12,957,374
Euros
Yens
UF
$ non readjusted
Other currencies
0-E GNB BANCOLOMBIA . . . . . . . . . Dollars 507,100 760,650 1,267,750 9,56 1,554,529
Euros
Yens
UF
$ non readjusted
Other currencies
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,741,696 7,815,870 21,165,659 11,061,166 53,784,391 77,199,606
PERCENTAGE OF PAYABLE FOREIGN CURRENCY (%) . . . . . . 89.6282
PERCENTAGE OF PAYABLE NATIONAL CURRENCY (%) . . . . 10.3718
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

17. Provisions
The balance of accrued expenses and sanctions as of December 31, 2008 and 2009 is detailed as follows:
a) Short-term

2008 2009
ThCh$ ThCh$
Vacation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 778,206 775,348
Reserve for Labor Contingencies . . . . . . . . . . . . . . . . . . . . 457,827
Human resources reserves . . . . . . . . . . . . . . . . . . . . . . . . . 195,400 167,008
Spare Parts Obsolescence Provision . . . . . . . . . . . . . . . . . 128,099
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973,606 1,528,282

b) Long-term

Reserve for Overhaul of Buses (a) . . . . . . . . . . . . . . . . . . 2,543,639

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,543,639

(a) Corresponds to a reserve for the maintenance of buses (overhaul), calculated on the basis of travelled
kilometers of the buses with an estimate cost of maintenance of gearboxes and differentials estimated to be
performed when 450,000 kilometers are reached.

18. Minority interest

The Company consolidated its financial statements with those of its subsidiary Iasa de Colombia Ltda. Since the
subsidiary has negative shareholders equity, 100% of its loss has been consolidated in the current financial
statements.

19. Changes in Equity

Changes in equity for 2008 and 2009, are as follows:
Movements in Shareholders Equity:
Inversiones Alsacia S.A. was founded on November 22, 2004, through subscription and payment of ThCh$ 1,000
divided into 10 ordinary nominal shares without par value, with each share being of equal value.

During the Shareholders Meeting held on December 9, 2004, it was agreed to increase share capital to ThCh$
9,000,000, divided into 90,000 nominal shares, without par value and of a single series of common shares,
through issuance of 89,999 shares of the same characteristics.

During the Stockholders Meeting held on December 20, 2004, it was agreed to increase the share capital to
ThCh$18,000,000, divided into 180,000 nominal shares, without par value and of a single series of common
shares, through issuance of 90,000 shares of the same characteristics. It was additionally agreed that the
minimum price per shares should not be lower than ThCh$100.

F-79
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

19. Changes in Equity(Continued)

During the Stockholders Meeting held on January 25, 2005, it was agreed to approve the payment of 18,802
shares issued by the Company by means of the contribution of 16% of the voting rights of Inversiones Eco Uno
Ltda. It was also agreed to value the voting rights in the amount of ThCh$ 1,880,202 (historic), based on the
book value of the shares (see note No. 11).

In addition, during the accounting period of 2005, the amount of 20,234 stocks was paid in through contributions
in cash amounting to ThCh$2,023,377 (historic).

During the Extraordinary General Stockholders Meeting held on February 16, 2007, shareholders decided to
legally reduce the share capital from the amount of $18,000,000,000 to $1,916,000,000. In addition, it was
agreed to increase the share capital from the amount of $1,916,000,000 to $8,866,000,000 divided into 36,535
shares, through issuance of 17,375 new shares that would be issued, subscribed, and paid for February 28, 2007,
at a price per share not lower than $400,000. Later, as a result of a meeting of the Companys Board of Directors
held on February 20, 2007, the Board agreed to offer the 17,375 new shares on a preferred basis to the existing
shareholders, who decided to waive the option to obtain the shares they had the right to. Furthermore, it was
agreed to offer the remaining shares not subscribed by the shareholders to a Colombian company called
Desarrollo y Soluciones Informticas S.A.

2008

Capital Net
Paid-In Revaluat. Retained Income (loss)
Items Capital Reserve earnings (losses) for the year Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Initial Balance . . . . . . . . . . . . . . . . . . . . . . . . 9,688,741 (18,065,410) 11,850,447 3,473,778
Distribution income previous year . . . . . . . . 11,850,447 (11,850,447)
Revaluation of share capital . . . . . . . . . . . . . 862,298 (553,131) 309,167
Fiscal year income . . . . . . . . . . . . . . . . . . . . . (5,669,621) (5,669,621)
Final balance . . . . . . . . . . . . . . . . . . . . . . . . . 10,551,039 (6,768,094) (5,669,621) (1,886,676)
Price-level restated . . . . . . . . . . . . . . . . . . . . 10,308,365 (6,612,428) (5,539,220) (1,843,283)

2009

Capital Net
Paid-In Revaluat. Retained income (loss)
Items Capital Reserve earnings (losses) for the period Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Initial Balance . . . . . . . . . . . . . . . . . . . . . . . . 10,551,039 (6,768,094) (5,669,621) (1,886,676)
Distribution income previous year . . . . . . . . . (5,669,621) 5,669,621
Revaluation of share capital . . . . . . . . . . . . . . (242,674) 286,067 43,393
Fiscal year income . . . . . . . . . . . . . . . . . . . . . 6,564,811 6,564,811
Final balance . . . . . . . . . . . . . . . . . . . . . . . . . 10,308,365 (12,151,648) 6,564,811 4,721,527

F-80
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

19. Changes in Equity(Continued)

Number of shares

No. of paid-in
Series No. of subscribed shares shares No. of voting shares

ZZ 36,535 36,535 36,535

Capital (AmountThCh$)

Series Subscribed capital Fully-paid capital

ZZ 10,308,365 10,308,365

20. Other Non-Operating Income and Expenses

Other non-operating income and expenses as of December 31, 2008 and 2009 is detailed as follows:

2008 2009
ThCh$ ThCh$
Other non-operating income:
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,912 39,398
Administrative Services Rioma Ltda. . . . . . . . . . . . . . . . . . . 150,751 75,394
Recovery of Expenses with Related Parties . . . . . . . . . . . . . 44,596
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,453 78,083
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,712 192,875

2008 2009
ThCh$ ThCh$
Other non-operating expenses
Other interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,065 3,703
Other taxes expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401,129 340,577
Rejected expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,134 33,289
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 204,293
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436,526 581,862

F-81
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

21. Price-level Restatement

Adjustability index 2008 2009

ThCh$ ThCh$
Assets (charges)/ credits
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC
Property, plant and equipment . . . . . . . . . . . IPC 5,640,833 (1,237,816)
Investments in related companies . . . . . . . . IPC 329,048 (90,842)
Other receivables . . . . . . . . . . . . . . . . . . . . . UF 37,916
Other non-monetary assets . . . . . . . . . . . . . . IPC 1,413,473 (741,314)
Accounts of expenses and costs . . . . . . . . . . IPC 2,460,785 (125,638)
Total (charges) credits . . . . . . . . . . . . . . . . . 9,882,055 (2,195,610)
Liabilities (charges) / credits
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC (302,056) 43,393
Non-monetary liabilities . . . . . . . . . . . . . . . . IPC (42,308) 359
Non-monetary liabilities . . . . . . . . . . . . . . . . UF (574,448) 50,086
Revenue accounts . . . . . . . . . . . . . . . . . . . . . IPC (2,573,187) 126,511
Total (charges)/ credits . . . . . . . . . . . . . . . . . (3,491,999) 220,349
(Loss) profit due to foreign exchange
adjustment . . . . . . . . . . . . . . . . . . . . . . . . 6,390,055 (1,975,261)

22. Foreign Exchange Differences

Items Currency Amount

2008 2009
ThCh$ ThCh$
Assets (charges) /credits
Bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 7,029 (11,182)
Short-term deposits . . . . . . . . . . . . . . . . . . . . . . . . . US$ 1,594,183 (1,648,204)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 20,142 173,761
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . 1,621,354 (1,485,625)
Liabilities (charges)/ credits
Bank obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (18,377,490) 16,206,718
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (656,833) 722,047
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 57,896
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . (19,034,322) 16,986,661
Net Income (loss) from foreign exchange rate
differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,412,968) 15,501,036

F-82
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

23. Statements of Cash Flows

As of December 31, 2008 and 2009, the items that comprise the cash and cash equivalents balance is detailed as
follows:

2008 2009
ThCh$ ThCh$
Cash and bank account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,942 2,795,845
Mutual funds units (marketable securities) . . . . . . . . . . . . 36,063 1,080,043
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,005 3,875,888

24. Contingencies and Restrictions

1) Concession Agreement:
On January 28, 2005, Inversiones Alsacia S.A. entered into a Concession agreement with the Ministry of
Transport and Telecommunications to use the roads of the city of Santiago to render public bus transportation
services for passengers. The Concession agreement is subscribed as the result of a public bid for the use of the
roads of the city of Santiago according to article 30 of Law No.18,696.

The Company submitted an offer in the bidding process, where the Trunk line No. 1 business unit was awarded,
according to Exempted Resolution No. 109 from 2005 of the Sub-Secretariat of Transportation published in the
Official News on January 14, 2005.

The agreement was enforced from the publication date in the Official News of the administrative act that
approved it and will be in force until the termination of the Concession period. The duration of the Concession
agreement shall be 156 months, in accordance with the article 3.4.4.2.1 of the Concession agreement.

Within the Concession agreement, the Company committed to pay 615,010 U.F. for a Technical Operating
reserve, which corresponds to an amount incorporated into the tariff paid by users that is used to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system. On July 1, 2005, the Company paid the first of three installments on that contribution.

Non-payment of installments will lead to the use of the Warranty reserve set in accordance with the Concession
agreement.

Inversiones Alsacia has fully paid all the above-mentioned obligations. In fact, as of January 2, 2009, the
Company fully complied with the payment of the balance of the Technical Operating reserve, payable on
December 31, 2008 by (a) Bank transfer in the amount of Ch$2,365,577,273 to account number 17385-1 of
Banco Estado on behalf of the Transantiago Financial Administrator (AFT) and, (b) By bank deposit, dated
January 2, 2009 of Ch$550,000,000 to account number 17385-1 of Banco Estado on behalf of the Transantiago
Financial Administrator (AFT). Payments complied in full with the requirements and were certified by the
Ministry of Transportation and Telecommunications by Ordinary Issue (Oficio Ordinario) N2.783 dated July 2,
2009.

F-83
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

2) Modifications to the Concession Agreement:
2.1) On June 30, 2006, the following modifications of the Concession Agreement were made:
a) Starting date of the new regimen stage will begin from February 10, 2007.

b) Modifications to the calendar of contributions to the Technical Operating reserve (TOR),:

Installment 2: 191,309 U.F. maturity date July 1, 2007.
Installment 3: 170,836 U.F. maturity date July 1, 2008.

c) The elimination of the payment of $16 per ticket to FMT (Contribution to transitory account two of the
Transantiago system), from July 1, 2006, to December 31, 2006.

d) For the start date of phase II at the latest, the operator should accredit with the Ministry of Transportation and
Telecommunications before obtaining the planning permissions for different terminals. The dates of phase II
cannot be modified in any manner, additionally, within fifteen days after the termination of phase II, the Operator
shall provide the Ministry of Transportation and Telecommunications with a Gantt Chart or Schedule of the main
works that will be constructed or implemented in each terminal. Likewise, 120 days at the latest after the
commissioning date of services of the regime stage, the operator should prove to the Ministry of Transportation
and Telecommunications that it has obtained authorization for the operation of different terminals.

e) On June 30, 2006, the FMT signed a promissory note for 221,208 Unidades de Fomento (UF), in favor of the
Company, with a maturity date of October 31, 2009. UF 200,000 were transferred in January 2007, with a
remaining balance of UF 21,208, which shall accrue daily interests at the ratio of a fixed annual rate of 3.56%.
As stated in Note No 5, UF 200,000 was transferred in January 2007.

2.2) During February 2007, the Company signed a modification to the Road Use Concession Agreement with the
Ministry of Transportation and Telecommunications. The main aspects of this modification and its addendum
dated February 20, are detailed as follows:
1) For the period between February 10, 2007 and May 5, 2007, minimum guaranteed revenue is considered in
accordance with the referential demands in replacement of users validations.

2) mechanism is determined to regulate the fleet increase for the commencement of the regimen stage, as well as
the related payment.

3) Contributions to the Technical operating reserve (TOR) with maturity date of February 10, 2007 will be paid
in 3 installments, correspondingly 55% at March 10th, 22.5% at April 10, and 22.5% in May 10, 2007.

4) A procedure is established to regulate the situation of terminals and deposits with respect to the additional
fleet.

2.3) On May 9, 2007, the Company subscribed a modification to the Concession Agreement and on June 4, 2007,
an addendum to the modification to determine the Companys income for the period between May 6, and June 5,
2007, shall correspond 100% to the demand determined in the agreement and the Payment per Passenger
Transported, adjusted in accordance with the Bidding Conditions.

F-84
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

2.4) On June 29, 2007, the Company subscribed a modification and two addendums to the Concession
Agreement with the purpose of: i) altering the Companys payment dates from July 10 to 12; ii) delaying the
contribution date to Technical Reserve from July 1 to July 16, 2007 and; iii) regulating the payment terms of
buses without validating equipment.

2.5) On July 17 and August 17, 2007, the Company subscribed two new addendums related to the modifications
dated June 29 with the Ministry of Transport and Telecommunications, for which the payment date of the
Technical Reserve was postponed to August 17th and October 24, respectively.

2.6) On July 19, 2007, the Company subscribed an Agreement Protocol with the Ministry of Transport and
Telecommunications for the modification of the Concession Agreement, a modification that was implemented on
November 9, 2007 and two addendums to the modification, dated December 10 and 28, respectively and
April 21, June 30 and July 15 of 2008, respectively. In order to modify service hours; regulate payment of buses
without validation equipment; delay payment of TOR for 12 months; incorporate a Service Fulfillment Index
(ICPH [ndice de Cumplimiento de PlazasHoras operativas]) to the formula; adjust calculation mechanism of
the PPT; incorporate the Additional and/or Complementary Fleet to the base fleet and to increase the bus fleet,
which in the transitional period do not necessarily need to be new.

2.7) On May 9, 2007, the Company subscribed a modification to the contract of Commercial Mandate of
Collection and Custody with the FMT.

2.8) On March 7, 2008, the Company subscribed a modification and addendum to the service and supply of
Technology equipment contract with the AFT, which establishes the calculation of the payment that the
concessionaires must make for the services rendered by the AFT until this date; determines the general terms and
conditions and the equipment remuneration of the denominated payment zones; adopts improvements oriented to
increase the actual service levels of the functionalities and; determined the transitory and permanent conditions
of the equipment, systems and services that the AFT has to supply and the conditions of remunerations derived
from rendering of services.

2.9) On March 18, 2008, the Company subscribed a contract amendment of Collection Mandate with the AFT in
order to authorize to the AFT the payment or reimbursement of costs, expenses or fees associated with the loan
agreements.

2.10) On July 3, 2009, the Company subscribed a modification to the Road Use Concession Agreement of the
city of Santiago with the Ministry of Transport and Telecommunications for the provision public bus
transportation services for passengers, which was aimed at formalizing the extension of the Concession term to
which the Company has rights from 48 months to 156 months. The foregoing was informed as an essential fact to
the Office of the Superintendency of Securities and Insurance.

3) Other Contracts:
The Company signed a contract with a specialized Spanish Company Goal in the amount of ThUS$1,150, to
establish a development program to manage bus operations system.

F-85
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

4) Restrictions for bank loans
The Company has obligations and restrictions for loans contracted with various foreign and national banks.

By virtue of the credit agreements of the Company that exist to ensure compliance with the obligations therein
contained, and the 36,535 shares in which the Companys equity is divided are currently pledged. The pledge
contracts imply the prohibition to alienate, sale, promise to sell or dispose in any manner whatsoever of said
shares as far as the full compliance of the obligations resulting from the financing obligation with the HSBC
Bank are accredited. Likewise, each bus owned by the Company has been pledged, pledges that were duly
registered in the Registry of Motorized Vehicles of the Civil Registry Office.

5) Pending Lawsuits:
The details of the Corporations main lawsuits are as follows:
Court: 18 Civil Court of Santiago; Rol 5,852-2007

Alsacia was sued for damages by a private person in an Ordinary Civil Trial. The compensation demanded
amounts to $398,000,000. The accusation is still being tried by the Court (responses to the suit and the SIAT
report are still pending). According to the background knowledge available, the matter has limited possibilities of
success.

Court: 15 Civil Court of Santiago; Rol: 16,299-2007

Alsacia was jointly sued for damages with other operatorsBuses Gran Santiago y Express de Santiago Uno
S.A.and the Financial Administrator of Transantiago (FMT) in an Ordinary Civil Trial by the I. Municipality
of Renca which accuses its counterparties of unfair enrichment. The compensation demanded amounts to
$154,600,000. A verdict was dictated rejecting the claim of the plaintiff.

Court: 23 Civil Court of Santiago; Rol: 16956-2007

Alsacia was sued for damages by a private person in an Ordinary Civil Trial. The compensation demanded
amounts to $25,500,000. The evidence stage is finished. A sentence was dictated requiring payment for a sum of
$2,800,000 with no costs.

Court: 8 Civil Court of Santiago; Rol: 25.935-2007

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $273,955,375. A verdict was issued that ordered payment of Ch$105,000,000, for which reason it was
appealed. The Appellate Court modified the first instance verdict and ordered Alsacia to pay $60,000,000. The
issuance of the check by the insurance company is pending.

Court: 30 Civil Court of Santiago; Rol: 15.667-2007

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $15,000,000. A termination of the evidence period is still in effect.

F-86
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

Court: 2 Civil Court of Santiago; Rol: 66-2008 Alsacia was sued for damages in Ordinary Civil Trial by a third
party. The compensation demanded amounts to $110,550,000. The case is being tried. A sentence was dictated,
but there is no access to it as it has not been notified.

Court: 5 Civil Court of Santiago; Rol: 16.327-2007

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $15,000,000. The suit was declared procedurally void because the Bus Operator (the respondent) was not
legally summoned. Currently, the case is being tried.

Court: 30 Civil Court of Santiago; Rol: 56.994-2008

Alsacia was sued for damages in an Ordinary Civil Trial by a third party. The compensation demanded amounts
to $716,000,000. A verdict was dictated ordering a payment for $170,000,000, for which reason an appeal is
pending.

Court: 21 Civil Court of Santiago; Rol: 2398-2008

Alsacia was sued for damages in Ordinary Civil Court by a third party. The sum requested amounts to
$300,000,000. The evidence period has expired.

Court: 7 Civil Court of Santiago; Rol: 648-2009

Alsacia was sued for damages in Ordinary Civil Court by a third party. The sum requested amounts to
$20,000,000. Termination of the evidence period is pending.

Court: 28 Civil Court of Santiago; Rol: 97-2009

Alsacia was sued for damages in Civil Ordinary Court. The sum demanded amounts to $56,850,000. The case is
currently being tried.

Court: 30 Civil Court of Santiago; Rol: 8688-2009

The Company was sued for damages. The sum demanded amounts to $103,000,000. The Bus Operator has not
yet been notified, for which reason this trial is not currently being tried.

Court: 17 Civil Court of Santiago; Rol: 16704-2009

The Company was sued for damages. The sum demanded amounts to $80,000,000 for moral damages. It is being
tried.

Court: 25 Civil Court of Santiago; Rol: 999-2009

The Company was sued for the damages. The sum demanded amounts to $180,000,000 for moral damages. It is
being tried.

F-87
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

Court: 25 Civil Court of Santiago; Rol: 25258-2009

The Company was sued damages. The sum demanded amounts to $80,000,000 for moral damages. It is under
discussion period.

Court: 27 Civil Court of Santiago; Rol 21723-2009

The Company was sued for damages in summary proceedings. The sum demanded amounts to $602,304,540 for
moral damages. It is being tried and has a precautionary measure enacted, which is currently being appealed.

Court: 30 Civil Court of Santiago; Sheet: 39429-2009

The Company was sued for damages. The sum demanded amounts to $300,000,000. The case is being tried.

The Company Inversiones Alsacia S.A. is involved in other lawsuits of lower magnitude (in favor and against).
The management and its legal advisorsconsider that the aforementioned trials will not have a material adverse
effect on the Companys financial statements. Some of the lawsuits are covered by an insurance policy with
Royal Sun & Alliance, so Inversiones Alsacia S.A. will only have to pay the corresponding deductible.

Court: Santiagos Illustrious Appellate Court

Inversiones Alsacia S.A. presented to Santiagos Appellate Court, an appeal for protection against the Ministry of
Transport and Telecommunications in order to repeal Exempt Resolution No. 1985, which established a set of
unilateral sanctions not covered under the respective concession contracts held by the operators of Transantiago.

On January 15, 2009, the Company was notified of Exempt Resolution No.69, dated January 14, 2009 by means
of which the Ministry of Transportation completed Exempt Resolution No. 1985, to incorporate into the
resolution, as an immediate continuation of the phrase Supreme Decree No. 1178, adding and Supreme
Decree No. 1 of 2009, the Ministry of Finance.

Until August 21, 2009 the implementation of this arbitrary and illegal resolution caused a loss of 69,700 UF
(approximately $1,453,212,241.00) for the Company, in relation to payments to which they are entitled to earn
for transport services.

The appeal was declared admissible, ordering the accumulation of resources among the other contractors
involved in the report, which was executed on December 24, 2008.

All non-innovation orders to not innovate that were submitted have been rejected in their entirety by the
Appellate Court of Santiago.

The Court of Appeals rejected the appeal, for which reason the Company filed an appeal before the Supreme
Court, that finally confirmed the verdict of the Appellate Court.

F-88
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

6) Direct and Indirect Guarantees
A compliance policy has been granted for the Concession agreement in favor of MTT according to the sixth
clause of the contract in the amount of UF 30,000.00. As a counter-guarantee to that policy, Inversiones Alsacia
S.A. took an indefinitely adjustable time deposit for an amount of UF 10,000.00 that was handed to Aseguradora
Magallanes S.A. The policy was returned to the Company on November 2, 2009.

The Company was awarded by HSBC Bank (Chile) a time deposit equivalent to 5% of the total debt that remains
in force with EKN Bank, for the purchase of buses. The deposit is placed by HSBC Bank (Chile) in HSBC Bank
(London) and the former undertakes to pay that value if the Company does not pay off its debt. The Company has
not signed any documents relating to this deposit.

F-89
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

24. Contingencies and Restrictions(Continued)

The Company has no knowledge of other prohibitions, encumbrances, or contingencies that affect these financial statements.

Direct Guarantees

Outstanding payments of
outstanding payment balances
as of the closing of financial
Debtor Assets involved statements Release of guaranees
Accounting
Guarantee creditor Name Relation Guarantee type Type value 2008 2009 2010 Assets 2011 Assets 2012 Assets
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
F-90

HSBC . . . . . . . . . . . . . . . Inversiones MORTGAGE Puente Alto 1,127,050 4,552,215 4,752,782

Alsacia S.A. Terminal Site
BANCOLOMBIA . . . . . Inversiones MORTGAGE Renca Terminal 604,238 19,002,578 12,764,432
Alsacia S.A. Site
BANCOLOMBIA . . . . . Inversiones MORTGAGE Huechuraba 1,928,132 19,002,578 12,764,432
Alsacia S.A. Terminal Site
BANCOLOMBIA . . . . . Inversiones MORTGAGE Renca 3,878,014 19,002,578 12,764,432
Alsacia S.A. Construction
HSBC . . . . . . . . . . . . . . . Inversiones MORTGAGE Puente Alto 2,220,163 4,552,215 4,752,782
Alsacia S.A. Construction
BANCOLOMBIA . . . . . Inversiones MORTGAGE Huechuraba 4,968,884 19,002,578 12,764,432
Alsacia S.A. Construction
HSBC EKN . . . . . . . . . . Inversiones PLEDGE Buses 38,889,415 48,837,998 34,153,898
Alsacia S.A.
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

25. Securities obtained from third parties

As of December, 2009 and 2010 there are no effective securities granted by third parties in favor of the
Company, except for those mentioned in the notes to the financial statements.

26. Local and Foreign Currency

Assets

Currency 2008 2009

ThCh$ ThCh$
Line of business
Current Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 68,227 1,243,250
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dollars 37,590 23,814
Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dollars 385,795
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 2,941,211 3,933,413
Notes Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 489,669
Other Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 1,068,389 953,918
Documents And Accounts Receivable From Related Parties . . . Non Adjusted $ 990,596 815,640
Stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 38,004 53,523
Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 513,770 1,490,031
Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 17,744 16,690
Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non Adjusted $ 72,209 198,117
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unidad de Fomento 214,255
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 1,473,467 1,521,532
Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dollar 5,671,542 5,617,950
Taxes Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 319,697 454,358
Property, Plant And Equipment
Property, Plant And Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 67,089,491 59,424,732
Other Assets
Investments In Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 4,122,963 3,269,234
Long-Term Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 2,023,484 1,075,993
Other Long-Term Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted $ 16,900,598 16,156,112
Total Assets
Non Adjusted $ 5,178,636 7,197,861
Dollars 6,094,927 5,641,764
Adjusted $ 92,443,470 83,391,992
Unidad de Fomento 721,668 16,690

F-91
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

26. Local and Foreign Currency(Continued)

Current Liabilities

Up to 90 days 90 days to 1 year

2008 2009 2008 2009
Annual Annual Annual Annual
aver. Int. aver. Int. aver. Int. aver. Int.
Description Currency Amount Rate Amount Rate Amount Rate Amount Rate
ThCh$ ThCh$ ThCh$ ThCh$
Long -term obligations with
financial institutionsshort
term portion . . . . . . . . . . . . . . Dollars 2,917,418 6.73% 1,973,422 6.75% 10,538,180 6.73% 12,382,552 6.73%
Short term bank obligations . . . . Adjusted $ 5,379,495 8.12% 7,044,276 8.12%
Accounts payable . . . . . . . . . . . . Non Adjusted $ 6,868,721 8,351,403
Accounts payable . . . . . . . . . . . . Dollars 304,270 423,067
Other payables . . . . . . . . . . . . . . Non Adjusted $ 615,275 858,511
Other payables . . . . . . . . . . . . . . Unidad de Fomento 831,980 674,157
Notes. And accounts receivable
from related parties . . . . . . . . . Non Adjusted $ 31,321 177,589
Notes and accounts receivable
from related parties . . . . . . . . . Unidad de Fomento 254,252
Accrued expenses . . . . . . . . . . . . Non Adjusted $ 973,606 1,528,282
Withholdings . . . . . . . . . . . . . . . Non Adjusted $ 518,662 712,993
Income tax . . . . . . . . . . . . . . . . . Non Adjusted $ 9,381
Other current liabilities . . . . . . . . Unidad de Fomento 52,628
Deferred taxes . . . . . . . . . . . . . . . Adjusted $ 508,734
Total current liabilities
- Dollars 3,221,688 2,396,489 10,538,180 12,382,552
- Adjusted $ 5,888,229 7,044,276
- Non Adjusted $ 9,016,963 11,628,778
- Unidad de Fomento 884,608 928,409

F-92
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

26. Local and Foreign Currency(Continued)

Long Term LiabilitiesPrevious Period 31-12-2008

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Annual aver. Annual aver. Annual aver. Annual aver.
Line of business Currency Amount Int. Rate Amount Int. Rate Amount Int. Rate Amount Int. Rate
ThCh$ ThCh$ ThCh$ ThCh$
Obligations with
Banks & Fin.
Inst. . . . . . . . . . Dollar 29,383,901 6.73% 15,493,811 6.73% 25,567,022 6.73%
Obligations with
Banks & Fin.
Inst. . . . . . . . . . Non Adjusted $ 844,359 6.73% 1,688,718 6.73% 4,221,794 6.73%
Other payables . . . Unidad de Fomento 976,730
Other payables . . . Non Adjusted $ 28,724
Docs. & accounts
payable with
rel. Parties . . . . Dollars 2,228,998
Total long term
liabilities
- Dollar 31,612,899 15,493,811 25,567,022
- Non Adjusted $ 873,083 1,688,718 4,221,794
- Unidad de Fomento 976,730

Long Term LiabilitiesCurrent period 31-12-2009

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Annual aver. Annual aver. Annual aver. Annual aver.
Line of business Currency Amount Int. Rate Amount Int. Rate Amount Int. Rate Amount Int. Rate
ThCh$ ThCh$ ThCh$ ThCh$
L/t obligations with
banks & fin.
Entities . . . . . . . . Dollars 19,829,094 6.75% 18,572,950 6.75% 8,468,458 6.75%
L/t obligations with
banks & fin.
Entities . . . . . . . . Non Adjusted $ 1,728,472 6.75% 2,592,709 6.75% 2,592,708 6.75%
Other payables . . . . Unidad de Fomento 281,076
Other payables . . . . Non Adjusted $ 794
Docs. & accounts
payable with rel.
Co. . . . . . . . . . . . Unidad de Fomento 3,835,579
Docs. & accounts
payable with rel.
Co. . . . . . . . . . . . Dollars 1,834,166
Long term
provision . . . . . . Non Adjusted $ 2,543,639
Total current
liabilities
- Dollars 21,663,260 18,572,950 8,468,458
- Non Adjusted $ 4,272,905 2,592,709 2,592,708
- Unidad de Fomento 4,116,655

F-93
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

27. Sanctions
Superintendency of Securities and Insurance (SVS).

A censuring sanction was applied on the Company to its Chief Executive Officer through Exempt Resolution
N55 dated February 5, 2009, for failure to submit its list of shareholders, as required in section III of Circular
N1481, referring to the quarter ending March 31, 2008.

The Ministry of Transportation and Telecommunications applied the following penalties.

i) The Ministry of Transportation and Telecommunications imposed a UF 200 penalty on the Company by
the Exempted Res. No. 1335 dated August 27, 2008, for supposed non-compliance with Article 3.6.1.1
No. 6 a) of Bidding Conditions, that is, for failure to comply with minimum frequency required. The
Ministry rejected appeals for reversal at all levels of jurisdiction. The Company is analyzing filing a claim in
Court.
ii) By resolution N2319 of November 10, 2008, the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF4,000 for alleged
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008. The Company appealed for reconsideration in all levels of jurisdiction against Resolution
2319 on November 24, 2008, and the Ministry of Transport and Telecommunications has declined to issue a
pronouncement due to the existence a pending judicial actionProtective Appealbrought against
Resolution 1985.
iii) By resolution N2438 of November 25, 2008, the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF4,000 for alleged
non-compliance with the rates of frequency and regularity. prescribed by Exempt Resolution N1985 of
October 17, 2008. The Company appealed for reconsideration in all levels of jurisdiction against Resolution
2438, and was notified by the Ministry with respect to these appeals through Res. 2576, in which the
Ministry declined to issue a pronouncement due to the existence of pending judicial actiona Protective
Appeal brought against Res. 1985.
iv) The Ministry of Transportation and Telecommunications imposed a UF 200 penalty on the Company by
the Exempted Res. N2601 dated December 9, 2008, for supposed non-compliance with Article 3.6.1.1
No. 6 a) of Bidding Conditions, that is, for failure to comply with the minimum frequency required. The
Company decided not to appeal, notwithstanding a review of the possibility of filing a suit.
v) By resolution N2618 of December 10, 2008, the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF3,500 for supposed
non-compliance with rates of frequency and regularity prescribed by Exemption Resolution N1985 of
October 17, 2008. The Company appealed for reconsideration in all levels of jurisdiction against Resolution
2618 on December 23, 2008 and was notified on March 16, 2009, that the Ministry declined to issue a
pronouncement due to the existence of pending judicial actiona Protective Appealbrought against Res.
1985.
vi) By means of resolution N2734 of December 23, 2008, the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF4,400 for supposed non-compliance with the rates of frequency and regularity, prescribed by Exempt

F-94
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

27. Sanctions(Continued)
Resolution N1985 of October 17, 2008. The Company appealed for reconsideration in all levels of
jurisdiction against Resolution 2734, pending resolution.
vii) By means of resolution N138 on January 23, 2009, the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF3,800 for supposed non-compliance with the rates of frequency and regularity prescribed by Exempt
Resolution N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009.
The Company appealed for reconsideration in all levels of jurisdiction against in all levels of jurisdiction
against Resolution 138, regarding which it was notified by resolution 294 of February 10, 2009 and also on
March 24th, 2009 that the Ministry of Transport and Telecommunications is prohibited from to issuing a
statement due to the existence of a pending judicial actionProtective Appeal Resourcefiled against
Resolution 1985.
viii) By means of resolution N288 of February 10th, 2009 the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF3,600 for supposed non-compliance with the rates of frequency and regularity prescribed by Exempt
Resolution N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009.
ix) By means of N389 of February 25th, 2009 the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF4,400 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 389, for which and by resolution 464 of
March 6, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement
due to the existence of a pending jurisdictional actionProtective Appeallodged against the Resolution
1985.
x) By resolution N470 of March 10, 2009, the Ministry of Transportation and Telecommunications
deducted from the income that the Company has a right to, an amount equivalent to UF3,100 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company lodged an
appeal for reconsideration against the hierarchical Resolution 470, for which and by resolution 672 of
March 31, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement
due to the existence of a pending jurisdictional actionProtective Appeallodged against the Resolution
1985.
xi) By resolution N609 of March 25, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF4,400 for supposed
non-compliance to with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company filed an
appeal for reconsideration in all levels of jurisdiction against Resolution 609, regarding which and by
resolution 784 of April 17, 2009, the Ministry of Transport and Telecommunications is prohibited from
issuing a statement due to the existence of a pending jurisdictional actionProtective Appeal
lodged against the Resolution 1985.
xii) By Resolution 420 of February 27, 2009, the Ministry of Transport and Telecommunications applied the
Company a fine of UF90 due to the verification of non-compliance with the instructions of the Ministry

F-95
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

27. Sanctions(Continued)
regarding the delivery of the financial statements of the company, in FECU, within the deadline set in
Contract Agreement 200 on three occasions, for the quarter March, June and September 2008. Against the
resolution, submitted application for reconsideration is not appropriate for the amount of the fine and the
fundamentals of it, a remedy that is rejected through Resolution 1974. The Company is analyzing the
feasibility of presenting before the General Comptrollership of the Republic.

xiii) By resolution N738 of April 13, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF3,800 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 738, for which and by resolution 944 of
May 11, 2009 the Ministry of Transport and Telecommunications is prohibited from issuing a statement due
to the existence of a pending jurisdictional actionProtective Appeallodged against Resolution 1985.

xiv) By resolution N822 of April 27, 2009, the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF4,100 for supposed
non-compliance to the rates of frequency and regularity, such discount is imposed by Exemption Resolution
N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company
appealed for reconsideration in all levels of jurisdiction against Resolution 822, for which and by resolution
1005 of May 22, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a
statement due to the existence of a pending jurisdictional actionProtective Appeallodged against the
Resolution 1985.

xv) By resolution N932 of May 11, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF3,300 for supposed
non-compliance to the rates of frequency and regularity, such discount is imposed by Exemption Resolution
N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009.

xvi) By resolution N1034 of May 25, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF2,500 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 1034, for which and by resolution 1297 of
June 26, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement
due to the existence of a pending jurisdictional actionProtective Appeallodged against the Resolution
1985.

xvii) By resolution N1165 of June 11, 2009, belatedly notified the Ministry of Transportation and
Telecommunications, deducted from the revenue the Company has a right to, an amount equivalent to
UF3,900 for supposed non-compliance to the rates of frequency and regularity, such discount is imposed by
Exemption Resolution N1985 of October 17, 2008 and complementary Exempt Resolution 69 of
January 14, 2009. The Company appealed for reconsideration the hierarchical in all levels of jurisdiction
against Resolution 1165, claiming their legality and untimely, and through Resolution 1506 dated July 23,
2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement due to the
existence of a pending jurisdictional actionProtective Appeallodged against the Resolution 1985.

F-96
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

27. Sanctions(Continued)
xviii) By resolution N1285 of June 25, 2009, the Ministry of Transportation and Telecommunications
deducted from the revenue the Company has a right to, an amount equivalent to UF1,300 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 1285, and by Resolution 1503 dated
July 23, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement due
to the existence of a pending jurisdictional actionProtective Appeallodged against the Resolution 1985.
xix) By Resolution N1381 dated July 10, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF5,000 for supposed
non-compliance to the rates of frequency and regularity, such discount are imposed by Exemption
Resolution N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009.
The Company appealed for reconsideration in all levels of jurisdiction against Resolution 1381, and through
Resolution 1745 dated August 14, 2009, the Ministry of Transport and Telecommunications is prohibited
from issuing a statement due to the existence of a pending jurisdictional actionProtective Appeal
lodged against Resolution 1985.
xx) By Resolution N1544 dated July 28, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF2,900 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exemption Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 1544, and by Resolution 1717 dated
August 14, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement
due to the existence of a pending jurisdictional actionProtective Appeallodged against the Resolution
1985.
xxi) By Resolution N1671 dated August 10, 2009, the Ministry of Transportation and Telecommunications,
deducted from the revenue the Company has a right to, an amount equivalent to UF4,000 for supposed
non-compliance with the rates of frequency and regularity prescribed by Exempt Resolution N1985 of
October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009. The Company appealed
for reconsideration in all levels of jurisdiction against Resolution 1671, and by Resolution 1850 dated
August 28, 2009, the Ministry of Transport and Telecommunications is prohibited from issuing a statement
due to the existence of a pending jurisdictional actionProtective Appeallodged against Resolution 1985.
xxii) By Resolution N1812 dated August 24, 2009, the Ministry of Transportation and
Telecommunications, deducted from the revenue the Company has a right to, an amount equivalent to
UF1,700 for supposed non-compliance with the rates of frequency and regularity, imposed by Exempt
Resolution N1985 of October 17, 2008 and complementary Exempt Resolution 69 of January 14, 2009.
The Company filed an appeal for reconsideration in all levels of jurisdiction against Resolution 1812, and by
Resolution 1960 dated September 10, 2009, the Ministry of Transport and Telecommunications is prohibited
from issuing a statement due to the existence of a pending jurisdictional actionProtective Appeal
lodged against the Resolution 1985.
xxiii) Through Exempted Resolution N2244 dated October 14, 2009, pursuant to provisions stated in
Exempted Resolution N1938, complemented by Exempted Resolution N2230, the Ministry of
Transportation and Telecommunications applied deductions for ICR and ICF for a sum equivalent to UF

F-97
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

27. Sanctions(Continued)
2,300 and for ICPKH for the sum of $178,013,796. With respect to the discount for ICPKH, the Company
submitted a replacement remedy as per the index that did not consider at least 190,000 validations for bad
timing in the discharge made by the AFT. Replacement remedy was rejected and civil processes were
forwarded to Senior Hierarchy.
xxiv) Through Exempted Resolution N2361 dated October 28, 2009, pursuant to provisions stated in
Exempted Resolution N1938, complemented by Exempted Resolution N2230, the Ministry of
Transportation and Telecommunications applied discounts for ICR and ICF for a sum equivalent to UF
2,400 and for ICPKH for the sum of $210,632,397. The Company did not file remedies as there were no
background determined to allow for reversal of the resolution.
xxv) Through Exempted Resolution N2480 dated November 11, 2009, pursuant to provisions stated in
Exempted Resolution N1938, complemented by Exempted Resolution N2230, the Ministry of
Transportation and Telecommunications applied discounts for ICR and ICF for a sum equivalent to UF
1,000 and for ICPKH for the sum of $123,867,568. Determination of remedy is pending.
xxvi) Through Exempted Resolution N2788 dated December 14, 2009, pursuant to provisions stated in
Exempted Resolution N1938, complemented by Exempted Resolution N2230, the Ministry of
Transportation and Telecommunications applied discounts for ICR and ICF for a sum equivalent to UF
2,300 and for ICPKH for the sum of $146,926,917. Determination of remedy is pending.
xxvii) Through Exempted Resolution N 69 dated January 11, 2010, pursuant to provisions stated in
Exempted Resolution N1938, complemented by Exempted Resolution N2230, the Ministry of
Transportation and Telecommunications applied discounts for ICR and ICF for a sum equivalent to UF
2,700 and for ICPKH for the sum of $132,358,812. Determination of remedy is pending.
xxviii) Through Exempted Resolution N1148, the Ministry of Transportation and Telecommunications
sanctioned the Company for not having certified workshops through the international standard ISO
9001:2000. The Company submitted replacement remedies but these were rejected.
xxix) Through Exempted Resolution N2739 dated December 4, 2009, the Ministry of Transportation and
Telecommunications filed charges to the Company because bus N ZN3248 had no updated technical
revision. The Company did not submit discharges for not having backgrounds that allow impairing. It is
exposed to a sum of 10UF.

c) Sesma

By resolution N886 of March 6, 2009, (Exp. N4975/2007) applied a fine of 30 UTM. The Company presented
an administrative reconsideration appeal. This fine was reduced to 25 UTM and has been paid.

By resolution N457/09, the sanction process for non-compliance of the resolution that qualified environment
approving the project Depsito y Terminal de Vehculos Puente Alto Exp. N016/2006 is resolved, a verdict
was issued that order the payment of the sum of 100 UTM. The Company presented an administrative
reconsideration appeal, pending resolution.

By Resolution N 531/09 the sanction process followed against the Company for non-compliance of the
resolution that qualified environment approving the project Depsito y Terminal de Vehculos Puente Alto
Exp. N016/2006 is resolved, a verdict was issued that ordered the payment of the sum of 200 UTM. The
Company paid the fine on September 8, 2009.

F-98
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

28. Subsequent Events

On January 29, 2010, the Company subscribed an Agreement Protocol with the Ministry of Transportation and
Telecommunications in order to incorporate a modification of the Road Use Concession Agreement to provide
public bus transportation services for the passengers.

Between December 31, 2009 and the date of issuance these financial statements, the Administration of the
Company has not been informed of any further events that could affect them.

29. Environment
No disbursements connected either directly or indirectly to environmental protection have been made as of
December 31, 2009 and 2008.

30. Operating Income

Operating income mainly consists of revenue related to public transportation corresponding to the Companys
Trunk line No. 1., which is detailed as follows:

2008 2009
ThCh$ ThCh$
Trunkline No. 1 service revenue . . . . . . . . . . . . . . . . . 65,137,790 60,415,076
Static and dynamic advertisement on buses . . . . . . . . 175,168 188,498
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,552,609 6,054,655
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,865,567 66,658,229

31. Operating Costs and Expenses

Operating costs as of December 31 for each year are detailed as follows:

2008 2009
ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,080,205 50,806,862
Depreciation and amortization . . . . . . . . . . . . . . . . . . 9,448,105 9,422,829
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,528,310 60,229,691

Administrative and sales expenses as of December 31 of each year are detailed as follows:

2008 2009
ThCh$ ThCh$
Administrative Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,079,748 5,379,218
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . 909,094 1,233,550
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,988,842 6,612,768

F-99
 INVERSIONES ALSACIA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(Restated for general price-level changes and expressed in millions of constant
Chilean pesos as of December 31, 2009)
(A free translation from the original prepared in Spanish)

32. Accounts Payable

Accounts payable as of December 31 for each year are detailed as follows:

2008 2009
ThCh$ ThCh$
National suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,085,465 8,170,218
Foreign suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,300 401,405
Subsidiary suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,036 21,662
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 786,186 181,185
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,172,987 8,774,470

F-100
 Consolidated Financial Statements
Inversiones Alsacia S.A.
December 31, 2007 and 2008

Ch$ = Chilean pesos

ThCh$ = Thousands of Chilean pesos
US$ = United States dollars
ThUS$ = Thousands of United States dollars
UF = Unidades de Fomento, an inflation-indexed, peso-denominated monetary unit. The UF rate is set
daily based on changes in the Chilean Consumer Price Index.

(A free translation from the original prepared in Spanish)

F-101
 Report of Independent Accountants
(A free translation from the original report issued in Spanish)

To the Shareholders and Directors of

Inversiones Alsacia S.A.:
We have audited the consolidated balance sheets of Inversiones Alsacia S.A. and Subsidiary (the Company) as
of December 31, 2008 and 2007 and the related consolidated statements of income and cash flows for the years
then ended. These consolidated financial statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audits. We did not
audit the financial statements of subsidiary IASA de Colombia Limitada which shows total assets of ThCh$260
and ThCh$131,210 as of December 31, 2008 and 2007, respectively. In addition we did not audit the financial
statements of indirect associate Express de Santiago Uno S.A. (subsidiary of the direct associate Inversiones
Eco Uno S.A.) which as a result of the application of the equity method shows a total investment of
ThCh$4,708,907 and ThCh$4,206,182 as of December 31, 2008 and 2007, respectively and accrued equity
income of ThCh$502,723 and ThCh$2,078,450 for the years then ended. Those financial statements were audited
by other auditors whose reports have been furnished to us, and our opinion expressed herein, in reference to the
amounts used to calculate the equity value of those companies, is based solely on the reports issued by those
auditors.

We conducted our audits in accordance with generally accepted auditing standards in Chile. Those standards
require that we plan and perform our audit to obtain reasonable assurance that the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also involves assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of other auditors, the consolidated financial statements
referred to above present fairly, in all material respects, the financial position of Inversiones Alsacia S.A. and
Subsidiary as of December 31, 2008 and 2007 and the results of their operations and their cash flows for the
years then ended, in conformity with generally accepted accounting principles in Chile.

/s/ KPMG Auditores Consultores Ltda.

Santiago, Chile, February 26, 2009

F-102
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Consolidated Balance Sheets
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
As of December 31, 2008 and 2007
(A free translation of the original issued in Spanish)
Note 2008 2007
ThCh$ ThCh$
Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 282,437 166,248
Marketable securities (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 36,912 196,120
Trade receivables (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5,098,735 3,129,281
Notes receivables (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 477,889
Other receivables (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 547,764 1,254,619
Due from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 978,160 331,207
Inventories (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 91,465 80,086
Taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,055 102,765
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 960,751 1,360,270
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 118,443 138,981
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9,353,826 7,448,563
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,787,548 14,686,029
Property, Plant and Equipment:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3,761,750 3,745,610
Buildings and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 13,704,594 7,579,542
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 64,487,632 57,910,025
Other fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 5,393,550 4,967,635
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 (19,206,280) (11,453,079)
Total property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . 68,141,246 62,749,733
Other assets:
Investments in related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4,708,907 4,206,182
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2,338,657 1,328,569
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 17,189,159 18,130,943
Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,236,723 23,665,694
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,165,517 101,101,456

The accompanying notes 1 to 35 are an integral part of these financial statements.

F-103
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Consolidated Balance Sheets
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
As of December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

Note 2008 2007

ThCh$ ThCh$
Liabilities
Current Liabilities:
Short-term loans with banks and financial institutions . . . . . . . . . . . . . . . 15 5,506,136 6,241,336
Long-term borrowingsshort-term portion . . . . . . . . . . . . . . . . . . . . . . . 15 13,772,362 6,726,348
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 7,341,854 7,314,149
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 1,481,326 1,397,542
Due to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 32,058 34,912
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 996,524 2,103,247
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 530,872 559,127
Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,602
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 53,867 7,738,616
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,724,601 32,115,277
Long-term liabilities
Obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . 17 79,016,996 63,078,970
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,029,124 192,505
Due to related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2,281,472 1,931,759
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,327,592 65,203,234
Shareholders Equity (Deficit):
Paid in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 10,551,039 10,551,039
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 (6,768,094) (19,673,231)
Net (loss) income for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 (5,669,621) 12,905,137
Total shareholders equity (deficit) . . . . . . . . . . . . . . . . . . . . . . . . . (1,886,676) 3,782,945
Total liabilities and shareholders equity (deficit) . . . . . . . . . . . . . . 110,165,517 101,101,456

The accompanying notes 1 to 35 are an integral part of these financial statements.

F-104
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Consolidated Statements of Income
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
For the years ended December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

Note 2008 2007

ThCh$ ThCh$
Operating income
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 72,533,847 51,093,057
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 (57,859,069) (39,465,247)
Gross margin: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,674,778 11,627,810
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 (5,106,287) (4,299,914)
Total operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,568,491 7,327,896
Non operating income (expenses)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 708,335 840,556
Profit from investment in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 502,723 2,078,450
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 312,909 60,222
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,142,354) (4,296,141)
Other non-operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 (446,803) (294,069)
Price-level restatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 6,540,486 5,180,980
Foreign exchange difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 (17,822,895) 3,946,556
Total non-operating (expense) income . . . . . . . . . . . . . . . . . . . . . . . . (16,347,599) 7,516,554
(Loss) income before taxes and extraordinary items . . . . . . . . . . . . . . . . . . . . . (6,779,108) 14,844,450
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1,109,487 (1,939,303)
(Loss) income before minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,669,621) 12,905,147
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10)
Net (loss) income for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,669,621) 12,905,137

The accompanying notes 1 to 35 are an integral part of these financial statements.

F-105
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
For the years ended December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

Note 2008 2007

ThCh$ ThCh$
Cash flows from operating activities:
Collection of trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,625,321 44,738,021
Interest income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812,085 840,556
Other income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,965 78,771
Paid to suppliers and employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (56,079,084) (35,810,741)
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,017,111) (3,881,089)
Other expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (301,364) (294,069)
Value Added Tax and other taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . (252,448) (835,388)
Total net cash flows provided by operating activities . . . . . . . . . . . . 4,962,364 4,836,061
Cash flows from financing activities:
Loans obtained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,778,097 7,037,405
Loans from related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (206,771)
Other borrowings from related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474,820
Other financing sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,394,302
Payment of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,360,841) (4,822,330)
Payment of other loans from related companies . . . . . . . . . . . . . . . . . . . . (664,570)
Total net cash flows provided by financing activities . . . . . . . . . . . . 8,227,506 7,402,606
Cash flows from investment activities:
Sales of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,801
Acquisition of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . (13,144,714) (5,871,017)
Investments in related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (285,386)
Investments in financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,555,715) (8,148,673)
Other investing disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,644)
Other investments incomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,437,964 2,259,915
Total net cash flows used in investment activities . . . . . . . . . . . . . . . (13,262,465) (12,054,004)
Total net cash flows for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . (72,595) 184,663
Effect of inflation on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . 29,596 (636)
Net (decrease) increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . (42,999) 184,027
Opening balance of cash & cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . 362,348 178,340
Closing balance of cash & cash equivalents . . . . . . . . . . . . . . . . . . . 319,349 362,367

The accompanying notes 1 to 35 are an integral part of these financial statements.

F-106
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
For the years ended December 31, 2008 and 2007
(A free translation of the original issued in Spanish)
Note 2008 2007
ThCh$ ThCh$
Net income (loss) for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,669,621) 12,905,137
(Proceeds) losses from sale of assets:
Loss from sale of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . 10,243
Total (proceeds) loss from sale of assets . . . . . . . . . . . . . . . . . . . . . . . 10,243
Charges (credits) to income that do not represent cash flows:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 7,756,809 4,417,241
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,611,016 1,087,848
Write-offs and provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,783 203,639
Profit from investments in related companies . . . . . . . . . . . . . . . . . . . . . . . 13 (502,723) (2,078,450)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 (6,540,486) (5,180,980)
Foreign exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 17,822,895 (3,946,556)
Credits to income which do not represent cash flows . . . . . . . . . . . . . . . . . (2,754,572)
Charges to income which do not represent cash flows . . . . . . . . . . . . . . . . . 2,221,413
Total charges to income that do not represent cash flows . . . . . . . . . . 17,517,722 (3,275,845)
Changes in assets affecting cash flows decrease (increase):
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,885,037) (3,121,379)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,924) (9,920)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 931,255 3,590,129
Total changes in assets affecting cash flows decrease . . . . . . . . . . . . . 971,706 458,830
Changes in liabilities affecting cash flows increase (decrease):
Accounts payable related to operating income . . . . . . . . . . . . . . . . . . . . . . . (221,425) (518,679)
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 911,213 (3,812,038)
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,603
Other accounts payable related to non-operating income . . . . . . . . . . . . . . . (6,613,422) (931,587)
Total changes in liabilities affecting cash flow (decrease) . . . . . . . . . . (5,914,031) (5,262,304)
Income (loss) of minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9)
Total net cash flows provided by operating activities . . . . . . . . . . . . . 4,962,364 4,836,061

The accompanying notes 1 to 35 are an integral part of these financial statements.

F-107
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

1. Corporate Information
Registration with the Securities and Trade Registry:
Inversiones Alsacia S.A. is listed in the Securities and Trade Registry of the Office of the Superintendency of
Securities and Insurance of Chile (SVS), under No 883 dated January 27, 2005, and is subject to the supervision
of the SVS.

Incorporation and operations:

Inversiones Alsacia S.A. was founded as a closely-held corporation by public deed on November 27, 2004. The
principal activity of the Company is providing public transportation services to passengers on the routes granted
to it in the Metropolitan region and any other related activity in connection with that service.

At the Shareholders Meeting held on December 9, 2004, it was agreed to extend the line of business to include
static and dynamic advertisement through the use of advertising spaces on buses and other services related to the
main activity.

On October 23, 2005, the Corporation started providing public transportation services associated with The Trunk
Line No 1, which involved the operation of 533 buses at the beginning of the transition stage that reached the
same amount at the beginning of the Normal Operating Stage (February 2007).

2. Summary of Significant Accounting Principles

(a) Accounting period
These financial statements include the period January 1 to December 31, 2008 and 2007.

(b) Basis of preparation

The consolidated financial statements have been prepared in accordance with generally accepted accounting
principles in Chile (Chilean GAAP), issued by the Chilean Institute of Certified Accountants A.G., and with the
specific rules and instructions issued by the Chilean Superintendency of Securities and Insurance.

The consolidated financial statements includes the assets, liabilities, results of operations and cash flows of the
parent company and subsidiary. The subsidiary included in consolidation and its participation percentage is a
follows:
Owneraship Percentage
12-31-2008 12-31-2007
Taxpayer No. Company Name Direct Indirect Total Total

0-E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IASA de Colombia Ltda. 99.999 99.999 99.999

(c) Basis of presentation

For comparative purposes, the consolidated financial statements as of December 31, 2007 and its related notes
have been restated for inflation by 8.9%.

F-108
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

(d) Price-level restatement
The consolidated financial statements have been price-level restated in order to reflect the variation in purchasing
power of the Chilean peso during each period. The adjustments have been determined based on the official index
of the National Institute of Statistics, which shows a variation of 8.9% for 2008 (7.4% in 2007.).

The effect of the price-level restatement for the periods between January 1 and December 31, 2008, has been
recorded in net income.

(e) Basis of foreign currency translation

The assets and liabilities in foreign currency and in Unidades de Fomento are valued at the exchange rate
effective as of the closing date of each period. Effects have been recognized directly in the income statement.
The exchange rates effective as of the closing date of each fiscal year are the following:
2008 2007
Ch$ Ch$
US dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636.45 496.89
Unidad de Fomento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,452.57 19,622.66

(f) Time deposits

Investments in time deposits are presented at the acquisition cost plus any readjustment and interest accrued as of
each closing date.

(g) Inventories
The fuel stock is shown at its price-level restated cost, which does not exceed its net realizable value.

(h) Prepaid expenses

Prepaid expenses include expenses related to insurance policies, which are amortized over the insurance policy
term.

(i) Property, plant and equipment

The Companys property, plant and equipment mainly corresponds to buses held for public transportation, which
are valued at price-level restated acquisition cost adjusted by inflation, including all the expenditures incurred up
to the date in which they available for use. Other property, plant and equipment items are accounted for at their
purchase cost adjusted by inflation.

Expenditures related to the purchase of software packages are recognized at price-level restated acquisition cost
and amortized over a three-year period.

Goods subject to a sale-and-leaseback agreement are capitalized as a property, plant and equipment of the
Company; corresponding obligations are accounted for as part of other short and long-term payables.

F-109
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

(j) Depreciation of property, plant and equipment
The annual depreciation has been estimated using the straight-line method, considering the remaining estimated
useful life of the respective assets.

During the third quarter of 2008, the Company carried out a technical study of the buses in order to determine the
impairment they may have been exposed to in the current operating situation. As a result of the study, the
remaining useful life of the buses was reduced from 13 yearsoriginally determined according to the duration of
the concession contractto 9 years.

This adjustment of the useful lives of the buses led to an increase in a depreciation charge for the financial period
of 2008 in the amount of ThCh$1,866,815. According to internal analysis the change in useful lives will have a
negative impact on future income for the 2009 period and onwards in the amount of ThCh$2,309,741 annually.

(k) Property, plant and equipment under financial lease

Items of property, plant and equipment leased on the basis of contracts which include a purchase option and
which fulfill all criteria of a financial lease agreement are capitalized as property, plant and equipment. The sum
of the annual lease payments is recognized as liability and lease interest is recorded on accrual basis. Such assets
are not legally owned by the Company, so, as long as the purchase option is not exercised, the Company cannot
freely dispose of them.

(l) Investments in related parties

Investments in related parties are accounted for using the equity method.

The share in the related parties income is recognized in the Companys income statement on an accrual basis
over the corresponding holding period.

The investment in IASA Colombia S.A. is stated in accordance with Technical Bulletin No. 64 issued by the
Chilean Institute of Certified Accountants A.G.

(m) Income tax and deferred taxes

According to the current legal regulations, the Company has not accrued any provision for first-category income
tax, because it shows a negative base in the respective periods.

In accordance with what is set forth in Technical Bulletin No. 60 and the complementary bulletins issued by the
Chilean Institute of Certified Accountants A.G., and the standards provided in Circular No. 1,466 of the Chilean
Superintendency of Securities and Insurance, the Company accounts for deferred taxes originated by timing
differences, benefits due to tax losses and other events that generate differences between accounting and tax
income.

F-110
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

2. Summary of Significant Accounting Principles(Continued)

(n) Vacation accrual
At each period end, the Company sets up an accrual for unused vacation days of its employees.

(o) Revenues
During the transition period between October 24, 2005 and February 9, 2007, revenues related to the public
transportation service and the right of use of roads under concession yellow buses is recognized as and when
earned. Revenue from static and dynamic advertising is recognized in the financial statements when services
have been provided.

On February 10, 2007, the new regimen period began, and from this date on earnings are calculated in
accordance with the concession agreement with the Ministry of Transportation and Telecommunications; that is
the price per transported passenger (PTP) multiplied by the adjusted demand.

Revenue from static and dynamic advertising originates from renting out advertising spaces on buses.

(p) Technical Operating Reserve (TOR)

The Technical Operating Reserve is an allowance incorporated in the fare paid by users to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system. The amounts paid to the Transantiago Financial Administrator (AFT) for this concept in relation to the
Trunk Line No.1 business unit, are recorded as a deferred asset that will be amortized with a charge to operating
income, during the concessions operating period, based on projected income to be obtained from providing
transportation services.

(q) Statements of cash flows

The Company considers as cash equivalents all highly-liquid financial investments with a maximum maturity of
90 days. Cash flows from operating activities include all business-related cash flows, as well as interest paid,
interest income and, in general, all cash flows not defined as from investment or financing activities. The
operating concept used in the statements of cash flows is more comprehensive than the one considered in the
statement of income.

(r) Capital expenditures

According to the Ordinary Official letter No. 11,808 of October 31, 2006, the Chilean Superintendency of
Securities and Insurance authorized the Company to accrue and subsequently amortize capital expenditures
directly associated with the bank loans used to finance the purchase of the bus fleet. For this purpose, such
expenditures are amortized based on the development of actual earnings obtained, considering the total projected
earnings. These expenditures are capitalized as part of the line item Other Long-Term Assets.

F-111
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

3. Accounting Changes
During the period from January 1 to December 31, 2008, no significant accounting changes have been made to
the generally accepted accounting principles in Chile in relation to prior year.

4. Marketable Securities
Book Value
Instruments 2008 2007
ThCh$ ThCh$
Mutual fund units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,912 196,120
Total marketable securities . . . . . . . . . . . . . . . . . . . . . . . 36,912 196,120

5. Short- and Long-term Trade Receivables

Composition of short and long-term receivables as of December 31, 2008 and 2007:
2008 2007
ThCh$ ThCh$
Trade receivables:
AFT (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,999,684 2,877,272
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,018 41,041
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816 210,968
Allowance for doubtful accounts . . . . . . . . . . . . . . (124,783)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,098,735 3,129,281
Notes receivable:
Promissory note Transantiago AFT (2) . . . . . . . . . . 477,889
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477,889
Other receivables:
Accounts receivable from employees . . . . . . . . . . . 265,019 48,766
Prepayment to suppliers . . . . . . . . . . . . . . . . . . . . . 217,428 190,289
Accounts receivable from Volvo (3) . . . . . . . . . . . . 48,678 555,202
Volvo of buses (4) . . . . . . . . . . . . . . . . . . . . . . . . . . 251,155
Insurance recoveries . . . . . . . . . . . . . . . . . . . . . . . . 73,299
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,639 135,908
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547,764 1,254,619

(1) Corresponds mainly to the passenger revenue accrued by rendering public transportation services during the
regimen period that are paid every two weeks by the Transantiago Financial Administrator.
(2) Corresponds to the compensation balance made to the Company by the Transantiago Financial
Administrator (AFT) equivalent to UF 221,208 plus accrued interest, of which UF200,000 were in January
2007. This amount offsets the lower revenue and higher costs resulting from the postponement of the
regimen stage from October 23, 2006 to February 10, 2007.

F-112
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

5. Short- and Long-term Trade Receivables(Continued)

(3) This line item relates to warranty claims against Volvo Sweden Co. in the form of spare parts for the bus
fleet.
(4) Relates to the payment of customs duties and taxes for the import of 10 B9 Volvo buses.

Short-term Long-term
More than
< 90 days >
Up to 90 days 1 year Subtotal Total current (net)
2008 2007 2008 2007 2008 2008 2007 2008 2007

Trade receivables . . . . . . . . . . . . . . . . 5,223,518 3,129,281 5,223,518 5,098,735 3,129,281

Allowance for doubtful accounts . . . . 124,783
Notes receivable . . . . . . . . . . . . . . . . . 477,889 477,889
Allowance for doubtful accounts . . . .
Other receivables . . . . . . . . . . . . . . . . 547,764 1,254,619 547,764 547,764 1,254,619
Allowance for doubtful accounts . . . .
Total long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Related Party Disclosures

The sales to and purchases from related parties are made at terms intended to be equivalent to those prevailing in
arms length transactions.

Short-term due from related parties are detailed as follows:

2008 2007
ThCh$ ThCh$
Express de Santiago Uno S.A. (1) . . . . . . . . . . . . . . . . . . . . . 187,633 46,602
Carlos Rios V. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,180 3,981
EDTM Consultores E.V. (3) . . . . . . . . . . . . . . . . . . . . . . . . . 304,371 193,157
Rioma Ltda. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,954 7,994
Desarrollo y Soluciones Informticas (5) . . . . . . . . . . . . . . . 128,808 79,473
Inversiones Eco Uno Ltda. (6) . . . . . . . . . . . . . . . . . . . . . . . 172,214
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 978,160 331,207

Short-term due to related parties are detailed as follows:

2008 2007
ThCh$ ThCh$
Express de Santiago Uno S.A. (1) . . . . . . . . . . . . . . . . . . . . . . . 32,058 34,912

F-113
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

6. Related Party Disclosures(Continued)

Long-term due to related parties are detailed as follows:

2008 2007
ThCh$ ThCh$
Data Tools S.A. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,055,301 892,246
Fanach Corp. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,354 554,190
Aseo Capital S.A.(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,118 277,095
Carlos Toro (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,094 110,837
Maraya E.V. (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,605 94,213
Inversiones Eco Uno Ltda. (12) . . . . . . . . . . . . . . . . . . . 1,593
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,585
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,281,472 1,931,759

(1) As of December 31, 2008 and 2007, the due from and to balances recorded by the company Express de
Santiago Uno S.A., corresponding to balances generated in the context of the allocation of expenses and
operating costs, amount to ThCh$155,575 and ThCh$11,690, respectively.
Moreover, there exists an Adjustment Account for the financial years of 2005 and 2006 which amounts to
ThCh$1,515,343 (historic value), increasing the balance in favor of Inversiones Alsacia to ThCh$1,670,918
as of December 31, 2008.
The value of the Adjustment Account is based on the instructions in Official Letter No. 06354 dated
June 11, 2007 of the Chilean Superintendency of Securities and Insurance. The Company followed the
guidelines of the Official Letter and altered the balances receivable from and payable to Express de Santiago
Uno S.A. to the amounts of ThCh$2,126,660 and ThCh$611,317, respectively (historic net amount of
ThCh$1,515,343 in favor of Inversiones Alsacia S.A.)
Adjusted balances originated from:
The pre-operational period: ThCh$611,317 (historic value) in favor of Express, referring to the period
between January 10 and December 31, 2005.
The operational period: ThCh$2,126,660 (historic value) in favor of Inversiones Alsacia S.A. referring
to the period between January 10 and August 31, 2006.
Inversiones Alsacia S.A. has 2 independent third party reports confirming the amounts cited.
The companies involved have held negotiations to resolve this situation. As of period-end no resolution has
been reached. For the fact that no agreement could be reached, the Company is considering submitting the
matter for arbitration. In the meantime, following the instructions of the Ordinary Official Letter published
by the Superintendency of Securities and Insurance, the balances above are considered as contingent
income, without bearing any interest or readjustments.
(2) Carlos Rios: Claim expenses not generating any interest.
(3) EDTM: Corresponds to a loan of US$350,965 taken on March 5, 2007, to finance the capitalization of Eco
Uno Ltda. On February 29, 2008, the loan was renewed with a 180-day payment term, and an agreed-upon

F-114
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

6. Related Party Disclosures(Continued)

maturity date of August 5, 2008 with annual interest rate of 7.7%. The loan was be renewed automatically
for another term of 180 days at the date of maturity.
(4) Rioma Ltda.: Recovery of expenses not generating interest with a maturity date of December 31, 2009.
(5) Desarrollo y Soluciones Informticas: Accounts receivable of US$ 258,160.96 corresponding to interest
earned on external funding.
(6) Inversiones Eco Uno Ltda.: Corresponds to contribution for interest on behalf of the Company.
(7) Data Tools: Corresponds to three loans obtained to finance Transantiago Operating Plan totaling of
US$ 1,610,000. The loans are in US dollars and accrue 1% annual interest and has a maturity date of
August 28, 2012.
(8) Fanach: Corresponds to a credit in the amount of US$ 1,000,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. The loan is in US dollars and accrues an annual interest of 1% and has a
maturity date of August 28, 2012.
(9) Aseo Capital: Corresponds to a credit in the amount of US$ 500,000 obtained to finance operations pursuant
to the Transantiago Operating Plan. The loan is in US dollars and accrues annual interest of 1% and has a
maturity date of August 28, 2012.
(10) Carlos Toro: Corresponds to a credit amounting to US$ 200,000 obtained to finance operations pursuant to
the Transantiago Operating Plan. This loan is in US dollars and accrues annual interest of 1% and has a
maturity date of August 28, 2012.
(11) Maraya: Corresponds to a credit amounting to US$ 170,000 obtained to finance operations pursuant to the
Transantiago Operating Plan. This loan is in US dollars and accrues annual interest of 1% and has a maturity
date of August 28, 2012.
(12) Eco Uno Ltda.: Recovery of expenses not generating interest and has a maturity date December 31, 2008.

Balances and transactions with related parties during the period January through December 2008 and 2007 are
shown in tables below:

(a) Due from Related Companies

Short-term Long-term
2008 2007 2008 2007
Taxpayer ID
No. Corporation ThCh$ ThCh$ ThCh$ ThCh$

99577390-2 Express de Santiago Uno S.A . . . . . . . . . . . . 187,633 46,602

48095921-3 Carlos Rios V . . . . . . . . . . . . . . . . . . . . . . . . 29,180 3,981
0-E Edtm Consultores . . . . . . . . . . . . . . . . . . . . . 304,371 193,157
99999999-9 Rioma S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . 155,954 7,994
0-E DSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,808 79,473
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . 172,214
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 978,160 331,207

F-115
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

6. Related Party Disclosures(Continued)

(b) Due to Related Companies

Short-term Long-term
2008 2007 2008 2007
Taxpayer ID
No. Corporation ThCh$ ThCh$ ThCh$ ThCh$

76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . 1,593

99577390-2 Express de Santiago Uno S.A . . . . . . . 32,058 34,912
0-E Aseo Capital de Colombia . . . . . . . . . . 327,118 277,095
0-E Data Tools . . . . . . . . . . . . . . . . . . . . . . 1,055,301 892,246
0-E Fanach Corporation . . . . . . . . . . . . . . . 658,354 554,190
0-E Carlos Toro . . . . . . . . . . . . . . . . . . . . . 130,094 110,837
0-E Maraya . . . . . . . . . . . . . . . . . . . . . . . . . 110,605 94,213
0-E Other . . . . . . . . . . . . . . . . . . . . . . . . . . 1,585
Total . . . . . . . . . . . . . . . . . . . . . . . 32,058 34,912 2,281,472 1,931,759

F-116
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

6. Related Party Disclosures(Continued)

(c) Transactions

2008 2007
Effects on Effects on
Taxpayer Nature of the Income Income
Corporation ID No. relationship Transaction description Amount (charge/credit) Amount (charge/credit)

Express de Santiago Uno S.A. . . . . . . 99577390-2 Related Company Provision for shared expenditures 34,912 (34,912)
Express de Santiago Uno S.A. . . . . . . 99577390-2 Related Company Shared expenditures invoices 85,868 85,868
Data Tools . . . . . . . . . . . . . . . . . . . . . 0-E Related Company Loans 892,246 (21,054)
Fanach Corporation . . . . . . . . . . . . . . 0-E Related Company Loans 554,190 (13,077)
F-117

Aseo Capital de Colombia . . . . . . . . . 0-E Related Company Loans 277,095 (6,538)

Carlos Toro . . . . . . . . . . . . . . . . . . . . . 0-E Related Company Loans 110,837 (2,616)
Desarrollo y Soluciones
Informticas . . . . . . . . . . . . . . . . . . 0-E Related Company Nib Credit Interests Diff. 636,450 79,474 (-58)
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

7. Inventories
Includes the inventories held by the Company, valued according to the accounting policy of the Company
described in Note 2(g).

The balances as of December 31, 2008 and 2007 are detailed as follows:

2008 2007
ThCh$ ThCh$
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,465 80,086
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,465 80,086

8. Deferred and Income Taxes

General Information

As of December 31, 2008 and 2007 as stated in Note 2 (l), the Company has made no provision for First
Category Income Tax according to current legal regulations in force as it has negative tax results.

Accumulated tax loss as of December 31, 2008 amounts to ThCh$71,968,310 (ThCh$27,224,827 in 2007).

F-118
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

8. Deferred and Income Taxes(Continued)

(a) Deferred Taxes

2008 2007
Deferred tax asset Deferred tax liability Deferred tax asset Deferred tax liability
Concepts Short-term Long-term Short-term Long-term Short-term Long-term Short-term Long-term

Temporary
differences: . . . . . . . . .
Allowance for doubtful
accounts . . . . . . . . . . 21,212
Deferred income (*) . .
Vacation accrual . . . . . 135,410 138,981
Amortization of
intangible assets . . . . 2,031,167 1,017,863
Finance lease assets . . . 131,479 137,197
Manufacturing
expenses . . . . . . . . . .
Depreciation of
property, plant and
equipment . . . . . . . . 6,706,983 1,446,234
Severance indemnities
(*) . . . . . . . . . . . . . .
Other events . . . . . . . . . 234,560
Amortization of other
assets . . . . . . . . . . . . 1,026,326 932,918
Acumulated tax
losses . . . . . . . . . . . . 12,234,612 4,628,221
Prepaid expenses . . . . . 38,178
Mutual fund units . . . . 1
Others: . . . . . . . . . . . . . . .
Complementary
accounts-net of
amortization . . . . . . .
Valuation allowance
(*) . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . 156,622 12,234,612 38,179 9,895,955 138,981 4,862,781 3,534,212

F-119
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

8. Deferred and Income Taxes(Continued)

(b) Income Taxes

Item 2008 2007

Current income tax expense (provision)

Tax expense adjustment (prior year)
Effect for deferred tax assets or liabilities of the year . . . . 1,109,487 (1,939,303)
Tax benefit from tax losses . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,109,487 (1,939,303)

9. Other Current Assets

Other current assets balance as of December 31, 2008 and 2007 is the following:

2008 2007
ThCh$ ThCh$
Time deposits (1) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,862,746 6,057,337
Repurchase agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261,551
AFT Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,219
Technical Reserve for Operations, short-term portion . . . . 986,556 1,061,314
Transantiagos guarantee (3) . . . . . . . . . . . . . . . . . . . . . . . . 216,508
Rental security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,797 68,361
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,353,826 7,448,563

F-120
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

9. Other Current Assets(Continued)

(1) Correspond to time deposits obtained from the Bank HBSC and Bancolombia, to assure the payment of
interest for loans granted by the same banks for the financial period between August 28, 2008 and
February 28, 2009. Details are as follows:

Bank or
Financial Currency Value of Annual Book value
Institution Start Due date of Origin Subscription Rate 12/31/2008
ThCh$ % ThCh$
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 11-18-2008 01-12-2009 US$ 453,709 1.870 448,521
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 11-26-2008 02-27-2009 US$ 427,935 2.850 406,232
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 11-27-2008 02-27-2009 US$ 368,805 2.950 354,980
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-01-2008 02-27-2009 US$ 506,941 2.800 486,623
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-09-2008 02-27-2009 US$ 24,242 2.430 22,946
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-10-2008 02-27-2009 US$ 4,844,556 2.460 4,637,424
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-11-2008 02-27-2009 US$ 369,718 2.500 354,357
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-15-2008 02-27-2009 US$ 388,226 2.500 378,379
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-29-2008 02-27-2009 US$ 372,990 1.050 378,073
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 11-26-2008 02-27-2009 Ch$ 82,968 0.700 83,646
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-10-2008 02-27-2009 Ch$ 84,376 0.670 84,771
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-11-2008 02-27-2009 Ch$ 28,000 0.700 26,312
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-29-2008 02-27-2009 Ch$ 26,300 0.700 28,131
Bancolombia . . . . . . . . . . . . . . . . . . . . . 12-19-2008 06-25-2009 US$ 23,703 2.085 24,108
Bancolombia . . . . . . . . . . . . . . . . . . . . . 12-29-2008 06-25-2009 US$ 146,240 2.085 148,243
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,148,709 7,862,746

(2) Time deposit obtained from the HBSC Bank, BanColombia and Santander for 2007 is as follows:

Bank or
Financial Currency Value of Annual Book value
Institution Start Due date of Origin Subscription Rate 12/31/2007
ThCh$ % ThCh$
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-10-2007 02-28-2008 US$ 301,218 5.000 302,097
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-13-2007 02-28-2008 US$ 905,827 5.000 908,091
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-24-2007 02-28-2008 US$ 28,548 5.100 28,576
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-26-2007 02-28-2008 US$ 4,018,884 4.810 4,021,569
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-28-2007 02-28-2008 US$ 297,652 4.790 297,771
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-10-2007 02-28-2008 Ch$ 23,414 6.000 23,495
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-17-2007 02-28-2008 Ch$ 23,651 6.360 23,708
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-26-2007 02-28-2008 Ch$ 119,453 6.480 119,560
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . 12-28-2007 02-28-2008 Ch$ 23,196 6.480 23,208
Bancolombia . . . . . . . . . . . . . . . . . . . . . 12-27-2007 06-19-2008 US$ 30,844 4.870 31,633
Santander . . . . . . . . . . . . . . . . . . . . . . . . 09-25-2007 02-28-2008 US$ 273,262 5.930 277,629
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,045,949 6,057,337

F-121
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

9. Other Current Assets(Continued)

(3) Corresponds to the time deposits obtained from the Banco Internacional in the amount of UF10,000, to
guarantee the insurance contract obtained from Aseguradora Magallanes S.A., to comply with the
Transantiago 2003 service contract.

10. Information on operations regarding purchase commitments, sales commitments, sales with
repurchase commitment and purchase with commitment to resell real estate titles or securities
Operations involving sales with repurchase commitment (VRC) and purchases with resale commitment
(CRV)

Identification
Expiration Currency Value of Final of Market
Code Start date Counterpart of origin subscription Rate amount instruments value

11. Property, Plant and Equipment

Property, plant and equipment as of December 2008 and 2007, presented in accordance with Note 2 (i) is detailed
as follows:

Property, plant and equipment,

gross amount Accumulated depreciation
2008 2007 2008 2007

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,761,750 3,745,610

Buildings and Infrastructure . . . . . . . . . . . . . 13,704,594 7,579,542
Machinery & equipment:
Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,667,762 57,196,625 (16,785,673) (9,522,564)
Machinery & equipment . . . . . . . . . . . . . . . . 819,870 713,400 (329,014) (210,397)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,487,632 57,910,025 (17,114,687) (9,732,961)
Other
Office furniture and equipment . . . . . . . . . . . 232,333 184,558 (80,334) (52,509)
Computer equipment . . . . . . . . . . . . . . . . . . . 564,995 400,332 (98,413) (18,744)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,995,564 1,933,520 (720,411) (456,430)
Spare parts . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,408,223 1,256,790
Improvements for transition terminals . . . . . 1,192,435 1,192,435 (1,192,435) (1,192,435)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,393,550 4,967,635 (2,091,593) (1,720,118)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,347,526 74,202,812 (19,206,280) (11,453,079)
Total net property, plant and equipment . . . . 68,141,246 62,749,733

F-122
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

11. Property, Plant and Equipment(Continued)

Depreciation charges for the respective fiscal years have been reconded in to the following accounts:

2008 2007
ThCh$ ThCh$
Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,226,621 4,239,439
Administrative and sales expenditures . . . . . . . . . . . . . . 530,188 177,802
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,756,809 4,417,241

12. Sale-and-leaseback Transactions

On June 28, 2006, a sale-leaseback agreement was signed with Citi Leasing Ltda. in which Inversiones Alsacia
S.A. sold and leased back its computers and related equipment for the amount of UF 6,545.10, generating a loss
of ThCh$9,834 (historic value) and leased back the assets.

The lease agreement has a discounted value of UF 7,514.4, accrues an annual interest of 6.45% and is payable in
31 equal and successive monthly installments.

On December 19, 2008, Inversiones Alsacia S.A. has exercised the option to purchase the leased assets.

13. Investments in Associates

During the Extraordinary Shareholders meeting held on January 25, 2005, the shareholders agreed to modify
article one of the Companys statutes in order to pay 18,802 unpaid shares contribution of non-monetary assets.
The shareholders meeting approved that the issuance of above-mentioned shares would be made by contributing
a total of 16% of their rights in the Sociedad de Inversiones Eco Uno Ltda. (Eco Uno) in favor of the
Company. At that date, shareholders Mr. Carlos Ros V. and Mr. Francisco Ros V. held 14% of the voting rights
of Inversiones Eco Uno Ltda. The voting rights were valued at an amount of ThCh$ 1,880,202 (historic), based
on the carrying value of Inversiones Eco Uno Ltda.

On March 2, 2007, a sum of Ch$262,061,908 (historic)a part of which consisted of capital owed by the
Companys partnerswas transferred to Eco Uno, in order to enable Eco Uno to increase the capital of its
subsidiary Express de Santiago Uno S.A.

F-123
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

13. Investments in Associates(Continued)

Investment Details

Share Corporations equity Net income Accrued

Investment
Country control No. of percentage Corporations equity Net income at fair value at fair value income (loss)
Taxpayer ID Name of the
No. Corporation of origin currency shares 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
76195710-4 Inversiones Eco Uno
Ltda. . . . . . . . . . . . . . . . . Chile Pesos 16.00 16.00 29,430,668 26,288,638 3,142,023 12,990,314 502,723 2,078,450
Total . . . . . . . . . . . .

Equity method Unrealized gains Book value of the investment

Taxpayer
F-124

ID No. Name of the Corporation 2008 2007 2008 2007 2008 2007
76195710-4 Inversiones Eco Uno Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,708,907 4,206,182 4,708,907 4,206,182
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,708,907 4,206,182 4,708,907 4,206,182
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

14. Other (Assets)

Other assets as of December 31, 2008 and 2007 are detailed as follows:

2008 2007
ThCh$ ThCh$
Technical Reserve for Operations (1) . . . . . . . . . . . . . . . 9,663,203 10,364,280
Reserve of Transantiagos Financial Manager (2) . . . . . 1,677,069 2,300,449
Other long-term deferred expenditures (3) . . . . . . . . . . . 1,469,355 1,824,442
Capitalization of Financial Expenditures Met Ing (4) . . . 4,379,532 3,641,772
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,189,159 18,130,943

(1) Corresponds to the total amount of the contribution to the Technical Operating Reserve by the Trunk Line
No. 1 business unit, which is defined as an allowance incorporated into the tariff paid by the users to cover
possible temporary lags or mismatches between the revenue and costs. This amount is amortized in
accordance with the projected revenue curve, obtained from the transportation service rendering. As of
December 31, 2008, the accumulated amortization amounted to ThCh$2,605,336 (ThCh$1,260,125 in
2007). The annual amortization for the period amounted to ThCh$1,019,561 (ThCh$748,776 in 2007) and it
is included in the Companys operating cost.
(2) From the start of Stage I defined in the Transantiago 2003 Bidding Conditions, AFT will be the only issur of
fares, paid in coins, issuer that give access to the users of Transportation Services System. Inversiones
Alsacia S.A. buys the fares from AFT at a price of Ch$20 per fare. Out of this amount, Ch$16 correspond to
a deposit to increase the Systems RTO which AFT is supposed to deposit to the Temporary Account 2 of
the system. The remaining balance of Ch$4 is cash available to AFT. The reserve corresponds to the total
amount related to all Ch$16-deposits per fare acquired by the Company during the financial years 2006 and
2005. This amount is amortized according to the projected income curve from rendering services of
transportation. As of December 31, 2008, the amortization for this concept amounts to ThCh$194,738
(ThCh$158,076 in 2007) and is presented as part of the Companys operating costs.
According to the modification of the Concession Agreement entered into on June 30, 2006, between the
Company and the Ministry of Transportation and Telecommunications, pursuant to Article 4, from July 1,
2006, there is no need to pay the Ch$16 deposit per fare acquired from AFT.
(3) Corresponds to the deferred expenditures paid for commissions, fees and other expenditures to HSBC Bank
for disbursements of loans granted to the Company to finance the purchase of buses, operating costs and
implementation of terminals. As of December 31, 2008, the amortization amounted to ThCh$412,401
(ThCh$180,996 in 2007.)
(4) In accordance with Note 2(q) and according to the authorization of the Office of the Superintendency of
Securities and Insurance No. 11,808 dated October 31, 2006, the Company capitalized borrowing costs
directly associated with the purchase of the bus fleet. For this purpose, such expenditures are amortized
based on the actual earnings obtained, considering total of projected earnings. This method is aimed at
distributing the financial charge that the Company will have to incur with along the period of debt
amortization over the whole concession period, considering the remaining useful life of the bus fleet. As of
December 31, 2008, the amortization in relation to this concept amounted ThCh$1,035,390
(ThCh$1,705,577 in 2007).

F-125
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

15. Short-term Obligations with Banks and Financial Institutions

As at December 31, 2008 and 2007, short-term obligations with banks and other financial institutions include the
following:
Short-term payables to banks and other financial institutions:
Includes short-term loans obtained from local Banks. Interest is calculated on the balance of principal
outstanding of the promissory notes as of their signing dates until the date of their full and effective payment.

The amount of accrued interest as of December 31, 2008 is ThCh$35,884.

Long-term payables to banks and other financial institutions, short-term portion:

1. Installment: The total term of the HSBC EKNs loan credit was modified from 20 to 19 installments with
semi-annual installments on February 28 and August 28 of each year.

2. Accrued interest: Correspond to the long-term borrowings from HSBC EKN, NEXI, GNB Bancolombia and
BANCOLOMBIA. For the first two loans payment dates are February 28 and August 28 of each year whereas for
the latter payment dates are June 19 and December 19 of each year, starting from June 19, 2007.

Interest is calculated on the balance of principal outstanding of the promissory notes as of their signing dates
until the date of their full and effective payment.

The amount of accrued interest as of December 31, 2008 is ThCh$1,741,772.

F-126
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

15. Short-term Obligations with Banks and Financial Institutions(Continued)

Currency types and adjustment index
Other Foreign
Dollars Euros Yens Currencies UF Non Adjustable Ch$ Totals
Taxpayer
ID No. Bank or Financial Institution 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Short-term
97951000-4 HSBC Bank . . . . . . . . . . . . 4,552,215 4,916,552 4,552,215 4,916,552
97011000-3 Banco Internacional . . . . . . 579,855 579,855
97006000-6 Banco Credito e
Inversiones . . . . . . . . . . . . . 251,882 251,882
97051000-1 Banco del Desarrollo . . . . . 374,066 403,750 374,066 403,750
F-127

99500410-0 Banco Monex . . . . . . . . . . . 669,152 669,152

Others . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . 5,506,136 6,241,336 5,506,136 6,241,336
Principal Amount . . . . . . . . . . . . . . 5,470,252 6,164,120 5,470,252 6,164,120
Long-termShort term
97951000-4 HSBC EKN Bank . . . . . . . 6,974,651 4,476,533 6,974,651 4,476,533
0-E Nexi . . . . . . . . . . . . . . . . . . 187,476 1,090,287 187,476 1,090,287
0-E HSBC NIB Bank . . . . . . . . 199,274 199,274
0-E Bancolombia . . . . . . . . . . . 5,953,132 1,159,528 5,953,132 1,159,528
0-E GNB Bancolombia . . . . . . 457,829 457,829
Others . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . 13,573,088 6,726,348 199,274 13,772,362 6,726,348
Principal Amount . . . . . . . . . . . . . . 12,030,591 5,636,061 12,030,591 5,636,061
Percentage of payable foreign currency (%) . . . . . . . 71.4400
Percentage of payable national currency (%) . . . . . . . 28.5600
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

16. Other Current Liabilities

As of December 31, 2008 and 2007, other current liabilities are detailed as follows:

2008 2007
ThCh$ ThCh$
Technical Operating Reserve payables . . . . . . . . . . . . . . . 550,000 7,738,616
Promissory notes (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (496,133)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,867 7,738,616

(1) On October 27, 2008, the Company paid the sum of UF140,000 for the Technical Operating Reserve. The
balance payable was deposited with the Notary Public of Santiago Mr. Eduardo Avello Concha, with
instructions to be delivered to the MTT, as agreed between the parties:
Amounts given correspond to:
a) Two term deposits of ThCh$800,000 each and a short-term deposit of ThCh$756,499, all with
maturities of 7 days (renewable).
b) An original promissory note of UF 21,208 plus accrued interest in the amount of UF 1,918.97.
On January 2, 2009, the Company completed the full deposit into the Technical Operating Reserve due at
December 31, 2008.

17. Long-term Obligations with Banks and Other Financial Institutions

At December 31, 2008, the movements in obligations with banks and financial institutions are detailed as
follows:
Between August 17, 2005 and March 28, 2006, the HSBC BANK (EKN) made three disbursements amounting to
ThCh$41,724,306, which corresponded to six promissory notes for a total sum of US$77,347,446. The amounts
must be paid in nineteen equal and successive semi-annual installments on February 28 and August 28, starting
on August 28, 2007, at fixed annual rate of 5.38%. With the credits the Company financed approximately 85% of
its bus purchases.

On March 30, 2006, a credit amounting to ThCh$ 12,191,344 (equivalent to US$22,600,000) was obtained from
HSBC Tokyo, Japan and Sumitomo Bank, together with NEXI, a Japanese credit and insurance corporation. This
credit has been agreed upon at an 8-year term with a 5 year grace period, and a 180-day floating Libor rate plus
0.6%. The interest will be paid starting August 28, 2006 and the principal repayment will be in equal and
successive semi-annual installments on February 28 and August 28 starting from 2010.

On May 31, 2006, the Company obtained a credit from the HSBC NIB (Nordic Investment Bank) in the
amount of ThCh$6,360,000 at an 8-year term with 5 years of grace and at an interest rate of 6.36%. Interest will
be paid starting from August 28, 2006 and the principal repayment will be in equal and successive semi-annual
installments on February 28 and August 28, starting from 2011.

F-128
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

17. Long-term Obligations with Banks and Other Financial Institutions(Continued)

On December 19, 2006, Bancolombia granted a credit of US$5,000,000, on December 20, 2006 another credit of
US$4,500,000, on March 1, 2007 an additional for US$2,500,000, and on June 4, 2007 credit of US$3,000,000,
all of them at a 5-year term with a 2-year grace period and at a 180-day Libor interest rate plus 3.5%, principal
repayment will be in equal semi-annual and successive installments on June 19 and December 19, starting from
December 19, 2008.

On January 29, 2008, a loan from GNB Sudameris Colombia was obtained in the amount of US$3,000,000 for a
term of 12 months and renewable for two periods.

On March 3, 2008, a loan was obtained from HSBC bank in the amount of US$11,107,836 (equivalent to
Ch$5,042,401,694 historical). This loan has been agreed upon for a 10-year term, and at an interest rate of
6.81%. The loan installments will be paid in equal and successive semi-annual installments on February 28 and
August 28 starting from 2008.

On August 12, 2008, a loan was obtained from Bancolombia Puerto Rico Internacional INC. in the amount of
US$17,000,000 with variable interest rate and monthly and successive installments starting from the 13 month.
On August 28, 2008 and September 5, 2008, the Company received US$5,800,000 and US$11, 200,000,
respectively.

In case the borrower does not pay the loan installments of these credits at any of their due dates, or in case the
interest of these promissory notes is not paid by the borrower on the date they were due, and such delinquency or
simple delay in payment of interests continued for three or more working days, the bearer of the promissory
notes will be entitled to demand the total balance of owed principal and interest immediately under promissory
notes, which will be considered expired and payable on demand for all pertinent purposes. The bank will be
entitled to demand payment of the entire debt as set forth in promissory notes in advance as if it was the due date
whenever the subscriber does not comply with effective legislation, does not have the corresponding
governmental authorizations, in the event of any changes in Company controlling shareholders, in case of failure
to comply with effective environmental regulations, whenever dividends are distributed without the
corresponding authorizations, or if the principal becomes insolvent, understanding for all purposes the existence
of insolvency on its part when the subscriber or one or more of its creditors initiates bankruptcy, or when judicial
or out-of-court composition of creditors are appointed or proposed.

Restrictions have been satisfactorily met as of December 31, 2008.

F-129
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

17. Long-term Obligations with Banks and Other Financial Institutions(Continued)

Previous period
Due in (years) Current period closing date closing date
Long-Term Average Long-Term
Bank Or Financial Currency More than More than More than More than More than 10 years Total at Balance Annual Total at Balance
Taxpayer ID No. Institution Readjustment index 1 up to 2 2 up to 3 3 up to 5 5 up to 10 Amount Term Closing Interest Rate Closing
97951000-4 . . . . HSBC Bank Dollars
Euros 5,972,195 5,972,195 11,944,390 18,977,022 42,865,802 5.38 35,812,262
Yens
UF
Ch$ non-readjusted
Other currencies
0-E . . . . . . . . . . . HSBC Bank/Nexi & NIB Dollars 1,797,971 1,797,971 3,595,943 7,191,885 14,383,770 3.68 12,229,159
F-130

Euros
Yens
UF
Ch$ non-readjusted 864,236 1,728,473 4,321,181 6,913,890 6.21 8,080,379
Other currencies
0-E . . . . . . . . . . . Bancolombia Dollars 10,534,764 2,727,645 13,262,409 8.80 6,957,170
Euros
Yens
UF
Ch$ non-readjusted
Other currencies
0-E . . . . . . . . . . . GNB Bancolombia Dollars 636,450 636,450 318,225 1,591,125 9.56
Euros
Yens
UF
Ch$ non-readjusted
Other currencies
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,941,380 11,998,497 17,587,031 30,490,088 79,016,996 63,078,970
Percentage of payable foreign currency (%) . . . . . . . . . . . . . . . . . . . . . . . 91.2500
Percentage of payable national currency (%) . . . . . . . . . . . . . . . . . . . . . . 8.7500
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

18. Provisions
The balance of provisions as of December 31, 2008 and 2007 is detailed as follows:
2008 2007
ThCh$ ThCh$
Vacation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796,524 723,484
Reserve for overhaul of buses (1) . . . . . . . . . . . . . . . . . . . 1,155,429
Reserve for labor contingencies . . . . . . . . . . . . . . . . . . . . . 200,000 224,334
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996,524 2,103,247

(1) Corresponds to a reserve for the maintenance of buses (overhaul) implemented in the first half of 2008, as a
consequence of greater wear of its supply and power systems because of operation conditions at the
transition stage (year 2006).

19. Minority Interest

The Company consolidated its financial statements with those of the subsidiary Iasa de Colombia Ltda. Since the
subsidiary has negative shareholders equity, 100% of its loss has been consolidated in the current financial
statements.

20. Changes in Equity

Changes in equity for 2008 and 2007 are as follows:
Movements in Shareholders Equity:
Inversiones Alsacia S.A. was founded on November 22, 2004, through subscription and payment of ThCh$ 1,000
divided into 10 ordinary nominal shares without par value, with each share being of equal value.

During the Shareholders Meeting held on December 9, 2004, it was agreed to increase share capital to
ThCh$ 9,000,000, divided into 90,000 nominal shares, without par value and of a single series of common
shares, through issuance of 89,999 shares of the same characteristics.

During the Shareholders Meeting held on December 20, 2004, it was agreed to increase the share capital to
ThCh$18,000,000, divided into 180,000 nominal shares, without par value and of a single series of common
shares, through issuance of 90,000 shares of the same characteristics. It was additionally agreed that the
minimum price per shares should not be lower than ThCh$100.

During the Shareholders Meeting held on January 25, 2005, it was agreed to approve the payment of 18,802
shares issued by the Company in exchange for the contribution of 16% of the voting rights of Inversiones Eco
Uno Ltda. It was also agreed to value the voting rights in the amount of ThCh$ 1,880,202 (historic), based on the
book value of the shares (see Note 13).

In addition, during the accounting period of 2005, 20,234 shares were paid in through contributions in cash
amounting to ThCh$2,023,377 (historic).

F-131
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

20. Changes in Equity(Continued)

During the Extraordinary General Shareholders Meeting held on February 16, 2007, shareholders decided to
legally reduce the share capital from Ch$18,000,000,000 to Ch$1,916,000,000. In addition, it was agreed to
increase the share capital from the amount of Ch$1,916,000,000 to Ch$8,866,000,000 divided into 36,535 shares,
through issuance of 17,375 new shares that would be issued, subscribed, and paid for February 28, 2007, at a
price per share not lower than Ch$400,000. Later, as a result of a meeting of the Companys Board of Directors
held on February 20, 2007, the Board agreed to offer the 17,375 new shares on a preferred basis to the existing
shareholders, who decided to waive the option to obtain the shares they had the right to. Furthermore, it was
agreed to offer the remaining shares not subscribed by the shareholders to the Colombian company called
Desarrollo y Soluciones Informticas S.A.

F-132
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

20. Changes in Equity(Continued)

(a) Detail of movements
2008 2007
Retained Net Retained
earnings Develop- income earnings Develop- Net
Capital Contri- Future (accumu- Provisio- ment (loss) Capital Contri- Future (accumu- Provisio- ment income
Paid-in revaluation buted Other dividend lated nal period for the Paid-in revaluation buted Other dividend lated nal period (loss) for
Items capital reserve surplus reserves reserves deficit) dividends deficit year capital reserve surplus reserves reserves deficit) dividends deficit the year
Initial balance . . . . . . . . . . . . . . . . . . . 9,688,741 (18,065,410) 11,850,447 4,072,525 (3,955,241) (12,865,438)
Distribution income previous year . . . 11,850,447 (11,850,447) (12,865,438) 12,865,438
Previous period final dividend . . . . . .
Capital increase through share
issuance . . . . . . . . . . . . . . . . . . . . . . 4,953,445
Capitalization of reserves and/or net
F-133

income . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit from
development period . . . . . . . . . . . . .
Revaluation of share capital . . . . . . . . 862,298 (553,131) 662,771 (1,244,731)
Fiscal year income . . . . . . . . . . . . . . . . (5,669,621) 11,850,447
Provisional dividends . . . . . . . . . . . . .
Final balance . . . . . . . . . . . . . . . . . . 10,551,039 (6,768,094) (5,669,621) 9,688,741 (18,065,410) 11,850,447
Price-level restated . . . . . . . . . . . . . 10,551,039 (19,673,231) 12,905,137
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

20. Changes in Equity(Continued)

(b) Number of Shares

No. of subscribed
Series shares No. of paid-in shares No. of voting shares

ZZ 36,535 36,535 36,535

(c) Capital (amount ThCh$)

Series Subscribed capital Paid in capital

ZZ 10,551,039 10,551,039

21. Other Non-Operating Income and Expenses

Other non-operating income and expenses as of December 31, 2008 and 2007 is detailed as follows:

2008 2007
ThCh$ ThCh$
Other non-operating income:
Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . 18,334 60,222
Administrative Services . . . . . . . . . . . . . . . . . . . . . . . 154,300
Recovery of shared expenditures . . . . . . . . . . . . . . . . 45,649
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,626
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,909 60,222

2008 2007
ThCh$ ThCh$
Other non-operating expenses:
Other interest expense . . . . . . . . . . . . . . . . . . . . . . . . (8,255) (56,552)
Other taxes expense . . . . . . . . . . . . . . . . . . . . . . . . . . (410,572) (162,908)
Rejected expenditures . . . . . . . . . . . . . . . . . . . . . . . . . (27,773) (5,101)
Loss from sale of property, plant and equipment . . . . (10,243)
Provision for labor contingencies . . . . . . . . . . . . . . . . (30,066)
Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,042)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (203) (3,157)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (446,803) (294,069)

F-134
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

22. Price-level Restatement

Amount
Adjustability
index 2008 2007
ThCh$ ThCh$
Assets (charges) / credits:
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC 5,773,626 3,821,335
Investments in related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC 336,794 146,412
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 38,809 32,761
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 14,138
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC 1,446,748 1,105,474
Accounts of expenses and costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC 2,518,715 2,009,617
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,114,692 7,129,737
Liabilities (Charges) / Credits:
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC (309,167) 615,907
Non-monetary liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC (43,304) (201)
Non-monetary liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF (587,971) (321,284)
Revenue accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IPC (2,633,764) (2,243,179)
Total (charges)/ credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,574,206) (1,948,757)
Profit due to price level restatement . . . . . . . . . . . . . . . . . . . . . 6,540,486 5,180,980

23. Foreign Exchange Differences

Amount
Items Currency 2008 2007
ThCh$ ThCh$
Assets (charges) / credits:
Bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 7,195 (836)
Short-term deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 1,631,712 (552,843)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 20,616 (15,693)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,659,523 (569,372)
Liabilities (charges) / credits:
Bank obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (18,810,123) 4,515,928
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (672,295)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,482,418) 4,515,928
Total (loss) income from foreign exchange rate differences . . . . . (17,822,895) 3,946,556

F-135
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions

1) Concession Agreement:
On January 28, 2005, Inversiones Alsacia S.A. entered into a Concession agreement with the Ministry of
Transport and Telecommunications to use the roads of the city of Santiago to render public bus transportation
services for passengers. The Concession agreement is subscribed as the result of a public bid for the use of the
roads of the city of Santiago according to article 30 of Law No.18,696.

The Company submitted an offer in the bidding process, where the Trunk line No. 1 business unit was awarded,
according to Exempted Resolution No. 109 from 2005 of the Sub-Secretariat of Transportation published in the
Official News on January 14, 2005.

The agreement was enforced from the publication date in the Official News of the administrative act that
approved it and will be in force until the termination of the Concession period. The duration of the Concession
agreement shall be 156 months, in accordance with the article 3.4.4.2.1 of the Concession agreement.

Within the Concession agreement, the Company committed to pay UF615,010 for a Technical Operating reserve,
which corresponds to an amount incorporated into the tariff paid by users that is applied to cover possible
temporary lags or mismatches between the income and costs of the Transantiago passenger transportation
system.

2) Modifications to the Concession Agreement:

2.1) On June 30, 2006, the following modifications of the Concession Agreement were made:
a) Starting date of the new regimen stage will begin from February 10, 2007.

b) Modifications to the calendar of contributions to the Technical Operating Reserve (TOR):

Installment 2: UF 191,309 maturity date July 1, 2007.
Installment 3: UF 170,836 maturity date July 1, 2008.

c) The elimination of the payment of Ch$16 per purchase ticket to AFT (Contribution to transitory account two
of the Transantiago system), from July 1, 2006 to December 31, 2006.

d) No later than the start date of phase II, the operator should grant to the Ministry of Transportation and
Telecommunications prior to obtaining the building permissions for different terminals. The dates of phase II
cannot be modified in any manner, additionally, within fifteen days after the termination of phase II, the Operator
shall provide the Ministry of Transportation and Telecommunications with a Gantt Chart or Schedule of the main
works that will be constructed or implemented in each terminal. Likewise, 120 days at the latest after the
commencement date of services of the regimen stage, the operator should prove to the Ministry of Transportation
and Telecommunications that it has obtained authorization for the operation of different terminals.

e) On June 30, 2006, the AFT signed a promissory note for UF221,208, in favor of the Company, with a maturity
date of October 31, 2009. UF 200,000 was transferred in January 2007, with a remaining balance of UF 21,208,
which shall accrue daily interest at the ratio of a fixed annual rate of 3.56%. As stated in Note 5, UF 200,000 was
transferred in January 2007.

F-136
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions(Continued)

2.2) During February 2007, the Company signed a modification to the Road Use Concession Agreement with the
Ministry of Transportation and Telecommunications. The main aspects of this modification and its addendum
dated February 20, are detailed as follows:
1) For the period between February 10, 2007 and May 5, 2007, minimum guaranteed revenue is considered in
accordance with the referential demands in replacement of users validations.
2) Mechanism is established to regulate a fleet increase for the commencement of the regimen stage, as well as
the related payment.
3) Contributions to the Technical Operating Reserve (TOR) with maturity date of February 10, 2007 will be
paid in 3 installments, correspondingly 55% at March 10, 22.5% at April 10, and 22.5% at May 10, 2007.
4) A procedure is established to regulate the situation of terminals and deposits with respect to the transitional
additional fleet.

2.3) On May 9, 2007, the Company subscribed a modification to the Concession Agreement and on June 4, 2007,
an addendum to the modification to determine the Companys income for the period between May 6 and June 5,
2007, shall correspond to the product between 100% of the referential demand base and the Payment per
Passenger Transported, adjusted in accordance with the Bidding Conditions.

2.4) On June 29, 2007, the Company subscribed a modification and two addendums to the Concession
Agreement with the purpose of: i) altering the Companys payment dates from July 10 to 12; ii) delaying the
contribution date to Technical Reserve from July 1 to July 16, 2007 and; iii) regulating the payment terms of
buses without validating equipment.

2.5) On July 17 and August 17, 2007, the Company and the Ministry of Transportation and Telecommunications
subscribed two new addendums related to the amendments dated June 29, through which the payment date of the
Technical Reserve was postponed to August 17 and October 24, respectively.

2.6) On July 19, 2007, the Company entered an Agreement Protocol with the Ministry of Transport and
Telecommunications for the modification of the Concession Agreement, which was implemented on
November 9, 2007 and two addendums to the modification dated December 10 and 28, respectively and
April 21, June 30 and July 15, 2008, respectively in order to modify service hours; regulate payment of buses
without validation equipment; delay payment of TOR for 12 months; incorporating a Service Fulfillment Index
Operating Time (ICPH) to the formula; adjusting calculation mechanism of the PPT; incorporate the Additional
and/or Complementary Fleet to the base fleet, which in the transitional period do not necessarily need to be new.

2.7) On May 9, 2007, the Company subscribed a modification to the contract of Commercial Mandate of
Collection and Custody with the AFT.

2.8) On March 7, 2008, the Company subscribed a modification and addendum to the service and supply of
Technology equipment contract with the AFT, which establishes the calculation method for the payment that the
concessionaires must make for the services rendered by the AFT until this date; determines the general terms and
conditions and the equipment remuneration of the denominated payment zones; adopts improvements oriented to

F-137
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions(Continued)

increase the actual service levels of the functionalities and; determines the transitional and permanent conditions
of the equipment, systems and services that the AFT has to supply and the conditions of remunerations derived
from rendering of services.

2.9) On March 18, 2008, the Company subscribed a contract amendment of Collection Mandate with the AFT in
order to authorize to the AFT the payment or reimbursement of costs, expenses or fees associated with the loan
agreements.

3) Other Contracts:
On January 27, 2005, the Corporation entered into a purchase and sale agreement related to 12 meter B9SALF
and B7RLE articulated buses with Volvo Brasil Vehculos Ltda. For articulated chassis, the Company opted to
select Compaa Marco Polo S.A. Carroceras and/or Omnibus as coach builder.

The Corporation entered into an agreement with the specialized Spanish company Goal for ThUS$1,150, to
conduct a program for the development of a bus operation management system.

Through public deed dated August 11, 2006, granted at the Notary Office of Santiago of Ms. Antonieta Mendoza,
registered on sheet 12.509 No. 9.119 of property record of the Real Estate Registrar of Santiago for 2006, the
Company acquired purchased the property Lot No. 49 in the Plazuela Los Toros Residential Complex, Stage
Two, in the Puente Alto district in Santiago. The property has been mortgaged and pledged with a prohibition for
liens or disposal in favor of HSBC Bank (Chile).

Through a public deed dated December 22, 2006, granted in the Notary Office of Santiago of Mr. Humberto
Quezada, registered on sheet 2791 No. 4510 of the property record of the Real Estate Registrar of Santiago for
2007, the Company acquired the property located at 1707 Arturo Prat in the Renca district in Santiago. The
property has been mortgaged and pledged with a prohibition for liens or disposal in favor of Bancolombia Puerto
Rico Internacional Inc.

Through a public deed dated December 21, 2006, granted in the Notary Office of Santiago of Mr. Pablo
Gonzlez, registered on sheet 11.539 No.18.379 of the Real Estate Registrar of Santiago for 2007, the Company
acquired the property located at 555 Santa Clara in the Huechuraba district of Santiago. The property has been
mortgaged and pledged with a prohibition for liens or disposal in favor of Bancolombia Puerto Rico
Internacional Inc.

On July 27, 2007, the Company entered a purchase agreement for 40 B9SALF 18.5-meter articulated buses with
Volvo Brazil Company and Marco Polo bodywork.

4) Restrictions for bank loans

The Company has obligations and restrictions for loans assumed with several foreign and domestic banks. By
virtue of the credit agreements of the Company that exist to secure compliance with the obligations contained
therein, the 36,535 shares in which the Companys equity is divided are currently pledged. The pledge contracts

F-138
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions(Continued)

imply the prohibition for alienation, sell, promise to sell or dispose in any manner whatsoever of the said shares
as far as the full compliance of the obligations resulting from the financing obligation with the HSBC Bank are
accredited. Likewise, each bus owned by the Company has been pledged. These pledges were duly registered
with the Registry of Motorized Vehicles of the Civil Registry Office.

5) Award and commencement of construction works in Bus Terminals/Depots

On July 7, 2008, Constructora Andreu Tirado Ltda. started the construction of the corporate building in the
Huechuraba terminal station. This work was finished on August 15, 2008.

On November 25, 2008, Constructora Andreu Tirado Ltda. started the construction of the Human Resource
building in the Huechuraba terminal station.

On September 1, 2008, Constructora Andreu Tirado Ltda. was awarded the construction of the administrative
building in the Pealolen terminal station.

On December 15, 2008, Constructora Andreu Tirado Ltda. started the construction of the corporate building in
the Renca terminal station.

6) Pending Lawsuits:
The detail of the Companys main lawsuits is as follows:
Court: 18 Civil Court of Santiago; Rol 5.852-2007

To Company was sued by a private person in an Ordinary Civil Trial. The compensation demanded amount is
ThCh$398,000,000. The accusation is at the trial stage and an official reply and the SIAT report are still pending.
According to the background available, this action has limited possibilities of success.

Court: 15 Civil Court of Santiago; Rol: 16.299-2007

To Company was jointly sued for damages with other operatorsBuses Gran Santiago and Express de
Santiago Uno S.A.and the Financial Administrator of Santiago (AFT) in an Ordinary Civil Trial by the I.
Municipality of Renca which accuses its counterparts of unfair enrichment. The compensation demanded amount
is ThCh$154,600,000. The Company is awaiting a verdict on this case by the Court. According to the
background available for review, this action should not prevail.

Court: 23 Civil Court of Santiago; Rol: 16956-2007

To Company was sued for damages by a private person in an Ordinary Civil Trial. The compensation
demanded amount is ThCh$25,500,000. The evidence stage has finished. According to the background available
for review, this action has limited possibilities of success.

Court: 8 Civil Court of Santiago; Rol: 25.935-2007

F-139
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions(Continued)

To Company was sued for damages in an Ordinary Civil Trial by a private person. The compensation
demanded amount is ThCh$273,955,375. The Company is awaiting a verdict on the case by the Court.

Court: 30 Civil Court of Santiago; Rol: 15.667-2007

To Company was sued for damages in an Ordinary Civil Trial by a private person. The compensation
demanded amount is ThCh$15,000,000. The Company is awaiting a verdict on the case by the Court and an
appeal has been filed against the order to produce evidence.

Court: 2 Civil Court of Santiago; Rol: 66-2008

To Company was sued for damages in an Ordinary Civil Trial by a private person. The compensation
demanded amount is ThCh$110,550,000. The case is at the period allowed for producing evidence and an appeal
has been filed against the order to produce evidence.

Court: 5 Civil Court of Santiago; Rol: 16.327-2007

To Company was sued for damages in an Ordinary Civil Trial by a private person. The compensation
demanded amount is ThCh$15,000,000. The case shows errors in its judicial formalities and procedures given
that the bus operator was not notified and there is evidence of flaws in the notification to Inversiones Alsacia
S.A. The lawsuit should not prevail.

Court: 30 Civil Court of Santiago; Journal: 56.994-2008

To Company was sued for damages in an Ordinary Civil Trial by a private person. The compensation
demanded amount is ThCh$716,000,000. The Company discovery period has ended. However, a reply to written
communication requested by the plaintiff is pending.

The Company is involved in other lawsuits of lower magnitude (in favor and against). The management and its
legal advisors consider that the aforementioned trials will not have a material adverse effect on the Companys
financial statements. Some of the lawsuits are covered by an insurance policy. Accordingly, the Company will
only have to pay the corresponding deductible.

Court: Santiagos Appellate Court

The Company presented to Santiagos Appellate Court an appeal for protection against the Ministry of Transport
and Telecommunications in order to repeal Exempt Resolution No. 1985, which established a set of unilateral
sanctions not covered under the respective concession contracts held by the operators of Transantiago. Until
December 31, 2008, the implementation of this arbitrary and illegal resolution caused a loss of UF 16,600
(approximately Ch$356,000,000) for the Company, in relation to payments which they are entitled to earn for
transport services.

F-140
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

24. Contingencies and Restrictions(Continued)

The appeal was declared admissible, ordering the accumulation of resources among the other contractors
involved in the report, which was executed on December 24, 2008.

All non-innovation orders that were submitted have been rejected in their entirety by the Appellate Court of
Santiago.

This appeal is pending resolution by the Seventh Courtroom of the Appellate Court of Santiago.

7) Direct and Indirect Guarantees

A compliance policy has been granted for the Concession agreement in favor of the MTT according to the sixth
clause of the contract in the amount of UF30,000. As a counter-guarantee to that policy, the Company took an
indefinitely adjustable time deposit for an amount of UF10,000 that was handed to Aseguradora Magallanes S.A.

The Company was awarded by HSBC Bank (Chile) a time deposit equivalent to 5% of the total debt outstanding
with EKN Bank, for the purchase of buses. This deposit is placed by HSBC Bank (Chile) in HSBC Bank
(London) and the former undertakes to pay that value if the Company does not pay off its debt. The Company has
not signed any documents relating to this deposit.

The Company has no knowledge of other prohibitions, encumbrances, or contingencies that affect these financial
statements.

25. Securities obtained from third parties

As of December 31, 2008, there are no effective securities granted by third parties in favor of the Company,
except for those mentioned in the notes to the financial statements.

F-141
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

26. Local and Foreign Currency

Assets

Amount
Line of business Currency 2008 2007
ThCh$ ThCh$
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . Non-adjusted Ch$ 220,593 166,248
Cash . . . . . . . . . . . . . . . . . . . . . . . . . US Dollars 61,844 535
Marketable securities . . . . . . . . . . . . Adjusted Ch$ 36,912 196,120
Other receivables . . . . . . . . . . . . . . . Non-adjusted Ch$ 547,764 1,254,619
Due from related parties . . . . . . . . . . Non-adjusted Ch$ 978,160 331,207
Inventories . . . . . . . . . . . . . . . . . . . . Non-adjusted Ch$ 91,465 80,086
Prepaid expenses . . . . . . . . . . . . . . . Adjusted Ch$ 622,419 357,052
Deferred taxes . . . . . . . . . . . . . . . . . Adjusted Ch$ 118,443 138,981
Other current assets . . . . . . . . . . . . . UF 1,491,080 68,361
Other current assets . . . . . . . . . . . . . Adjusted Ch$ 222,860 1,061,314
Other current assets . . . . . . . . . . . . . Non-adjusted Ch$ 381,155
Other current assets . . . . . . . . . . . . . US Dollars 7,639,886 5,937,733
Taxes receivable . . . . . . . . . . . . . . . . Adjusted Ch$ 319,055 102,765
Notes receivable . . . . . . . . . . . . . . . . Adjusted Ch$ 477,889
Accounts receivable . . . . . . . . . . . . . Non-adjusted Ch$ 5,098,735 3,129,281
Prepaid expenses . . . . . . . . . . . . . . . UF 338,332 1,003,218
Property, plant and equipment
Property, plant and equipment . . . . . Adjusted Ch$ 68,141,246 62,749,733
Other assets
Investments in related companies . . Adjusted Ch$ 5,136,549 4,206,182
Other long-term assets . . . . . . . . . . . Adjusted Ch$ 17,189,159 18,130,943
Long-term deferred taxes . . . . . . . . . Adjusted Ch$ 2,338,657 1,328,569
Total assets
Non-adjusted Ch$ 6,936,717 5,342,061
US Dollars 7,701,730 5,938,268
Adjusted Ch$ 94,125,304 88,749,548
UF 1,829,412 1,071,579

F-142
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

26. Local and Foreign Currency(Continued)

Current Liabilities

Up to 90 days 90 days to 1 year

2008 2007 2008 2007
Annual Annual Annual Annual
average average average average
Line of business Currency Amount int. rate Amount int. rate Amount int. rate Amount int. rate

Long-term obligations with financial

institutionsshort-term portion . . . . . . . US Dollars 2,986,098 1,674,667 10,786,264 5,051,681
Short-term bank obligations . . . . . . . . . . . . Non-adjusted Ch$ 5,506,136 6,241,336
F-143

Accounts payable . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 7,163,523 7,268,415

Other payables . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 629,760 848,494
Other payables . . . . . . . . . . . . . . . . . . . . . . UF 851,566 549,048
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 996,524 2,103,247
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 530,872 559,127
Other current liabilities . . . . . . . . . . . . . . . . UF 7,738,616
Notes and accounts payable to related
parties . . . . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 32,058 34,912
Accounts payable . . . . . . . . . . . . . . . . . . . . US Dollars 178,333 45,912
Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 9,602
Total current liabilities . . . . . . . . . . . .
US Dollars 3,164,431 1,720,579 10,786,264 5,051,681
Non-adjusted Ch$ 14,868,475 17,055,531
UF 851,566 549,048 7,738,616
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

26. Local and Foreign Currency(Continued)

Long-Term LiabilitiesCurrent Period 31-12-2008

More than 10
1 to 3 years 3 to 5 years 5 to 10 years years
Annual Annual Annual Annual
average average average average
Line of business Currency Amount int. rate Amount int. rate Amount int. rate Amount int. rate

Obligations with banks and financial

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . US Dollars 30,075,641 15,858,558 26,168,907
Obligations with banks and financial
F-144

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 864,236 1,728,476 4,321,181

Other payables . . . . . . . . . . . . . . . . . . . . . . . . . UF 999,724
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . Non-adjusted Ch$ 29,400
Due to related companies . . . . . . . . . . . . . . . . . US Dollars 2,281,472
Total current liabilities . . . . . . . . . . . . . . .
US Dollars 32,357,113 15,858,558 26,168,907
Non-adjusted Ch$ 893,636 1,728,476 4,321,181
UF 999,726
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

26. Local and Foreign Currency(Continued)

Long-Term LiabilitiesPrior Period 31-12-2007

More than 10
1 to 3 years 3 to 5 years 5 to 10 years years
Annual Annual Annual Annual
average average average average
Line of business Currency Amount int. rate Amount int. rate Amount int. rate Amount int. rate

Obligations with banks and financial

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . US Dollars 16,648,468 14,329,413 24,020,709
Obligations with banks and financial
F-145

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . Non- adjusted Ch$ 1,010,048 2,020,095 5,050,237

Other payables . . . . . . . . . . . . . . . . . . . . . . . . . UF 191,630
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . Non-adjusted Ch$ 866
Due to related parties . . . . . . . . . . . . . . . . . . . . Non-adjusted Ch$ 1,593
Due to related companies . . . . . . . . . . . . . . . . . US Dollars 1,930,166
Total long term liabilities . . . . . . . . . . . .
US Dollars 18,578,634 14,329,413 24,020,709
Non- adjusted Ch$ 1,012,507 2,020,095 5,050,237
UF 191,630
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

27. Sanctions
(a) Chilean Superintendency of Securities and Insurance (SVS)
During the year ended December 31, 2008, neither the Company, its Directors nor Managers have received any
sanctions from the Chilean Superintendency of Securities and Insurance.

(b) The Ministry of Transportation and Telecommunications applied the following penalties:
i) UF 200 penalty on the Company by the Exempted Res. No. 1096 dated June 12, 2007, for
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions, that is, for failure to comply with
minimum frequency required. The penalty has been paid after rejection of the appeals for reversal at all
levels of jurisdiction. The Company is analyzing filing a claim in Court.
ii) UF 200 penalty on the Company by Exempted Res. No. 1716 dated September 13, 2007, for supposed
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions; that is, for failure to comply with
minimum frequency required. The penalty has been paid after rejection of the appeals for reversal at all
levels of jurisdiction. The Company is analyzing filing a claim in Court.
iii) UF 200 penalty on the Company by Exempted Res. No. 2008 dated October 19, 2007, for supposed
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions; that is, for failure to comply with
minimum frequency required. The fine has been paid after rejection of the appeals for reversal at all
levels of jurisdiction. The Company is analyzing filing a claim in Court.
iv) UF 200 penalty on the Company by Exempted Res. No. 2009 dated October 19, 2007, for supposed
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions; that is, for failure to comply with
minimum frequency required. The fine has been paid after rejection of the appeals for reversal at all
levels of jurisdiction. The Company is analyzing filing a claim in Court.
v) UF 200 penalty on the Company by Exempted Res. No. 1335 dated August 27, 2008, for
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions; that is, for failure to comply with
minimum frequency required. The Ministry rejected appeals for reversal at all levels of jurisdiction.
The Company is analyzing filing a claim in Court.
vi) By resolution No. 2319 of November 10, 2008, the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF 4,700 for alleged noncompliance with the rates of frequency and regularity, prescribed by Exempt
Resolution No. 1985 of October 17, 2008. The Company appealed for reconsideration in all levels of
jurisdiction against Resolution 2319 and was notified by the Ministry with respect to these appeals
through Res. 2576, in which the Ministry declined to issue a pronouncement due to the existence of
pending judicial actiona Protective Appealbrought against Res. 1985.
vii) By resolution No. 2438 of November 25, 2008, the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF 4,000 for alleged noncompliance with the rates of frequency and regularity, prescribed by Exempt
Resolution No. 1985 of October 17, 2008. The Company appealed for reconsideration in all levels of
jurisdiction against Resolution 2438 and the resolution is still pending.

F-146
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

27. Sanctions(Continued)
viii) UF 200 penalty on the Company by Exempted Res. No. 2601 dated December 9, 2008, for
non-compliance with Article 3.6.1.1 No. 6 a) of Bidding Conditions; that is, for failure to comply with
minimum frequency required. The Company opted not to file any appeals.
ix) By resolution No. 2618 of December 10, 2008, the Ministry of Transportation and
Telecommunications deducted from the revenue the Company has a right to, an amount equivalent to
UF 3,500 for alleged noncompliance with the rates of frequency and regularity, prescribed by Exempt
Resolution No. 1985 of October 17, 2008. The Company appealed for reconsideration in all levels of
jurisdiction against Resolution 2618 and the resolution is still pending.
x) By resolution No. 2734 of December 23, 2008, the Ministry of Transportation and
Telecommunications, deducted from the revenue the Company has a right to, an amount equivalent to
UF 4,400 for alleged noncompliance with the rates of frequency and regularity, prescribed by Exempt
Resolution No. 1985 of October 17, 2008. The Company appealed for reconsideration in all levels of
jurisdiction against Resolution 2734 and the resolution is still pending.

(c) Sesma
By resolution No. 05300 of November 8, 2007 (Exp. No. 2264/07/PRSL) applied a fine of 10 UTM. This
fine was paid on June 12, 2008.
By resolution No. 1154 of February 4, 2008 (Exp. No. 5272/2007) applied a fine of 10 UTM. This fine was
paid on January 17, 2008.
By resolution No. 05388 of November 8, 2007 (Exp. No. 2265/07/PRSL) applied a fine of 10 UTM reduced
to 5 UTM after resolution of the appeal for reversal of decisions by the Court. This fine was paid on
January 17, 2008.
By resolution No. 1980 of April 1, 2008 (Exp. No. 5635/2007) applied a fine of 5 UTM. This fine was paid
on June 12, 2008.
By resolution No. 3364 of August 6, 2007 (Exp. No. 2263-2007) applied a fine of 10 UTM. This fine was
paid on June 12, 2008.
By resolution No. 3612 of August 20, 2007 (Exp. No. 2006-2007) applied a fine of 10 UTM. This fine was
paid on June 12, 2008.
By resolution No. 695 of January 28, 2008 (Exp. No. 5158/2007) applied a fine of 5 UTM. This fine was
paid on June 12, 2008.
By resolution No. 3377 of August 6, 2007 (Exp. No. 2005-2007) applied a fine of 10 UTM. This fine was
paid on June 12, 2008.
By resolution No. 6312 (Exp. No. 3895/2007) applied a fine of 30 UTM. This fine was paid on May 15,
2008.
By resolution No. 2008 of April 1, 2008 (Exp. No. 4838/2007) applied a fine of 5 UTM. This fine was paid
on June 12, 2008.

F-147
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

27. Sanctions(Continued)
By resolution No. 2193 of April 10, 2008 (Exp. No. 5271/2007) applied a fine of 5 UTM. This fine was paid
on August 13, 2008.
By resolution No. 8306 of November 21, 2008 (Exp. No. 4975/2007) applied a fine of 20 UTM. The
Company filed an administrative reconsideration appeal the resolution of which is still pending.

28. Subsequent Events

On January 2, 2009 the Company complied in full with the payment of the balance of the Technical Operating
Reserve payable on December 30, 2008, by:
(a) A bank transfer, dated December 30, 2008, for Ch$2,365,577,273 to account number 17385-1 BancoEstado
on behalf of the Transantiago Financial Administrator (AFT) and,
(b) a bank deposit, dated January 2, 2009, of Ch$550,000,000 on account number 17385-1 of BancoEstado on
behalf of the Transantiago Financial Administrator (AFT.)

On January 15, 2009, the Company was notified of the Exempt Resolution No. 69 dated January 14, 2009, by
which the Ministry of Transportation and Telecommunications complemented Exempt Resolution No. 1985 to
include the sentence and Supreme Decree No. 1 dated 2009 issued by the Treasury Department immediately
after the sentence Supreme Decree No. 1178.

Between December 31, 2008 and the date of issuance these financial statements, the Administration of the
Company has not been informed of any significant events that could affect significantly the interpretation and
results of these financial statements.

29. Other Payables

Other payables as of December 31 of each year are detailed as follows:

2008 2007
ThCh$ ThCh$
Insurance payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,083 848,494
Installments payable to Volvo . . . . . . . . . . . . . . . . . . . . . 620,199
Servicios y Construc. LKS S.A. . . . . . . . . . . . . . . . . . . . 10,128 11,029
Epysa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,287 320,479
Alvarez Hinzpeter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,530
Corsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,849 107,647
Lease payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,284 93,316
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 3,047
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,481,326 1,397,542

F-148
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

30. Revenue
Revenue mainly consists of revenue related to public transportation corresponding to the Companys Trunk line
No. 1, which is detailed as follows:
2008 2007
ThCh$ ThCh$
Trunk line No. 1 collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,354,555 47,555,089
Static and dynamic advertisements on buses . . . . . . . . . . . . . . . 179,292 236,108
Lease of yellow buses routes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,203
Other income, AFT postponement of Regimen Stage . . . . . . . . 3,233,657
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,533,847 51,093,057

31. Operating Costs and Expenses

Operating costs as of December 31 of each year are detailed as follows:
2008 2007
ThCh$ ThCh$
Employee costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,295,433 13,590,711
Third party services . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,382,538 1,377,190
Bus fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,346,688 10,367,301
Fares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,111
Spare parts and materials . . . . . . . . . . . . . . . . . . . . . . 3,698,769 3,922,569
Maintenance services (overhaul) . . . . . . . . . . . . . . . . . 64,292 3,079
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,400,821 3,983,048
Technical Operating Reserve amortization . . . . . . . . . 1,265,533 906,852
Operating software amortization . . . . . . . . . . . . . . . . . 175,346 177,182
Depreciation of buses . . . . . . . . . . . . . . . . . . . . . . . . . 7,461,390 4,239,439
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,259 883,765
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,859,069 39,465,247

Administrative and selling expenses as of December 31 of each year are detailed as follows:
2008 2007
ThCh$ ThCh$
Employee costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,238,109 2,209,640
Third party services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,115 910,766
Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,864 54
Maintenance services (overhaul) . . . . . . . . . . . . . . . . . . . 415 1,998
General expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,669,288 689,295
Amortization of intangible assets . . . . . . . . . . . . . . . . . . 461,297 36,124
Repayment of terminal improvements . . . . . . . . . . . . . . 173,846
Depreciation of property, plant and equipment . . . . . . . . 334,287 177,802
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,912 100,389
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,106,287 4,299,914

F-149
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

32. Cash
Cash as of December of each year is detailed as follows:

2008 2007
ThCh$ ThCh$
Cash on hand in Chilean pesos . . . . . . . . . . . . . . . . . . . . . . . 3,259 3,843
Cash on hand in U.S. dollars . . . . . . . . . . . . . . . . . . . . . . . . . 2,762 191
Banks in Chilean pesos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217,334 161,870
Banks in U.S. dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,822 101
Banks, subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 243
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282,437 166,248

33. Prepaid Expenses

Prepaid expenses as of December of each year are detailed as follows:

2008 2007
ThCh$ ThCh$
Prepaid insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,798 792,510
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,534 97,907
Deferred expenses HSBC EKN-NEXI . . . . . . . . . . . . . . . . 188,321 21,538
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434,098 448,315
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960,751 1,360,270

34. Accounts Payable

As of December 31 of each year accounts payable are detailed as follows:

2008 2007
ThCh$ ThCh$
National suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,225,914 5,601,656
Foreign suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,333 45,734
Professional fee receipts . . . . . . . . . . . . . . . . . . . . . . . . . 29,067 9,199
Provisions for issued, uncashed checks . . . . . . . . . . . . . 772,627 431,090
Other provisions for invoices . . . . . . . . . . . . . . . . . . . . . 1,076,825 1,053,629
Subsidiary suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,092 172,841
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,341,854 7,314,149

The Company has entered into a supply agreement with Copec S.A. as exclusive fuel supply and credit insurance
agreement for 87,208 cubic meters of fuel for a term of three years beginning on October 12, 2005.

F-150
 INVERSIONES ALSACIA S.A. AND SUBSIDIARY
Notes to the Consolidated Financial Statements(Continued)
(Restated for general price-level changes and expressed in thousands of constant Chilean pesos as of
December 31, 2008)
December 31, 2008 and 2007
(A free translation of the original issued in Spanish)

35. Withholdings
Withholdings as of December 31 of each year are detailed as follows:

2008 2007
ThCh$ ThCh$
VAT fiscal debit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,390 3,443
Withholding tax on fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,845 2,545
Additional taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,440 73,207
Taxes on salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . 54,430 26,572
Payroll payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,001
Pension and health fund payments . . . . . . . . . . . . . . . . . . . . 305,005 395,906
Other withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,762 4,453
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,872 559,127

F-151
 Consolidated Financial Statements
Express de Santiago Uno S.A.
September 30, 2009 and 2010

Ch$ = Chilean pesos

ThCh$ = Thousands of Chilean pesos
US$ = United States dollars
ThUS$ = Thousands of United States dollars
UF = Unidades de Fomento, an inflation-indexed, peso-denominated monetary unit. The UF rate is set
daily based on changes in the Chilean Consumer Price Index.

(A free translation from the original prepared in Spanish)

F-152
 Report of Independent Accountants
(A free translation from the original prepared in Spanish, see Note 29)

To the Shareholders and Directors of

Express de Santiago Uno S.A.:
1 We have reviewed the accompanying interim consolidated balance sheets of Express de Santiago Uno S.A.
and subsidiary as of September 30, 2010 and 2009 and the related interim consolidated statements of income
and cash flows for the nine-month periods then ended. These interim consolidated financial statements
(including the notes thereto) are the responsibility of the Companys management.
2 Except as explained in paragraph 3, we conducted our reviews in accordance with auditing standards
established in Chile for a review of interim financial information. A review of interim financial information
consists mainly of applying analytical review procedures to the financial statements and making enquiries of
the staff responsible for financial and accounting matters. It is substantially less in scope than an audit
conducted in accordance with auditing standards generally accepted in Chile, whose objective is to express
an opinion on the financial statements taken as a whole. Consequently, the interim consolidated financial
statements as of September 30, 2010 and 2009 have not been audited and we are therefore not in a position
to express, nor do we express, such an opinion.
3 The net balance of accounts payable to the related entity Inversiones Alsacia S.A. (Alsacia) amounting to
ThCh$ 222,679 (ThCh$ 230,506 in 2009) includes items under dispute mainly arising from expenses
incurred in prior years on account of this Company in relation to the joint operations performed up to
August 2006. As described in Note 5, the analysis of the different items which make up the balance referred
to above, and the determination of which adjustments are to be recorded, in order to properly recognize in
the financial statements the effect of expenses jointly incurred during 2005 and 2006, are still pending.
4 Based on our reviews of the interim consolidated financial statements as of September 30, 2010 and 2009,
and except for the effects of those adjustments, if any, that might have been determined to be necessary as a
consequence of the facts described in paragraph 3, we are unaware of significant adjustments that should be
made in order for them to be in accordance with accounting principles generally accepted in Chile.

/s/ PricewaterhouseCoopers Consultores, Auditores y Compaa Ltda.

Santiago, Chile, December 14, 2010

F-153
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS
(A free translation from the original prepared in Spanish, see Note 29)

At September 30,
2010 2009
ThCh$ ThCh$
ASSETS
CURRENT ASSETS
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,255 963,109
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,610
Trade accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,162,216 6,394,448
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,308 118,798
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,121,016 900,157
Notes and accounts receivable from related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,203 538,158
Recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,695
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,777,874 654,454
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288,701 1,068,648
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,866,277 22,521,044
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,954,460 33,198,511
FIXED ASSETS
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,667,344 4,666,220
Buildings and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,937,594 20,833,092
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,096,451 94,015,204
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,463,690 2,729,815
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (54,819,935) (41,215,593)
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,345,144 81,028,738
OTHER ASSETS
Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,742,442
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,996,476 39,403,970
Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,738,918 39,403,970
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,038,522 153,631,219

LIABILITIES AND SHAREHOLDERS EQUITY

CURRENT LIABILITIES
Short-term obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,772,023 6,290,182
Long-term bank borrowingsshort-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,408,682 11,012,348
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,163,093 4,956,950
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,469
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,188,423 948,791
Notes and accounts payable to related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645,100 661,881
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433,908 3,092,941
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806,764 674,235
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,870
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,682,332 27,637,328
LONG-TERM LIABILITIES
Obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,450,092 91,381,489
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,717,658
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,880,751 2,999,121
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,984,299
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,032,800 94,380,610
SHAREHOLDERS EQUITY
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,258,173 22,302,586
Capital restatement reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,162 (624,470)
Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,202 97,179
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,542,853 9,837,986
Accumulated profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,291,030 15,317,758
Loss for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,748,177) (5,479,772)
Total shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,323,390 31,613,281
Total liabilities and shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,038,522 153,631,219

The accompanying Notes 1 to 29 are an integral part of these consolidated financial statements.

F-154
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(A free translation from the original prepared in Spanish, see Note 29)

For the nine moth period

ended on September 30,
2010 2009
ThCh$ ThCh$
OPERATING INCOME
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,844,004 63,290,235
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (66,662,803) (56,604,173)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,181,201 6,686,062
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,631,181) (4,820,875)
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (449,980) 1,865,187
NON-OPERATING INCOME (EXPENSES)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,394 620,148
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,125 82,139
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,861,464) (4,929,136)
Other non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (156,610) (172,534)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (805,622) (3,042,253)
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394,409 (1,134,609)
Non-operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,771,768) (8,576,245)
Result before income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,221,748) (6,711,058)
Income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473,571 1,231,286
NET LOSS FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,748,177) (5,479,772)

The accompanying Notes 1 to 29 are an integral part of these consolidated financial statements.

F-155
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(A free translation from the original prepared in Spanish, see Note 29)

For the nine month period

ended on September 30,
2010 2009
ThCh$ ThCh$
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Collection of trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,863,672 66,448,145
Interest income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,185 147,147
Other income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529,325 914,420
Payment to suppliers and personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (53,606,521) (48,888,738)
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,664,814) (5,245,230)
Income tax paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,876)
Other expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,224,590) (10,405,976)
Value added tax and other similar payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . (446,772) (705,430)
Net cash flow provided by operating activities . . . . . . . . . . . . . . . . . . . . . . 6,454,485 2,251,462
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Capital increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Loans drawn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,125,440
Other loans drawn from related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,576
Loans repaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,401,665) (8,453,187)
Net cash flow used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (8,276,225) (8,450,523)
CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
Sales of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,352 49,819
Sales of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,653,852 7,612,220
Purchase of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,027,468) (3,953,216)
Net cash flow provided by investment activities . . . . . . . . . . . . . . . . . . . . . 2,636,736 3,708,823
Total net cash flow for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 814,996 (2,490,238)
Effect of inflation on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (771,925) 64,855
NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . 43,071 (2,425,383)
OPENING BALANCE OF CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . 30,794 3,388,492
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . 73,865 963,109

F-156
 RECONCILIATION OF CASH FLOWS FROM OPERATING
ACTIVITIES TO NET INCOME FOR THE YEAR
(A free translation from the original prepared in Spanish, see Note 29)

For the nine month period

ended on September 30,
2010 2009
ThCh$ ThCh$
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,748,177) (5,479,772)
(Gain) loss on sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,705) (218)
Principal non-cash charges (credits) to income
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,229,599 10,067,833
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,934,445 3,751,523
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805,622 3,042,253
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (394,409) 1,134,609
Total non-cash charges to income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,575,257 17,996,218
Changes in assets affecting cash flows, (increase) decrease:
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,980,332) 3,157,323
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122,488) 359,503
Total charges in assets affecting cash flows . . . . . . . . . . . . . . . . . . . . . . . . . (5,102,820) 3,516,826
Changes in liabilities affecting cash flows, increase (decrease):
Accounts payable related to operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,522,277 (1,284,703)
Interests payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,977 (316,151)
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (473,571) (1,244,162)
Other accounts payable related to non-operating result . . . . . . . . . . . . . . . . . . . . . (2,067,981) (10,231,146)
Value added tax and other similar payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (446,772) (705,430)
Total changes in liabilities affecting cash flows . . . . . . . . . . . . . . . . . . . . . . 1,731,930 (13,781,592)
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . 6,454,485 2,251,462

The accompanying Notes 1 to 29 are an integral part of these consolidated financial statements.

F-157
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 1COMPANYS REGISTRATION

a) Companys registration
Express de Santiago Uno S.A. (here in after the Company) was registered under N 884 in the Official
Corporations Register of the Chilean Superintendence of Securities and Insurance (hereinafter the S.V.S.) on
January 27, 2005, as required by the tender conditions for the concession of the Trunk Line N 4 business unit of
the Transantiago system, issued by the Ministry of Transport and Telecommunications.

Once Law 20,382 of October 2009 came into force, the S.V.S. cancelled registration N 884, which became part
of the Special Register of Reporting Entities under N 127 dated May 9, 2010.

b) Companys incorporation and operations

Express de Santiago Uno S.A. was incorporated as a closely-held corporation through public deed dated
November 22, 2004. The Company is basically engaged in the provision of public transport services on the routes
tendered in the Metropolitan Region of Santiago, Chile and any other activity related to its main line of business.

The annual shareholders meeting held on December 9, 2004 agreed to extend the Companys purpose to
billboard and dynamic advertising activities through the exploitation of advertising spaces in buses and other
services related to its main activity.

On October 22, 2005 the Company began to provide passenger public transport services associated with the
Trunk Line N 4 business unit, of Transantiago in Chile.

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Accounting period
The accompanying interim consolidated financial statements cover the period from January 1 to September 30,
2010 and 2009.

b) Basis of preparation
These interim consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in Chile, issued by the Chilean Institute of Accountants, and the instructions of the Chilean
Superintendence of Securities and Insurance (S.V.S.). In the event of any differences, the S.V.S. regulations
prevail.

c) Basis of presentation
For comparison purposes, the financial statements for the period from January 1 and September 30, 2009 and the
related notes have been restated by 2.5%.

d) Basis of consolidation
The interim consolidated financial statements include assets, liabilities, income, cash flows of the Company and
its subsidiary. Inter-company transactions and balances have been eliminated. The shareholding of minority
investors in the balance sheet and statement of income is shown as Minority Interest.

F-158
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

The consolidated financial statements include the following subsidiary:

Shareholding
2010 2009
RUT Company Direct Indirect Total Total
% % % %
0-E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXPS de Colombia Ltda. 99.9900 0.0000 99.9900 99.9900

e) Price-level restatements
The interim consolidated financial statements have been restated to reflect the effect of price-level changes in the
purchasing power of the Chilean peso during the respective periods, in accordance with accounting principles
generally accepted in Chile. These restatements have been determined on the basis of the percentage change in
the official consumer price index, which showed a rise of 2% from January to September in 2010 (negative
change of 2.8% in 2009).

f) Translation of the subsidiarys financial statements

The interim consolidated financial statements of the foreign subsidiary have been translated to Chilean pesos as
set out in Technical Bulletin N 64 of the Chilean Institute of Accountants and official letters and circulars issued
by the S.V.S. on foreign investments.

g) Basis of translation
At each period-end, assets and liabilities in foreign currency and UF have been translated into Chilean pesos at
the following exchange rates:
2010 Ch$ 2009 Ch$
per unit per unit

United States dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483.65 550.36

Unidad de Fomento (UF) . . . . . . . . . . . . . . . . . . . . . . . . 21,339.99 20,834.45

h) Time deposits
Investment in time deposits is shown at the value of the initial investment plus interest accrued to the end of the
period.

i) Allowance for doubtful accounts

The Companys policy is to make provisions for those doubtfully recoverable balances, which are determined on
the basis of the ageing of balances and the reports from legal and commercial advisors of the Company. These
allowances are shown deducted from trade receivables, notes receivable and other receivables, as appropriate.

j) Inventories
Inventories of fuels and spare parts necessary for the operation of buses are valued at their restated cost and are
shown in other current assets, net of the provisions for obsolescence of spare parts without turnover.

k) Prepaid expenses
The cost of insurance policies is included in the prepaid expenses account. This cost is amortized over the term of
the policy.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

l) Other current assets

This caption includes deposits and resale agreements, both with restrictions, since they are intended to guarantee
the payment of interest and capital installments on loans granted by the HSBC Bank (Chile), as described in Note
10.

m) Fixed assets
Fixed assets basically refer to buses for the public transport of passengers and are valued at their restated cost,
which includes all expenses incurred until the date on which the assets are ready for use and are shown in
Machinery and equipment. The other fixed assets are shown at their restated acquisition cost.

Buildings and infrastructure includes bus terminals, which in essence have been completely finished, and works
in process corresponding to bus terminals not yet completely finished.

The disbursements for the acquisition of computer software packages are shown at restated cost and are
amortized over a four-year period.

Leased assets refer to lease contracts of movable property with the characteristics of a finance lease. They are
recorded as purchases of fixed assets, recognizing the total obligation and interests on an accrual basis. These
assets are not the legal property of the Company until it exercises the purchase option and it may not therefore
freely dispose of them.

As policy, the Company charges directly to income all charges incurred as part of the preventive and corrective
maintenance carried out on its fleet.

The maintenance provision recorded as of 2008 was made as a result of the postponement of cash disbursements
related to maintenance expenses which should have been performed in 2008 but were carried out in 2009.

n) Fixed asset depreciation

Depreciation for the period has been calculated using the straight-line method over the remaining useful lives of
the respective assets.

Depreciation of buses has been estimated at nine years in accordance with technical studies performed
considering the wear and tear of such vehicles.

o) Other assetsOther
This caption basically includes the following items:

i) Technical operative reserve (TOR)

The Technical Operative Reserve is defined as a provision incorporated in the fare paid by users, to cover
eventual temporary lags or mismatches between the income and costs of the Transantiago passenger
transportation system. The amounts paid to the Transantiago Financial Administrator (AFT) for this concept
in relation to the Trunk Line N 4 business unit are recorded as a deferred asset that will be amortized with a
charge to operating income, during the concessions operating period, based on projected income to be
obtained from providing transportation services.

F-160
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

ii) Derivative contracts

The Company maintains contracts to hedge against risks of fluctuation in both the exchange and interest
rates. These contracts have been valued and recorded as set forth in Technical Bulletin N 57 of the Chilean
Institute of Accountants.

p) Income taxes and deferred taxes

The Company has recorded income taxes on the basis of the net taxable income, determined in accordance with
the regulations contained in the Chilean Income Tax Law.

Deferred taxes arising from timing differences are shown in accordance with Technical Bulletins N 60 and N
71 of the Chilean Institute of Accountants and the regulations contained in Circular N 1,466 of the S.V.S.

q) Provision for staff vacations

The Company shows the cost of personnel vacations and benefits on an accrual basis at each period-end.

r) Income recognitions
Revenues include the collection of public transport fares and sales of billboard and dynamic advertising on the
interior and exterior of buses with the support of two trading firms that promote the sale of alternative advertising
media contacting agencies and potential customers.

s) Statement of cash flows

The Company and its subsidiary consider as cash equivalents mutual fund and all highly-liquid financial
investments agreed with a maximum maturity of 90 days, and with minimum risk of loss in value. Cash flows
from operating activities include all business-related cash flows, as well as paid interest, interest income and, in
general, all cash flows not defined as from financing or investment activities. The operating concept used in this
statement is more comprehensive than that used in the interim consolidated statement of income.

t) Long-term receivables

This heading basically includes the discounts withheld by the AFT whose collectability exceeds one year,
considering that the recoverability in 2009 was estimated in the short term (less than twelve month), as of
September 30, 2009, was presented in Other receivables.

NOTE 3ACCOUNTING CHANGES

There have been no accounting changes during the period from January 1 to September 30, 2010 as compared to
the previous period.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 4SHORT-AND LONG-TERM RECEIVABLES

At September 30, 2010 and 2009, this comprised the following:

Current assets
Over 90 up to 1
Up to 90 days year Current assets Long-term
September 30, September 30, September 30, September 30,
Item 2010 2009 2010 2009 Subtotal 2010 2009 2010 2009
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,162,216 6,394,448 5,162,216 5,162,216 6,394,448
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,308 118,798 134,308 134,308 118,798
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,121,016 900,157 1,121,016 1,121,016 900,157 1,742,442
F-162

Total long-term receivables . . . . . . . . . . . . . . . . . . 1,742,442

 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

Short-term receivables:

For the period ended on

September 30,
2010 2009
ThCh$ ThCh$
Trade receivables:
Advertising in buses . . . . . . . . . . . . . . . . . . . . . . . . 379,844 256,387
Provision for passenger revenue (1) . . . . . . . . . . . . 2,923,772 2,312,706
AFT differences, collection income (2) . . . . . . . . . 1,858,600 2,039,352
AFT discounts on passenger revenue (3) . . . . . . . . 1,786,003
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,162,216 6,394,448
Notes receivable:
Performance bonds . . . . . . . . . . . . . . . . . . . . . . . . . 121,018 112,337
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,290 6,461
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,308 118,798
Other receivables:
Personnel accounts . . . . . . . . . . . . . . . . . . . . . . . . . 14,454 49,798
Advances to suppliers . . . . . . . . . . . . . . . . . . . . . . . 69,417 305,780
AFT, TAGs receivable . . . . . . . . . . . . . . . . . . . . . . 854,689 533,465
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,456 11,114
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,121,016 900,157
Long-term receivables:
AFT discounts on passenger revenue (3) . . . . . . . . 1,742,442
Total long-term receivables . . . . . . . . . . . . . . . . . . . . . . . 1,742,442

(1) Provision for passenger revenue accrued between June 22 and 30, 2010 (same period in 2009), which were
paid by the Transantiago Financial Administrator (AFT), on July 12, 2010 (for same prior period, July 10,
2009), in accordance with the bidding conditions of the concession contract and subsequent amendments.
(2) Referred to passenger revenue pending payment by the AFT, in conformity with settlements N 79,
corresponding to the period from September 6 to 21, 2010 (for the 2009 period, it corresponds to the balance
pending payment by the AFT relating to settlement N 55, which was paid by the AFT on October 2, 2009.
(3) Referred to discounts withheld by the AFT (in the 2009 period, it was recorded in the short term, but
reclassified to the long term due to their collectability) in passenger revenue settlements Ns 34 to 55 (from
October 2008 to September 2009), according to Resolutions 1985 and 69 of the Ministry of Transport.
These discounts were applied every two weeks to each payment settlement made by the AFT, through
Exempt Resolution issued by the ministry, which also mentions that these discounts are to be recognized as
a liability by the system.
The Companys management is making the relevant arrangements to obtain the refund of the withheld
discounts.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 5BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

The balances and transactions with related companies refer to customary operations of the business performed in
accordance with the regulations, under equitable conditions and at market prices. There are no contracts for such
purposes, except for the bus rental contract with Inversiones Alsacia S.A., effective from August 27, 2005 to
August 26, 2006. Transactions are in local currency (Chilean pesos) and accrue no interest.

As instructed by Official Letter N 06353 dated June 11, 2007 of the S.V.S., the balance as of December 31,
2006 with Inversiones Alsacia S.A. was changed, reversing a contingent gain of ThCh$ 1,074,889 (historic). This
gain had been originally recorded as lower Administrative and selling expenses in the statement of income for
the year ended December 31, 2006. The reversed amount originates from an adjustment made to the financial
statements of the Company as of June 30, 2006, for which Express de Santiago Uno S.A. had recorded an
account receivable from Inversiones Alsacia S.A. amounting to ThCh$ 611,317 (historic). Through the reversion
of the referred adjustments, as requested by the S.V.S., the financial statements as of December 31, 2006 reflects
an account payable to Inversiones Alsacia S.A of ThCh$ 463,572 (historic).

This account payable to Inversiones Alsacia S.A. of ThCh$ 463,572 (historic) and other subsequent differences
in accounts between both companies are still under discussion.

On April 3, 2008, as instructed by Ordinary Official Letter N 8703 of the S.V.S., the Company was required to
report the actions taken to clarify the net payable balance of ThCh$ 88,338 (historic) it has with Inversiones
Alsacia S.A. and which originates the qualification in the audit report as of December 31, 2007, and the time
estimated to complete the analysis of the different items composing the referred balance, and determine the
adjustments to be made in order to properly recognize the effect of the expenses incurred in the financial
statements.

In response to Ordinary Official Letter N 8703, on April 9, 2008 it was reported in this respect that, according to
the information the Companys management has available, the parties to the contract are in direct discussions
intended to settle the differences existing in this regard, which are expected to be definitely solved in the next
months. Both parties accept that, in the event they do not reach an agreement on every point, the remaining
differences will be submitted to any mechanism for settlement of disputes within the current year.

On April 14, 2010, as instructed by Ordinary Official Letter N 5479 of the S.V.S. the company was required to
report what measures were adopted as well as those being adopted to correct the differences in balance with the
related party Inversiones Alsacia S.A. for all expenses incurred during the years 2005 and 2006, resulting in the
issuance of a qualified opinion on the Companys financial statements as of December 31, 2009 by our external
auditors.

In response to the Ordinary Official Letter submitted to the S.V.S. on April 16, 2010, it was reported that
according to the background knowledge of the Company, they have carried out direct negotiations with
Inversiones Alsacia S.A., but no agreement has been reached, however, negotiations are currently being
developed and a final decision is expected this year.

During 2009 and 2010 to date, the Companys management continued direct discussions with Inversiones
Alsacia S.A. in order to settle the differences existing between both companies, with the agreement mentioned in
the previous paragraph remaining valid. These discussions have not yet been concluded.

The Company discloses all transactions with related companies and parties.

F-164
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

Balances and Transactions with related companies are shown in tables below:

a) Notes and accounts receivable

Short-term
September 30,
Tax registration N Company 2010 2009
ThCh$ ThCh$
99.577.400-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Alsacia S.A. 419,591 428,477
76.195.710-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Eco Uno Ltda. 109,815 107,899
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Express del Futuro S.A. 797 1,782
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,203 538,158

b) Notes and accounts payable

Short-term
September 30,
Tax registration N Company 2010 2009

ThCh$ ThCh$
99.577.400-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Alsacia S.A. 642,270 658,983
76.195.710-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Eco Uno Ltda. 2,830 2,898
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645,100 661,881

c) Transactions

Effect on income
Amount (charge/credit)
For the period between For the period between
January 1st to January 1st to
September 30, September 30
Company Tax N Relationship Transaction 2010 2009 2010 2009
ThCh$ ThCh$ ThCh$ ThCh$
Inversiones Alsacia
S.A. . . . . . . . . . . . . . . 99.577.400-3 Related company Expense recovery invoice 409 37,120 (409) (38,048)
Express del Futuro
S.A. . . . . . . . . . . . . . . Foreign Related company Expense recovery 99 1,781 (99)

NOTE 6INCOME TAXES AND DEFERRED TAXES

a) Company tax

At September 30, 2010 and 2009, the Company has made no provision for income tax as its shows negative tax results
amounting to ThCh$ 37,375,931.

F-165
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

b) Recoverable taxes:

Recoverable taxes are detailed as follows:

For the period

ended on
September 30,
2010 2009
ThCh$ ThCh$
Deductible training expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,695
Total recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,695

c) Tax payable

Less:
Recoverable tax, 2009 income tax filing . . . . . . . . . . . . . . . . . 4,917
Recoverable tax, 2010 income tax filing . . . . . . . . . . . . . . . . . 7,305
Income tax provision, Exps de Colombia Ltda. . . . . . . . . . . . . 53
Provision for additional income tax, disallowable expenses . . . (22,145)
Total taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,870)

The subsidiary has not recorded deferred taxes, since there are no temporary differences between the accounting
and tax results.

d) Deferred taxes:

September 30, 2010 September 30, 2009

Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities
Concept Short term Long term Short term Long term Short term Long term Short term Long term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Temporary differences:
Provision for staff
vacations . . . . . . . 242,326 200,903
Leased assets . . . . . 12,007
Fixed asset
depreciation . . . . 3,135,946 2,769,257
Other events . . . . . . 50,484 4,109 5,860,552 317,098 6,487,212
Accumulated tax
loss . . . . . . . . . . . 6,353,908 6,257,348
Depreciation
provision . . . . . . . 761,839 562,654
Total . . . . . . . . 292,810 7,115,747 4,109 8,996,498 1,080,655 6,257,348 12,007 9,256,469

F-166
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

e) Effect on income
For the period ended on
September 30,
Item 2010 2009
ThCh$ ThCh$
Effect in the results of deferred taxes . . . . . . . . . . . . . . . . . . 473,571 1,231,286

NOTE 7OTHER CURRENT ASSETS

The following table shows the detail of other current assets as of September 30, 2010 and 2009:
2010 2009
ThCh$ ThCh$
Rental guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,038 7,172
Time deposits and repurchase agreements (1) . . . . . . . . 8,550,416 7,728,433
Spares in warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,604,714 2,630,478
Allowance for spare part obsolescence . . . . . . . . . . . . . (249,421) (255,657)
Other guarantees (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,185,630
Deposit, HSBC Bank Colombia (3) . . . . . . . . . . . . . . . . 10,640,300 12,410,618
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,600
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,866,277 22,521,044

(1) Refers to the fixed-term deposits with the HSBC Bank (Chile) for guaranteeing and provisioning the
payments of principal and interest in relation to the loans described in Note 11. At September 30, 2010
deposits are detailed as follows:

Guaranteed deposits:
Subscription Monthly
Effective date Expiry date Bank Type Currency value Book value rate
ThCh$ ThCh$ %
08/26/2010 11/24/2010 HSBC DPF US$ 519,949 518,875 1.65
08/31/2010 10/04/2010 HSBC DPF US$ 2,953,262 2,956,289 1.23
09/14/2010 02/28/2011 HSBC DPF US$ 269,630 274,619 1.55
09/28/2010 02/24/2011 HSBC DPF US$ 487,642 505,259 1.54
09/30/2010 12/29/2010 HSBC DPF US$ 2,662,802 2,662,802 1.23
08/26/2010 11/24/2010 HSBC DPF Ch$ 57,331 57,411 1.20
09/01/2010 10/01/2010 HSBC DPF Ch$ 200,000 200,213 1.32
09/01/2010 10/01/2010 HSBC DPF Ch$ 163,725 163,852 0.96
09/15/2010 10/13/2010 HSBC DPF Ch$ 146,961 147,020 0.96
09/28/2010 02/24/2011 HSBC DPF Ch$ 114,071 114,076 0.96
Total deposits at September 30, 2010 . . . . . . . . . . . . . . . . . 7,575,373 7,600,416
FTD: Fixed time deposit
30/09/2010 01/10/2010 BCI 950,000 950,000 0.18
Non-guaranteed repurchase deposits in Chilean pesos: . . . . . . . . 950,000 950,000
Total non-guaranteed repurchase deposits at
September 30, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,523,373 8,550,416

F-167
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

At September 30, 2009 time deposits and repurchase agreements are detailed as follows:

Effective Expiry Subscription Book Monthly

date date Bank Type Currency value value rate
ThCh$ ThCh$ %
08/27/2009 02/26/2010 HSBC DPF US$ 551,156 565,529 0.83
08/28/2009 10/26/2009 HSBC DPF US$ 2,194,200 2,257,478 0.50
08/28/2009 10/27/2009 HSBC DPF US$ 2,742,750 2,821,849 0.50
08/28/2009 10/28/2009 HSBC DPF US$ 909,887 936,127 0.05
09/11/2009 11/10/2009 HSBC DPF US$ 479,776 485,029 0.36
09/29/2009 02/26/2010 HSBC DPF US$ 628,438 650,146 1.15
09/11/2009 11/10/2009 HSBC DPF Ch$ 5,980 6,147 0.40
09/29/2009 10/29/2009 HSBC DPF Ch$ 5,979 6,128 0.08
Total deposit at September 30, 2009 . . . . . . . . . . . . . . . . . 7,518,166 7,728,433

FTD: Fixed time deposit

(2) Refers to funds delivered to the Credit Suisse, equivalent to ThUS$ 4,513 (initial guarantee of ThUS$ 5,197
less rate adjustment of ThUS$ 684) to hedge against the mark-to-market value as of November 10, 2009 for
the swap contract with that bank. (For further information see Note 20Derivative Contracts).
(3) Refers to a US$ 22 million deposit held by the subsidiary Exps de Colombia Ltda. with the HSBC Bank
PLC. The deposit is to guarantee the collateral loan granted to Express de Santiago Uno S.A. by HSBC
Bank (Chile) for the same amount.

F-168
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 8FIXED ASSETS

The detail of fixed assets, valued as described in Note 2 m) and n) at September 30 each period, is as follows

Gross fixed assets Accumulated depreciation

2010 2009 2010 2009
ThCh$ ThCh$ ThCh$ ThCh$
Land
Land for terminals . . . . . . . . . . . . . . . . . . . . . . . . 4,667,344 4,666,220
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,667,344 4,666,220
Buildings and infrastructure
Buildings and infrastructure . . . . . . . . . . . . . . . . . 21,262,451 (5,407,085)
Works in process . . . . . . . . . . . . . . . . . . . . . . . . . 1,675,143 20,833,092 (3,302,191)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,937,594 20,833,092 (5,407,085) (3,302,191)
Machinery and equipment
Transport equipment . . . . . . . . . . . . . . . . . . . . . . . 93,479,483 93,461,520 (47,262,881) (36,450,880)
Machinery and equipment . . . . . . . . . . . . . . . . . . 616,968 553,684 (336,155) (225,218)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,096,451 94,015,204 (47,599,036) (36,676,098)
Other fixed assets
Furniture and office equipment . . . . . . . . . . . . . . 352,234 328,857 (155,850) (98,870)
Computer equipment . . . . . . . . . . . . . . . . . . . . . . 478,725 397,707 (279,981) (206,195)
Other fixed assets (1) . . . . . . . . . . . . . . . . . . . . . . 4,267,721 1,672,070 (1,256,761) (902,713)
Improvements leased offices . . . . . . . . . . . . . . . . 281,660 281,624 (118,470) (23,038)
Leased assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,350 49,557 (2,752) (6,488)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,463,690 2,729,815 (1,813,814) (1,237,304)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,165,079 122,244,331 (54,819,935) (41,215,593)
Total net fixed assets . . . . . . . . . . . . . . . . . . 72,345,144 81,028,738

(1) Other fixed assets refers basically to 15% advance payment to fund 193 new buses amounting to ThCh$
2,545,285 (ThCh$ 0 in 2009) and software which, at September 30, 2010 has a net value of ThCh$ 366,348
(ThCh$ 612,306 in 2009). The remaining balance refers to tools and other minor assets.

The charge for depreciation for the period has been shown in the following accounts:

For the period ended on

September 30,
2010 2009
ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,920,863 9,799,799
Administrative and selling expenses . . . . . . . . . . . . . . 308,735 268,034
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,229,599 10,067,833

F-169
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 9OTHER ASSETS

For the period ended on

September 30,
2010 2009
ThCh$ ThCh$
Technical Operative Reserve (1) . . . . . . . . . . . . . . . . . 33,093,389 36,929,077
Reserve for AFT (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 554,432 618,694
Lease guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,412 38,439
Derivative contracts (3) . . . . . . . . . . . . . . . . . . . . . . . . 1,817,760
Deferred interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,243
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,996,476 39,403,970

(1) Refers to the total amount of the financial contribution to the technical operative reserve (TOR) for the
Trunk Line N 4 business unit, to cover eventual differences or temporary mismatches between system
revenues and expenses. This amount is amortized according to the revenue curve projected to be obtained
from the provision of transport services. As of September 30, 2010, the accumulated amortization for this
concept amounts to ThCh$ 17,887,255 (ThCh$ 14,039,289 in 2009) and the effect on income for the period
2010 amounts to ThCh$ 2,886,093 (ThCh$ 2,896,059 in 2009).
(2) From the beginning of phase 1, defined in the Transantiago 2003 bidding conditions, the AFT will be the
exclusive issuer of the tickets relating to the collection of the money paid by passengers in order to use the
transport system. The AFT provides these tickets to the Company, the latter paying a total of Ch$ 20 for
each ticket, from which Ch$ 16 belong to a deposit to increase the systems TOR and should be credited by
the AFT to the System Transitory Account 2. The AFT can use freely the other Ch$ 4. This reserve
corresponds to the total amount of Ch$ 16 per ticket that the Company has acquired from the beginning of
the operation until June 30, 2006. This amount is amortized according to the curve of projected revenue to
be obtained from the provision of transport services. As of September 30, 2010, the accumulated
amortization for this concept amounts to ThCh$ 299,675 (ThCh$ 235,208 in 2009) and the effect on income
for the period 2010 amounts to ThCh$ 48,352 (ThCh$ 48,352 in 2009).
According to the amendment to the concession contract, clause 4, signed on June 30, 2006, between the
Company and the Ministry of Transport and Telecommunications, effective July 1, 2006, the Ch$ 16 per
each ticket ceased to be payable to the AFT.
(3) Refers to the cross-currency swap contracts subscribed with HSBC Bank (Chile) and Credit Suisse, London,
to hedge the dollar loans against fluctuations in the exchange rate and interest rate. (Further information in
Note 20 Derivative Contracts).

F-170
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 10SHORT-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS

a) Short-term obligations with banks and financial institutions:

At September 30, 2010 the loans obtained from the HSBC Bank Chile are as follows:

Signing Maturity Initial Book Interest

Loan number date date amount value rate

202180 25/06/2010 26/07/2010 465,000 466,386 0.47

202181 25/06/2010 26/07/2010 2,590,000 2,597,719 0.47
202247 25/06/2010 26/07/2010 735,000 737,190 0.47
202508 25/06/2010 26/07/2010 2,342,000 2,348,980 0.47
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,132,000 6,150,275
BBVA Bank
9600010000 06/17/2010 12/14/2010 540,000 551,952 0.63
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540,000 551,952
Ita Bank
00010000 07/13/2010 10/12/2010 1,060,000 1,069,796 0.36
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,060,000 1,069,796
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,732,000 7,772,023

At September 30, 2009 the loans obtained from the HSBC Bank Chile are as follows:

Signing Maturity Initial Book Interest

Loan number date date amount value rate

202180 11/28/2007 10/23/2010 465,000 476,996 0.33

202181 11/28/2007 10/23/2010 2,590,000 2,656,809 0.33
202247 11/28/2007 10/23/2010 735,000 753,965 0.33
202508 12/05/2007 10/23/2010 2,342,000 2,402,412 0.33
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,132,000 6,290,182

b) Long-term obligations with banks and financial institutions, short-term portion:

This caption includes the principal due within one year and accrued interest corresponding to the loans granted
by HSBC Bank PLC (EKN NEXI), payable in semi-annual installments on February 28, and August 28 of each
year. At September 30, 2010, the installments payable amount to ThCh$ 9,401,775 (ThCh$ 11,012,348 in 2009).

Interest is calculated on the balance of principal outstanding of the promissory notes, from their respective
signing dates to closing date, payable semi-annually on February 28 and August 28.

At September 30, 2010, the accrued interest amounted to ThCh$ 211,504 (ThCh$ 293,013 in 2009).

Banco HSBC Bank (NIB), installments payable semi-annually on February 28 and August 28 of each year. At
September 30, 2010, the installments amount to ThCh$ 1,341,888.

F-171
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

Interest is calculated on the balance of principal outstanding of the promissory notes, from their respective
signing dates to the closing date, payable in advance semi-annually on February 28 and August 28.

Interest paid in advance on February 28, 2010, corresponding to the semester August-February 2011 amounted to
ThCh$ 270,478 (ThCh$ 74,777 at September 2009).

c) At September 30, 2010 and 2009, short-term obligations with banks and financial institutions are follows:

Short term:

Non-indexed Chilean pesos Total

September 30, September 30,
Bank or financial
Tax registration N institution 2010 2009 2010 2009
ThCh$ ThCh$ ThCh$ ThCh$
97.951.000-4 . . . . . . . . . . . . . . . . . . . . . . HSBC Bank (Chile) 6,150,275 6,290,182 6,150,275 6,290,182
81.496.800-6 . . . . . . . . . . . . . . . . . . . . . . BBVA 551,952 551,952
76.645.030-K . . . . . . . . . . . . . . . . . . . . . Ita 1,069,796 1,069,796
Total . . . . . . . . . . . . . . . . . . . . . . . . 7,772,023 6,290,182 7,772,023 6,290,182
Principal outstanding . . . . . . . . . . . . . . . . 7,732,000 6,132,000 7,732,000 6,132,000
Average annual interest rate (%): . . . . . . 4.00 9.36

Long term:

Dollars Non-indexed Chilean pesos Total

September 30, September 30, September 30,
Bank or financial
Tax registration N institution 2010 2009 2010 2009 2010 2009
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
97.951.000-4 . . . HSBC Bank
(Chile) EKN-NEXI 9,401,775 11,012,348 9,401,775 11,012,348
97.951.000-4 . . . HSBC Bank (Chile)
NIB 1,341,888 1,341,888
0-E . . . NORDIC
INVESTMENT BANK 665,019 665,019
Total . . . . . 10,066,794 11,012,348 1,341,888 11,408,682 11,012,348
Principal
outstanding . . 9,190,271 10,719,335 1,341,888 10,532,159 10,719,335
Average annual interest rate (%) . . . . . . . . 5.87 5.87 5.93
Percentage obligations in local
currency (%) . . . . . . . . . . . . . . . . . . . . . 55.3000
Percentage obligations in foreign
currency (%) . . . . . . . . . . . . . . . . . . . . . 44.7000

F-172
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 11LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS

At September 30, 2010 the loans outstanding are as follows:

At September 30, 2010 Years to maturity At September 30, 2009 Average

Over 10
Over 1 Over 2 Over 3 Over 5 Total annual Total
Tax registration N Institution Currency up to 2 up to 3 up to 5 up to 10 Amount Maturity long-term interest rate long term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ % ThCh$
97.951.000-4 . . . . . . . HSBC Bank PLC/EKN-1 Dollar 12,755,934 6,377,967 12,755,934 5 years 31,889,835 5.38 44,634,744
97.951.000-4 . . . . . . . HSBC Bank Tokio -NEXI Dollar 4,352,850 2,176,425 4,352,850 2,176,425 6 years 13,058,550 1.38 17,769,749
97.951.000-4 . . . . . . . HSBC Bank (Chile) NIB Non-indexed Ch$ 2,683,775 1,341,888 2,683,775 2,683,775 7 years 9,393,213 0.51 11,003,479
97.984.000-4 . . . . . . . HSBC Bank PLC /Enk 2 Dollar 1,271,758 635,879 1,271,758 953,818 7,5 years 4,133,213 6.38 5,562,899
0-E . . . . . . Nordic Investment Bank Dollar 665,019 1,330,037 3,990,112 3,990,113 7.5 years 9,975,281 0.38 12,410,618
Total . . . . . . . . . 21,729,336 11,862,196 25,054,429 9,804,131 68,450,092 91,381,489
F-173

Total in foreign currency (%) . . . 84.4300

Total in local currency (%) . . . . . 15.5700
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

a) Loan from HSBC BANK PLC (London) EKN-1:

Between August 17, 2005 and August 1, 2006 thirteen disbursements corresponding to thirteen promissory notes
totaling ThUS$ 125,278 were received, which are payable in twenty equal and consecutive semi-annual
installments on February 28 and August 28 of each year, starting on February 28, 2007, at a 5.38% fixed interest
rate annually. This loan funded and paid the purchase of 606 buses, equivalent to approximately 85% of the total
bus sale contract signed with Volvo. On March 6, 2007 the principal repayment schedule was changed from 20 to
19 equal semi-annual and consecutive installments payable from August 28, 2007 to August 30, 2016, with the
other terms and conditions of the respective loan agreement remaining unchanged. At September 30, 2010, the
balances of long-term principal outstanding are ThCh$ 39,687,334, equivalent to ThUS$ 72,529.

On February 28, 2008 a cross-currency swap contract was signed with the Credit Suisse International, London, to
hedge the above loan against fluctuations in the exchange rate and interest rate, amounting to ThUS$ 112,091, to
UF 2,648,010.00 (Further information on this contract in Note 20, Derivative Contracts).

b) Joint loan from HSBC Bank of TokyoSumitomo BankNEXI, Japanese Loan and Insurance
Corporation:

Between March 30, 2006 and July 7, 2006 three disbursements totaling ThUS$ 36,000 were received. This loan
has a term of 8 years with five years grace (between February 28, 2010 and August 28, 2017), payable semi-
annually on February 28 and August 28 at a floating interest rate of Libor 180 days, plus a spread of 0.6%
annually, payable semi-annually between August 28, 2006 and August 28, 2017. As of September 30, 2010, the
principal outstanding shown under long term amounts to ThCh$ 16,005,308, equivalent to ThUS$ 29,250.

On December 12, 2007, a swap contract was signed with HSBC Bank (Chile) to hedge the loan from HSBC-
NEXI of ThUS 36,000 against fluctuations in the exchange rate and interest rate. (See Note N 20, Derivative
Contracts).

c) Loan from HSBC Bank (Chile):

On June 13, 2006 a loan was obtained from HSBC Bank (Chile) amounting to ThCh$ 11,660,000 (historic)
payable over 8 years (between February 28, 2011 and February 28, 2018). Interest is payable in advance every
six months from August 28, 2006 and be calculated on the balance of principal outstanding. The respective
promissory note will accrue interest at a nominal TAB rate for 180-day operations, plus 0.38% annually. On
February 28, 2008, a prepayment of principal was made of ThCh$ 914,949 (historic). As of September 30, 2010,
the principal outstanding at long term amounts to ThCh$ 10,064,156.

This obligation is guaranteed by a stand-by letter of credit of US$ 22 million in favor of HSBC Bank (Chile)
issued by HSBC Bank Plc, London, at the request of Exps Colombia Limitada. The guarantee has a term of one
year and is automatically renewed each year, until the Companys obligations with HSBC Bank (Chile) are
extinguished.

d) Loan from HSBC Bank PLC (London) EKN-2:

On December 26, 2007, a total of ThUS$ 8,158 was drawn against four promissory notes, and on April 10, 2008
a total of ThUS$ 4,779 was drawn, corresponding to two promissory notes; the EKN-2 loan totals ThUS$ 12,937,

F-174
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

payable in 19 equal and consecutive semi-annual installments on February 28 and August 28 of each year,
starting in August 2008, at a fixed annual interest rate of 6.38%. The first disbursement of ThUS$ 8,158 made on
December 26, 2007 financed the purchase of 59 buses and the second disbursement financed the purchase of
another 25 buses, model B-7, from Volvo Brazil. On September 30, 2010, the principal outstanding at long term
amounts to ThCh$ 5,036,248, equivalent to ThUS$ 9,204.

On February 28, 2008 a cross-currency swap contract was signed with the Credit Suisse International, London, to
hedge against fluctuation in the exchange rate and interest rate, amounting to ThUS$ 8,243 equivalent to UF
194,731. (Further information on this contract in Note 20, Derivative Contracts).

e) Loan from Nordic Investment Bank:

On March 28, 2006, the subsidiary EXPS. Colombia Ltda. obtained a loan from HSBC-NIB (NIB-Nordic
Investment Bank) amounting to US$ 22 million, equivalent to ThCh$ 11,538,120 at March 31, 2010, payable
over 8 years (from February 28, 2011 to February 28, 2018). Interest is payable in advance semi-annually from
August 28, 2006, at 180-day Libor plus 6.228% per annum. This loan will guarantee the collateral loan that
HSBC Bank (Chile) granted to the Company (Loan, letter c).

All the loans referred to above have the following clause:

Should the signor not pay the principal of these loans on any of their maturities, or should the interest on these
promissory notes not be paid by the signor on their due date and such default or simple delay in the payment of
interest is maintained for three or more business days, the bearer of the promissory notes shall have the right to
demand immediate payment of the full balance of the debt of principal and interest due on the promissory notes,
which shall be considered due and payable for all intents and purposes. The bank shall have a right to demand in
advance the whole debt due under the promissory notes as if it were due and payable, if the signor were to
become insolvent, understanding for all purposes that there is insolvency if the signor or one or more of its
creditors files for bankruptcy, or if judicial or non-judicial restructuring agreement proposals are signed or
formulated.

The loans referred to above did not specify any financial covenants, but only non-financial covenants, being the
following the most important.

i) Corporate existence:

The debtor must preserve its legal existence, its rights, privileges, licenses and franchises of Express de Santiago
Uno S.A. and its subsidiaries, which are material to the performance of their business.

ii) Compliance with law, insurance:

The debtor must comply with all applicable laws, regulations, rules imposed by any government authority, the
timely payment of all taxes, as well as maintain its assets insured and in good working conditions.

iii) Government authorizations:

The debtor must maintain all licenses, authorizations or consents from the government up to date for the
fulfillment of its activities.

F-175
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

iv) Reporting requirements:

The debtor must provide the administrative agent with the following information to be distributed to the
creditors:
The financial statements of the Company and report any event of default within five days.
Acceleration of any debt of over ThUS$ 750,000.
Report any legal action against the debtor and/or subsidiaries that involves the government and which
might have a material adverse effect.
Report semi-annually on the status of both the concession and the transport services.

v) Ranking:

The debtor must take all the necessary actions so that its obligations with the creditor maintain their ranking over
other obligations, as well as keeping the accumulation and reserve accounts for the prepayment of its obligations
up to date.

vi) Negative pledge:

The debtor cannot mortgage and/or pledge assets other than those specified in the loan agreement.

vii) Transactions with affiliates:

The debtor cannot carry out transactions with affiliates unless they are within the normal course of the business.

viii) Line of business:

The debtor cannot make a material change in the nature or management of its business.

ix) Merger, change in control:

The debtor cannot make changes in the ownership and control of the Company without the creditors consent.

x) Environmental obligations:

The debtor must ensure that the loan proceeds are not allocated to activities that damage the environment.

xi) Dividend payment:

The debtor must request authorization from the creditors prior to a dividend payment.

F-176
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 12PROVISIONS AND WRITE-OFFS

Provisions:
a) At September 30, 2010 and 2009 provisions are detailed as follows:
September 30,
2010 2009
ThCh$ ThCh$
Personnel vacations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,425,448 1,181,784
4% interest remittance . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,460 11,721
Bus maintenance (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,523,800
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375,636
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433,908 3,092,941

(1) Even though the companys policy is to record the maintenance as incurred, as of December 31, 2008 there
was the obligation to perform certain maintenance, which was postponed until the second semester of 2009.
Accordingly, the company recorded a provision which balance, as of September 30, 2009 was
ThCh$ 1,523,800.
During the 2010 period, the maintenance has been carried out on the scheduled dates, with the result being
booked when incurred.

b) Asset allowances:
At September 30, 2010 and 2009, the following allowances have been made, which are shown deducted from the
respective asset accounts:
September 30,
2010 2009
ThCh$ ThCh$
Spare part inventories (1) . . . . . . . . . . . . . . . . . . . . . . . . (249,421) (255,657)
Depreciation, work in process (2) . . . . . . . . . . . . . . . . . . (3,302,190)

(1) Deducted from Spare part inventories classified in Other current assets.
(2) Deducted from Accumulated depreciation classified in Fixed assets.

c) Write offs:
No write-offs are made as of September 30, 2010 and 2009.

NOTE 13OTHER LONG-TERM LIABILITIES

At September 30, 2010 and 2009, these were as follows:
September 30,
2010 2009
ThCh$ ThCh$
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,968,871
Leasing obligations, long term . . . . . . . . . . . . . . . . . . . . . . . 15,428
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,984,299

F-177
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

Refer to the cross-currency swap contracts (at net value) signed with the HSBC Bank (Chile) and Credit Suisse,
London, to hedge loans in dollars against fluctuations in the exchange rate and interest rate. (Further information
in note 20 Derivatives Contracts).

NOTE 14MINORITY INTEREST

The minority interest shown in the consolidated balance sheet and consolidated income statement, is equal to nil
since the calculation of such an interest is lower than ThCh$ 1, corresponding to 0.01% of the equity of Exps de
Colombia Ltda.

NOTE 15CHANGES IN EQUITY

The movement in equity accounts in the 2009 and 2010 periods is shown as follows:

Reserve for
Paid in equity Capital in excess Retained Result
Items capital restatement of par value results for the period Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Opening balance . . . . . . . . . . . . 21,758,534 97,540 11,466,767 3,907,876 37,230,717
Distribution of prior-year
results . . . . . . . . . . . . . . . . . . 3,907,876 (3,907,876)
Increase in capital . . . . . . . . . . . 86 86
Price-level restatement . . . . . . . (609,239) (2,731) (430,489) (1,042,459)
Reserve for equity
restatement . . . . . . . . . . . . . .
Loss for the period . . . . . . . . . . (5,346,119) (5,346,119)
Balance at September 30,
2009 . . . . . . . . . . . . . . . . . . . 21,758,620 (609,239) 94,809 14,944,154 (5,346,119) 30,842,225
Restated balance . . . . . . . . . . . . 22,302,586 (624,470) 97,179 15,317,758 (5,479,772) 31,613,281
Opening balance . . . . . . . . . . . . 21,258,173 95,296 15,021,027 (3,951,389) 32,423,107
Distribution of prior-year
results . . . . . . . . . . . . . . . . . . (3,951,389) 3,951,389
Price-level restatement . . . . . . . 1,906 221,392 223,298
Reserve for equity
restatement . . . . . . . . . . . . . . 425,162 425,162
Loss for the period . . . . . . . . . . (3,748,177) (3,748,177)
Balance at September 30,
2010 . . . . . . . . . . . . . . . . . . . 21,258,173 425,162 97,202 11,291,030 (3,748,177) 29,323,390

F-178
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

a) The shareholding is comprised as follows:

Single-series
subscribed voting Shareholding
shares September 30, September 30,
2010 2009 2010 2009
N N % %
Carlos Rios Velilla . . . . . . . . . . . . . . . . . . . . . 3 3 0.002 0.002
Sociedad Eco Uno Ltda. . . . . . . . . . . . . . . . . . 188,717 188,717 99.998 99.998
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,720 188,720 100.000 100.000

b) Number of shares:

Subscribed shares Paid-in shares Voting shares

N N N
Single series . . . . . . . . . . . . . . . . . . . . . . . . 188,720 188,720 188,720

c) Capital

Subscribed capital Paid-in capital

ThUS$ ThUS$
Single Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,258,173 21,258,173

NOTE 16OTHER NON-OPERATING INCOME AND EXPENSES

At September 30, 2010 and 2009, this caption is detailed as follows:

September 30,
2010 2009
ThCh$ ThCh$
Other non-operating income:
Income from scrap sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,788 1,736
Income from damage to buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,109 372
Income from paramedics contribution, safety insurance company . . . . . . . . 15,088
Other miscellaneous income (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549,782 80,031
Sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,358
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,125 82,139

(1) Other miscellaneous income are mainly comprised by the reimbursement of communication expenses made
for the AFT account at the beginning of operations (ThCh$ 494,142).

F-179
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

September 30,
2010 2009
ThCh$ ThCh$
Other non-operating expenses:
Other taxes (stamp taxes, etc) . . . . . . . . . . . . . . . . . . . . 93,582 121,481
Disallowed expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,070 33,023
Other miscellaneous expenses . . . . . . . . . . . . . . . . . . . . 3,403
Loss on sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . 8,654
Miscellaneous fines . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,304 14,627
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,610 172,534

NOTE 17PRICE-LEVEL RESTATEMENTS

The detail is as follows at September 30, 2010 and 2009:

(Charges)/credits
September 30,
Indexation Unit 2010 2009
ThCh$ ThCh$
Assets
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 1,562,725 (2,599,545)
Investments in related companies . . . . . . . . . . . . . . . . . . . . . . . . . . CPI (32)
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF (1,752,827) (3,076,907)
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 719,583 (1,169,034)
Expenditure accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 751,788 (747,407)
Total credits (charges) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,281,269 (7,592,925)
Liabilities
Shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI (648,471) 1,068,552
Other no-monetary liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 36
Non-monetary liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF (613,140) 2,678,701
Income accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI (825,280) 803,383
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,086,891) 4,550,672
Loss on price-level restatements . . . . . . . . . . . . . . . . . . . . . . . (805,622) (3,042,253)

CPI: Consumer price index

UF : Unidad de fomento

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 18EXCHANGE DIFFERENCES

The detail is as follows at September 30, 2010 and 2009:
(Charges)/credits
September 30,
Currency 2010 2009
ThCh$ ThCh$
Assets
Bank current accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (4,875) (36,361)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (145,018) (1,513,444)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (2,582,591) (12,864,271)
Total credits (charges) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,732,484) (14,414,076)
Liabilities
Long-term bank liabilities, short-term portion . . . . . . . . . . . . . . . . . . . US$ 449,164 2,060,687
Long-term bank liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 2,194,110 11,203,820
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (110,188) 14,960
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 593,807
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,126,893 13,279,467
Loss from exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . 394,409 (1,134,609)

NOTE 19STATEMENT OF CASH FLOWS

As of September 30, 2010 and 2009, cash and cash equivalents are as follows:
September 30,
2010 2009
ThCh$ ThCh$
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,255 963,109
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,610
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,865 963,109

NOTE 20DERIVATIVE CONTRACTS

At September 30, 2010, the Company maintains cross-currency swap and forward contracts to hedge against
fluctuations in exchange rates and interest rates.

SWAP CONTRACTS
a) On December 12, 2007, the Company signed a derivative contract (cross-currency swap from US$ to UF
and from floating to a fixed interest rate) with HSBC Bank (Chile) amounting to US$ 36 million. The
purpose of the contract is to hedge against exchange and interest-rate risks on the loan of US$ 36 million
contracted with BSBC-NEXI Bank. The main financial conditions of the contract are:
(1) Amount contracted by the Bank ThUS$ 36,000.
(2) Amount contracted by the Company UF 918,387.09.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

(3) Start date December 12, 2007.

(4) Maturity date August 28, 2017.
(5) Interest rate agreed by the bank: 6-month Libor plus 0.6% p.a./360.
(6) Interest rate agreed by the Company: Fixed rate, 3.900% p.a./360.
(7) Payment method: Semi-annual compensations in Chilean pesos.

b) On February 28, 2008, the Company signed derivatives contracts (cross-currency swap) from US$ to UF
and from floating to a fixed interest rate) with Credit Suisse International, London. The purpose of the
contract is to hedge against exchange and interest-rate risks on the loans incurred with HSBC Bank, London
(ENK-1-2), for the syndicated loans of ThUS$ 112,091 and ThUS$ 12,937, respectively. The main financial
conditions of the contract are:

To cover the loan with the HSBC Bank-EKN-1:

(1) Amount contracted in ThUS$ 112,091.
(2) Amount contracted in UF 2,648,010.
(3) Start date: February 28, 2008.
(4) Maturity date: August 28, 2018.
(5) Interest rates payable to the bank: 5.55% (from August 28, 2008 until February 28, 2009). For the
second year TAB UF + 1.82%.
(6) Interest rates payable by the bank: 5.38% (from August 28, 2008 until February 28, 2009). For the
second year 180-day Libor + 1.87%.

To cover the loan with the HSBC Bank-EKN-2

(1) Amount contracted in ThUS$ 8,243.
(2) Amount contracted in UF 194,731.00
(3) Start date: February 28, 2008.
(4) Maturity date: August 28, 2018.
(5) Interest rates payable to the bank: 6.55% (from August 28, 2008 until February 28, 2009). For the
second year TAB UF + 2.83%
(6) Interest rates payable by the bank: 6.38% (from August 28, 2008 until February 28, 2009). For the
second year, 180-day Libor + 2.87%

This swap contract only covers the first disbursement of ThUS$ 8,243 made by HSBC. Consequently, the
operation is not completely matched with the total disbursements made by HSBC Bank, which amounted to
ThUS$ 12,937.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

The swap contracts include certain conditions, the most important being:

To hedge against eventual negative changes of the derivative contracts as a consequence of the market variables,
a credit line was established which is reviewed on a quarterly basis according to the respective statutory financial
statements format, and whose amount depends on the financial ratios: Debt/Ebitda; Ebitda/Financial expenses
shown in the respective financial statements.

On November 10, 2009, the Company delivered ThUS$ 5,197 to Credit Suisse to cover the mark-to-market value
of the swap as of that date, which was in favor of this bank up to the amount.

On that same date, Credit Suisse performed a re-couponing of the swap, modifying the interest rate of the CSIN
II paid by the bank for the second year, from 180-day Libor + 1.87% to 180-day Libor + 3.42%.

On March 22, 2010, Credit Suisse reversed the re-couponing of the swap with which a collateral account was
credited with ThUS$ 4,520 which accrues interest and guarantees eventual marks-to-market in favor of Credit
Suisse. The difference of that credited to the account of ThUS$ 677 arises from the reversal of the rates that the
bank pays of the CSIN II from 180-day Libor + 3.42% to 180-day Libor + 1.87%, with respect to the settlement
of February 26, 2010.

FORWARD CONTRACTS
The Company maintained forward contract with Credit Suisse International, London, to hedge against the
exchange risk of the swap contracts. The forward contract amounting to USD$ 92,994,272 was paid on
September 21, 2010. The conditions agreed in the contract, which stated that upon settlement the Company
would pay a rate of Ch$ 494.70 and the Bank the value of the observed dollar, were maintained. Consequently,
when determining the differences between rates, the Company would receive USD 27,479.55

As of September 30, 2010 there are no other derivative contracts signed by the Company.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)
Description of contracts Accounts affected
Hedged entry or
Value of Position transaction Assets / liabilities Effect on results
Type of the Specific purchase/ Value of item
Type of derivative contract agreement Term item sale Name Amount hedged Name Amount Realized Unrealized
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Cross Currency Swap / Exchange / Syndicated Other long-
HSBC . . . . . . . . . . . . . . . . CCPE 17,933,400 III-2017 interest rate p loan US$ 17,888,040 15,234,975 term liabilities 2,149,044 595,256 (365,504)
Cross Currency Swap / C. Exchange / Syndicated Other long
Suisse . . . . . . . . . . . . . . . . CCPE 52,916,872 III-2018 interest rate P loan US$ 52,222,468 41,257,849 term liabilities 5,819,827 (248,953) 69,956
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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 21CONTINGENCIES AND RESTRICTIONS

Demands:
a) Claim for damages filed by the Municipality of Renca:

On October 23, 2007 a claim for damages filed by the Municipality of Renca against certain operators of the
Transantiago system, the Company among them was notified. The amount claimed is ThCh$ 154,600.

b) On December 3, 2009, the 15th Civil Court of Santiago rejected in the first instance the demand of the
Municipality of Renca against the Company and other Transantiago operators. The sentences were appealed
against by the Municipality of Renca on January 19, 2010. The management and its legal advisers believe
that the claim will have no adverse effects on the financial statements as of September 30, 2010.
c) On August 26, 2009, a claim for damages was notified for ThCh$ 448,000 by Mara Loreto Galiano Glvez
for injuries suffered through being run over, before the 1st Civil Court of Santiago. The management is
arranging the respective insurance claim.

On January 18, 2010, a claim for damages was notified for ThCh$ $285,326 by the family of Juan Toledo
Cabello, killed by being run over in October 2008. This case is before the 15th Civil Court of Santiago. The
management is arranging the respective insurance claim.

d) On October 15, 2010, a claim for damages was notifies for ThCh$ 450,000, by the family of Marian Daniela
Pea Torres, killed by bein run over on August 6, 2009. This case is before the 25th Civil Court of Santiago.
The management is arranging the respective insurance claim.
e) Writ of Protection for application of Resolution N 1985 of the Ministry of Transport and
Telecommunications:
As per Exempt Resolution N 1985, the Ministry of Transport and Telecommunications imposed withholdings in
2008 and 2009 to be applied by the AFT to passenger revenue settlements. These deductions were applied every
two weeks to each payment settlement.
1. On November 30, 2009 a sentence from second instance was pronounced in the writ of protection (the
Writ) lodged by Express de Santiago Uno S.A. (Express) against the Ministry of Transport and
Communications (MTT) as a consequence of the issue of Exempt Resolution N 1985/2008, (the Res.
N1985), dated October 17, 2008 which imposed deductions to the concessionaires of road use for
non-compliance with certain indicators established therein.
2. To reject the Writ, the judgment of the Court of Appeals (Ca) basically argues on the basis that there is
not unquestioned right of Express (i); that the MTT has legal and contractual authority to act as it did
(ii) and that Res. N1985 is not arbitrary (iii). To the foregoing, the Supreme Court (the SC) added an
argument based on the nature of concessions (iv).
3. The sentence supports MTTs position essentially based on the nature of public service of the concession, as
well as on the exceptional nature of the funds used. This is without prejudice to making also reference to
various legal and contractual requirements.
4. The classification of the concession as a public service concession that moves away from the contractual
standards ruling civil contracts increases the risk of future interventions by the authority in the contracts
currently valid through the imposition of conditions negotiated on a non-contractual basis.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

5. Given that the ruling adopts the MTTs argument concerning the fact that the payments the concessionaires
are entitled to are those self-generated by the system, the MTTs decision is legally legitimized in order to
impose new conditions unilaterally relating to those extraordinary funds which cover the systems deficit, a
category within which the authority could attempt to include the funds coming from the permanent subsidy
to the public transport contained in Law 20,378 (the subsidy).
6. Notwithstanding the above, it should be mentioned that the reference that persistently is made to the
extremely exceptional nature of the constitutional 2% and its regime -both by the decision concerning the
Writ and by the defense itself of the MTT and the circumstance that the ruled case involved temporary
discounts, would allow to argue against an extensive interpretation of the grounds of the sentence.
7. The judgment validates the thesis that the Resolution is in line with the provisions of the tender conditions
which stipulate that the current regulations and those announced in the future are applicable to the
concessionaires in which concerns the operation conditions of the remunerated passenger transport services
and road use. From this perspective, the extensive treatment that is given to which should be considered as
operation conditions, can serve as a basis for future impositions on the concessionaires which according
to the authoritys interpretation- would be consistent with the concept of operation conditions.

However, the management and its legal counsel consider that collectability of the asset should not be affected.
Consequently, it maintains the account receivable from the AFT in full (See Note 4).

b) Other lawsuits

The Company currently maintains labor lawsuits, whose current procedural status are pending; therefore we are
awaiting the final judgment of each case, which could be conviction or acquittal. The total amount involved in
these cases is ThCh$ 486,901.

There are other legal actions which are not worth detailing, since they are covered by insurance against accident
and civil liability. Should these legal actions be successful against the Company, they will not have adverse
effects on the financial statements.

Guarantees:

a) Insurance policy

The Company has a concession contract guarantee in the form of Insurance Policy N 01-20-044493 from
Aseguradora Magallanes (an insurance company), issued in favor of the Undersecretarys Office of Transport in
accordance with the terms of article 3.4.6 of the Transantiago 2003 tender conditions, amounting to UF
167,000.00 effective from November 11, 2009 until November 11, 2010.

b) The Company has granted the guarantees listed in the accompanying table.

As of September 30, 2010 the Company and subsidiary are not aware of any other prohibitions, liens,
contingencies and restrictions which might affect these financial statements, except as described in Note 11
(Long-term obligations with banks), covenants and those indicated in Note 20 (Derivative contracts).

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

Direct guarantees:

Balances pending
payment at closing of
Committed assets financial statements
September 30,
September 30,
Guarantee creditor Debtor Name Guarantee type Book type Value 2010 2009
ThCh$ ThCh$ ThCh$
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . . . . . Express de Santiago Uno S.A. Pledge Buses 46,064,928 46,064,928 93,702,955
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . . . . . Express de Santiago Uno S.A. Mortgage Land Maip 980,324 980,324 980,089
HSBC Bank . . . . . . . . . . . . . . . . . . . . . . . . . . Express de Santiago Uno S.A. Pledge Shares 21,258,173 21,258,173 22,302,586
Municipality of La Reina . . . . . . . . . . . . . . . Express de Santiago Uno S.A. Performance bond Guarantee 121,017 121,017 112,337
Banco HSBC . . . . . . . . . . . . . . . . . . . . . . . . . Express de Santiago Uno S.A. Mortgage Land ENEA 2,095,021 2,095,021 2,095,516
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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 22GUARANTEES FROM THIRD PARTIES

At September 30, 2010 the Company has received the following performance bonds, to ensure faithful
compliance with terminal building contracts, and to guarantee service contracts.

Company Date Expiry Amount Bank

UF
Citymovil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07/01/2010 07/01/2011 430.00 BancoBice
Queylen S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07/29/2010 09/21/2011 1,638.81 BancoChile
Queylen S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07/29/2010 09/21/2011 2,136.65 BancoChile
Queylen S.A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07/29/2010 09/21/2011 2,136.65 BancoChile

Company Date Expiry Amount Bank

ThCh$
Worldwide Security S.A. . . . . . . . . . . . . . . . . . . . . . . 07/20/2010 09/20/2011 41,915.029 BancoChile

At September 30, 2009 the Company has received the following performance bonds, to ensure faithful
compliance with terminal building contracts, and to guarantee service contracts.

Company Date Expiry Amount Bank

ThCh$
Construtora Con Pax . . . . . . . . . . . . . . . . . . . . . . . . . 07/04/2008 05/30/2010 9,259.00 Banco Santander
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01/27/2009 02/03/2010 1,253.34 Banco BCI
Constructora Trbol Ltda. . . . . . . . . . . . . . . . . . . . . . 07/15/2009 10/25/2010 1,356.21 BancoChile

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 23LOCAL AND FOREIGN CURRENCY

Assets and liabilities in local and foreign currency and in Unidades de Fomento are shown in the financial
statements at the exchange rates stated in Note 2 g), summarized as follows:

a) September 30, Assets:

Currency 2010 2009

ThCh$ ThCh$
Current assets
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 12,954 931,064
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 31,248 32,046
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 29,610
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 5,162,216 6,394,448
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 121,018 112,337
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 6,461
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 1,121,016 900,157
Recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 39,695
Notes and accounts receivable from related
companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 529,405 538,158
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 1,777,875 654,454
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 288,701 1,068,648
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 2,471,893
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 1,650,609 2,394,268
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . US$ 19,743,775 20,126,777
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 13,290
Notes and accounts receivable from related
companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 798
Fixed assets
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 72,345,144 81,028,738
Other assets
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 310,243
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 33,686,233 37,547,771
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . US$
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . UF 1,856,199
Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 1,742,442
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 11,350,169 8,809,983
US$ 19,818,721 20,158,823
UF 121,018 1,968,536
Indexed Ch$ 109,748,562 122,693,879

F-189
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

b) Current liabilities:

Up to 90 days 90 days to 1 year

2010 2009 2010 2009
Average Average Average Average
interest interest interest interest
Item Currency Amount rate Amount rate Amount rate Amount rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing, short-term . . . . . . . . . US$ 665,019
Bank borrowing, short-term . . . . . . . . . Non-indexed Ch$ 7,772,023 12.29 6,290,182 11.16
Bank borrowing long-termshort-term
portion . . . . . . . . . . . . . . . . . . . . . . . . US$ 10,743,663 4.71 11,012,348 5.93
Accounts payable . . . . . . . . . . . . . . . . . Non-indexed Ch$ 7,132,998 4,900,957
Accounts payable . . . . . . . . . . . . . . . . . US$ 30,094 55,994
F-190

Other payables . . . . . . . . . . . . . . . . . . . US$ 7,107 6,870

Other payables . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 470,052
Other payables . . . . . . . . . . . . . . . . . . . UF 471,870
Notes and accounts payable to related
companies . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 645,100 661,881
Provisions . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 1,433,908 3,092,941
Current and deferred income tax . . . . . . Indexed Ch$ 9,870
Withholdings . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 806,764 674,235
Notes payable . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 254,469
Total current liabilities . . . . . . . . . US$ 702,220 62,864 10,743,663 11,012,348
Non-indexed Ch$ 19,226,578 16,090,248
UF 471,870 18,042,562
Indexed Ch$ 9,870
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

c) Long-term liabilities at September 30, 2010:

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Average Average Average Average
interest interest interest interest
Caption Currency Amount rate Amount rate Amount rate Amount rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing . . . . . . . . . . . . . . . . . . . . . . . US$ 27,570,813 4.71 18,380,542 4.71 3,130,243 4.71
Bank borrowing . . . . . . . . . . . . . . . . . . . . . . . Ch$ 4,025,663 4.57 2,683,775 4.57 2,683,775 4.57
Bank borrowing, Colombia subsidiary . . . . . US$ 9,975,281 6.228
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 1,880,751
Other long-term liabilities . . . . . . . . . . . . . . . U.F. 7,968,871
Other long-term liabilities . . . . . . . . . . . . . . . Non-indexed Ch$ 2,561,358
Other long-term liabilities . . . . . . . . . . . . . . . US$ 171,728
F-191

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 37,717,822 18,380,542 3,130,243

Ch$ 4,025,663 2,683,775 2,683,775
Indexed Ch$ 1,880,751
U.F 7,968,871
Non-indexed Ch$ 2,561,358
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

d) Long-term liabilities at September 30, 2009:

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Average Average Average Average
Caption Currency Amount interest rate Amount interest rate Amount interest rate Amount interest rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing . . . . . . . . . . . . . . . . . US$ 21,438,671 5.93 21,438,670 5.93 25,090,053 5.93
Bank borrowing . . . . . . . . . . . . . . . . . Non-indexed Ch$ 2,750,870 5.81 2,750,869 5.81 5,501,739 5.81
Deferred taxes . . . . . . . . . . . . . . . . . . . Indexed Ch$ 2,999,121
Bank borrowing, Colombia
Subsidiary . . . . . . . . . . . . . . . . . . . . US$ 4,964,248 3,350,866 4,095,504
Total . . . . . . . . . . . . . . . . . . US$ 24,402,919 24,789,536 29,185,557
Non-indexed Ch$ 2,750,870 2,750,869 5,501,739
Indexed Ch$ 2,999,121
F-192
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 24PENALTIES AND FINES

2010, penalties and fines

1) Express de Santiago Uno S.A.

On January 19, 2010 it paid a fine of ThCh$ 3,668 imposed by the Labor Inspectorate (Santiago South East) for
not correctly maintaining an attendance register and for driving for more than four continuous hours.

On January 18, 2010 it paid a fine of ThCh$ 86 imposed on January 6 by the Seventh Santiago Labor Court.

On February 19, 2010 it paid a fine of ThCh$ 150 imposed on January 25 by the 6th Santiago Labor Court.

On February 19, 2010 it paid a fine of ThCh$ 1,463 imposed on January 26 by the Labor Inspectorate (West
Santiago).

On March 9, 2010 it paid an administrative fine of ThCh$ 2,650 as per resolution N 1014 dated February 23,
2010, imposed by the Labor Inspectorate, Settlement and Mediation Center.

On March 9, 2010 it paid a fine of ThCh$ 2,900 imposed on February 25 by the Labor Inspectorate Conciliation
and Mediation Center.

On March 9, 2010 it paid a fine of ThCh$ 1,468 imposed on March 3 by the 2nd Labor Court.

On March 11, 2010 it paid a fine of ThCh$ 1,093 imposed on February 23 by the Labor Inspectorate Conciliation
and Mediation Center.

On March 11, 2010 it paid a fine of ThCh$ 1,921 imposed on March 5 by the Santiago Labor and Social-Security
Collection Court.

On May 19, 2010 it paid a fine of ThCh$ 1,549 imposed on August 21, 2009 by the Labor Inspectorate (West
Santiago).

On May 31, 2010 it paid two thirds of a fine amounting to ThCh$ 493 imposed on July 23, 2008 by the Labor
Inspectorate of Maipu.

On May 31, 2010 it paid two thirds of a fine amounting to ThCh$ 1,389 imposed on August 10, 2007 by the
Labor Inspectorate (West Santiago).

On June 18, 2010 it paid a fine amounting to ThCh$ 723 imposed on December 23, 2008 by the Labor
Inspectorate of Maipu.

On June 18, 2010 it paid a fine amounting to ThCh$ 2,077 imposed on July 3, 2008 by the Labor Inspectorate of
Maipu.

On July 6, 2010 it paid a fine amounting to ThCh$ 1,489 imposed on August 13, 2009 by the Labor Inspectorate
(Santiago South East).

F-193
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

On July 6, 2010 it paid a fine amounting to ThCh$ 745 imposed on August 13, 2009 by the Labor Inspectorate
(Santiago South East).

On July 6, 2010 it paid a fine amounting to ThCh$ 447 imposed on August 13, 2009 by the Labor Inspectorate
(Santiago South East).

On July 26, 2010 it paid a fine amounting to ThCh$ 745 imposed on October 15, 2009 by the Labor Inspectorate
(Santiago West).

On July 26, 2010 it paid a fine amounting to ThCh$ 1,489 imposed on January 20, 2009 by the Labor
Inspectorate (Santiago West).

On July 26, 2010 it paid a fine amounting to ThCh$ 1,489 imposed on September 15, 2009 by the Labor
Inspectorate (Santiago West).

On July 30, 2010 it paid a fine amounting to ThCh$ 931 imposed on February 17, 2009 by the Labor
Inspectorate, Conciliation and Mediation Center.

On August 2, 2010 it paid a fine amounting to ThCh$ 7,335 imposed on August 24, 2009 by the Labor
Inspectorate, (Santiago West).

On August 16, 2010 it paid a fine amounting to ThCh$ 2,334 imposed on January 4, 2010 by the Labor
Inspectorate, (Santiago West).

On August 16, 2010 it paid a fine amounting to ThCh$ 1,117 imposed on November 3, 2009 by the Labor
Inspectorate, (Santiago West).

On August 16, 2010 it paid a fine amounting to ThCh$ 2,234 imposed on July 2, 2010 by the Labor Inspectorate,
(Santiago West).

On August 20, 2010 it paid a fine amounting to ThCh$ 1,489 imposed on April 14, 2010 by the Labor
Inspectorate, (Santiago East).

On August 20, 2010 it paid a fine amounting to ThCh$ 745 imposed on January 6, 2010 by the Labor
Inspectorate of Maipu.

On September 2, 2010 it paid a fine amounting to ThCh$ 2,247 imposed on October 7, 2010 by the Labor
Inspectorate (Santiago West).

On September 10, 2010 it paid a fine amounting to ThCh$ 1,498 imposed on May 25, 2010 by the Labor
Inspectorate (Santiago West).

On September 10, 2010 it paid a fine amounting to ThCh$ 749 imposed on January 26, 2010 by the Labor
Inspectorate (Santiago West).

F-194
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

2009, penalties and fines

On February 10, 2009 one third of the fine imposed by the Labor Inspectorate (Estacin Central) amounting to
ThCh$ 483, as per resolution N 00487 dated December 2, 2008, was paid.

On February 11, 2009 an administrative fine of Ch$ 149 imposed by the Settlement and Mediation Center of the
Labor Administration, as per resolution N 166 dated February 3, 2009, was paid.

On March 9, 2009 a fine of ThCh$ 492 imposed by the Labor Inspectorate (Maip) as per resolution
N 4353-08-129 dated December 13, 2008 and resolution of fine reconsideration N 99 dated February 24, 2009,
was paid.

On March 9, 2009 one third of the fine of ThCh$ 737 imposed by the Labor Inspectorate (Maip-Cerrillos) as per
resolution N 101 dated February 24, 2009, was paid.

On April 3, 2009 one third of a fine of ThCh$ 3,671 imposed by the Labor Inspectorate (South-East Santiago) as
per resolution N 3751/08/52 dated August 13, 2008 and resolution N 43 dated February 27, 2009, was paid.

On April 14, 2009 an administrative fine of ThCh$ 147 imposed by Labor Inspectorate (Maip) as per resolution
N 74 dated January 9, 2008, was paid.

On April 14, 2009 an administrative fine of ThCh$ 734 imposed by Labor Inspectorate (East Santiago) as per
resolution N 3322-08-034, was paid.

On June 10, 2009 an administrative fine of ThCh$ 147 imposed by Settlement and Mediation Center of the Labor
Administration as per resolution N 4327/09/62 dated April 29, 2009, was paid.

On June 10, 2009 an administrative fine of ThCh$ 552 imposed by Settlement and Mediation Center of the Labor
Administration as per resolution N 512 dated May 4, 2009, was paid.

On June 15, 2009 an administrative fine of ThCh$ 245 imposed by Labor Inspectorate (West Santiago) as per
resolution N 292 dated June 4, 2009, was paid.

On June 23, 2009 one third of the fine amounting to ThCh$ 491 imposed by Labor Inspectorate (West Santiago)
as per resolution N 00159 dated May 25, 2009, was paid.

On June 25, 2009 one third of the fine of ThCh$ 246 imposed by Labor Inspectorate (West Santiago) as per
resolution N 00170 dated June 2, 2009, was paid.

On June 25, 2009 one third of the fine of ThCh$ 3,434 imposed by Labor Inspectorate (West Santiago) as per
resolution N 00200 dated June 4, 2009, was paid.

On August 20, 2009 an administrative fine of ThCh$ 367 imposed by Settlement and Mediation Center of the
Labor Administration as per resolution N 594 dated August 4, 2009, was paid.

On August 2, 2009 an administrative fine of ThCh$ 1,064 imposed by the Labor Inspectorate (East Santiago) as
per resolution N 3322 dated April 4, 2009, was paid.

F-195
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

On October 26, 2009 a fine of ThCh$ 730 imposed by the Regional Undersecretarys Office of the Metropolitan
Health Ministry as per resolution N 5186 dated August 17, 2009, was paid.

On October 26, 2009 an administrative fine of ThCh$ 730 imposed by the Labor Inspectorate (Maip-Cerrillos)
as per resolution N 365 dated September 14, 2009, was paid.

On December 10, 2009 a fine of ThCh$ 369 imposed by the Regional Undersecretarys Office of the
Metropolitan Health Ministry as per resolution N 7182 dated October 6, 2009, was paid.

On December 10, 2009 an administrative fine of ThCh$ 1,106 imposed by the Labor Inspectorate (West
Santiago) as per resolution N 7756 dated March 24, 2009, was paid.

On December 10, 2009 an administrative fine of ThCh$ 737 imposed by the Labor Inspectorate (West Santiago)
as per resolution N 474 dated November 16, 2009, was paid.

On December 10, 2009 an administrative fine of ThCh$ 387 imposed by the Labor Inspectorate (West Santiago)
as per resolution N 463 dated November 14, 2009, was paid.

On December 10, 2009 an administrative fine of ThCh$ 1,475 imposed by the Labor Inspectorate (West
Santiago) as per resolution N 443 dated October 21, 2009, was paid.

On December 10, 2009 an administrative fine of ThCh$ 1,659 imposed by the Labor Inspectorate (Providencia)
as per resolution N 588 dated August 18, 2009, was paid.

Other Fines:
On January 6, 2009 the Superintendency of Securities and Insurance is reported on the payment of the fine
amounting to ThCh$ 322 (equivalent to 15 U.F.) in favor of the Treasury, applied to the General Manager
Mr. Alberto Hadad Lemos for failing to present the share register of the quarter referred to March 31, 2008 on
due time.

On January 19, 2009 a fine of ThCh$ 188 imposed on July 23 was paid to the Sanitary Authority of the
Matropolitan Region.

Administrative fines mentioned above have not impacted the compliance of covenants according to Note 11.

As of September 30, 2010 and 2009 there are no other sanctions imposed on the Company, its directors or its
general manager by other institutions or administrative authorities.

2) Subsidiary

No sanctions have been imposed on the subsidiary by administrative authorities.

NOTE 25SUBSEQUENT EVENTS

As of the date on which these consolidated financial statements were issued (December 14, 2010), the
Companys management is not acquainted with any other subsequent event which might have a significant effect
on their interpretation.

F-196
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 26ENVIRONMENT
The Company operates under environmental standards set out in Chilean laws and regulations and in accordance
with standard community relations, and health, safety and environmental policies.

As of September 30, 2010 and 2009, there are disbursements directly or indirectly related to protection of the
environment, in waste-water treatment, spares waste, garbage, etc. amounting to ThCh$ 164,323 in 2010
(ThCh$ 199,902 in 2009), which have been charged directly to income for the period.

NOTE 27OPERATING COSTS AND EXPENSES

At September 30, 2010 and 2009, operating costs are detailed as follows:

September 30,
2010 2009
ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,807,495 43,180,837
Amortization and depreciation . . . . . . . . . . . . . . . . . . 12,855,308 13,423,336
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,662,803 56,604,173

Administrative and selling expenses at September 30, 2010 and 2009 are detailed as follows:

September 30,
2010 2009
ThCh$ ThCh$
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 4,322,445 4,424,855
Amortization and depreciation . . . . . . . . . . . . . . . . . . . . 308,736 396,020
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,631,181 4,820,875

NOTE 28OPERATING REVENUES

These basically comprise passenger transport revenue corresponding to Trunk line N 4 realized during the
months from January to September 2010 and 2009, detailed below:

September 30,
2010 2009
ThCh$ ThCh$
Revenue collection, trunk line N 4 . . . . . . . . . . . . . . 70,334,330 62,986,855
Billboard and dynamic publicity in buses . . . . . . . . . . 509,674 303,380
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,844,004 63,290,235

These revenues are all denominated in Chilean pesos.

F-197
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT SEPTEMBER 30, 2010 AND 2009
(A free translation from the original prepared in Spanish, see Note 29)

NOTE 29TRANSLATION FROM THE ORIGINAL PREPARED IN SPANISH

The Company has issued its interim consolidated financial statements in Spanish and in conformity with
accounting principles generally accepted in Chile. The financial statements presented herein represent a free
translation from the original prepared in Spanish, and may include some minor changes which were made in
order to provide a better understanding to users of these financial statements.

F-198
 Consolidated Financial Statements
Express de Santiago Uno S.A.
December 31, 2007, 2008 and 2009

Ch$ = Chilean pesos

ThCh$ = Thousands of Chilean pesos
US$ = United States dollars
ThUS$ = Thousands of United States dollars
UF = Unidades de Fomento, an inflation-indexed, peso-denominated monetary unit. The UF rate is set
daily based on changes in the Chilean Consumer Price Index.

(A free translation from the original prepared in Spanish)

F-199
 Report of Independent Accountants
(A free translation from the original prepared in Spanish)

To the Shareholders and Directors of

Express de Santiago Uno S.A.:
1 We have audited the accompanying consolidated balance sheets of Express de Santiago Uno S.A. and
subsidiary as of December 31, 2009 and 2008, and the related consolidated statements of income and of
cash flows for each of the three years in the period ended December 31, 2009. These financial statements
(including the notes thereto) are the responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audits.
2 Except as expressed in paragraph 3, we conducted our audits in accordance with auditing standards
generally accepted in Chile. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
3 The net balance of accounts payable to the related entity Inversiones Alsacia S.A. (Alsacia) amounting to
ThCh$ 223,745 (ThCh$ 183,215 in 2008) includes items under dispute mainly arising from expenses
incurred in prior years on account of this Company in relation to the joint operations performed up to
August 2006. As described in Note 6, the analysis of the different items which make up the balance referred
to above, and the determination of which adjustments are to be recorded, in order to properly recognize in
the financial statements the effect of the expenses jointly incurred during 2005 and 2006, are still pending.
4 In our opinion, except for the effects of the eventual adjustments, that might have been determined to be
necessary, as a consequence of mentioned information including paragraph 3, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of Express de
Santiago Uno S.A. and subsidiary as of December 31, 2009 and 2008, the results of their operations and
their cash flows for each of the three years in the period ended December 31, 2009 in conformity with
accounting principles generally accepted in Chile.

/s/ PricewaterhouseCoopers Consultores, Auditores y Compaa Ltda.

Santiago, Chile, February 24, 2010

F-200
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(A free translation from the original prepared in Spanish)
At December 31,
2009 2008
ThCh$ ThCh$
ASSETS
CURRENT ASSETS
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,943 29,612
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,540,200
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753,038
Trade accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,520,255 4,910,264
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,384 11,042,279
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556,177 1,005,706
Notes and accounts receivable from related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,294 510,510
Recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,476 26,908
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435,588 540,647
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,129 823,684
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,183,258 30,677,334
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,715,504 52,860,182
FIXED ASSETS
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,575,828 4,575,828
Buildings and infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,981,891 17,784,535
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,269,169 92,091,361
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,697,051 2,012,429
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,742,339) (30,489,188)
Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,781,600 85,974,965
OTHER ASSETS
Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,742,442 1,443,840
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,902,664 55,902,505
Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,645,106 57,346,345
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,142,210 196,181,492
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES
Short-term obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,187,778 6,072,760
Long-term bank borrowing - short-term portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,689,450 10,661,919
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,913,762 5,537,844
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935,539 701,990
Notes and accounts payable to related companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644,599 594,390
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,336,946 3,075,417
Withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699,602 624,566
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,377 17,798,121
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,198,053 45,067,007
LONG-TERM LIABILITIES
Obligations with banks and financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,988,808 110,902,097
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,436,498 3,837,977
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,095,743
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,521,049 114,740,074
SHAREHOLDERS' EQUITY
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,258,174 21,258,088
Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,296 95,296
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,021,027 11,203,031
(Loss) income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,951,389) 3,817,996
Total shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,423,108 36,374,411
Total liabilities and shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,142,210 196,181,492

The accompanying Notes 1 to 31 are an integral part of these consolidated financial statements.

F-201
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(A free translation from the original prepared in Spanish)

For the years ended on

December 31,
2009 2008 2007
ThCh$ ThCh$ ThCh$
OPERATING INCOME
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,065,122 91,182,870 66,923,712
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75,172,113) (79,578,430) (59,269,639)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,893,009 11,604,440 7,654,073
Administrative and selling expenses . . . . . . . . . . . . . . . . . . . . . . . (6,464,027) (5,634,891) (5,981,163)
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,428,982 5,969,549 1,672,910

NON-OPERATING INCOME (EXPENSES)

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622,135 2,057,047 2,005,353
Other non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,983 155,992 10,524,707
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,005,289) (10,115,522) (8,435,507)
Other non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218,633) (347,659) (1,241,144)
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,343,677) (157,353) 6,881,685
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,346,835) 6,963,219 5,393,888
Non-operating (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . (9,252,316) (1,444,276) 15,128,982
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . (4,823,334) 4,525,273 16,801,893
Income taxes (expense) benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . 871,945 (707,277) (3,085,001)
NET (LOSS) INCOME FOR THE YEAR . . . . . . . . . . . . . . (3,951,389) 3,817,996 13,716,891

The accompanying Notes 1 to 31 are an integral part of these consolidated financial statements.

F-202
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(A free translation from the original prepared in Spanish)

For the years ended on

December 31,
2009 2008 2007
ThCh$ ThCh$ ThCh$
CASH FLOWS FROM OPERATING ACTIVITIES
Collection of trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,037,803 98,089,658 81,358,532
Interest income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711,876 2,045,636 1,913,022
Other income received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,981 154,633 565,089
Payment to suppliers and personnel . . . . . . . . . . . . . . . . . . . . . . . (64,479,774) (73,013,195) (50,848,894)
Interests paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,191,697) (7,083,176) (7,152,624)
Income tax paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,638)
Other expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (344,002) (18,278,474)
Value added tax and other similar payments . . . . . . . . . . . . . . . . (151,116) (130,462)
Net cash flows provided by operating activities . . . . . . . . . . 27,954,435 19,719,092 7,556,651
CASH FLOWS FROM FINANCING ACTIVITIES
Capital increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 7,680,699
Loans drawn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,211,557 13,099,938
Other financing sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,225
Loans paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,483,042) (7,433,565) (8,343,159)
Net cash flows (used in) provided by financing activities . . (8,482,956) (5,222,008) 12,562,704
CASH FLOWS FROM INVESTMENT ACTIVITIES
Sales of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,037
Sales of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,962,193 5,310,995
Purchase of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,141,490) (10,222,235) (16,051,907)
Investment in financial instruments . . . . . . . . . . . . . . . . . . . . . . . (2,707,235) (4,242,695)
Other investment disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . (17,940,155) (6,142,639)
Net cash flows used in investment activities . . . . . . . . . . . . . (22,826,687) (14,464,930) (16,879,514)
Total net cash flows for the year . . . . . . . . . . . . . . . . . . . . . . (3,355,208) 32,154 3,239,841
Effect of inflation on cash and cash equivalents . . . . . . . . . . . . . . . . . . 57,301 (271,274) (396,068)
NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . (3,297,907) (239,120) 2,843,773
OPENING BALANCE OF CASH AND CASH EQUIVALENTS . . . 3,322,850 3,561,970 718,197
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS . . . 24,943 3,322,850 3,561,970

F-203
 RECONCILIATION OF CASH FLOWS FROM OPERATING
ACTIVITIES TO NET INCOME FOR THE YEAR
(A free translation from the original prepared in Spanish)
For the years ended on
December 31,
2009 2008 2007
ThCh$ ThCh$ ThCh$
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,951,389) 3,817,996 13,716,891
Loss from sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,032 12,477 166,906
Loss from sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628,732
Charges (credits) to income which do not represent cash flows:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,205,202 12,598,053 7,274,662
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . 3,842,978 3,939,159 3,560,024
Write-offs and provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,569,499 2,086,927 2,338,042
Price-level restatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,343,677 157,353 (6,881,685)
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,346,835 (6,963,219) (5,393,888)
Other credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,881,383) (842,963)
Other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,732,869 3,914,640
Changes in assets which affect cash flows, (increase) decrease:
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,850,112 6,784,314 14,436,429
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336,346 2,150,960 (1,728,554)
Changes in liabilities with affect cash flows, increase (decrease):
Accounts payable related to operating income . . . . . . . . . . . . . . . . 391,279 (8,135,554) (14,348,282)
Interests payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (186,466) (637,760)
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,045,696) 239,495
Other accounts payable related to non-operating results . . . . . . . . . 225,470 936,022 (9,284,303)
Value added tax and other similar payments . . . . . . . . . . . . . . . . . . (94,061)
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES . . . 27,954,435 19,719,092 7,556,651

The accompanying Notes 1 to 31 are an integral part of these consolidated financial statements.

F-204
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 1COMPANYS REGISTRATION

a) Companys registration
Express de Santiago Uno S.A. (hereinafter the Company) was registered under N 884 in the Official
Corporations Register of the Chilean Superintendency of Securities and Insurance (hereinafter the S.V.S.) on
January 27, 2005, as required by the Bidding Conditions for the concession of the Trunk Line N 4 business unit
of the Transantiago system, issued by the Ministry of Transport and Telecommunications.

b) Companys incorporation and operations

Express de Santiago Uno S.A. was incorporated as a closely-held corporation through public deed dated
November 22, 2004. The Company is basically engaged in the rendering of public transport services in routes of
the Metropolitan Region of Santiago which were awarded through a concession and any other activity related to
its main line of business.

The annual shareholders meeting held on December 9, 2004 agreed to extend the Companys purpose to
billboard and dynamic advertising activities through the exploitation of advertising zones in buses and other
services related to its main activity.

On October 22, 2005 the Company began to provide passenger public transport services associated with the
Trunk Line N 4 business unit, of Transantiago.

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Accounting period
The accompanying consolidated financial statements cover the period from January 1 to December 31, 2009,
2008 and 2007.

b) Basis of preparation
These financial statements have been prepared in accordance with accounting principles generally accepted in
Chile, issued by the Chilean Institute of Accountants, and the instructions of the Chilean Superintendency of
Securities and Insurance (S.V.S.). In the event of any differences, the S.V.S. regulations will prevail.

The Company has issued its year end consolidated financial statements in Spanish and in conformity with
accounting principles generally accepted in Chile. The financial statements presented herein represent a free
translation from the original prepared in Spanish, and may include some minor changes which were made in
order to provide a better understanding to users of these financial statements.

c) Basis of presentation
For comparison purposes, the consolidated financial statements for 2008 and 2007 and the amounts disclosed in
the related notes have been restated in terms of Chilean pesos of December 31, 2009 purshasing power.

d) Basis of consolidation
The consolidated financial statements include assets, liabilities, income, cash flows of the Company and its
subsidiary. Inter-company transactions or balances have been eliminated. The shareholding of minority investors
in the balance sheet and statement of income is shown as Minority Interest.

F-205
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

The consolidated financial statements include the following subsidiary:

Shareholding
2009 2008
RUT Company Direct Indirect Total Total
% % % %
0-E . . . . . . . . . . . . . . . EXPS de Colombia Ltda. 99.9900 0.0000 99.9900 99.9900

e) Price-level restatements
The financial statements have been restated to reflect the effect of price-level changes in the purchasing power of
the Chilean peso during the respective years, in accordance with accounting principles generally accepted in
Chile. These restatements have been determined on the basis of the percentage change in the official consumer
price index, which showed a negative change of 2.3% from January to December in 2009 (positive change of
8.9% and 7.4 % in 2008 and 2007, respectively).

f) Translation of the Subsidiarys financial statements

The financial statements of the foreign subsidiary have been translated to Chilean pesos as set out in Technical
Bulletin N 64 of the Chilean Institute of Accountants, official letters and circulars issued by the S.V.S. on
foreign investments.

g) Basis of translation
At each year-end, assets and liabilities in foreign currency and UF have been translated into Chilean pesos at the
following exchange rates:
Ch$ per unit Ch$ per unit Ch$ per unit
2009 2008 2007

United States dollar . . . . . . . . . . . . . . . . . . . . . . . . 507.10 636.45 496.89

Unidad de Fomento (UF) . . . . . . . . . . . . . . . . . . . 20,942.88 21,452.57 19,662.66

h) Time deposits
Investment in time deposits is shown at the value of the initial investment plus interests accrued at each year-end.

i) Marketable securities
Investment in marketable securities refers to mutual fund quotas shown at the value of the respective quota at the
year end.

j) Allowance for doubtful accounts

The Companys policy is to make provisions for the doubtfully recoverable balances, which are determined on
the basis of the ageing of balances and reports from the Companys legal and commercial advisors. These
provisions are shown net of Trade receivables, Notes receivable and Other receivables, as appropriate.

k) Inventories

Inventories of fuels and spare parts necessary for the operation of buses are valued at price-level acquisition cost
and shown in Other current assets, net of provision for obsolescence of spare parts without turnover, which has
been made over items exceeding one year.

F-206
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

l) Prepaid expenses

The cost of insurance policies is included in the prepaid expenses account. This cost is amortized over the term of
the policy.

m) Other current assets

This caption basically includes deposits and transactions under repurchase agreement, both with restrictions,
since they are intended to guarantee the payment of interests and capital installments for the loans granted by the
HSBC Bank, as described in Note 14 and short-term forward contracts in 2008, which hedged against foreign
exchange risk. These contracts have been valued and accounted for as set forth in Technical Bulletin N 57 of the
Chilean Institute of Accountants.

n) Fixed assets

Fixed assets basically refer to buses for the public transport of passengers and are valued at price-level
acquisition cost, which includes all expenses incurred until the date on which such assets are available for use
and are shown in Machinery and equipment. The other fixed assets are shown at price-level acquisition cost.

Buildings and infrastructure includes bus terminals, which in essence have been completely finished, and those
work in process corresponding to bus terminals not completely finished yet.

The disbursements for the acquisition of computer software packages are shown at restated acquisition cost and
amortized over a four-year period.

Leased assets refer to lease contracts of movable property with the characteristics of a finance lease. They are
recorded as purchases of fixed assets, recognizing the total obligation and interests on an accrual basis. These
assets are not the legal property of the Company until it exercises the purchase option and it may not, therefore,
freely dispose them of.

As a policy, the Company charges to net income for the year preventive and corrective maintenance performed to
its fleet.

The maintenance provision recorded as of December 31, 2008 was made as a result of the postponement of cash
disbursements which had to be made in the fleet in 2008, and which were actually carried out during 2009.

o) Fixed asset depreciation

Depreciation for the year has been calculated using the straight-line method in accordance with the remaining
useful lives of the respective assets.

Buses of depreciation have been estimated at nine years in accordance with a technical study performed to
determine the wear and tear of such vehicles.

F-207
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

p) Other assetsOther

This caption includes the following items:

i) Technical operative reserve (TOR)
The Technical Operative Reserve is defined as a provision incorporated in the fare paid by users, to cover
eventual temporary lags or mismatches between the income and costs of the Transantiago passenger
transportation system. The amounts paid to the Transantiago Financial Administrator (AFT) for this item
relation to the Trunk Line N 4 business unit are recorded as deferred assets. They will be amortized,
charging to operating income, during the concessions operating period, based on projected income to be
obtained from providing transportation services.
The debt originally incurred with the System was reflected in short- and long-term liabilities, and as of
December 31, 2008 the balance due was included in Other current liabilities (Note 13).
ii) Derivatives contracts
The Company maintains contracts to hedge against risks of fluctuation in both the exchange and interest
rates. These contracts have been valued and recorded as set forth in Technical Bulletin N 57 of the Chilean
Institute of Accountants.

q) Income taxes and deferred taxes

The Company has recorded income taxes on the basis of the net taxable income, determined in accordance with
the regulations contained in the Income Tax Law.

Deferred taxes arising from temporary differences are shown in accordance with Technical Bulletins N 60 and
N 71 of the Chilean Institute of Accountants and the regulations contained in SVS Circular Letter N 1,466.

r) Provision for staff vacations

The Company recognizes the cost of staff vacation and benefits on an accrual basis at year-end.

s) Operating income

The income from the public transport fare is included in the operating income account. Income coming from
buses rental, billboard and dynamic advertising are included in the financial statements once services have been
rendered.

t) Cash Flow Statement

The Companys policy is to consider as cash and cash equivalent mutual funds and all highly liquid financial
investments maturing in 90 days or less, and with minimum risk of loss in value. Cash flows from operating
activities include all business-related cash flows, as well as paid interest, interest income and, in general, all cash
flows not defined as from financing or investment activities. The operating concept used in this statement is more
comprehensive than that used in the consolidated statement of income.

F-208
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 3ACCOUNTING CHANGES

There have been no accounting changes during the year 2009 as compared to the previous year.

NOTE 4MARKETABLE SECURITIES

At December 31, 2009 this caption shows no balances.

At December 31, 2008 the balance refers to:

Final
Instrument Institution Currency value
ThCh$
Mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Banco BCI Dollar 197,469
Mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Banco BCI Pesos 555,569
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753,038

NOTE 5SHORTAND LONG-TERM RECEIVABLES

At December 31, 2009 and 2008 this caption is as follows:

Short-term receivables:

2009 2008
ThCh$ ThCh$
Trade receivables
Advertising in buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323,096 251,212
Provision for passenger revenue (1) . . . . . . . . . . . . . . . . . . . 2,197,159 1,928,198
AFT differences, collection income (2) . . . . . . . . . . . . . . . . 2,730,854
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,520,255 4,910,264
Notes receivable
AFT promissory notes (IMG) (3) . . . . . . . . . . . . . . . . . . . . . 10,842,967
Performance bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,388 104,796
Checks for collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,516
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,384 11,042,279

F-209
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

2009 2008
ThCh$ ThCh$
Other receivables
Personnel accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,299) 47,858
Advances to suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,035 91,685
AFT, TAGs receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456,687 866,163
Volvo, bus guarantees, spare parts (4) . . . . . . . . . . . . . . . . . . 10,941
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,813
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556,177 1,005,706
Long-term receivables
AFT passenger revenue (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . 887,940
AFT discounts on passenger revenue (5) . . . . . . . . . . . . . . . . 1,742,442 555,900
Total long-term receivables . . . . . . . . . . . . . . . . . . . . . . . 1,742,442 1,443,840

(1) Provision for passenger revenue accrued between December 22 and 31, 2009 (same period in 2008 and
2007), which were paid by the Transantiago Financial Administrator (AFT), on January 11, 2010 (for the
same period, January 10, 2009), in accordance with the Bidding Conditions of the concession contract and
subsequent amendments.
(2) Referred to passenger revenue pending payment by the AFT, in conformity with settlement N 37,
corresponding to the period from December 6, 2008 to December 21, 2008. Such settlement was paid by the
AFT on January 2, 2009.
(3) Referred to the promissory notes signed with the AFT, for the balance of Minimum Guaranteed Income
(IMG) as of December 31, 2008 amounting to ThCh$ 3,705,066 (equivalent to UF 176,775.49) and
promissory notes for compensation of lower revenue and higher costs derived from the postponement of
entry into full operation of the Transantiago system, whose balance as of December 31, 2008 was ThCh$
7,137,901 (equivalent to UF 313,389).
These promissory notes were compensated through the RTO installment payable to the AFT, on July 1,
2009.
(4) Referred to the balance receivable from the AFT, as per Official letter N 1048 dated March 26, 2007 of the
Ministry of Transport, which states that the minimum guaranteed income for the operation period from
October 22, 2005 to December 21, 2006, amounts to ThCh$ 5,472,170. On April 16, 2007, the AFT paid the
amount of ThCh$ 4,584,230, with a balance of ThCh$ 887,940 pending collection.
Official Letter N 2740 paragraph N2 dated June 28, 2009 issued by the Ministry of Transport, authorized
to compensate the balance of ThCh$ 887,940, corresponding to IMG and equivalent to UF 49,399.27 plus
the respective interests accrued at a 3.56% interest rate annually, calculated between March 10, 2007 and the
payment date, amounting to UF 53,616.10 (ThCh$ 1,096,529), against the RTO installment payable to the
AFT, which was paid on July 1, 2009 to the AFT.
(5) Refers to discounts withheld by the AFT in passenger revenue settlements N 34 to 55 (from October 2008
to September 2009), according to Resolutions N 1985 and 69 of the Ministry of Transport. These discounts
are applied every two weeks in each payment settlement made by the AFT, through Exempt Resolution
issued by said Ministry of Transport, which also mentions that these discounts are to be recognized as a
liability by the system.
The Companys management is making the relevant arrangements to obtain the refund for the withheld
discounts.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

Current assets
Over 90
Up to 90 days up to 1 year Current assets Long-term
Item 2009 2008 2009 2008 Subtotal 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Trade receivables . . . . 2,520,255 4,910,264 2,520,255 2,520,255 4,910,264
Notes receivable . . . . 111,384 3,059,438 7,982,841 111,384 111,384 11,042,279
Other receivables . . . . 556,177 1,005,706 556,177 556,177 1,005,706 1,742,442 1,443,840
Total . . . . . . . . . . 3,187,816 16,958,249 1,742,442 1,443,840

NOTE 6BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

The balances and transactions with related companies refer to customary operations of the business performed in
accordance with the legal regulations, under equitable conditions and at market prices. There are no contracts for
such purposes, except for the bus rental contract with Inversiones Alsacia S.A., effective from August 27, 2005
to August 26, 2006. Transactions are in local currency (Chilean pesos) and accrue no interest rate for such
operations.

As instructed by Official Letter N 06353 dated June 11, 2007 of the S.V.S., the balance as of December 31,
2006 with Inversiones Alsacia S.A. was changed, reversing a contingent gain of ThCh$ 1,074,889 (historic). This
gain had been originally recorded as lower Administrative and selling expenses under the income statement for
the year ended December 31, 2006. The reversed amount originates from an adjustment made to the financial
statements of the Company as of June 30, 2006, for which Express de Santiago Uno S.A. had recorded an
account receivable from Inversiones Alsacia S.A. amounting to ThCh$ 611,317 (historic). Through the reversion
of the referred adjustments, as requested by the S.V.S., the financial statements as of December 31, 2006 reflect
an account payable to Inversiones Alsacia S.A of ThCh$ 463,572 (historic).

This account payable to Inversiones Alsacia S.A. of ThCh$ 463,572 (historic), and other subsequent differences
in accounts between both companies are still under discussion.

On April 3, 2008, as instructed by Ordinary Official Letter N 8703 of the S.V.S., the Company has had to report
the actions taken to clarify the net payable balance of ThCh$ 88,338 (historic) it had with Inversiones Alsacia
S.A. and which originated the qualification in the audit report as of December 31, 2007, and the due date
estimated to complete the analysis of the different items composing the referred balance, and determine the
adjustments to be made in order to properly recognize the effect of the expenses incurred in the financial
statements.

In response to the Ordinary Official Letter N 8703, on April 9, 2008 it was reported that, according to the
information, the Parent companys management had available, the parties to the contract are in direct discussions
intended to settle the differences existing in this regard, which are expected to be definitely solved in the next
months. Both parties accepted that, in the event they would not reach an agreement in every point, the remaining
differences would be subjected to any mechanism for settlement of disputes within the current year.

During 2008 and 2009 to date, the Companys management continued the direct discussions with Inversiones
Alsacia S.A. in order to settle the differences existing between both companies, with the agreement mentioned in
the previous paragraph remaining valid. The said discussions have not concluded yet. The Company discloses
every transaction with related companies and parties.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

Balances and transactions with related companies are shown in tables below:

a) Notes and accounts receivable

Short-term Long-term
Tax Registration N Company 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
99.577.400-3 . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Alsacia S.A 418,026 408,412
76.195.710-4 . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Eco Uno Ltda. 105,268 102,098
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,294 510,510

b) Notes and accounts payable

Short-term Long-term
Tax Registration N Company 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
99.577.400-3 . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Alsalcia S.A. 641,771 591,627
76.195.710-4 . . . . . . . . . . . . . . . . . . . . . . . . . . Inversiones Eco Uno Ltda. 2,828 2,763
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644,599 594,390

c) Transactions

Effect on income
Amount (charge/credit)
Company Tax N Relationship Transaction 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
Inversiones Alsacia S.A. . . . . . 99,577,400-3 Related company Expense recovery invoice 33,515 (33,515) 88,116 (88,116)
Inversiones Eco Uno Ltda. . . . . 76,195,710-4 Parent Expense recovery 99,335
Express del futuro S.A. . . . . . . 0-E Related company Expense recovery 1,230 (1,230) 20,384 (4,413)

NOTE 7INCOME TAXES AND DEFERRED TAXES

a) Company tax

At December 31, 2009, the Company has made no provisions for income tax, as it showed negative tax results
amounting to ThCh$ 35,034,112.

At December 31, 2009 the subsidiary made provisions for income tax of ThCh$ 39 (ThCh$ 234 in 2008)

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

b) Recoverable taxes:

Recoverable taxes are detailed as follows:

2009 2008
ThCh$ ThCh$
Deductible training expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,865 38,926
Recoverable tax, 2009 Income Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,927
Recoverable tax, Exps de Colombia Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 5
Total recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,884 38,931
Less:
Provision for additional income tax, disallowable expenses . . . . . . . . . . . . . . . . . (15,369) (11,789)
Income tax provision, Exps de Colombia Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . (39) (234)
Total taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,408) (12,023)
Recoverable taxes balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,476 26,908

The subsidiary has not recorded deferred taxes, since there are no temporary differences between the accounting
and tax results.

c) Deferred taxes:
2009 2008
Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities
Concept Short term Long term Short term Long term Short term Long term Short term Long term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Temporary differences:
Provision for staff
vacations . . . . . . . . . . 220,079 198,328
Fixed asset
depreciation . . . . . . . . 2,764,644 2,225,322
Other events . . . . . . . . . . 90,050 6,190,981 372,172 40,211 3,820,657
Accumulated tax loss . . . 5,955,799 2,208,002
Depreciation
provision . . . . . . . . . . 563,328 293,395
Total . . . . . . . . . . . . 310,129 6,519,127 8,955,625 863,895 2,208,002 40,211 6,045,979

d) Effect on income
Item 2009 2008 2007
ThCh$ ThCh$ ThCh$
Current tax expense (tax provision) . . . . . . . . . . . . . . . (15,408) (12,023) (19,582)
Deferred tax assets or liabilities for the year . . . . . . . . 887,353 (695,254) (3,120,464)
Tax expense adjustment . . . . . . . . . . . . . . . . . . . . . . . . 71,737
Other changes and credits . . . . . . . . . . . . . . . . . . . . . . . (16,692)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871,945 (707,277) (3,085,001)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 8OTHER CURRENT ASSETS

At each year-end this caption is detailed as follows:

2009 2008
ThCh$ ThCh$
Rental guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,033 7,037
Time deposits and repurchase agreements (1) . . . . . . 12,279,408 15,038,977
Spare part and tool warehouse . . . . . . . . . . . . . . . . . . 2,354,541 2,195,148
Provision for spare part obsolescence . . . . . . . . . . . . . (249,421) (243,684)
Other guarantees (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,635,497
Deposit, HSBC Bank Colombia (3) . . . . . . . . . . . . . . 11,156,200 13,679,856
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,183,258 30,677,334

(1) Refers to fixed-term deposits with HSBC Bank (Chile) for guaranteeing and provisioning the payment of the
principal, and the interest installments in relation to the loans described in Note 14. At December 31, 2009
deposits are detailed as follows:

Guaranteed deposits:

Expiration Origin Subscription Book

Effective date date Bank Type currency value value value Monthly rate
%
08/27/2009 02/26/2010 HSBC DPF US$ 551,156 508,332 0.83
09/29/2009 02/26/2010 HSBC DPF US$ 628,438 584,974 1.15
10/14/2009 02/26/2010 HSBC DPF US$ 637,780 584,810 0.80
10/26/2009 02/26/2010 HSBC DPF US$ 2,129,544 2,031,246 0.70
10/27/2009 02/26/2010 HSBC DPF US$ 2,666,670 2,539,093 0.70
10/27/2009 02/26/2010 HSBC DPF US$ 616,724 584,684 0.70
10/28/2009 02/26/2010 HSBC DPF US$ 884,594 842,337 0.70
11/10/2009 02/26/2010 HSBC DPF US$ 443,554 436,350 0.46
11/11/2009 02/26/2010 HSBC DPF US$ 587,887 583,986 0.50
11/27/2009 02/26/2010 HSBC DPF US$ 573,407 583,581 0.58
12/11/2009 02/26/2010 HSBC DPF US$ 571,051 583,672 0.60
12/29/2009 02/26/2010 HSBC DPF US$ 582,820 582,605 0.45
10/14/2009 02/26/2010 HSBC DPF Pesos 5,977 5,981 0.07
10/27/2009 02/26/2010 HSBC DPF Pesos 5,866 5,871 0.09
10/29/2009 02/26/2010 HSBC DPF Pesos 5,984 5,988 0.08
11/10/2009 02/26/2010 HSBC DPF Pesos 5,985 5,987 0.04
11/11/2009 02/26/2010 HSBC DPF Pesos 6,082 6,085 0.05
11/27/2009 02/26/2010 HSBC DPF Pesos 5,970 5,975 0.08
12/11/2009 02/26/2010 HSBC DPF Pesos 5,969 5,971 0.04
12/29/2009 02/26/2010 HSBC DPF Pesos 31,872 31,874 0.04
Total deposits at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . 10,947,330 10,519,402

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

Non-guaranteed repurchase agreement:

Effective Expiration Type Origin Subscription Book

date date Bank currency value value value

12/30/09 01/04/10 HSBC Repo Pesos 1,760,000 1,760,006

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,760,000 1,760,006
Total deposits and repurchase agreements at December 31, 2009 . . . . . . . . . 12,707,330 12,279,408

At December 31, 2008 time deposits and repurchase agreements are detailed as follows:

Guaranteed deposits:

Expiration Subscription Book

Effective date date Bank Type currency Origin value value value Monthly rate
%
11/25/2008 02/27/2009 HSBC DPF US$ 387,713 373,797 0.24
11/26/2008 02/27/2009 HSBC DPF US$ 3,284,234 3,115,019 0.24
11/26/2008 02/27/2009 HSBC DPF US$ 1,804,269 1,711,284 0.24
11/26/2008 02/27/2009 HSBC DPF US$ 2,504,318 2,373,761 0.24
11/28/2008 02/27/2009 HSBC DPF US$ 203,577 193,752 0.24
12/10/2008 02/27/2009 HSBC DPF Pesos 2,393,916 2,292,641 0.24
12/11/2008 02/27/2009 HSBC DPF Pesos 590,622 572,248 0.24
12/29/2008 02/27/2009 HSBC DPF Pesos 563,313 572,070 1.05
11/28/2008 02/27/2009 HSBC DPF Pesos 41,499 41,814 0.69
12/10/2008 02/27/2009 HSBC DPF Pesos 212,609 213,604 0.67
12/12/2008 02/27/2009 HSBC DPF Pesos 41,379 41,541 0.62
12/29/2008 02/27/2009 HSBC DPF Pesos 41,331 41,350 0.70
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,068,780 11,542,881

Non-guaranteed repurchase agreement:

Expiration Type Origin Subscription Book Monthly

Effective date date Bank currency value value value rate
%
28/12/07 15/01/08 HSBC Repo Pesos 3,484,388 3,496,096 0.63
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,484,388 3,496,096
Total deposits and repurchase agreements . . . . . . . . . . . . . . . . . . . 15,553,168 15,038,977

(2) Refers to funds held with the Credit Suisse Bank, equivalent to ThUS$ 5,197 to hedge the market value as
of November 10, 2009 of the swap contract entered into with the referred bank. (For further information see
Note 23Derivatives Contracts).
(3) Refers to a US$ 22 million deposit held by the subsidiary Exps de Colombia Ltda. with HSBC Bank PLC.
The deposit is for guaranteeing the collateral loan granted to Express de Santiago Uno S.A., for equal
amount, through HSBC Bank (Chile).

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 9INFORMATION ON REPURCHASE AND RESALE TRANSACTIONS

The Company maintains a resale agreement, signed on December 30, 2009 with the HSBC Bank, at a 0.01% monthly rate, and maturing on January 4,
2010. The resale agreement is classified under Other current assets, whose subscription value and book value as of December 31, 2009 are
ThCh$ 1,760,000 and ThCh$ 1,760,006, respectively.

Dates
Subscription Market Resale agreement
Code Effective Expiration Counterparty Currency Agreed price Instrument Book value value value Provision Operation

CV . . . 12/30/2009 01/04/2010 HSBC Bank (Chile) Pesos 1,760,333 Repo 1,760,006 1,760,000 1,760,000 6 Matched
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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 10FIXED ASSETS

At each year-end, fixed assets are as follows:

Gross fixed assets Accumulated depreciation

2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
Land
Land for terminals . . . . . . . . . . . . . . . . . . . . . . . . 4,575,828 4,575,828
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,575,828 4,575,828
Buildings and infrastructure
Buildings and infrastructure . . . . . . . . . . . . . . . . . 20,922,259 (4,538,838) (1,725,865)
Works in process . . . . . . . . . . . . . . . . . . . . . . . . . 1,059,632 17,784,535
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,981,891 17,784,535 (4,538,838) (1,725,865)
Machinery and equipment
Transport equipment . . . . . . . . . . . . . . . . . . . . . . . 91,699,608 91,618,972 (38,405,231) (27,787,983)
Machinery and equipment . . . . . . . . . . . . . . . . . . 569,561 472,389 (171,911) (109,722)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,269,169 92,091,361 (38,577,142) (27,897,705)
Other fixed assets
Furniture and office equipment . . . . . . . . . . . . . . 347,761 238,760 (111,526) (66,053)
Computer equipment . . . . . . . . . . . . . . . . . . . . . . 425,838 342,562 (218,692) (156,211)
Other fixed assets (1) . . . . . . . . . . . . . . . . . . . . . . 1,647,315 1,366,759 (248,562) (641,072)
Improvements leased offices . . . . . . . . . . . . . . . . 276,137 (47,579)
Leased assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,348 (2,282)
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,697,051 2,012,429 (626,359) (865,618)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,523,939 116,464,153 (43,742,339) (30,489,188)
Total net fixed assets . . . . . . . . . . . . . . . . . . 77,781,600 85,974,965

(1) Other fixed assets basically refers to computer software which, at December 31, 2009 has a net value of
ThCh$ 552,576. The remaining balance refers to tools and other minor assets.

The charge for depreciation for the year has been recognized in the following accounts:

2009 2008 2007

ThCh$ ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,841,331 12,315,232 7,071,031
Administrative and selling expenses . . . . . . . . . . . 363,871 282,821 203,631
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,205,202 12,598,053 7,274,662

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 11OTHER ASSETS

2009 2008
ThCh$ ThCh$
Technical Operative Reserve (1) . . . . . . . . . . . . . . . . . 35,274,002 39,035,896
Reserve for AFT (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 590,965 672,049
Lease guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,697 37,727
Derivatives contracts (3) . . . . . . . . . . . . . . . . . . . . . . . 16,156,833
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,902,664 55,902,505

(1) Refers to the total amount of the financial contribution to the technical operative reserve (TOR) for the
Trunk Line N 4 business unit, to cover eventual differences or temporary mismatches between income and
expenses. This amount is amortized according to the curve of forecast income to be obtained from the
provision of transport services. As of December 31, 2009, the accumulated amortization for this item
amounts to ThCh$ 14,707,021 (ThCh$ 10,945,039 in 2008) and the effect on income for the period 2009
amounts to ThCh$ 3,779,655 (ThCh$ 3,879,723 in 2008 and ThCh$ 3,660,180 in 2007).
(2) From the beginning of phase one, defined in the Transantiago 2003 Bidding Conditions. AFT will be the
exclusive issuer of the tickets related to the collection of the coins paid by passengers in order to use the
transport system. The AFT provides these tickets to the Company, who pays a total of Ch$ 20 for each
ticket, from which Ch$ 16 belong to a deposit to increase the systems TOR and should be credited by the
AFT to the two temporary account of the system. The AFT can use freely the other Ch$ 4. This reserve
corresponds to the total amount of Ch$ 16 per ticket that the Company has acquired from the beginning of
the operation until June 30, 2006. This amount is amortized according to the curve of projected income
obtained from the provision of transport services. As of December 31, 2009, the amortization for this item
amounts to ThCh$ 246,395 (ThCh$ 165,399 in 2008) and the effect on income for the period 2009 amounts
to ThCh$ 63,323 (ThCh$ 59,437 in 2008 and ThCh$ 48,088 in 2007).
According to the amendment to the concession contract, article 4, signed on June 30, 2006, between the
Company and the Ministry of Transport and Telecommunications, effective July 1, 2006, the Ch$ 16 per
each ticket ceased being paid to the AFT.
(3) Refers to the Cross Currency Swap contracts subscribed with HSBC Bank (Chile) and Credit Suisse Bank of
London, to hedge the loans in dollars from the fluctuation in the exchange rate and interest rate (further
information in note 23 Derivatives Contracts).

NOTE 12SHORT-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS

a) Short-term obligations with banks and financial institutions:

At December 31, 2009 the loans obtained from HSBC Bank Chile are as follows:
Loan Subscription Maturity Initial Book Interest
number date date amount value rate

202180 11/28/2007 02/08/2010 465,000 469,233 0.44

202181 11/28/2007 02/08/2010 2,590,000 2,613,556 0.44
202247 11/28/2007 02/08/2010 735,000 741,688 0.44
202508 12/05/2007 02/08/2010 2,342,000 2,363,301 0.44
Total . . . . . . 6,132,000 6,187,778

F-218
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

At December 31, 2008 the loans obtained from the HSBC Bank Chile are as follows:
Loan Subscription Maturity Initial Book Interest
number date date amount value rate
202180 11/28/2007 01/28/2009 454,305 460,508 1.28
202181 11/28/2007 01/28/2009 2,530,430 2,564,979 1.28
202247 11/28/2007 01/28/2009 718,098 727,899 1.28
202508 12/05/2007 01/28/2009 2,288,134 2,319,374 1.28
Total . . . . . . 5,990,967 6,072,760

b) Long-term obligations with banks and financial institutions, short-term portion:

This caption includes the principal installments maturing within one year and the accrued interests corresponding
to the loans granted by HSBC Bank PLC (EKN-1 and NEXI) to be paid in equal consecutive semi-annual
installments on February 28, and August 28 of each year. At December 31, 2009, the installments payable
amounted to ThCh$ 9,635,866 (ThCh$ 9,017,453 in 2008).

These interests are determined by the unpaid balance of the principal of the promissory notes, from the respective
subscription date and up to the closing date, and payable on a semi-annually basis on February 28 and August 28
of each year.

At December 31, 2009, accrued interests payable amounted to ThCh$ 1,053,584 (ThCh$ 1,644,466 in 2008).

c) At December 31, 2009 and 2008, short-term obligations with banks and financial institutions are as follows:

Short term:
Non-indexed Chilean
pesos Total
Bank of financial
Tax registration N institution 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
97.951.000-4 . . . . . . . . . . . . . . . . . . . . . . HSBC Bank (Chile) 6,187,778 6,072,760 6,187,778 6,072,760
Total . . . . . . . . . . . . . . . . . . . . . . . . 6,187,778 6,072,760 6,187,778 6,072,760
Principal outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,132,000 5,990,964 6,132,000 5,990,964
Average annual interest rate (%): . . . . . . . . . . . . . . . . . . . . . . . . 9.36 11.16

Long term:
Dollars Total
Bank of financial
Tax registration N institution 2009 2008 2009 2008
ThCh$ ThCh$ ThCh$ ThCh$
97.951.000-4 . . . . . . . . . . . . . . . . . . HSBC Bank (Chile)
EKN-NEXI 10,689,450 10,661,919 10,689,450 10,661,919
Total . . . . . . . . . . . . . . . . . . . . 10,689,450 10,661,919 10,689,450 10,661,919
Principal outstanding . . . . . . . . . . . . 9,635,866 9,017,453 9,635,866 9,017,453
Average annual interest rate . . . . . . . . . . . . . . . . . . . . . . . . 5.87 5.87
Percentage local currency obligation (%) . . . . . . . . . . . . . . 63.3400
Percentage foreign currency obligation (%) . . . . . . . . . . . . 36.6600

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 13OTHER CURRENT LIABILITIES

At December 31, 2009 and 2008, this caption is detailed as follows:

2009 2008
ThCh$ ThCh$
Technical operative reserve (TOR) (1) . . . . . . . . . . . . . . 17,798,121
Forward contracts (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,377
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,377 17,798,121

(1) Refers to installment N 4 for the contribution to the Technical Operative Reserve (TOR) amounting to UF
849,181 maturing on July 1, 2009, which was paid to the AFT on that same date.
(2) Refers to forward contracts, signed with the Credit Suisse Bank of London. (For further information see
Note 23, Derivative Contracts).

NOTE 14LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS

At December 31, 2009 the outstanding loans are as follows:

a) Loan from HSBC BANK PLC (London) EKN-1:

Between August 17, 2005 and August 1, 2006 thirteen disbursements corresponding to thirteen promissory notes
totaling ThUS 125,278 were received, and will be paid in twenty equal and consecutive semi-annual installments,
each payable on February 28 and August 28 of each year, starting on February 28, 2007, at a 5.38 fixed annual
rate. This loan funded and paid the purchase of 606 buses, equivalent to approximately 85% of the total bus sale
contract signed with Volvo. On March 6, 2007, the capital payment schedule was changed from 20 to 19 equal
semi-annual and consecutive installments, payable semi-annually from August 28, 2007 until August 30, 2016,
the other terms and conditions of the respective loan contract remaining unchanged. At December 31, 2009, the
principal balances shown in long term are ThCh$ 40,123,235 equivalent to ThUS 79,123.

On February 28, 2008, a cross currency swap contract was signed with Credit Suisse International Bank of
London to hedge the loan referred to above against the fluctuation of the exchange rate and interest rate,
amounting to ThUS$ 112,091, equivalent to UF 2,614,010 (Further information on this contract in Note 23,
Derivative Contracts).

b) Joint loan with HSBC Bank of TokyoSumitomo BankNEXI, Japanese Loan and Insurance
Corporation:
Between March 30, 2006 and July 7, 2006 three disbursements totaling ThUS$ 36,000 were received. This loan
has been agreed at 8 years, with five grace years (between February 28, 2010 and August 28, 2017, payable semi-
annually on February 28 and August 28 of each year), at a floating interest rate Libor 180, plus 0.6% annually,
payable semi-annually between August 28, 2006, until August 28, 2017. As of December 31, 2009 the principal
balance presented in long-term amounts to ThCh$ 15,973,650 equivalent to ThUS$ 31,500.

On December 12, 2007, a swap contract was entered into with HSBC Bank (Chile), to hedge the loan from
HSBC-NEXI of ThUS 36,000 against the fluctuations of the exchange rate and interest rate. (See Note N 23,
Derivative Contracts).

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

c) Loan from HSBC Bank (Chile):

On June 13, 2006 a loan was obtained through HSBC Bank (Chile) amounting to ThCh$ 11,660,000 (historic)
payable at an 8-year term (between February 28, 2011 and February 28, 2018). Interests will begin to be paid in
advance every six months, from August 28, 2006 and will be estimated over the principal or its balance. The
respective promissory note will accrue interests at a Nominal TAB rate for 180-day operations, plus 0.38%
annually. On February 28, 2008, a principal prepayment of ThCh$ 914,949 was made (historic). As of
December 31, 2009, the capital balance shown in long-term amounts to ThCh$ 10,735,098.

This obligation is guaranteed by a Stanby Letter of Credit of US$ 22 millions in favor of the HSBC Bank (Chile)
issued by HSBC Bank Plc, London, at the request of Exps Colombia Limitada. The guarantee expires within one
year and is automatically renewed each year, until the Companys obligations with HSBC Bank (Chile) are
extinguished.

d) Loan from HSBC Bank PLC (London) EKN-2:

On December 26, 2007 the total of ThUS$ 8,158 corresponding to four promissory notes was received, and on
April 10, 2008 a total of ThUS$ 4,779 was received, corresponding to two promissory notes; the EKN-2 loan
totals ThUS$ 12,937, which will be paid in 19 equal and consecutive semi-annual installments each, payable on
February 28 and August 28 of each year, starting in August 2008, at a fixed annual rate of 6.38%. The first
disbursement of ThUS$ 8,158 made on December 26, 2007 financed the purchase of 59 buses and the second
disbursement financed the purchase of other 25 buses, model B-7, from Volvo Brazil. At December 31, 2009, the
principal balance shown in the long-term amounts to ThCh$ 5,000,624 equivalent to ThUS$ 9,861.

On February 28, 2008 the Cross Currency Swap contract was signed with the Credit Suisse International Bank of
London, to hedge the loan referred to above against the fluctuation of the exchange rate and interest rate,
amounting to ThUS$ 8,243 equivalent to UF 194,731 (further information on this contract in Note 23, Derivative
Contracts).

e) Loan from Nordic Investment Bank:

On March 28, 2006, our subsidiary EXPS Colombia Ltda. obtained a loan through HSBC-NIB (Nordic
Investment Bank) amounting to US$ 22 millions, equivalent to ThCh$ 11,156,200 at December 31, 2009,
payable over an 8-year term (from February 28, 2011 until February 28, 2018). Interests will begin to be paid in
advance every six months, starting on August 28, 2006, at a 180-day Libor rate, plus a 6.228% annual interest.
This loan will guarantee collateral loan that HSBC Bank (Chile) granted to Express de Santiago Uno S.A. (see,
letter c).

All the loans referred to above have the following clause:

Should the subscriber not pay the principal of these loans on any of their due dates, or should the interest of these
promissory notes not be paid by the subscriber on the date when they should have been paid and such default or
simple delay in the payment of interest is maintained for three or more business days, the bearer of the
promissory notes will have the right to demand immediate payment of the full balance of the debt of principal,
and interest owed with respect to the promissory notes, which will be considered due and payable for all intents
and purposes. The bank will have a right to demand in advance all the debt on account of the promissory notes as
if it was due and payable, if the subscriber were to become insolvent, understanding for all purposes that there is
insolvency if the subscriber, or one of its creditors files for bankruptcy, or if judicial or non-judicial agreement
proposals are signed or formulated.

F-221
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

The loans referred to above did not specify financial covenants, but only non-financial covenants, among them:

i) Corporate existence:

The debtor must preserve its legal existence, its rights, privileges, licenses and franchises of Express de Santiago
Uno S.A. and its subsidiaries, which should be material in the conduction of its activity.

ii) Compliance with law, insurance:

The debtor must comply with all the applicable laws, regulations, rules imposed by any government authority,
and every tax payment, and must as well maintain assets insured and in good working conditions.

iii) Government authorizations:

The debtor must maintain all licenses, authorizations or consents from the government up to date for the
fulfillment of activities.

iv) Reporting requirements:

The debtor must provide the administrative agent with the following information to be distributed to the
creditors:
The financial statements of the Company and the report of any default event within a five-day period
Speedup of any debt over ThUS$ 750,000.
Report of any legal action against the debtor and/or subsidiaries which involve the government and
which might have a material adverse effect.
Semi-annual report over the status of both the concession and the transport services.

v) Ranking:

The debtor must take all the necessary actions so that its obligations with the creditor maintain their quality over
other obligations, as well as keep the accumulation and reserve accounts for the prepayment of its obligations up
to date.

vi) Negative pledge:

The debtor cannot mortgage and/or pledge assets other than those specified in the loan contract.

vii) Transactions with affiliates:

The debtor cannot make transactions with affiliates unless they are within the normal course of the business.

viii) Line of business:

The debtor cannot make any material change in the nature or conduction of its business.

F-222
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

ix) Merger, change in control:

The debtor cannot make any changes in the ownership and control of the Company without the creditors
consent.

x) Environmental obligations:

The debtor must ensure that the loans funds are not allocated to activities which damage the environment.

xi) Dividend payment:

The debtor must request authorization from the creditors prior to add dividend payment.

F-223
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)
At December 31, 2009 years to maturity At December 31, 2008 average
Over 10
Over 1 Over 2 Over 3 Over 5 Total annual Total
Tax registration N Institution Currency up to 2 up to 3 up to 5 up to 10 Amount Maturity long-term interest rate long term
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ % ThCh$
97.951.000-4 . . . . . . . . . . . . . . . . . . HSBC Bank Dollar 6,687,206 6,687,206 10,030,809 16,718,015 7 years 40,123,236 5.38 57,399,482
PLC/EKN-1
97.951.000-4 . . . . . . . . . . . . . . . . . . HSBC Bank Dollar 2,281,950 2,281,950 3,422,925 7,986,825 7 years 15,973,650 1.38 22,385,219
Tokio -NEXI
97.951.000-4 . . . . . . . . . . . . . . . . . . HSBC Bank Non-indexed Ch$ 1,341,887 1,341,887 2,012,830 6,038,494 8 years 10,735,098 1.33 10,488,194
(Chile) NIB
97.951.000-4 . . . . . . . . . . . . . . . . . . HSBC Bank Dollar 666,710 666,710 1,000,065 2,667,139 8 years 5,000,624 6.38 6,949,345
PLC /EKN-2
0-E . . . . . . . . . . . . . . . . . . . . . . . . . Nordic Dollar 1,450,306 1,450,306 4,462,480 3,793,108 7.5 years 11,156,200 6.228 13,679,857
Investment
Bank
F-224

Tota1 . . . . . . . . . . . . . . . . . . . . 12,428,059 12,428,059 20,929,109 37,203,581 82,988,808 110,902,097

Total in foreign currency (%) . . . . . . . . . . . . . . . . 87.0600
Total in local currency (%) . . . . . . . . . . . . . . . . . . 12.9400
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 15PROVISIONS AND WRITE-OFFS

Provisions:

a) At December 31, 2009 and 2008 provisions are detailed as follows:

2009 2008
ThCh$ ThCh$
Staff vacation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,294,584 1,166,637
4% interest remittance . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,362 65,538
Bus maintenance (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,843,242
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,336,946 3,075,417

(1) Refers to the provision for bus maintenance as of December 31, 2008, which should have incurred in 2008.
The provision was used in 2009.

b) Asset provisions:

At December 31, 2009 and 2008, the following provisions have been made, which are shown net of the
respective assets accounts:
2009 2008
ThCh$ ThCh$
Spare part inventories (1) . . . . . . . . . . . . . . . . . . . . . . . . (249,421) (243,684)
Depreciation, work in process (2) . . . . . . . . . . . . . . . . . . (1,725,864)

(1) Deducted from Spare part inventories classified in Other current assets.
(2) Deducted from Accumulated depreciation classified in Fixed assets.

c) Write-offs:

At December 31, 2009 and 2008 the Company has recorded the following provision write-offs in short- and long-
term asset accounts:
(1) Tag provision (short term) receivable from the AFT decreased by ThCh$ 151,091.
(2) Provision for Exempt Resolution N 1938 of the Ministry of Transport, recorded in Other receivables,
long term, decreased by ThCh$ 1,418,410.

NOTE 16OTHER LONG-TERM LIABILITIES

At December 31, 2009 and 2008, this caption is detailed as follows:
2009 2008
ThCh$ ThCh$
Derivative contracts (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,095,743
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,095,743

(1) Refers to the Cross Currency Swap contracts subscribed with the HSBC Bank (Chile) and the Credit Suisse
Bank of London, to hedge the loans in dollars from the fluctuation in the exchange rate and interest rate.
(Further information in note 23 Derivatives Contracts).

F-225
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 17MINORITY INTEREST

The minority interest shown is equal to 0, since the calculation of such interest is lower than ThCh$ 1,
corresponding to 0.01% of the equity of Exps de Colombia Ltda. At December 31, 2009 said equity is equal to
ThCh$ 547 (ThCh$ 592 at December 31, 2008).

NOTE 18SHAREHOLDERS EQUITY

a) At December 31, 2009 and 2008, the movement in equity accounts is shown in the following table:
Paid in Capital in excess Retained (Loss) income
Items capital of par value earnings for the year Total
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
Opening balance . . . . . . . . . . . . . . . . . . . 19,980,288 89,568 (2,362,756) 12,892,386 30,599,486
Distribution of prior-year income . . . . . . 12,892,386 (12,892,386)
Price-level restatement . . . . . . . . . . . . . . 1,778,246 7,972 937,137 2,723,355
Income for the year . . . . . . . . . . . . . . . . . 3,907,876 3,907,876
Balance at December 31, 2008 . . . . . . . . 21,758,534 97,540 11,466,767 3,907,876 37,230,717
Restated balances . . . . . . . . . . . . . . . . . . 21,258,088 95,296 11,203,031 3,817,996 36,374,411
Opening balance . . . . . . . . . . . . . . . . . . . 21,758,534 97,540 11,466,767 3,907,876 37,230,717
Distribution of prior-year income . . . . . . 3,907,876 (3,907,876)
Capital increase . . . . . . . . . . . . . . . . . . . . 86 86
Price-level restatement . . . . . . . . . . . . . . (500,446) (2,244) (353,616) (856,306)
Loss for the year . . . . . . . . . . . . . . . . . . . (3,951,389) (3,951,389)
Balance at December 31, 2009 . . . . . . . . 21,258,174 95,296 15,021,027 (3,951,389) 32,423,108

b) At December 31, 2009 and 2008, the equity composition is as follows:

Single-series
subscribed voting
shares Shareholding
2009 2008 2009 2008
N N % %
Carlos Rios Velilla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 0.002 0.002
Sociedad Eco Uno Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . 188,717 188,717 99.998 99.998
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,720 188,720 100.000 100.000

c) Number of shares:
Subscribed Paid-in Voting
shares shares shares
N N N
Single series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,720 188,720 188,720

d) Capital
Subscribed capital Paid-in capital
ThUS$ ThUS$
Single series . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,258,174 21,258,174

F-226
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

e) Capital movements:

On September 14, 2009 Mr. Carlos Rios Velilla paid one share of ThCh$ 86 which had been subscribed but
pending payment.

NOTE 19OTHER NON-OPERATING INCOME AND EXPENSES

At December 31, 2009, 2008 and 2007 this caption is detailed as follows:
2009 2008 2007
ThCh$ ThCh$ ThCh$
Other non-operating income:
Amortization of AFT promissory note, unearned income . . . . . . . . . . . . . 10,300,299
Penalties and interests received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,580
Income from scrap sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,120 5,621
Income from damage to buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,012
Income from paramedics contribution,safety insurance company . . . . . . 7,327 4,500
Other miscellaneous income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,524 145,871 184,828
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,983 155,992 10,524,707
Other non-operating expenses:
Other taxes (stamp tax, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,909 243,209 596,139
Disallowable expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,910 41,492 55,859
Other miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,322 46,408 116,865
Miscellaneous penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,460 4,073 267,633
Loss on sale of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,032 12,477 166,906
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,742
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,633 347,659 1,241,144

NOTE 20PRICE-LEVEL RESTATEMENTS

At December 31, 2009, 2008 and 2007, this caption is as follows:
(Charges)/credits
Restatement index 2009 2008 2007
ThCh$ ThCh$ ThCh$
Assets
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI (2,075,179) 7,683,920 6.138,640
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . UTM (1,508,268) 1,172,424
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 1,178,931
Other non-monetary assets . . . . . . . . . . . . . . . . . . . . . CPI (960,256) 3,787,569 2,835,276
Expenditure accounts . . . . . . . . . . . . . . . . . . . . . . . . . CPI (1,352,633) 10,162,457 2,436,271
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . (5,896,336) 22,806,370 12,589,118
Liabilities
Shareholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 856,306 (2,660,718) (1,144,229)
Other non-monetary liabilities . . . . . . . . . . . . . . . . . . CPI 70,997 (1,707,732)
Non-monetary liabilities . . . . . . . . . . . . . . . . . . . . . . . UF 2,256,736 (7,990,766) (1,147,508)
Income accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CPI 1,368,620 (10,604,507) (3,415,696)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . 4,552,659 (22,963,723) (5,707,433)
(Loss) gain on price-level restatements . . . . . . . . . . . . (1,343,677) (157,353) 6,881,685

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 21EXCHANGE DIFFERENCES

At December 31, 2009, 2008 and 2007, this caption is as follows:

(Charges)/credits
Currency 2009 2008 2007
ThCh$ ThCh$ ThCh$
Assets
Bank current accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (40,649) 2,238 (75)
Time deposits and investments . . . . . . . . . . . . . . . . . . . . . . . . US$ 73,426 (44,104)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (2,138,524) (47,974) (719,219)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (19,163,329) 27,697,828 (14)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,342,502) 27,725,518 (763,412)
Liabilities
Long-term bank liabilities, short-term portion . . . . . . . . . . . . US$ 2,832,448 (2,448,623) 586,899
Long-term bank liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 16,142,700 (18,220,716) 5,331,596
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 20,519 (37,394) 239,569
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ (55,566) (764)
Total (charges) credits . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,995,667 (20,762,299) 6,157,300
(Loss) gain from exchange differences . . . . . . . . . . . . . . . . . . (2,346,835) 6,963,219 5,393,888

NOTE 22STATEMENT OF CASH FLOWS

At December 31, 2009 and 2008, cash and cash equivalents is as follows:

2009 2008
ThCh$ ThCh$
Cash and bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,943 29,612
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,540,200
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753,038
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,943 3,322,850

NOTE 23DERIVATIVE CONTRACTS

At December 31, 2009, the company maintains cross currency swap and forward contracts, to hedge against
fluctuations of exchange rates and interest rate.

a) On December 12, 2007, the Company has entered into a derivative contract (cross currency swap) with
HSBC Bank (Chile) amounting to US$ 36 million. The purpose of the contract is to hedge against the risks
of exchange rates and interest rate over the loan of US$ 36 million contracted with BSBC-NEXI Bank.

The main financial conditions of the contract are:

(1) Amount contracted by the Bank ThUS$ 36,000.
(2) Amount contracted by the Company UF 918,387.0997.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

(3) Start date December 12, 2007.

(4) Maturity date August 28, 2017.
(5) Interest rate agreed by the bank 6-month Libor, plus 0.6% current/360.
(6) Interest rate agreed by the Company Fixed rate, 3.900% current/360.
(7) Payment mode Semi-annual compensations in Chilean pesos.

b) On February 28, 2008, the Company has entered into a derivative contract (cross currency swap) with Credit
Suisse International Bank of London. The purpose of the contract is to hedge against the risks of exchange
rates and interest rate over the loans incurred with HSBC Bank of London (ENK-1-2), for the syndicated
loans of ThUS$ 112,091 and ThUS$ 12,937, respectively.

The main financial conditions of the contract are:

To cover the loan with the HSBC Bank-EKN-1:

(1) Amount contracted in ThUS$ 112,091.
(2) Amount contracted in UF 2,648,010.
(3) Start date February 28, 2008.
(4) Maturity date August 28, 2018.
(5) Interest rates payable to the bank: 5.55% (from August 28, 2008 until February 28, 2009). For the
second year TAB UF + 1.82%.
(6) Interest rates payable by the bank: 5.38% (from August 28, 2008 until February 28, 2009). For the
second year 180-day Libor + 1.87%.

To cover the loan with the HSBC Bank-EKN-2

(1) Amount contracted in ThUS$ 8,243.
(2) Amount contracted in UF 194,731.
(3) Start date February 28, 2008.
(4) Maturity date August 28, 2018.
(5) Interest rates payable to the bank: 6.55% (from August 28, 2008 until February 28, 2009). For the
second year TAB UF + 2.83%
(6) Interest rates payable by the bank: 6.38% (from August 28, 2008 until February 28, 2009). For the
second year,180-day Libor + 2.87%.

This swap contract hedges against the first disbursement of ThUS$ 8,243 by the HSBC only. Consequently, the
operation is not completely balanced with the total disbursements made by the HSBC Bank, which amounted to
ThUS$ 12,937.

The Swap contract includes certain conditions, among others:

To hedge against eventual negative changes of the derivative contracts as a consequence of the market variables.
A credit line was established which is reviewed on a quarterly basis according to the respective statutory
financial statement form, and whose amount depends on the financial ratios: Debt/Ebitda; Ebitda/Financial
expenses shown in the respective financial statements.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

On November 10, 2009 the Company delivered ThUS$ 5,197 to the Credit Suisse Bank to hedge against the
mark-to-market value of the swap as of that date, which was in favor of this Bank up to that amount. On that
same date, the Credit Suisse Bank performed a re-couponing of the swap, modifying the interest rate of the CSIN
II paid by the Bank for the second year, from 180-day Libor + 1.87% to 180-day Libor + 3.42%.

With the changes referred to above the Company is in the process of obtaining reimbursement of the funds
delivered to the Credit Suisse Bank.

The Company subscribed four forward contracts with the Credit Suisse International of London, to hedge against
risks in the exchange rates of the swap contracts and the main financial conditions are:

a) Contract N 25880680

Effective date : November 20, 2009

Maturity date : January 20, 2010
Amount ThUS$ : 40,000
Amount in ThCh$ : 20,020,000
Exchange rate agreed : 500.50

b) Contract N 25914783

Effective date : November 24, 2009

Maturity date : January 21, 2010
Amount ThUS$ : 20,000
Amount in ThCh$ : 9,820,000
Exchange rate agreed : 491.00

c) Contract N26072939

Effective date : December 3, 2009

Maturity date : January 21, 2010
Amount ThUS$ : 20,000
Amount in ThCh$ : 10,000,000
Exchange rate agreed : 500.00

d) Contract N 25914783

Effective date : December 4, 2009

Maturity date : January 21, 2010
Amount ThUS$ : 20,000
Amount in ThCh$ : 10,000,000
Exchange rate agreed : 500.00

As of December 31, 2009 there are no other derivative contracts signed by the Company.

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 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)
Description of contracts Accounts affected
Value of Value of
Hedged entry or transaction Assets / liabilities Assets / liabilities
Type of the Specific Position item
Type of derivative contract agreement Term item purchase/sale Name Amount hedged Name Amount Realized Unrealized
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Exchange / Other
Cross Current CY Swap / interest long-term
HSBC . . . . . . . . . . . . . . . CCPE 17,933,400 III-2017 rate C Syndicated loan US$ 17,888,040 17,946,900 assets 1,552,797 993,146 (4,810,295)
Cross Current CY Swap / C. Exchange Other
Suisse . . . . . . . . . . . . . . . . CCPE 52,222,468 III-2018 / interest C Syndicated loan US$ 52,222,468 51,173,973 long term 1,955,878 (20,403) (12,296,556)
rate assets
Forward DS . . . . . . . . . . . . . CCTE 20,020,000 I-2010 Exchange C Forward contract 20,284,000 Derivative 264,000 264,000
rate contract
current
liabilities
Forward DS . . . . . . . . . . . . . CCTE 9,820,000 Exchange C Forward contract 10,142,000 Derivative 322,000 322,000
F-231

rate contract
current
liabilities
Forward DS . . . . . . . . . . . . . CCTE 10,000,000 Exchange C Forward contract 10,142,000 Derivative 142,000 142,000
rate contract
current
liabilities
Forward DS . . . . . . . . . . . . . CCTE 10,000,000 Exchange C Forward contract 10,142,000 Derivative 142,000 142,000
rate contract
current
liabilities
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 24CONTINGENCIES AND RESTRICTIONS

The Company has a Guarantee of Fulfillment of Concession Contract, in the form of Insurance Policy
N 01-20-044493 from Aseguradora Magallanes (insurance company), issued in favor of the Undersecretarys
Office of Transport, in accordance with the terms set forth in article 3.4.6 of the Transantiago 2003 Bidding
Conditions, amounting to UF 167,000 effective from November 11, 2009 until November 11, 2010.

Complaint for damages caused by labor accident, filed by Ms. Yazmn Espinoza Merino:

On September 28, 2007, the complaint for damages caused by labor accident, filed by Ms. Yazmn Espinoza
Merino against HR Service (ex contractor of Express), was notified and, alternatively, against Express de
Santiago. The amount claimed is ThCh$ 228,420. Management, jointly with its counsels, estimates that the
complaint will have no adverse effects on the financial statements as of December 31, 2009.

Complaint for damages, filed by the Municipality of Renca:

On October 23, 2007, the complaint for damages filed by the Municipality of Renca against given operators of
the Transantiago system, Express de Santiago among them, was notified. The amount claimed is ThCh$ 154,600.
Management, jointly with its counsels, estimates that the complaint will have no adverse effects on the financial
statements as of December 31, 2009.

On January 20, 2009, the complaint for damages files, issued by Juan Vasser Aguirre on behalf of Rafaela Tapoa
Gonzlez against the Company was notified. The amount claimed is ThCh$ 45,000.

Writ of Protection for application of Resolution N 1985 of the Ministry of Transport and Telecommunications:

As per Exempt Resolution N 1985, the Ministry of Transport and Telecommunications imposed withholdings in
2008 and 2009, which should be applied by the AFT to passenger revenue settlements. These discounts were
applied every two weeks for each payment settlement.
1. On November 30, 2009, a sentence from second instance was pronounced in the writ of protection (the
Writ) lodged by Express de Santiago Uno S.A. (Express) against the Ministry of Transport and
Communications (MTT) as a consequence of the issue of Exempt Resolution N 1985/2008, (the Res.
N1985), dated October 17, 2008 which imposed discounts to the concessionaires of road use for
non-compliance with certain indicators established therein.
2. To reject the Writ, the judgment of the Court of Appeals (Ca) argues on the basis that there are no
unquestioned rights of Express (i); that the MTT has legal and contractual authority to act as it did (ii) and
that Res. N1985 is not arbitrary (iii). To the foregoing, the Supreme Court (the SC) added an argument
based on the nature of concessions (iv).
3. The sentence supports the MTTs position essentially based on the nature of public service of the
concession, as well as on the exceptional nature of the funds used. This is without prejudice in reference to
various legal and contractual requirements.
4. The classification of the concession as a public service concession that moves away from the contractual
standards ruling the civil contracts increases the risk of future intervening by the authority in the contracts
currently valid through the imposition of conditions negotiated on a non-contractual basis.

F-232
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

5. Given that the ruling adopts the MTTs argument concerning the fact that the payments the concessionaires
are entitled to are those self-generated by the system, the MTTs decision is legitimized in order to impose
new conditions unilaterally relating to those extraordinary funds which cover the systems deficit, a
category within which the authority could attempt to include the funds coming from the permanent subsidy
to the public transport contained in Law 20,378 (the subsidy).
6. Ignoring the above, it should be mentioned that the reference that continuously made to the exceptional
nature of the constitutional 2% and its regime -both by the decision concerning the Writ and by the defense
itself of the MTT- and the circumstance that the ruled case involved temporary discounts, would allow to
argue against an extensive interpretation of the sentences grands.
7. The judgment validates the thesis that the Resolution is in line with the regulation of the Bidding
Conditions. This stipulates that the current regulations and those announced in the future are applicable to
the concessionaires in which concerns the operation conditions of the remunerated passenger transport
services and road use. From this perspective, the extensive treatment that is given to which should be
considered as operation conditions, can serve as a basis for future impositions to the concessionaires
whichaccording to the authoritys interpretationwould be consistent with the concept of operation
conditions.

Ignoring the above, management and its counsels consider that collectability of the assets should not be affected.
Consequently, it maintains the account receivable from the AFT in full (See Note 5).

There are other legal actions which are not worth detailing since they are covered by the insurance against
accident and civil liability. Should these legal actions be successful against the Company, they will not have
adverse effects on the financial statements.

As of December 31, 2009, the Company and subsidiary are not acquainted with any other ban, lien, contingency
and restriction which might have an effect on these financial statements, except as described in Note 14 (Long-
term obligations with banks and financial institutions) covenants and those indicated in Note 23 (Derivative
contracts).

F-233
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

Direct guarantees:

Unpaid balances
as of the closing the
Committed assets financial statements
Book
Guarantee creditor Debtor Name Relationship Guarantee Type Type Value 2009 2008
ThUS$ ThUS$ ThUS$
HSBC Bank . . . . . . . . . . . . . . . . . . . Express de Santiago Uno Pledge Buses 53,093,780 53,093,780 91,417,517
HSBC Bank . . . . . . . . . . . . . . . . . . . Express de Santiago Uno Mortgage Land Maip 961,102 961,102 727,899
HSBC Bank . . . . . . . . . . . . . . . . . . . Express de Santiago Uno Pledge Shares 21,258,174 21,258,174 21,258,088
I. Municipalidad de La Reina . . . . . Express de Santiago Uno Performance bond Guarantee 110,388 110,388 104,796
Banco HSBC . . . . . . . . . . . . . . . . . . Express de Santiago Uno Mortgage Land ENEA 2,053,430 2,053,430 2,564,979
F-234
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 25GUARANTEES FROM THIRD PARTIES

At December 31, 2009, the Company has received the following performance bonds, to ensure faithful
fulfillment of the terminal building contracts, and to guarantee service contracts.

Company Date Maturity Amount Bank

UF
Constructora Con Pax . . . . . . . . . . . . . . . . . . . . . . . . . . 04/07/2008 30/05/2010 9,259.00 Banco Santander
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27/01/2009 03/02/2010 1,253.34 Banco BCI
Constructora Queylen . . . . . . . . . . . . . . . . . . . . . . . . . . 19/05/2009 24/04/2010 1,172.90 Banco Estado

At December 31, 2008, the Company has received the following performance bonds, to ensure faithful
fulfillment of the terminal building contracts, and to guarantee service contracts.

Company Date Maturity Amount Bank

UF
Constructora Con-Pax . . . . . . . . . . . . . . . . . . . . . . . . . . 01/02/2008 09/08/2009 4,245.70 Banco BBVA
Constructora Agua Santa . . . . . . . . . . . . . . . . . . . . . . . . 01/03/2008 06/28/2009 3,582.75 Banco Bice
Cruz y Dvila Ing. Ltda. . . . . . . . . . . . . . . . . . . . . . . . . 06/09/2008 02/03/2009 682.00 Banco Security
Constructora Con Pax . . . . . . . . . . . . . . . . . . . . . . . . . . 07/04/2008 05/30/2009 9,259.00 Banco Santander
Constructora Con Pax . . . . . . . . . . . . . . . . . . . . . . . . . . 07/04/2008 05/30/2010 9,259.00 Banco Santander
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 05/12/2009 3,000.00 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 05/12/2009 3,000.00 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 05/12/2009 3,000.00 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 05/12/2009 3,000.00 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 06/08/2009 3,777.40 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/12/2008 05/12/2009 664.40 Banco BCI
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/19/2008 06/08/2009 2,886.00 Banco Ita
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/19/2008 05/12/2009 2,500.00 Banco Ita
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/19/2008 05/12/2009 2,500.00 Banco Ita
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/19/2008 05/12/2009 2,500.00 Banco Ita
Jorge Orellana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08/19/2008 05/12/2009 2,500.00 Banco Ita
Constructora Con-Pax . . . . . . . . . . . . . . . . . . . . . . . . . . 08/28/2008 07/10/2009 2,645.24 Banco BCI
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,000.00 Banco Chile
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,000.00 Banco Chile
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,000.00 Banco Chile
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,000.00 Banco Chile
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,431.00 Banco Chile
Constructora El Trbol . . . . . . . . . . . . . . . . . . . . . . . . . 09/25/2008 03/02/2009 1,723.00 Banco Chile
Constructora Icafal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10/15/2008 03/10/2009 172.32 Banco Santander
Cruz y Dvila Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12/24/2008 09/30/2009 882.00 Banco Security

F-235
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 26LOCAL AND FOREIGN CURRENCY

Assets and liabilities in local and foreign currency and in Unidades de Fomento are shown in the financial
statements at the exchange rates stated in Note 2 g), summarized as follows:

a) Assets:

Currency 2009 2008

ThCh$ ThCh$
Current assets
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 4,691 11,245
Cash and banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 20,252 18,367
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 2,540,200
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 555,569
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 197,469
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 2,520,255 4,910,264
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 110,388 10,947,763
Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 996 94,516
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 556,177 1,005,706
Recoverable taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 50,476 26,908
Notes and accounts receivable from related companies . . . Non-indexed Ch$ 523,294 510,510
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 435,588 540,647
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 310,129 823,684
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 7,033 7,037
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 2,136,629 3,832,912
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 1,833,737 1,951,464
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 24,205,859 24,885,921
Fixed assets
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 77,781,600 85,974,965
Other assets
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed Ch$ 35,864,967 39,707,945
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . US$ 16,156,818
Other assets, long-term . . . . . . . . . . . . . . . . . . . . . . . . . . . . UF 37,697 37,742
Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 1,742,442 1,443,840
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 7,534,960 14,931,670
US$ 24,226,111 41,258,575
UF 155,118 10,992,542
Indexed Ch$ 116,226,021 128,998,705

F-236
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

b) Current liabilities:

Up to 90 days 90 days to 1 year

2009 2008 2009 2008
Average Average Average Average
annual annual Amount annual annual
Item Currency Amount interest rate Amount interest rate interest rate amount interest rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing, short-term . . . . . . US$ 10,689,450 5.87 10,661,919 5.87
Bank borrowing, short-term . . . . . . Non-indexed Ch$ 6,187,778 9.36 6,072,760 11.16
Accounts payable . . . . . . . . . . . . . . . Non-indexed Ch$ 5,857,837 5,505,390
Accounts payable . . . . . . . . . . . . . . . US$ 55,925 32,454
Other payables . . . . . . . . . . . . . . . . . US$ 6,175 269,981
Other payables . . . . . . . . . . . . . . . . . Non-indexed Ch$ 670,546 386,743
F-237

Other payables . . . . . . . . . . . . . . . . . UF 258,818 45,266

Notes and account payable to
related companies . . . . . . . . . . . . Non-indexed Ch$ 644,599 594,390
Provisions . . . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 1,336,946 3,075,417
Withholdings . . . . . . . . . . . . . . . . . . Non-indexed Ch$ 699,602 624,566
Other current liabilities . . . . . . . . . . UF 17,798,121
Other current liabilities . . . . . . . . . . US$ 790,377
Total current liabilities . . . . . . US$ 11,541,927 10,964,354
Non-indexed Ch$ 15,397,308 16,259,266
UF 258,818 45,266 17,798,121
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

c) Long-term liabilities at December 31, 2009:

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Average Average Average Average
annual annual annual annual
Caption Currency Amount interest rate Amount interest rate Amount interest rate Amount interest rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing . . . . . . . . . . . . . . . . . US$ 19,271,731 4.38 19,271,731 4.38 22,554,045 4.38
Bank borrowing . . . . . . . . . . . . . . . . . Ch$ 2,683,775 1.33 2,683,775 1.33 5,367,551 1.33
Bank borrowing, Colombia
subsidiary . . . . . . . . . . . . . . . . . . . US$ 1,450,306 6,228 4,127,794 6.228 5,578,100 6.228
Deferred taxes . . . . . . . . . . . . . . . . . . Indexed Ch$ 2,436,498
Other long-term liabilities . . . . . . . . . UF 3,095,743
Other long-term liabilities . . . . . . . . . Non-indexed
F-238

Ch$
Total . . . . . . . . . . . . . . . . . . . . . US$ 20,722,037 23,399,525 28,132,145
Ch$ 2,683,775 2,683,775 5,367,551
Indexed Ch$ 2,436,498
UF 3,095,743
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

d) Long-term liabilities at December 31, 2008:

1 to 3 years 3 to 5 years 5 to 10 years More than 10 years

Average Average Average Average
annual annual annual annual
Caption Currency Amount interest rate Amount interest rate Amount interest rate Amount interest rate
ThCh$ % ThCh$ % ThCh$ % ThCh$ %
Bank borrowing . . . . . . . . . . . . . US$ 23,631,211 5.93 23,631,210 5.93 39,471,626 5.93
Bank borrowing . . . . . . . . . . . . . Non-indexed Ch$ 1,302,518 5.81 2,624,479 5.81 6,561,196 5.81
Bank borrowing,
Colombia Subsidiary . . . . . . . US$ 1,709,983 6.228 5,129,946 6.228 6,839,928 6.228
Deferred taxes . . . . . . . . . . . . . . . Indexed Ch$ 3,837,977
Total . . . . . . . . . . . . . . . . . . US$ 25,341,194 28,761,156 46,311,554
F-239

Non-indexed Ch$ 1,302,518 2,624,479 6,561,196

Indexed Ch$ 3,837,977
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 27SANCTIONS
1) Company
2009:

On January 6, 2009, the SVS has been informed of the payment of a penalty amounting to ThCh$ 322
(equivalent to UF 15) imposed on the General Manager, Mr. Alberto Hadad Lemos for out-of-time presentation
of the share register for the quarter referred to March 31, 2008.

On January 19, 2009, a penalty amounting to ThCh$ 188 was paid, according to sentence N 00544 dated
July 23, 2008 announced by the Sanitary Authority of the Metropolitan Region.

On February 10, 2009, one third of the penalty imposed by the Labor Board (Estacin Central) amounting to
ThCh$ 483, as per resolution N 00487 dated December 2, 2008, was paid.

On February 11, 2009, an administrative penalty amounting to ThCh$ 149 imposed by the Settlement and
Mediation Center of the Labor Administration, as per resolution N 166 dated February 3, 2009, was paid

On March 9, 2009, a penalty amounting to ThCh$ 492 imposed by the Labor Board (Maip) as per resolution N
4353-08-129 dated December 13, 2008 and resolution of penalty reconsideration N 99 dated February 24, 2009,
was paid.

On March 9, 2009, one third of the penalty amounting to ThCh$ 737 imposed by the Labor Board (Maip-
Cerrillos) as per resolution N 101 dated February 24, 2009, was paid.

On April 3, 2009, one third of a penalty amounting to ThCh$ 3,671 imposed by the Labor Board (South-East
Santiago) as per resolution N 3751/08/52 dated August 13, 2008 and resolution N 43 dated February 27, 2009,
was paid.

On April 14, 2009, an administrative penalty amounting to ThCh$ 147 imposed by Labor Board (Maip) as per
resolution N 74 dated January 9, 2008, was paid.

On April 14, 2009, an administrative penalty amounting to ThCh$ 734 imposed by Labor Board (East Santiago)
as per resolution N 3322/08/034, was paid.

On June 10, 2009, an administrative penalty amounting to ThCh$ 147 imposed by Settlement and Mediation
Center of the Labor Administration as per resolution N 4327/09/62 dated April 29, 2009, was paid.

On June 10, 2009, an administrative penalty amounting to ThCh$ 552 imposed by Settlement and Mediation
Center of the Labor Administration as per resolution N 512 dated May 4, 2009, was paid

On June 15, 2009, an administrative penalty amounting to ThCh$ 245 imposed by Labor Board (West Santiago)
as per resolution N 292 dated June 4, 2009, was paid.

On June 23, 2009, one third of the penalty amounting to ThCh$ 491 imposed by Labor Board (West Santiago) as
per resolution N 00159 dated May 25, 2009, was paid.

F-240
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

On June 25, 2009, one third of the penalty amounting to ThCh$ 246 imposed by Labor Board (West Santiago) as
per resolution N 00170 dated June 2, 2009, was paid.

On June 25, 2009, one third of the penalty amounting to ThCh$ 3,434 imposed by Labor Board (West Santiago)
as per resolution N 00200 dated June 4, 2009, was paid.

On August 20, 2009, an administrative penalty amounting to ThCh$ 367 imposed by Settlement and Mediation
Center of the Labor Administration as per resolution N 594 dated August 4, 2009, was paid.

On August 2, 2009, an administrative penalty amounting to ThCh$ 1,064 imposed by the Labor Board (East
Santiago) as per resolution N 3322 dated April 4, 2009, was paid.

As per Exempt Resolution N 1814 dated August 24, 2009 of the Ministry of Transport, an UF 400 discount was
applied for non-compliance of the frequency rate, in conformity with the measurement parameters established in
the Concession Agreement in relation to said indicators.

On October 26, 2009, a penalty amounting to ThCh$ 730 imposed by the Regional Undersecretarys Office of
the Metropolitan Health Ministry as per resolution N 5186 dated August 17, 2009, was paid.

On October 26, 2009, an administrative penalty amounting to ThCh$ 730 imposed by the Labor Board (Maip-
Cerrillos) as per resolution N 365 dated September 14, 2009, was paid.

On December 10, 2009, a penalty amounting to ThCh$ 369 imposed by the Regional Undersecretarys Office of
the Metropolitan Health Ministry as per resolution N 7182 dated October 6, 2009, was paid.

On December 10, 2009, an administrative penalty amounting to ThCh$ 1,106 imposed by the Labor Board (West
Santiago) as per resolution N 7756 dated March 24, 2009, was paid.

On December 10, 2009, an administrative penalty amounting to ThCh$ 737 imposed by the Labor Board (West
Santiago) as per resolution N 474 dated November 16, 2009, was paid.

On December 10, 2009, an administrative penalty amounting to ThCh$ 387 imposed by the Labor Board (West
Santiago) as per resolution N 463 dated November 14, 2009, was paid.

On December 10, 2009, an administrative penalty amounting to ThCh$ 1,475 imposed by the Labor Board (West
Santiago) as per resolution N 443 dated November 14, 2009, was paid.

On December 10, 2009, an administrative penalty amounting to ThCh$ 1,659 imposed by the Labor Board
(Providencia) as per resolution N 588 dated August 18, 2009, was paid.

The penalties referred to above have not embodied non-compliance with covenants as per Note 15.

As of December 31, 2009, there are no other sanctions imposed on the Company, its Directors or its General
Manager by other institutions or administrative authorities.

F-241
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

2008:

On February 19, 2008, one third of the administrative penalty imposed by the Labor Board (West Santiago),
Resolution N 6223-07-161, amounting to ThCh$ 2,648, was paid. The payment was intended to oppose to the
penalty before the appropriate court, which has been accepted for reconsideration. The reasons for the penalty
are: Failure to keep the proper attendance register and failure to deliver voucher of internal by-laws.

On February 19, 2008 one third of the administrative penalty imposed by the Labor Board (North Santiago),
Resolution N 4374-07-47, amounting to ThCh$ 497, was paid. The payment was intended to oppose to the
penalty before the appropriate court, which has been accepted for reconsideration. The reasons for the penalty
are: Failure to have the proper attendance register, failure to add hours on a weekly basis, and failure to grant
days for weekly rest.

On March 19, 2008 one third of the administrative penalty imposed by the Labor Board (North Santiago),
Resolution of reconsideration N 1619 dated November 27, 2007, was paid. The reasons for the penalty are:
Failure to deliver internal by-laws, failure of provision of water for both drinking and toilets, and failure to have
enough toilets.

On March 31, 2008 the sum of ThCh$ 348 corresponding to a penalty imposed by the Regional Secretarys
Office of the Ministry o Health, Metropolitan Region of Santiago, was paid, Resolution N 001783 dated
March 25, 2008, record 4871/7/UIS. Reason of the penalty: The inspection performed on October 25, 2007 to the
Pudahuel bus terminal confirmed that the terminal lacks respective sanitary authorization for disposal of waste
water.

On March 31, 2008 Exempt Resolution N 535 issued by the Ministry of Transport and Telecommunications
dated March 24, 2008 was notified. The resolution rejected appeal before higher administrative authority lodged
by the Company against Exempt Resolution N 102 issued by the Undersecretarys Office of Transport dated
January 14, 2008, and imposes a penalty of UF 130, for non-compliance with the obligation to report claims
within the term set forth in Exempt Resolution N 2,351 of 2005, issued by said Undersecretarys Office,
immediately notifying the AFT for it to deduct the respective amount from the Companys collection.

On June 18, 2008, one third of the penalty amounting to ThCh$ 705 (UTM 20) was paid, relating to the record of
Resolution N 3433/07/53 issued by the Labor Board (La Florida) dated August 13, 2007. Said resolution was
accepted for reconsideration on June 6, 2008.

On June 18, 2008, one third of the penalty amounting to ThCh$ 2,170 (UTM 52) was paid, relating to the record
of Resolution N 3433/07/46 issued by the Labor Board (La Florida) dated July 30, 2007. Said resolution was
accepted for reconsideration on April 4, 2008.

On July 23, 2008, the sum of ThCh$ 178 (UTM 5) was paid in relation to the record of Sanitary Investigation N
4814/07/DAS of the Sanitary Authority. The request for reconsideration submitted is dismissed and sentence N
1789 issued by the Regional Secretarys Office of the Ministry of Health dated March 26, 2008 was ratified.

On July 23, 2008 ThCh$ 178 (UTM 5) was paid, relating to the record of Sanitary Investigation N 4886/07/DAS
of the Sanitary Authority. The request for reconsideration submitted is dismissed and sentence N 1721 issued by
the Regional Secretarys Office of the Ministry of Health dated March 12, 2008 was ratified.

F-242
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

On July 23, 2008 one third of the penalty amounting to ThCh$ 2,583 (UTM 72) was paid, relating to the record
of acceptance for reconsideration of the penalty, Resolution N 384 issued by the Labor Board (Providencia)
dated July 14, 2008.

On July 11, 2008 one third of the penalty amounting to ThCh$ 3,208 (UTM 90) was paid, relating to the record
of acceptance for reconsideration of the penalty, Resolution N 384 dated July 14, 2008 issued by the Labor
Board (South East Santiago).

On August 1, 2008 one third of the penalty amounting to ThCh$ 1,930 (UTM 53) was paid, relating to the record
of acceptance for reconsideration of the penalty, Resolution N 310 dated June 30, 2008 issued by the Labor
Board (Maip-Cerrillos).

On August 27 and 28, 2008, sixteen Exempt Resolutions N 1261, 1295, 1302 to 1309, 1374 to 1379 issued by
the Ministry of Transport and Telecommunications, amounting to UF 200 were each notified. The resolutions
lodged charges for alleged non-compliance with frequencies of buses leaving the respective bus terminals. The
Company has lodged the respective discharges which are pending. From the mentioned penalties, the Ministry of
Transport has freed the Company from charges in two of them, through Exempt Resolution N 2486 dated
November 28, 2008 and Exempt Resolution N 2810 dated January 15, 2009.

On October 24, 2008, Exempt Resolutions N 1631, 1632 and 1633 issued by the Ministry of Transport and
Telecommunications, amounting to UF 200 were each notified. The resolutions lodged charges for alleged
non-compliance with frequencies of buses leaving the respective bus terminals. The Company has lodged the
respective discharges which are pending. From the mentioned penalties, the Ministry of Transport has freed the
Company from charge in one of them, through Exempt Resolution N 2792 dated December 31, 2008.

On November 5, 2008, Exempt Resolutions N 2241, 2442, 2443 and 2444 issued by the Ministry of Transport
and Telecommunications, amounting to UF 200 each were notified. The resolutions lodged charges for alleged
non-compliance with frequencies of buses leaving the respective bus terminals. The Company has lodged the
respective discharges which are pending.

On October 20, 2008, a penalty of ThCh$ 2,239 (UTM 60) imposed by the Labor Board (Providencia), as per
resolution N 649 dated October 17, 2008, was paid.

On October 20, 2008, a penalty of ThCh$ 369 (UTM 10) imposed by the Labor Board (Maip), as per resolution
N 383 dated September 4, 2008, was paid.

On December 19, 2008, as per Exempt Resolution N 721 issued by the SVS, a penalty of UF 15 is imposed on
the General Manager, Mr. Alberto Hadad Lemos for out-of-time presentation of the share register for the quarter
referred to March 31, 2008. Said penalty was paid to the Chilean General Treasury of the Republic on January 5,
2009, in the amount of ThCh$ 322. The payment of said penalty was reported to the SVS on January 6, 2009,
thus enforcing compliance with the obligation of article 30, Decree Law N 3538.

2) Subsidiary

No sanctions have been imposed on the subsidiary by administrative authorities.

F-243
 EXPRESS DE SANTIAGO UNO S.A. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)
AT DECEMBER 31, 2009 AND 2008
(A free translation from the original prepared in Spanish)

NOTE 28SUBSEQUENT EVENTS

During the period from December 31, 2009 up to the date on which these financial statements were issued
(February 24, 2010), the Companys management was not aware of any subsequent events which could
significantly affect the interpretation of these consolidated financial statements.

NOTE 29ENVIRONMENT
The Company operates under environmental standards set forth in the Chilean laws and regulations and in
accordance with community relations, health and environmental policies.

As of December 31, 2009 and 2008, there are disbursements directly or indirectly related to protection of
environment, in wastewater treatment, spare part waste, etc. amounting to ThCh$ 261,528 in 2009
(ThCh$ 142,992 in 2008), which have been directly taken to net income for the year.

NOTE 30OPERATING COSTS AND EXPENSES

At December 31, 2009, 2008 and 2007, operating costs are detailed as follows:
2009 2008 2007
ThCh$ ThCh$ ThCh$
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . 58,645,942 63,494,604 48,673,451
Amortization and depreciation . . . . . . . . . . . . . . 16,526,171 16,083,826 10,596,188
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,172,113 79,578,430 59,269,639

At December 31, 2009, 2008 and 2007 administrative and selling expenses are detailed as follows:
2009 2008 2007
ThCh$ ThCh$ ThCh$
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . 5,942,017 5,181,505 5,504,843
Amortization and depreciation . . . . . . . . . . . . . . . . . 522,010 453,386 476,320
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,464,027 5,634,891 5,981,163

NOTE 31OPERATING REVENUES

This caption basically comprises passenger transport revenue corresponding to Trunk line N 4 realized during
the years from January to December 2009, 2008 and 2007, respectively, and is detailed below:
2009 2008 2007
ThCh$ ThCh$ ThCh$
Collection, trunk line N 4 . . . . . . . . . . . . . . . . . 85,559,664 90,719,985 66,299,789
Billboards dynamic publicity in buses and
others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,458 462,885 623,923
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,065,122 91,182,870 66,923,712

This revenue is fully denominated in Chilean pesos.

F-244
 APPENDIX A:
SIGNIFICANT DIFFERENCES BETWEEN CHILEAN GAAP AND IFRS

Our unaudited condensed consolidated interim financial statements as of September 30, 2010 and for the
nine-month periods ended September 30, 2009 and 2010 contained elsewhere in this Offering Memorandum have
been prepared in Chilean pesos (Ch$) in accordance with Chilean GAAP. Significant measurement and
disclosure differences exist between IFRS and Chilean GAAP, and those differences may be material to the
financial information that we have provided in this Offering Memorandum.

The matters described below summarize certain significant differences between IFRS and Chilean GAAP
as they relate to us. The differences in accounting policies highlighted below reflect only those differences in force
at the time of the preparation of the relevant IFRS financial information. We have not attempted to identify future
differences between IFRS and Chilean GAAP as a result of prescribed changes in accounting standards or
transactions or events that may occur in the future and that could have a significant impact on the presentation
below. In making an investment decision, you must rely upon your own examination of our business and financial
condition, the terms of the offering of the Notes and our financial information. You should consult your own
professional advisor for an understanding of the differences between IFRS and Chilean GAAP, and how these
differences might affect the financial information presented in this Offering Memorandum.

Price-Level Restatement

IFRS

In agreement with IFRS (IAS 29), the Chilean economy does not reflect any characteristics of a
hyper-inflation and therefore price-level restatement does not apply.

Chilean GAAP

Chilean GAAP requires restating the financial statements to reflect the effects of variations in the
purchasing power of the local currency. For this purpose, and in conformity with current Chilean
regulations, non-monetary assets and liabilities and equity accounts are restated by charges or
credits to income. Furthermore, the income and expense accounts are restated in terms of year-end
constant pesos.

Property, Plant and Equipment

IFRS

Property, plant and equipment is initially recorded at its acquisition cost. Acquisition cost includes
the borrowing costs, asset retirement obligations. Subsequently property, plant and equipment can
be measured either at cost or using the revaluation method.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets using
the components approach of property, plant and equipmentcalculating the depreciation to each
significant part separately.

The residual value and the useful life of an asset shall be reviewed at least at each financial year-
end. Price-level restatements of prior GAAP should be eliminated.

In accordance with IFRS 1 a first-time adopter may elect to use a previous GAAP revaluation of an
item of property, plant and equipment at, or before, the date of transition to IFRSs as deemed cost at
the date of the revaluation, if the revaluation was, at the date of the revaluation, broadly comparable
to: (i) fair value; or (ii) cost or depreciated cost in accordance with IFRSs.

A-1
Chilean GAAP

Property, plant and equipment is booked at acquisition cost plus price-level restatements. It is not
mandatory to capitalize borrowing costs according to Chilean GAAP.

Depreciation of assets is calculated using the straight-line method over the restated cost of assets,
considering the remaining useful lives of assets. The component approach method of property, plant
and equipment in not required by Chilean GAAP.

Provision for Overhaul of the Buses

IFRS

IFRS (IAS 37) defines provisions as liabilities of uncertain timing or amount. A provision should be
recognized when, and only when:

An entity has a present obligation (legal or constructive) as a result of a past event;

It is probable (i.e., more likely than not) that an outflow of resources embodying economic benefits
will be required to settle the obligation; and

A reliable estimate can be made of the amount of the obligation.

IFRS does not allow recording a provision for regular maintenances even if there is a legislative
requirement to perform the maintenances. IAS 37 permits to capitalize the maintenance costs to the
value of the specific item of property, plant and equipment and depreciate the amount until the next
maintenance.

Chilean GAAP

According to Chile GAAP the Company can account a provision at the end of every financial
period and record the amount of provision on a linear basis into income statement.

Intangible Assets

IFRS

According to IFRS (IAS 38) An intangible asset is an identifiable non-monetary asset without
physical substance.

An intangible asset shall be recognized if, and only if:

It is probable that the expected future economic benefits that are attributable to the asset will flow
to the entity; and

The cost of the asset can be measured reliably

According to IFRS the Company has two models according to what how to account the intangible
assets:

Cost model

Revaluation method

A-2
 An entity shall assess whether the useful life of an intangible asset is finite or indefinite and, if
finite, the length of, or number of production or similar units constituting, that useful life. An
intangible asset shall be regarded by the Company as having indefinite useful life when, based on
an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the
asset is expected to generate net cash inflows for the entity.

The depreciable amount of an intangible asset with a finite useful life shall be allocated on a
systematic basis over its useful life. Amortization shall begin when the asset is available for use
(i.e., when it is in the location and condition necessary for it to be capable of operating in the
manner intended by management).

An entity shall assess at the end of each reporting period whether there is any indication that an
asset may be impaired. If any such indication exists, the entity shall estimate the recoverable
amount of the asset according to IAS 36.

Impairment for this type of assets is the amount by which the carrying value of the asset exceeds its
recoverable amount.

Chilean GAAP

According to Technical Bulletin N55 Chile GAAP allows similar treatment of intangible assets
with the following exceptions:

According to Chile GAAP the Company is not permitted to use revaluation method. The intangible
assets are recorded at cost.

Chile GAAP does not require performing impairment tests at the end of each reporting period.

Service Concession Agreements

IFRS

IFRS (IFRIC 12) applies to public-to-private service concession arrangements if:

The grantor controls or regulates what services the operator must provide with the infrastructure, to
whom it must provide them and at what price and

The grantor controlsthrough ownership, beneficial entitlement or otherwiseany significant

residual interest in the infrastructure at the end of the term of the arrangement.

Infrastructure within the scope of IFRIC 12 is not recognized as property, plant and equipment of
the operator. The operator recognizes a financial asset to the extent that it has an unconditional
contractual right to receive cash or another financial asset from or at the direction of the grantor.

The operator recognizes an intangible asset to the extent that it receives a right (a license) to charge
users of the public service.

Chilean GAAP

Technical Bulletin No. 67, the Chilean Association of Accountants establishes the accounting
treatment for concession contracts:

A-3
 The standard states that:

During the construction period, the Concessioner may not record any profits or losses, and only
may record the asset at its construction and investment cost

Costs are defined as construction expenses, interest expenses, price-level restatement and
depreciation

The earnings are recognized from the beginning of the operation period, and the asset is recorded
as PPE and depreciated over the concession term

According to the law, concession arrangements can be used for all types of public works, but
exclusions for example include concessions for:

Electricity generation and transmission

Casinos

Mines

Financial Instruments

IFRS

Derivative instruments and hedging activities

IFRS (IAS 39), Financial Instruments: Recognition and Measurement, establishes accounting and
reporting standards for derivative instruments, including certain derivative instruments embedded in
other contracts (collectively referred to as derivatives) and for hedging activities. IAS 39 requires
entities to recognize all derivatives as either assets or liabilities in the financial statements and to
measure those instruments at fair value. If certain conditions are met, a derivative may be
designated specifically as (a) a hedge of the exposure to changes in the fair value of a recognized
asset or liability or an unrecognized firm commitment, (b) a hedge of the exposure to variable cash
flows of a forecasted transaction or (c) a hedge of the foreign currency exposure of a net investment
in a foreign operation, an unrecognized firm commitment, an available-for-sale security or a foreign
currency-denominated forecasted transaction. The effective portion of the gain or loss on a
derivative designated as a cash flow hedge is reported in other comprehensive income, and the
ineffective portion is reported in earnings. In the case of fair value hedges, the hedging instrument
and the hedged item are marked to market and unrealized gains and losses on both the hedging
instrument and the hedged item are reported in earnings.

Embedded derivatives

For IFRS purposes, certain implicit or explicit terms included in host contracts that affect some or
all of the cash flows or the value of other exchanges required by the contract in a manner similar to
a derivative instrument, must be separated from the host contract and accounted for at fair value
only if all the criteria in IAS 39 paragraph 11 are met. An entity separately would measure
embedded derivatives as freestanding derivative instruments at their estimated fair values
recognizing changes in such fair values based on the appropriate accounting as defined under IAS
39 when they occur. The gain or loss on a derivative instrument not designated as a hedging
instrument will be recognized currently in earnings.

A-4
 Financial instruments disclosure

IFRS (IFRS 7), Financial Instruments, requires disclosure of qualitative and quantitative
information about exposure to risks arising from financial instruments, including specified
minimum disclosures about credit risk, liquidity risk and market risk. The qualitative disclosure
describes managements objectives, policies and processes for managing those risks. The
quantitative disclosure provides information about the extent to which the entity is exposed to risk,
based on information provided internally to the entitys key management personnel. Together, these
disclosures provide an overview of the entitys use of financial instruments and the exposures to
risks they create. Under Chilean GAAP, there is no such requirement.

Chilean GAAP

Derivative instruments and hedging activities

Under Chilean GAAP, derivative instruments are classified as either hedging contracts or
non-hedging contracts. Derivative instruments classified as non-hedging contracts are recorded at
fair value, with changes in fair value recognized in earnings. Those derivative instruments classified
as hedging contracts can be designated either as (a) a fair value hedge of the exposure to changes in
the fair value of a recognized asset or liability or an unrecognized firm commitment or (b) a cash
flow hedge of the exposure to variable cash flows of a forecasted transaction. Under a fair value
hedge, unrealized losses are to be included in earnings and unrealized gains are deferred until the
related contract matures. Under a cash flow hedge, unrealized gains and losses are deferred until the
related forecasted transaction takes place or the related derivative contract matures. In addition, the
documentation and hedge effectiveness requirements under Chilean GAAP are not as burdensome
as under IAS 39.

Embedded derivatives

Chilean GAAP accounting rules do not consider the existence of derivative instruments embedded
in other contracts and therefore they are not reflected in the financial statements.

For IFRS purposes, certain implicit or explicit terms included in host contracts that affect some or
all of the cash flows or the value of other exchanges required by the contract in a manner similar to
a derivative instrument, must be separated from the host contract and accounted for at fair value
only if all the criteria in IAS 39 paragraph 11 are met. An entity separately would measure
embedded derivatives as freestanding derivative instruments at their estimated fair values
recognizing changes in such fair values based on the appropriate accounting as defined under IAS
39 when they occur. The gain or loss on a derivative instrument not designated as a hedging
instrument will be recognized currently in earnings.

Financial instruments disclosure

IFRS 7, Financial Instruments, requires disclosure of qualitative and quantitative information about
exposure to risks arising from financial instruments, including specified minimum disclosures about
credit risk, liquidity risk and market risk. The qualitative disclosure describes managements
objectives, policies and processes for managing those risks. The quantitative disclosure provides
information about the extent to which the entity is exposed to risk, based on information provided
internally to the entitys key management personnel. Together, these disclosures provide an
overview of the entitys use of financial instruments and the exposures to risks they create. Under
Chilean GAAP, there is no such requirement.

A-5
Impairment of Assets

IFRS

IFRS (IAS36), Impairment of Assets an entity must assess at the end of each reporting period
whether there is any indication that an asset may be impaired. If any such indication exists, the
entity shall estimate the recoverable amount of the asset. However IAS 36 also requires that (a) the
recoverable amount of an intangible asset with an indefinite useful life to be measured annually,
irrespective of whether there is any indication that it may be impaired. The most recent detailed
calculation of recoverable amount made in a preceding period may be used in the impairment test
for that asset in the current period, provided specified criteria are met. ; b) the recoverable amount
of an intangible asset not yet available for use to be measured and (c) goodwill acquired in a
business combination to be tested for impairment annually.

An asset is impaired when its carrying amount exceeds its recoverable amount. The recoverable
amount is defined as the higher of an assets or a cash generation units fair value less costs to sell
and its value in use. Value in use is the present value of the estimated future cash flows expected to
be derived from continuing use of the asset and from its ultimate disposal.

Chilean GAAP
Under Chilean GAAP, an impairment loss must be recognized when there is evidence that an entity
would be permanently unable to generate enough revenue to absorb all its costs, including
depreciation.

A-6
 APPENDIX B:
ALSACIA OUTSTANDING INDEBTEDNESS
TO BE REPAID IN CONNECTION WITH
THE OFFERING OF NOTES

The terms of Alsacias debt that will be repaid or purchased using the proceeds of this offering are
estimated in the table below as of February 22, 2011. The original use of proceeds for all debt listed below that
was incurred within the last year was for general working capital.

Interest
Current Accrued
Principal (estimated
Amount Interest through Prepayment
Lender Currency (U.S.$) (1) Rate (2/22/2011) Maturity Date Penalties (6)
HSBC Bank plc (EKN I) (7) . . . . . . . . . U.S.$ $ 49,636,926 5.38% $1,320,397 August 28, 2016 $4,404,381
HSBC Bank plc (EKN II) (7) . . . . . . . . U.S.$ $ 8,330,876 6.81% $ 280,514 February 28, 2018 $1,132,568
HSBC Bank plc (EKN III) (7) . . . . . . . U.S.$ $ 7,593,205 2.31% $ 70,564 February 28, 2019 $ 93
HSBC Bank Tokyo (NEXI) . . . . . . . . . U.S.$ $ 19,775,000 1.11% $ 108,263 August 28, 2017 $ 21,185
HSBC Bank (Chile) (NIB) (3) . . . . . . . Ch$ $ 14,387,751 4.93% $ 444,669 August 28, 2018 $ 42,660
Bancolombia Puerto Rico Int. U.S.$ $ 7,771,431 8.76% $ 52,949 December 25, 2013 None
Inc. (I) . . . . . . . . . . . . . . . . . . . . . . . .
Bancolombia Puerto Rico Int. U.S.$ $ 14,580,000 8.76% $ 99,338 September 25, 2013 None
Inc. (II) . . . . . . . . . . . . . . . . . . . . . . .
HSBC Bank (Chile) . . . . . . . . . . . . . . . CH$ $ 9,465,048 6.48% $ 10,222 February 16, 2011 $ 38,911
Banco GNB Sudameris (I) . . . . . . . . . . U.S.$ $ 1,000,000 5.20% $ 3,611 January 28, 2012 None
Banco GNB Sudameris (II) . . . . . . . . . U.S.$ $ 1,000,000 6.95% $ 26,256 April 9, 2012 None
Banco Ita (I) (5) . . . . . . . . . . . . . . . . . CH$ $ 1,467,100 6.48% $ 1,584 February 16, 2011 None
Banco Ita (II) (5) . . . . . . . . . . . . . . . . . CH$ $ 738,752 6.36% $ 914 February 15, 2011 None
Banco Crdito e Inversiones (4)(5) . . . CH$ $ 1,735,151 6.54% $ 2,207 June 15, 2012 $ 6,194
Banco BBVA (5) . . . . . . . . . . . . . . . . . CH$ $ 996,795 7.89% $ 5,680 October 27, 2011 $ 19,588
Banco Internacional . . . . . . . . . . . . . . . CH$ $ 5,202,481 6.36% $ 20,220 February 21, 2011 None
Inversiones Dakota SpA (2) . . . . . . . . . UF$ $ 8,146,547 12.50% $ 87,689 February 22, 2019 $1,215,300
Data Tools S.A. (2) . . . . . . . . . . . . . . . . U.S.$ $ 1,610,000 1.00% $ 88,148 August 28, 2012 None
Fanach Corp. (2) . . . . . . . . . . . . . . . . . . U.S.$ $ 1,000,000 1.00% $ 54,750 August 28, 2012 None
Vedeve Trading S.A. (Volvo I) . . . . . . U.S.$ $ 211,267 6.28% $ 3,133 February 27, 2011 $ 12,500
Vedeve Trading S.A. (Volvo II) . . . . . . $ 1,243,809 5.21% $ 10,440 June 3, 2015 $ 1,450
Consorcio Aseo Capital S.A. (2) . . . . . U.S.$ $ 500,000 1.00% $ 24,847 August 28, 2012 None
Carlos Toro (2) . . . . . . . . . . . . . . . . . . . U.S.$ $ 200,000 1.00% $ 8,750 August 28, 2012 None
Maraya Enterprises LLC (2) . . . . . . . . . U.S.$ $ 170,000 1.00% $ 7,442 August 28, 2012 None
Total Alsacia . . . . . . . . . . . . . . . . . . . . $156,762,138 $2,732,589 $6,894,831

(1) All borrowings denominated in currency other than U.S.$ have been converted to U.S.$ using the following
exchange rates:

Ch$ / U.S.$ = 480.54

Ch$ / UF = 21,483.24

(2) These borrowings are included in the Alsacias balance sheet under Accounts Payables to Related
Entities.

(3) This loan is guaranteed by a standby letter of credit issued by HSBC Bank (London) in the amount of
U.S.$15 million, which in turn is guaranteed by a time deposit of IASA de Colombia S.A., an affiliate of
Alsacia. This time deposit was funded by a long-term loan from Nordic Investment Bank to IASA de
Colombia S.A. with Alsacia as a guarantor.

B-1
(4) Comprised of three loans with materially similar terms.

(5) The principal amount of these loans may vary between the date of this Offering Memorandum and the time
of the Escrow Closing Date due to principal repayments or new borrowings.

(6) Prepayment penalties are estimated as of the date of this Offering Memorandum. Actual penalties could
differ and will be based on the date we give notice to our lenders and prevailing market conditions and
negotiations with those lenders at that time.

(7) In addition to the amounts shown, Alsacia and Express will be required to pay, together, an aggregate break
fee of U.S.$614,000 in connection with these three facilities.

B-2
 APPENDIX C:
EXPRESS OUTSTANDING INDEBTEDNESS
TO BE REPAID IN CONNECTION WITH
THE OFFERING OF NOTES

The terms of Expresss debt that will be repaid or purchased using the proceeds of this offering are
estimated in the table below as of February 22, 2011. The original use of proceeds for all debt listed below that
was incurred within the last year was for general working capital.

Interest
Current Accrued
Principal (estimated
Amount Interest through Prepayment
Lender Currency (U.S.$) (1) Rate 2/22/2011) Maturity Date Penalties (4)
HSBC Bank plc (EKN I) (5) . . . . . . U.S.$ $79,122,925 5.38% $2,104,758 August 28, 2017 $7,020,732
HSBC Bank plc (EKN II a) (5) . . . . U.S.$ $6,067,314 6.38% $191,397 February 28, 2018 $ 735,332
HSBC Bank plc (EKN II b) (5) . . . . U.S.$ $3,793,312 6.09% $114,223 February 28, 2018 $ 421,991
HSBC Bank plc (EKN III) (5) . . . . . U.S.$ $31,005,037 2.08% $95,058 February 28, 2019 $ 0
HSBC Bank Tokyo (NEXI) . . . . . . . U.S.$ $31,500,000 1.11% $172,454 August 28, 2017 $ 33,750
HSBC Bank (Chile)(NIB) (2) . . . . . . CH$ $22,339,660 4.93% $692,193 August 28, 2018 $ 67,037
HSBC Bank (Chile) . . . . . . . . . . . . . CH$ $12,760,644 6.48% $314,677 March 1, 2011 $ 52,459
Vedeve Trading S.A. (Volvo) . . . . . CH$ $5,131,092 4.65% $11,261 May 05, 2015 $ 19,872
Banco Ita (3) . . . . . . . . . . . . . . . . . . CH$ $2,205,852 6.48% $14,294 March 18, 2011 None
Banco BBVA (3) . . . . . . . . . . . . . . . CH$ $1,123,736 7.41% $9,252 April 19, 2011 None
Express Total . . . . . . . . . . . . . . . . . $195,049,571 $3,719,567 $8,351,173

(1) All borrowings denominated in currency other than U.S.$ have been converted to U.S.$ using the following
exchange rates:

Ch$ / U.S.$ = 480.54

Ch$ / UF = 21,483.24

(2) This loan is guaranteed by a standby letter of credit issued by HSBC Bank (London) in the amount of
U.S.$23 million, which in turn is guaranteed by a time deposit of EXPS Colombia, an affiliate of Express.
This time deposit was funded by a long-term loan from Nordic Investment Bank to EXPS Colombia with
Express as a guarantor.

(3) The principal amount of these loans may vary between the date of this Offering Memorandum and the time
of the Escrow Closing Date due to principal repayments or new borrowings.

(4) Prepayment penalties are estimated as of the date of this Offering Memorandum. Actual penalties could
differ and will be based on the date we give notice to our lenders and prevailing market conditions and
negotiations with those lenders at that time.

(5) In addition to the amounts shown, Alsacia and Express will be required to pay, together, an aggregate break
fee of U.S.$614,000 in connection with these three facilities.

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 APPENDIX D:
CERTAIN DEFINITIONS

Unless otherwise indicated or the context otherwise requires, all references in this Offering Memorandum
have the meanings below.

Accelerated Hedge Payments means the present value of the premiums payable over the remaining life of
the Notes Hedge Agreement, net of the present value of any premium payments payable to Alsacia, if any, as
calculated by the Notes Hedge Counterparty in accordance therewith.

Accounts means collectively the Chilean Accounts, the NY Accounts, the Additional Payment Accounts,
the Open Market Purchases Account and the Additional Reserve Accounts.

Acquisition means the pending acquisition of Express by our Principal Shareholder and other affiliates of
Alsacia as described below under Use of ProceedsThe Acquisition.

Act of Required Debtholders is defined under Description of Notes and Finance AgreementsThe
Secured Party Agents.

Additional Agreements means all agreements or contracts (as amended from time to time) entered into by,
or the benefits of which run to, the Concessionaires in connection with the Concession Agreements, the AFT
Agreement, the Collection Mandate Agreements and the Technology Services Agreements (including, without
limitation, each service contract, publicity contract, supply contract, lease or other agreement contemplated or
permitted by the Operating Agreements), the gross value (measured by either liabilities or receivables at the time
such agreements or contracts are entered into, amended or supplemented in any manner) of which (either
individually or in the aggregate with any other contracts comprising the same transaction or series of related
transactions) equals or exceeds U.S.$3.0 million per annum.

Additional Amounts is defined under Description of Notes and Finance AgreementsAdditional

Amounts.

Additional Coverage Reserve Accounts is defined under Description of Notes and Finance
AgreementsEarly Amortization.

Additional Notes is defined under Description of Notes and Finance AgreementsAdditional Notes.

Additional Payment Amounts is defined under Description of Notes and Finance AgreementsSemi-
annual and Special Distributions.

Additional Reserve Accounts is defined under Description of Notes and Finance AgreementsSemi-
annual and Special Distributions.

Affiliate means, with respect to any specified person, any other person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified person. For purposes of this
definition, control, when used with respect to any specified person, means the power to direct the management
and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms controlling and controlled have meanings correlative to the foregoing.

Affiliate Transaction is defined under Description of Notes and Finance AgreementsAffirmative

Covenants of the Issuer and the GuarantorsLimitations on Affiliate Transactions.

D-1
 AFT means the Transantiago Financial Administrator (Administrador Financiero de Transantiago S.A.),
the collection agent and custodian of funds for Transantiago.

AFT Agreement means the Financial Administration Complementary Services Agreement, dated July 28,
2005, between the Administrador Financiero Transantiago S.A. (including any successor entity, the AFT) and
the Ministerio de Transporte y Telecomunicaciones (the Ministry of Transportation), as amended from time to
time.

Alsacia or the Issuer means Inversiones Alsacia S.A., which holds rights under one of the Concessions.

Annual Budget is defined under Description of Notes and Finance AgreementsAffirmative Covenants
of the Issuer and the GuarantorsBudgets.

Applicable Premium means with respect to any Note on any redemption date, the difference (not to be
less than zero) between (a) the present value (compounded on a semi-annual basis) to such date of the scheduled
future principal and interest cash flows from the beneficial interests in the Notes being redeemed discounted at a
per annum rate equal to the then-current bid side yield (as most recently published in the New York edition of
The Wall Street Journal) on the U.S. Treasury Note having a maturity date closest to the remaining weighted
average life on the Notes calculated at the time of the prepayment, plus 0.75% per annum and (b) the aggregate
principal amount of Notes (or portion thereof) to be redeemed.

Asset Disposition is defined under Description of Notes and Finance AgreementsAffirmative

Covenants of the Issuer and the GuarantorsLimitations on Sale of Assets.

Asset Pledge Agreements is defined under Description of Notes and Finance AgreementsCollateral.

Assigned Receivables means certain receivables that the Issuer expects to collect from a dispute with
Express and which the Issuer assigned to GPS International pursuant to an agreement dated October 12, 2010, in
an aggregate amount not to exceed Ch$2,127 million, which payment will be subject to Description of Notes
and Finance AgreementsLimitations on Restricted Payments and will be made pursuant to Description of
Notes and Finance AgreementsDeposits of Funds to and Distribution of Funds from the Revenue Account
Semi-annual and Special Distributionsseventeenth.

Available Funds means all the funds available on each Transfer Date for transfer from the Revenue
Account to the Payment Account after deduction of the aggregate amount of funds transferred on such Transfer
Date from the Revenue Account pursuant to Bi-monthly Distributionsfirst through fifth.

Base Case Model means the financial model, certified as having been prepared in good faith by an Officer
of the Issuer in accordance with the Annual Budget, as set forth in an exhibit to the Indenture, as such Base Case
Model may be revised from time to time pursuant to the Indenture.

Base Revenue means the predetermined monthly amount set forth in the Concession Agreements,
adjusted for monthly seasonality and changes in the Cost Index. For a complete description of the formula for
Base Revenue, see The ConcessionsConcession RevenueRevenue Formulas.

BI is defined under The Escrow.

Bidding Guidelines (Bases de Licitacin) means the guidelines that establish the parameters of the
Concessions, set forth by the Ministry in the public bidding process for concessions.

D-2
 BONYM is defined under Description of Notes and Finance Agreements.
Bus Network means the bus transportation and related operating systems subject to the Concession
Agreements.
Bus Terminal Loan means a U.S.$12.5 million loan from BI to Alsacia, guaranteed by the Guarantors and
Lorena SpA and secured by the Excluded Depot and the capital stock of Lorena SpA.
Business Day means any day other than a Saturday, Sunday or other day on which banking institutions in
New York City, New York, or Santiago, Chile, are permitted or required by applicable law to remain closed.
CAPEX Budget is defined under Description of Notes and Finance AgreementsAffirmative Covenants
of the Issuer and the GuarantorsCAPEX Costs.
CAPEX Costs means the aggregate amount of capital expenditures of the Concessionaires for fixed or
capital assets for the Bus Network or a Permitted Business which, in accordance with Chilean GAAP, would be
classified as capital expenditures, to be incurred by the Concessionaires in good faith, on an arms-length basis
and in the ordinary course of business, but excluding any such expenditures that are Repair Payments or
Overhaul Costs.
Capital Lease Obligations means, with respect to any person, any obligation which is required to be
classified and accounted for as a capital lease on the face of a balance sheet of such person prepared in
accordance with GAAP; the amount of such obligation will be the capitalized amount thereof, determined in
accordance with GAAP; and the stated maturity thereof will be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty.
Capital Stock means: (i) in the case of a corporation, corporate stock of any class; (ii) in the case of an
association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock; (iii) in the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and (iv) any other interest or participation that confers on a
person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing person.
Capped Call Option is defined under Managements Discussion and Analysis of Financial Condition and
Results of Operations for Alsacia and ExpressQuantitative and Qualitative Disclosures About Market and
Operating RisksExchange Rate Hedge.
Cash Trapping Period is defined under Description of Notes and Finance AgreementsCash Trapping
Upon any Event of Default.
Change of Control is defined under Description of Notes and Finance AgreementsRepurchase of
Notes upon a Change of Control.
Change of Control Date is defined under Description of Notes and Finance AgreementsRepurchase of
Notes upon a Change of Control.
Change of Control Offer is defined under Description of Notes and Finance AgreementsRepurchase of
Notes upon a Change of Control.
Change of Control Payment Date is defined under Description of Notes and Finance Agreements
Repurchase of Notes upon a Change of Control.
Change of Control Purchase Price is defined under Description of Notes and Finance Agreements
Repurchase of Notes upon a Change of Control.
Chile means the Republic of Chile.

D-3
 Chilean Accounts means collectively the Revenue Account, the O&M Accounts, the Overhaul Accounts,
the Transfer Accounts and the Transaction Checking Accounts.

Chilean Central Bank (Banco Central de Chile) means the Central Bank of Chile, an autonomous entity
created by the Chilean Government and given authority over the countrys monetary policy.

Chilean Collateral Agent is defined under Description of Notes and Finance AgreementsCollateral.

Chilean Government means the government of Chile.

Chilean Money Pledges is defined under Description of Notes and Finance AgreementsCollateral.

Chilean Security Documents means the Security Documents other than the NY Account Pledge
Agreements.

Closing Conditions is defined under Description of Notes and Finance Agreements.

Collateral is defined under Description of Notes and Finance AgreementsCollateral.

Collateral Trust Agreement is defined under Description of Notes and Finance AgreementsCollateral.

Collection Mandate Agreements means, collectively, the Collection Mandate Agreement, dated
October 19, 2005, between Alsacia and the AFT, as amended from time to time, and the Collection Mandate
Agreement, dated October 19, 2005, between Express and the AFT, as amended from time to time.

Compliance Certificate means a certificate executed by the chief financial officer of the Issuer and each
Guarantor certifying that such officer has made or caused to be made a review of the transactions and financial
condition of the Issuer and each Guarantor as of the last day of the period covered by such financial statements
and that such review did not disclose the existence of any event or condition that constitutes a Default or an
Event of Default under any Transaction Document to which the Issuer and each Guarantor is a party, or if any
such event or condition existed or exists, the nature thereof and the corrective actions that Issuer and each
Guarantor has taken or proposes to take with respect thereto, and also certifying that the Issuer and each
Guarantor is in compliance with its obligations under the Indenture and each other Transaction Document to
which it is a party or, if such is not the case, stating the nature of such noncompliance and the corrective actions
that the Issuer has taken or proposes to take with respect thereto.

Concession Agreements means, collectively, the Concession Agreement, dated January 28, 2005, between
Alsacia and the Ministry of Transportation, as amended from time to time, and the Concession Agreement, dated
January 28, 2005, between Express and the Ministry of Transportation, as amended from time to time, and any
other similar concession agreements between the Ministry of Transportation or any other Governmental Authority
and either Concessionaire in respect of the operation of public bus services in the Transantiago System entered into
from time to time in accordance with the Indenture, in all cases as certified to by the Issuer and the Guarantors.

Concession Pledge Agreements is defined under Description of Notes and Finance Agreements
Collateral.

Concessions means collectively the rights of Alsacia and Express under their Concession Agreements and
the Bidding Guidelines to operate their bus systems on their designated routes. See The Concessions.

D-4
 Concessionaires is defined under Description of Notes and Finance Agreements.

Contingent Hedge Payments means, with respect to any contract, agreement or arrangement giving rise to
Hedging Obligations, any amounts paid or to be paid by the Concessionaires to the related Hedge Counterparty
as a result of the early termination, breakage or mark-to-market determinations or similar contingent amounts
under such contract, agreement or arrangement other than Excluded Contingent Hedge Payments. Contingent
Hedge Payments do not constitute a part of any Hedge Payments.

Controlling Party means, as of any date of determination, the Noteholders and the Notes Hedge
Counterparty that, in the aggregate, hold more than 50% of the Voting Balances; provided that, with respect to
certain waivers and amendments, the consent of each affected Noteholder and affected Notes Hedge
Counterparty will also be required. Notes held by the Issuer, the Guarantors or any of their respective affiliates
are excluded from this definition.

Corrupt Practices Laws means, to the extent applicable with respect to the Issuer or any Guarantor, (a) the
United States Foreign Corrupt Practices Act of 1977 (Pub. L. No. 95-213, 101-104), as amended and (b) any
other applicable law having the force of law, applicable to the Issuer or any Guarantor and relating to bribery,
kick-backs or similar business practices.

Cost Index means the weighted average of various price and cost indices, as specified in the Concession
Agreements, used in the revenue formulas for Alsacia and Express. For a complete description of the formula for
calculating the Cost Index, see The ConcessionsConcession RevenueRevenue Formulas.

Coverage Reserve Account is defined under Description of Notes and Finance AgreementsEarly
Amortization.

Coverage Reserve Account Deposit Amount is defined under Description of Notes and Finance
AgreementsEarly Amortization.

Debt means, with respect to any person, without duplication:

(a) the principal of and premium, if any, in respect of (i) indebtedness of such person for borrowed money
and (ii) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the
payment of which such person is responsible or liable;
(b) all Capital Lease Obligations of such person;
(c) all obligations of such person issued or assumed as the deferred purchase price of property, all
conditional sale obligations of such person and all obligations of such person under any title retention
agreement (but excluding trade accounts payable or other short-term obligations to suppliers payable
within 180 days, in each case arising in the ordinary course of business);
(d) all obligations of such person for the reimbursement of any obligor on any Letter of Credit, bankers
acceptance or similar credit transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in clauses (a) through (c) above) entered into in the ordinary
course of business of such person to the extent such letters of credit are not drawn upon or, if and to the
extent drawn upon, such drawing is reimbursed no later than the tenth Business Day following receipt by
such person of a demand for reimbursement following payment on the Letter of Credit);
(e) all Hedging Obligations of such person;

D-5
 (f) all obligations of the type referred to in clauses (a) through (e) of other persons and all dividends of
other persons for the payment of which, in either case, such person is responsible or liable, directly or
indirectly, as obligor, guarantor or otherwise, including by means of any guarantee (other than
obligations of other persons that are customers or suppliers of such person for which such person is or
becomes so responsible or liable in the ordinary course of business to (but only to) the extent that such
person does not, or is not required to, make payment in respect thereof);
(g) all obligations of the type referred to in clauses (a) through (e) of other persons secured by any Lien on
any property or asset of such person (whether or not such obligation is assumed by such person), the
amount of such obligation being deemed to be the lesser of the value of such property or assets or the
amount of the obligation so secured; and
(h) any other obligations of such person which are required to be, or are in such persons financial
statements, recorded or treated as debt under GAAP.

Debt Service means, for any period, the sum of all cash principal and cash interest payments (including
cash withholding tax payments in connection therewith) and any fees, expenses, breakage costs, termination costs
and other amounts in respect of all Debt other than Subordinated Indebtedness, in each case taking into account
the actual amount payable or receivable under any Hedging Obligations related thereto for purposes of the
foregoing calculation.

Debt Service Coverage Ratio means, for any period, the result obtained by dividing (a) the aggregate
amount of funds deposited into the Revenue Account (excluding any funds transferred from the other Accounts
to the Revenue Account) minus the aggregate amount of funds transferred pursuant to first through fifth
under Deposits of Funds to and Distribution of Funds from the Revenue Account (other than Contingent
Hedge Payments and cash withholding tax payments made in connection with Debt Service), for such period by
(b) the total Debt Service for such period, in each case as reflected in certifications reasonably acceptable to the
Trustee and, in the case of future Reporting Periods, estimates of such deposits and Debt Service then scheduled
to be due and payable for such future periods, in the forms provided in the Indenture or in the most recent
consolidated financial statements of the Issuer presented in U.S. dollars and submitted to the Trustee pursuant to
the provisions of the Indenture. Calculations shall exclude payments of expenses and fees in respect of the
Transactions or the Acquisition.

Debt Service Reserve Amount is defined under Description of Notes and Finance AgreementsDeposits
of Funds to and Distribution of Funds from the Reserve Account.

Debt to Equity Ratio means, as of the date of calculation, the ratio of (a) the aggregate outstanding
amount of Senior Indebtedness, without duplication, of the Issuer and the Guarantors, taken as a whole, as of
such date to (b) the aggregate amount of Equity of the Concessionaires, taken as a whole, as of such date.

Discharge of Parity Lien Obligations is defined under Description of Notes and Finance Agreements
The Secured Party Agents.

Disposition is defined under Description of Notes and Finance AgreementsAffirmative Covenants of

the Issuer and the GuarantorsDispositions.

Disqualified Stock means, with respect to any person, any Capital Stock that, by its terms (or by the terms
of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the
holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant

D-6
to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole
or in part, prior to the date that is one year after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the
Capital Stock have the right to require the Issuer or any Guarantor to repurchase such Capital Stock upon the
occurrence of a change of control or an asset sale will not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Issuer or any Guarantor may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption complies with the Restricted Payment test or
otherwise requires the prior repayment in full of the Notes. The term Disqualified Stock will also include any
options, warrants or other rights that are convertible into Disqualified Stock or that are redeemable at the option
of the holder, or required to be redeemed, prior to the date that is one year after the date on which the Notes
mature.

Early Amortization Debt Service Coverage Ratio is defined under Description of Notes and Finance
AgreementsEarly Amortization.

Early Amortization Event is defined under Description of Notes and Finance AgreementsEarly
Amortization.

Early Amortization Period is defined under Description of Notes and Finance AgreementsEarly
Amortization.

Early Amortization Principal Amounts is defined under Description of Notes and Finance Agreements
Early Amortization.

EEA is defined under Plan of DistributionNotice to Prospective Investors in the EEA.

Eco Uno means Inversiones Eco Uno S.A., which is an intermediate holding company expected to be
controlled by our Principal Shareholder that owns 99.998% of the equity of Express and will be a Guarantor of
the Notes.

Equity means, as of the date of calculation, the sum of the present value (compounded on a semi-annual
basis) of the aggregate amount of funds deposited and projected to be deposited into the Revenue Account
(excluding any funds to be transferred from the other Accounts to the Revenue Account) minus the aggregate
amount of funds transferred and projected to be transferred from the Revenue Account pursuant to first through
fourteenth under Deposits of Funds to and Distribution of Funds from the Revenue Account until, and
including, August 18, 2018, as projected in the Base Case Model as updated to such date of calculation,
discounted at a per annum rate equal to 12%.

Equity Offerings means any public or private sale of equity securities of the Issuer or any Guarantor
(other than Disqualified Stock) other than: (a) offerings related to equity securities issuable under any employee
benefit plan of the Issuer or any Guarantor; and (b) issuances to any subsidiary of the Issuer or any Guarantor.

ERISA affiliate means any corporation or person that is a member of any group of organizations
(a) described in Section 414(b) or (c) of the Internal Revenue Code of 1986, as amended (the Code), of which
the Issuer is a member, and (b) solely for purposes of potential liability under Section 302(c)(11) of ERISA and
Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the
Code, treated as a single employer under Section 414(m) or (o) of the Code of which the Issuer is a member.

Escrow is defined under The Escrow.

D-7
 Escrow Agent is defined under The Escrow.

Escrow Agreement is defined under The Escrow.

Escrow Closing Date is defined under The Escrow.

Escrow Redemption Date is defined under The Escrow.

Escrowed Amounts is defined under The Escrow.

Event of Default is defined under Description of Notes and Finance AgreementsEvents of Default.

Excess Additional Amounts is defined under Description of Notes and Finance Agreements
Redemption Solely for Tax Reasons.

Excluded Contingent Hedge Payments means, in relation to any contract, agreement or arrangement
giving rise to Hedging Obligations that is in effect with respect to the Notes or any other Senior Indebtedness, an
amount equal to the amount of any termination payment due and payable under such contract, agreement or
arrangement to the relevant Hedge Counterparty as a result of a Hedge Counterparty Default with respect to such
Hedge Counterparty.

Existing Indebtedness is defined under The Escrow.

Expense Budget is defined under Description of Notes and Finance AgreementsDeposits of Funds to
and Distributions of Funds from the O&M Accounts.

Express means Express de Santiago Uno S.A., which holds rights under one of the Concessions and is a
Guarantor of the Notes.

Express Share Pledge Agreements is defined under Description of Notes and Finance Agreements
Collateral.

Expropriation Compensation means all value (whether in the form of money, securities, property or
otherwise) paid or payable by any Governmental Authority in Chile, in whole or partial settlement of claims,
whether or not resulting from judicial proceedings and whether paid or payable within or outside Chile, as
compensation for or in respect of any Expropriatory Action.

Expropriatory Action means any action or series of actions taken, authorized, ratified or acquiesced in by
any Governmental Authority in Chile, or any person purporting to act as a Governmental Authority in Chile or
any governing authority which is in de facto control of part of Chile or arising under any Chilean Law, for the
appropriation, confiscation, expropriation, seizure or nationalization (by intervention, condemnation or other
form of taking), whether with or without compensation and whether under color of law or otherwise (including
through confiscatory taxation or imposition of confiscatory charges), of ownership or control of the Concession
rights, the Operating Agreements or the Bus Network, or any substantial portion thereof, held by Concessionaires
or any substantial portion of the Concessionaires economic benefits therefrom.

D-8
 Fair Market Value means, with respect to any asset, the price which could be negotiated in an arms-
length free market transaction, for cash, between a willing seller and a willing buyer, neither of which is under
compulsion to complete the transaction, (i) if such asset has a price of at least U.S.$1.0 million and less than
U.S.$10.0 million, as such price is determined in good faith by the board of directors of the relevant
Concessionaire as evidenced by a resolution of such board of directors; or (ii) if such asset has a price of at least
U.S.$10.0 million, as such price is determined by an opinion as to the fairness of such price to such
Concessionaire from a financial point of view issued by an investment banking firm of international standing.

Finance Agreements means, collectively, the Notes, the Indenture, the Supplemental Indenture, the
Escrow Agreement, the Notes Hedge Agreement, the Guarantees and the Security Documents.

Fitch means Fitch, Inc. and Rating and Investment Information, Inc.

GAAP means generally accepted accounting principles in Chile or IFRS to the extent then applicable, in
each case as in effect on the date of the Indenture.

Governmental Authority means any government, governmental department, ministry, commission, board,
bureau, agency, regulatory authority, instrumentality of any government (central or local), judicial, legislative or
administrative body, domestic or foreign, federal, state or local, having jurisdiction over the person or matter in
question.

GPS Group or Principal Shareholder means Global Public Services GPS, S.A., a Panama corporation
beneficially owned by Carlos Ros, Javier Ros and entities controlled by them and members of their family.
Upon completion of the Acquisition, GPS Group will directly or indirectly own 100% of Panamerican, 99.695%
of Eco Uno, 99.998% of Express and 99.997% of Alsacia. See Principal Shareholders.

GPS International means GPS International of Panam (Chile) S.A.

Grupo Transportador is defined under Introductory Note.

Guarantee is defined under Description of Notes and Finance AgreementsGuarantees.

Guarantors means, collectively, Express, Panamerican and Eco Uno.

Hedge Counterparty means the counterparty to any contract, agreement or arrangement giving rise to
Hedging Obligations in each case in the ordinary course of business for the purpose of fixing, hedging or
swapping interest rate, foreign currency exchange rate or fuel cost risk, and not for speculative purposes, and
which counterparty is entitled to receive the Hedge Payments under such contract, agreement or arrangement.

Hedge Counterparty Default means the occurrence of a default or an event of default (as defined in the
relevant contract, agreement or arrangement giving rise to Hedging Obligations) with respect to the relevant
Hedge Counterparty, where the relevant Hedge Counterparty is the defaulting party (as defined in such contract,
agreement or arrangement) or such default or event of default has been caused by an action or omission of such
Hedge Counterparty.

Hedge Interest Amounts means, with respect to the Notes and any other Senior Indebtedness, the amounts
(if any) specified to be paid by the Concessionaires to the Hedge Counterparty in accordance with the Indenture

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or the agreement related to such other Senior Indebtedness which are calculated by reference to a rate of interest.
For the avoidance of doubt, the term Hedge Interest Amounts does not include any amounts of Contingent Hedge
Payments.

Hedge Payments means payments (other than Contingent Hedge Payments) due by or to Concessionaires
under Hedging Obligations, in each case in the ordinary course of business for the purpose of fixing, hedging or
swapping interest rate, foreign currency exchange rate or fuel cost risk (or to reverse or amend any such
agreements previously made for such purposes), and not for speculative purposes, and that do not increase the
Debt of the obligor outstanding at any time other than as a result of fluctuations in interest rates, foreign currency
exchange rates or fuel cost, or by reason of fees, indemnities and compensation payable thereunder. For the
avoidance of doubt, the term Hedge Payments in respect of the Notes and any other Senior Indebtedness includes
Hedge Interest Amounts.

Hedging Obligations means, with respect to any specified Person, the obligations of such Person under
(i) any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest
rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement or
arrangement; (ii) any commodity forward contract, commodity swap agreement, commodity option agreement or
other similar agreement or arrangement; or (iii) any foreign exchange contract, option, currency swap agreement
or other similar agreement or arrangement.

ICF means the frequency fulfillment index (ndice de Cumplimiento de Frecuencia), which, along with
the ICR, is used by the Ministry to measure the performance of Alsacia and Express in relation to their respective
Operating Plans. Deviations from Operating Plans decrease ICF, which in turn leads to discounts in funds to be
received from the AFT. Alsacia currently accounts for such discounts as reductions to its revenue and Express
currently accounts for such discounts as expenses.

ICR means the regularity fulfillment indices (ndices de Cumplimiento de Regularidad), which, along
with the ICF, is used by the Ministry to measure the performance of Alsacia and Express in relation to their
respective Operating Plans. Deviations from Operating Plans decrease ICR, which in turn leads to discounts in
funds to be received from the AFT. Alsacia currently accounts for such discounts as reductions to its revenue and
Express currently accounts for such discounts as expenses.

IFRS means the International Financial Reporting Standards as promulgated by the International
Accounting Standards Board.

Incurrence Date is defined under Description of Notes and Finance AgreementsAffirmative Covenants
of the Issuer and the GuarantorsIncurrence of Senior Indebtedness.

Indenture is defined under The Escrow.

INE means the Chilean National Institute of Statistics (Instituto Nacional de Estadsticas).

Initial Temporary Issuer means BRT Escrow Corporation SpA, a special purpose company formed in
2011 under the laws of the Republic of Chile and owned by two corporations formed in 2011 under the laws of
the British Virgin Islands, which in turn are owned by a trust formed in 2011 under the laws of the British Virgin
Islands independent of the Issuer or the Principal Shareholder. The Initial Temporary Issuer will initially issue

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the Notes because Alsacia and Express are restricted from incurring indebtedness under their existing debt which
will be repaid with the proceeds of this offering.

Insurance Appointments is defined under Description of Notes and Finance AgreementsCollateral.

Interest Payment Date is defined under Description of Notes and Finance AgreementsGeneral.

Investments means, with respect to any Person, all direct or indirect investments by such Person in other
Persons (including affiliates) in the form of loans or other extensions of credit (including guarantees), advances,
capital contributions (by means of any transfer of cash or other property to others or any payment for property or
services for the account or use of others), purchases or other acquisitions for consideration of Debt, equity
interests or other securities, together with all items that are or would be classified as investments on a balance
sheet prepared in accordance with GAAP.

L/C Bank is defined under Description of Notes and Finance AgreementsDeposits of Funds to and
Distribution of Funds from the Reserve Account.

Letter of Credit is defined under Description of Notes and Finance AgreementsDeposits of Funds to
and Distribution of Funds from the Reserve Account.

Lien means any mortgage, lien, pledge, charge, security interest, easement or encumbrance of any kind in
respect of an asset, whether or not filed, recorded or otherwise perfected or effective under applicable law, as
well as (a) the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to such asset and (b) except as contemplated by the Indenture or any other
Transaction Document, any designation of loss payees or beneficiaries or any similar arrangement under any
insurance policy.

Loan Proceeds is defined under The Escrow.

Material Adverse Change means (a) a material adverse change in, or a material adverse effect on, the
financial position, results of operations or business of the Issuer and the Guarantors, taken as a whole, (b) a
material adverse change in, or a material adverse effect on, the ability of the Issuer or any Guarantor to perform
their (i) respective non-payment obligations under any Finance Agreement having due regard to the interest of
the Noteholders and (ii) payment obligations under any Finance Agreement, taking the Issuer and the Guarantors
as a whole, (c) a material adverse change in, or a material adverse effect on, the rights of the Trustee or the
Noteholders under any Finance Agreement, or (d) either (i) any Transaction Document shall no longer be valid,
effective or enforceable, or (ii) the obligation of the AFT and/or any Governmental Authority to make payments
in respect of any subsidies or otherwise as contemplated on the date hereof in connection with the Concession
Agreements, the AFT Agreement, the Collection Mandate Agreements and/or the Technology Services
Agreement shall be changed or affected, provided that either (i) or (ii) results in any of the events in (a) through
(c) above.

Maturity Date is the final payment date of the note expected to be made on August 18, 2018.

Metro means Metro S.A., a state-owned enterprise that controls the subway system in the Santiago, Chile
metropolitan area.

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 Ministry means the Ministry of Transportation and Telecommunication (Ministerio de Transportes y
Telecomunicaciones), which regulates Transantiago, is our counterparty under the Concessions and is responsible
for the administration, regulation and operation of the Concessions.

Moodys means Moodys Investors Service, Inc.

Mortgages is defined under Description of Notes and Finance AgreementsCollateral.

Net Available Cash from an Asset Disposition means cash payments received (including any cash
payments received by way of deferred payment of principal pursuant to a note or installment receivable or
otherwise and proceeds from the sale or other disposition of any securities received as consideration, but only as
and when received, but excluding any other consideration received in the form of assumption by the acquiring
Person of Debt or other obligations relating to the Properties or assets that are the subject of such Asset
Disposition or received in any other non-cash form) therefrom, in each case net of:
(i) all legal fees and expenses, title and recording tax expenses, commissions and other fees and expenses
Incurred, and all federal, state, provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition;
(ii) all payments, including any prepayment premiums or penalties, made on any Debt that is secured by
any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon or other
security agreement of any kind with respect to such assets, or that must by its terms, or in order to
obtain a necessary consent to such Asset Disposition, or by applicable law be repaid out of the
proceeds from such Asset Disposition; and
(iii) appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP, against any
liabilities associated with the property or other assets disposed of in such Asset Disposition and
retained by the Issuer or any Guarantor after such Asset Disposition.

Note Closing Date is defined under The Escrow.

Note Proceeds is defined under The Escrow.

Noteholder means the Person in whose name a Note is registered in the Register.

Notes is defined under Description of Notes and Finance Agreements.

Notes Hedge Agreement means each Chilean peso-U.S. dollar currency hedge in respect of the Notes.

Notes Hedge Counterparty means each Hedge Counterparty, including its successors and assigns, that will
enter into a Notes Hedge Agreement with the Issuer.

Notes Hedge Value means, with respect to any Notes Hedge Agreement on any date of determination, (a)
prior to the termination of such Notes Hedge Agreement, an amount (which will be zero if negative) that would
be payable by the Company under such Notes Hedge Agreement if (i) such Notes Hedge Agreement were being
terminated early on such date of determination due to a termination event or event of default, (ii) the Company
were the sole affected party or defaulting party and (iii) the applicable Notes Hedge Counterparty were the sole

D-12
party determining such payment amount, and (b) from and after the termination of such Notes Hedge Agreement,
an amount equal to the Contingent Hedge Payments as of such date of determination (other than any amounts
paid prior to such date). In determining the amount of any Notes Hedge Value, the Trustee and each Collateral
Trustee may conclusively rely upon reasonably detailed good faith calculations supplied by the relevant Notes
Hedge Counterparty pursuant to and in accordance with the Indenture as to the amount of such Notes Hedge
Value in respect of the Notes Hedge Agreement to which such Notes Hedge Counterparty is a party; provided
that if the relevant Notes Hedge Counterparty shall have failed to deliver such good faith calculations within 2
Business Days following receipt by the Notes Hedge Counterparty of the Trustees request therefor in accordance
with the terms of the Indenture, then such Notes Hedge Values shall be deemed to be zero.

NY Account Pledge Agreements is defined under Description of Notes and Finance Agreements
Collateral.

NY Accounts means collectively the Payment Account, the Reserve Account, the Open Market Purchases
Account and the Coverage Reserve Account.

O&M Accounts is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

O&M Costs means cash operations and maintenance costs, including payments required to be made under
the Operating Agreements (including CAPEX Costs for an aggregate amount not to exceed U.S.$4.0 million in
2011 and U.S.$3.0 million in any later fiscal year), payments for insurance, employee salaries, contractors and
suppliers, wages and other employment-related costs, taxes, administrative expenses, legal and accounting fees,
settlement of legal proceedings in connection with the operation of the Bus Network or any Permitted Business,
professional and consulting services (provided that no more than U.S.$150,000 of such amount in any fiscal year
may be paid to an affiliate of the Concessionaires, with any excess thereof being payable from Description of
Notes and Finance AgreementsTreatment of FundsDeposits of Funds to and Distribution of Funds from the
Revenue AccountSemi-annual and Special Distributionsseventeenth) (excluding professional and
consulting services directly related to the Acquisition or the Transactions), consumables, fuel, spare parts, leases
obligations and other similar costs, in each case incurred and paid by the Concessionaires in good faith, on an
arms-length basis and in the ordinary course of business; in addition, O&M Costs will include taxes and
administrative expenses of Panamerican and Eco Uno for an aggregate amount not to exceed U.S.$150,000 in
any fiscal year.

O&M Transaction Checking Accounts is defined under Description of Notes and Finance Agreements
Establishment of Accounts.

Officer means, with respect to any Person, the chairman of the board, the chief executive officer, the
president, the chief operating officer, the chief financial officer, the treasurer, the controller or any vice-president
of such Person.

Officers Certificate, of any Person, means a certificate signed on behalf of such Person by at least two
Officers of such Person, one of whom must be the principal executive officer, the principal financial officer, the
treasurer or the principal accounting officer of such Person, unless otherwise provided.

D-13
 Official Gazette of Chile (Diario Oficial de la Repblica de Chile) means the official publication of the
Chilean government in which Chilean laws, decrees and regulations are published.

Open Market Purchase means the purchase of any Notes available for sale in the secondary market
through broker-dealers or similar intermediaries, in each case for total consideration less than the sum of the
principal amount thereof plus accrued and unpaid interest thereon, provided that any Notes so purchased are
surrendered immediately to the Trustee for cancellation.

Open Market Purchases Account is defined under Description of Notes and Finance Agreements
Establishment of Accounts.

Operating Agreements means, collectively, the Concession Agreements, the AFT Agreement, the
Collection Mandate Agreements, the Technology Services Agreements and all the Additional Agreements.

Operating Plan means an operating plan agreed upon by all Transantiago bus concessionaires with the
Ministry on a quarterly basis, which includes scheduled bus routes, route distances, times of service and number
and types of buses on each route on weekdays, weekends and holidays. Adherence to our Operating Plans is a
critical factor in our revenue formulas under the Concession Agreements that impacts our Variable Revenue and
our Service Fulfillment Ratio. For a more complete discussion regarding our Operating Plans, see The
ConcessionsOperating Plans.

Operating Technical Reserve (Reserva Tcnica Operativa) is a reserve fund that was established to buffer
short-term differences between actual passenger fares collected by Transantiago and the costs incurred by
Transantiago. All Transantiago bus concessionaires, including Alsacia and Express, initially contributed a fixed
amount to the Operating Technical Reserve under the terms of their respective concession agreements. The
Operating Technical Reserve has been exhausted, and since September 2009, Transantiago deficits have been
funded by direct subsidies from the Chilean Government.

Opinion of Counsel means a written opinion of counsel, who may be counsel to the Issuer or to the
Guarantors, as applicable, and who will be reasonably acceptable to the Trustee.

Other Pledge Agreements is defined under Description of Notes and Finance AgreementsCollateral.

Overhaul Accounts is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

Overhaul Budget is defined under Description of Notes and Finance AgreementsDeposits of Funds to
and Distribution of Funds from the Overhaul Accounts.

Overhaul Costs means the aggregate amount required and necessary for the major maintenance on the
gear box, engine or transmission overhaul of the buses comprising the Bus Network during the following six
months on a rolling basis to be incurred by the Concessionaires in good faith, on an arms-length basis and in the
ordinary course of business.

Overhaul Transaction Checking Accounts is defined under Description of Notes and Finance
AgreementsEstablishment of Accounts.

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 Panamerican means Panamerican Investments Ltd., which is a newly-formed holding company owned by
GPS Group that will directly or indirectly hold 99.695% of Eco Uno upon completion of the Acquisition and is a
Guarantor of the Notes.

Passenger Validations (Validaciones) means the number of passengers who use our buses, as recorded by
electronic payment card readers on our buses and at bus stops when passengers swipe, or use, stored value
payment cards.

Payment Account is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

Payment Date is defined under Description of Notes and Finance AgreementsGeneral.

Payment Default is defined under Description of Notes and Finance AgreementsEvents of Default.

Payment Period is defined under Description of Notes and Finance AgreementsSemi-annual and
Special Distributions.

Payment Transfer Date is defined under Description of Notes and Finance AgreementsSemi-annual
and Special Distributions.

Permitted Business means (a) any business conducted or proposed to be conducted (as described in this
Offering Memorandum) by the Concessionaires on the Note Closing Date, or (b) other businesses (i) reasonably
related or ancillary thereto or (ii) which require a concession for rendering public services and as permitted by
the Concession Agreements (including by waiver or amendment), in each of (i) and (ii) so long as at the time any
such Permitted Business is proposed to be commenced or acquired by either Concessionaire, the assets or
liabilities associated therewith shall not, on a pro forma basis, exceed 35% of the consolidated assets or
liabilities, respectively, of the Concessionaires considered together (except, for the avoidance of doubt, any
Unrestricted Subsidiary).

Permitted Chilean Investments means any of the following, and which may include investments in respect
of which the Trustee acts as investment advisor or manager: (a) fixed income securities issued by the Chilean
Treasury, the Chilean Central Bank, Chilean banks or corporations with an international rating of at least A by
S&P, A by Fitch or A2 by Moodys, or a Chilean domestic rating of at least AA or equivalent by any of
such rating agencies; (b) repurchase agreements (i) with any of the entities mentioned in (a) above and (ii) with
respect to which the collateral consist of fixed income securities issued by the Chilean Treasury, the Chilean
Central Bank or any of the entities mentioned in (a) above; and (c) time deposit accounts, certificates of deposit
and money market deposits denominated and payable in Chilean pesos maturing within 180 days of the date of
acquisition thereof issued by Chilean banks mentioned in (a) above.

Permitted Disposition means: (a) any Disposition of Capital Stock of the Issuer or any Guarantor pursuant
to a public offering of securities registered on a recognized stock exchange; or (b) any other Disposition of
Capital Stock of the Issuer or any Guarantor that, after giving effect to any such Disposition, the following
conditions as to the transferee and the Disposition will be satisfied: (i) no Default or Event of Default would
result from such Disposition; (ii) no violation of applicable law or any Transaction Document would result from
such Disposition; (iii) the Issuer or any Guarantor would not forfeit any of its material rights under any Operating

D-15
Document as a result of such Disposition; and (iv) if such Disposition is of any Capital Stock pledged pursuant to
a Security Document, the proposed transferee will have executed and delivered a pledge and security agreement
in substantially similar form as the Stock Pledge Agreements together with an Officers Certificate in form and
substance reasonably acceptable to the Trustee.

Permitted Investments means (a) cash, Permitted Chilean Investments and Permitted U.S. Investments;
(b) receivables in respect of Hedge Payments; (c) stock, obligations or securities received in settlement of (or
foreclosure with respect to) debts created in the ordinary course of business and owing to either Concessionaire
or in satisfaction of judgments or compromise of claims; (d) payroll, travel and similar advances to cover matters
that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business; (e) guarantees of Senior Indebtedness or Subordinated
Indebtedness permitted by the Indenture; (f) Receivables owing to either Concessionaire if created or acquired in
the ordinary course of business; (g) Investments in an affiliate of the Issuer and/or any Guarantor, provided that
the Issuer and the Guarantors shall have delivered to the Trustee at least 30 days in advance of making such
Investment an Officers Certificate executed by its respective chief financial officer and chief executive officer
setting forth: (i) that such affiliate will only engage in a business that, if conducted by either Concessionaire,
would be a Permitted Business, (ii) that such affiliate will be an Unrestricted Subsidiary for purposes of the
Indenture, (iii) in reasonable detail, the agreements, contracts and transactions that are expected to be entered into
by and between such affiliate and the Issuer or any Guarantor, (iv) that there will be no other liability of any kind
or obligation to invest or transfer assets by the Issuer or any Guarantor in connection therewith, (v) that any
transactions between such affiliate and the Issuer or any Guarantor will comply with the limitations on affiliate
transactions covenant, (vi) that such Investment in the affiliate will be funded with a cash common equity or
capital contribution to, or Subordinated Indebtedness incurred by, the Issuer or any Guarantor (which cash
common equity or capital contribution or Subordinated Indebtedness proceeds shall not be required to be
deposited into the Revenue Account), and (vii) that the Issuer and the Guarantors shall deliver to the Trustee
within ten days after the end of each fiscal quarter an Officers Certificate executed by its respective chief
financial officer and chief executive officer indicating compliance with clauses (i) through (vi) above; (h) an
equity Investment in any Person received by the Issuer or any Guarantor solely in consideration for provision by
the Concessionaires of technical, management or other related support services to such Person (or its
subsidiaries), provided that the Issuer and the Guarantors shall have delivered to the Trustee at least 30 days in
advance of making such Investment an Officers Certificate executed by its respective chief financial officer and
chief executive officer to the same effect as clauses (ii) through (vi) of the preceding clause (g) of this definition
(whether or not such Person is an affiliate) and in addition setting forth (i) that such Person (and its subsidiaries)
will exonerate the Issuer and the Guarantors for any liability in connection therewith to the full extent permitted
by applicable law, and (ii) that the Issuer and the Guarantors shall deliver to the Trustee within ten days after the
end of each fiscal quarter an Officers Certificate executed by its respective chief financial officer and chief
executive officer indicating compliance with clauses (ii) through (vi) and (i) above; (i) Investments by the Issuer
or any Guarantor in the Issuer or any Guarantor; and (j) additional Investments having an aggregate Fair Market
Value, taken together with all other Investments made pursuant to this clause (j) that are at the time outstanding,
not to exceed U.S.$1.0 million at the time of such Investment (with the Fair Market Value of each Investment
being measured at the time made and without giving effect to subsequent changes in value).

Permitted Liens has meaning as defined in Description of Notes and Finance AgreementsNegative
Covenants of the Issuer and the Guarantors.

D-16
 Permitted Refinancing Indebtedness means any Debt of the Concessionaires issued in exchange for, or the
net cash proceeds of which are used to extend, refinance, renew, replace, defease or refund other Debt of the
Concessionaires (other than Debt owed to the Issuer or any Guarantor); provided that:
(i) the amount of such Permitted Refinancing Indebtedness does not exceed the amount of the Debt so
extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued and unpaid interest
thereon and the amount of any reasonably determined premium necessary to accomplish such
refinancing and reasonable fees and expenses incurred in connection therewith);
(ii) such Permitted Refinancing Indebtedness has a final maturity date later than the final maturity date of,
and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to
Maturity of, the Debt being extended, refinanced, renewed, replaced, defeased or refunded;
(iii) if the Debt being extended, refinanced, renewed, replaced, defeased or refunded is subordinated in right
of payment to the Notes or the Guarantees, such Permitted Refinancing Indebtedness is subordinated in
right of payment to the Notes or the Guarantees, as applicable, on terms at least as favorable, taken as a
whole, to the Noteholders as those contained in the documentation governing the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded;
(iv) if the Debt being extended, refinanced, renewed, replaced, defeased or refunded is pari passu Debt,
such Permitted Refinancing Indebtedness ranks equally in right of payment with, or is subordinated in
right of payment to, the Notes or such Guarantees;
(v) such Permitted Refinancing Indebtedness has an interest rate lower than or equal to the Debt being
extended, refinanced, renewed, replaced, defeased or refunded;
(vi) the Debt Service Coverage Ratio, after giving pro forma effect to the incurrence of such Permitted
Refinancing Indebtedness and the application of the proceeds thereof, is not worse off than if the Debt
being extended, refinanced, renewed, replaced, defeased or refunded had not been so extended,
refinanced, renewed, replaced, defeased or refunded; and
(vii) such Debt is Incurred by either or both Concessionaires (and in any such case, if guaranteed,
guaranteed only by the Issuer and any Guarantor).

Notwithstanding the foregoing, if (i) the Permitted Refinancing Indebtedness is incurred to defease or
redeem the Notes in full in accordance with the Indenture, and (ii) the proceeds of such Permitted Refinancing
Indebtedness (in an amount sufficient to pay principal, interest, any premium, any Additional Amounts, fees and
expenses and any other amounts due under the Indenture and the Security Documents) are deposited with the
Trustee at the time of the incurrence of such Permitted Refinancing Indebtedness (including, for the avoidance of
doubt, in connection with a satisfaction and discharge or defeasance of the Notes in accordance with the
Indenture), then clauses (i) through (vii) will not apply to such Permitted Refinancing Indebtedness.

Permitted U.S. Investments means any of the following, and which may include investments in respect of
which the Trustee acts as investment advisor or manager: (a) direct obligations of the United States of America
or any agency thereof or obligations fully and unconditionally guaranteed by the United States of America or any
agency thereof; (b) time deposit accounts, certificates of deposit and money market deposits denominated and
payable in U.S. dollars maturing within 180 days of the date of acquisition thereof issued by a bank or trust
company which is organized under the laws of the United States of America, any state thereof or any foreign
country recognized by the United States of America, and which bank or trust company has capital, surplus and
undivided profits aggregating in excess of U.S.$100.0 million (or the foreign currency equivalent thereof) and

D-17
has outstanding debt which is rated A (or such similar equivalent rating) or higher by S&P or Moodys or any
money market fund denominated and payable in U.S. dollars sponsored by a registered broker dealer or mutual
fund distributor; (c) repurchase obligations with a term of not more than 30 days for underlying securities of the
types described in clause (a) above entered into with a bank meeting the qualifications described in clause
(b) above; (d) commercial paper denominated and payable in U.S. dollars, maturing not more than 90 days after
the date of acquisition, issued by a corporation (other than an affiliate of the Issuer or the Guarantors) organized
and in existence under the laws of the United States of America or any state thereof with a rating at the time as of
which any investment therein is made of P-1 (or higher) according to Moodys or A-1 (or higher) according
to S&P; (e) securities with maturities of six months or less from the date of acquisition issued or fully and
unconditionally guaranteed by any state, commonwealth or territory of the United States of America, or by any
political subdivision or taxing authority thereof, and rated at least A by S&P or Moodys; (f) Investments in
money market funds substantially all of whose assets are comprised of securities of the types described in clauses
(a) through (e) above; (g) demand deposit accounts with U.S. banks maintained in the ordinary course of
business.

Person means an individual, a corporation, a partnership, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

Pledge Agreements means, collectively, the Insurance Appointments, the NY Account Pledge
Agreements, the Chilean Money Pledges, the Concession Pledge Agreements, the Intercompany Debt Pledge
Agreements, the Other Pledge Agreements and the Asset Pledge Agreements.

Powers of Attorney is defined under Description of Notes and Finance AgreementsCollateral.

Principal Payment Date is defined under Description of Notes and Finance AgreementsGeneral.

pro forma means, with respect to any calculation made or required to be made pursuant to the terms of the
Indenture, a calculation made in good faith by the chief financial or accounting officer of the Issuer or Guarantor,
as applicable.

Proceeds is defined under Description of Notes and Finance Agreements.

Quarterly Report is defined under Description of Notes and Finance AgreementsAffirmative

Covenants of the Issuer and the GuarantorsQuarterly Reports.

Rating Agencies means Fitch and Moodys.

Receivables means all rights of either Concessionaire to payments (whether constituting accounts, chattel
paper, instruments, general intangibles or otherwise, and including the right to payment of any interest or finance
charges), which rights are identified in the accounting records of such Concessionaire as accounts receivable.

Relevant Member State is defined under Plan of DistributionNotice to Prospective Investors in the
EEA.

Relevant Taxing Jurisdiction is defined under Description of Notes and Finance Agreements
Redemption Solely for Tax Reasons.

D-18
 Repair Payments means the aggregate amount of funds required to repair property damage to the Bus
Network, or to acquire Replacement Assets in respect thereof, or any other property necessary to maintain the
operation of the Bus Network or pay any other claim against the Concessionaires or liability arising in respect
thereof, in each case that the Concessionaires reasonably believe to be covered by an insurance policy in effect.

Replacement Assets means (a) assets (which shall be non-current assets to the extent that the assets that
are the subject of the related insurance claim were non-current assets) that will be used or useful in a Permitted
Business, or (b) substantially all the assets of a Permitted Business.

Reporting Period means the last six full months (considered as one period) most recently ended to any
date of determination.

Required Debtholders is defined under Description of Notes and Finance AgreementsThe Secured
Party Agents.

Required Parity Lien Debtholders is defined under Description of Notes and Finance AgreementsThe
Secured Party Agents.

Reserve Account is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

Restricted Payment Date is defined under Description of Notes and Finance AgreementsAffirmative
Covenants of the Issuer and the GuarantorsLimitations on Restricted Payments.

Restricted Payments means any reduction (excluding reductions resulting from losses or impairments) or
return of capital of the Issuer or any Guarantor; any payment by the Issuer or any Guarantor of any dividends to
its respective shareholders (other than in the form of Capital Stock of the Issuer or such Guarantor), except for
dividends payable to the Issuer or any Guarantor; the authorization or making of any other distribution, any
payment or delivery by the Issuer or any Guarantor of property or cash to their respective shareholders in their
capacity as shareholders of the Issuer or such Guarantor or to such shareholders as permitted under the Indenture;
the redemption, retirement, purchase or other acquisition, directly or indirectly, for consideration of any of its
Capital Stock now or hereafter outstanding (or any options or warrants issued by the Issuer or any Guarantor with
respect to their respective Capital Stock) or the setting aside of any funds for any of the foregoing purposes; or
the making by the Issuer or any Guarantor of any cash payments with respect to principal or interest on, or the
purchase, redemption or defeasance of, any Subordinated Indebtedness (except payments on intercompany
Subordinated Indebtedness between the Issuer and any Guarantor or between Guarantors); it being understood
that any dividend to a shareholder (or any other person who becomes an owner of Capital Stock of the Issuer or
any Guarantor as a result of a Permitted Disposition) immediately then contributed back to the Issuer or such
Guarantor will not constitute a Restricted Payment; Investments other than Permitted Investments. Payments
made in connection with and related to the Transactions and Acquisition as described in this offering
memorandum shall not constitute Restricted Payments.

Restricted Subsidiary means any Subsidiary of the Issuer or any Guarantor that is not an Unrestricted
Subsidiary.

Revenue Account is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

D-19
 S&P means Standard & Poors Financial Services LLC.

Sale and Lease-Back Transaction means any arrangement with any Person (other than the Issuer or any of
the Guarantors), or to which any such Person is a party, providing for the leasing to the Issuer or a Guarantor for
a period of more than three years of any property or assets that have been or are to be sold or transferred by such
Issuer or Guarantor to such Person or to any other Person (other than the Issuer or a Guarantor) to which funds
have been or are to be advanced by such Person on the security of the leased property or assets.

Scheduled Principal Amounts is defined under Description of Notes and Finance Agreements
Scheduled Amortization.

Secured Party Agents is defined under Description of Notes and Finance AgreementsCollateral.

Security Documents means, collectively, the Pledge Agreements, the Powers of Attorney, the Share
Pledge Agreements, the Collateral Trust Agreement and the Mortgages.

Senior Indebtedness means all unsubordinated Debt of the Issuer or any Guarantor, including among
others, any Vendor Financing.

Service Fulfillment Ratio (ndice de Cumplimiento Plaza Kilmetro Hora) is a measure set forth in the
Concession Agreements and used by the Ministry to track actual passenger capacity and route distance against
Operating Plans. Prior to October 2009, the Service Fulfillment Ratio did not include a distance (kilmetros)
requirement and was therefore referred to as ndice de Cumplimiento Plaza Hora, rather than ndice de
Cumplimiento Plaza Kilmetro Hora. The addition of the distance requirement in 2009 made the Service
Fulfillment Ratio a more demanding measure of our performance. The Ministry reports a preliminary Service
Fulfillment Ratio to each bus concessionaire on a semi-monthly basis. Each bus concessionaire can then review
the preliminary Service Fulfillment Ratio and propose adjustments to it to reflect service interruptions or delays
that are outside of a concessionaires control, such as road construction or traffic accidents along its routes. Once
the proposed adjustments are reviewed and imposed by the Ministry, the Ministry publicly reports the adjusted
Service Fulfillment Ratios for a period starting on the sixth day of each calendar month and ending on the fifth
day of the following calendar month. Alsacia and Express also separately calculate the adjusted Service
Fulfillment Ratio for each calendar month for their internal reporting purposes. All Service Fulfillment Ratios
used in this Offering Memorandum refer to the internal, adjusted Service Fulfillment Ratios calculated by
Alsacia and Express. For a more complete description of the Service Fulfillment Ratio, see The Concessions
Concession RevenueRevenue Formulas.

Share Pledge Agreements is defined under Description of Notes and Finance AgreementsCollateral.

Special Transfer Date is defined under Description of Notes and Finance AgreementsSemi-annual and
Special Distributions.

Subject Persons is defined under Description of Notes and Finance AgreementsEvents of Default.

Subordinated Indebtedness means all Debt of the Issuer or any Guarantor that is subordinate or junior in
right of payment to the Notes and any other Senior Indebtedness pursuant to a written agreement, provided that
such written agreement shall set forth that all cash payments under such Debt shall be made in compliance with
the Indenture and will comply (when entered into, amended, restated or novated) with any requirements to be
considered subordinated indebtedness on the terms set forth herein under its governing law.

D-20
 Subsidiary means, with respect to any Person:
(i) a corporation a majority of whose Voting Stock is at the time owned or controlled, directly or
indirectly, by such Person, one or more Subsidiaries thereof or such Person and one or more
Subsidiaries thereof; and
(ii) any other Person (other than a corporation), including, without limitation, a partnership, limited
liability company, business trust or joint venture, in which such Person, one or more Subsidiaries
thereof or such Person and one or more Subsidiaries thereof, directly or indirectly, at the date of
determination thereof, has at least majority ownership interest entitled to vote in the election of
directors, managers or trustees thereof (or other Person performing similar functions).

SVS means the Chilean Superintendency of Securities and Insurance (Superintendencia de Valores y
Seguros).

Taxes is defined under Description of Notes and Finance AgreementsAdditional Amounts.

Technology Services Agreements means, collectively, the Technology Services Agreement, dated
March 22, 2006, between Alsacia and the AFT, as amended from time to time, and the Technology Services
Agreement, dated March 22, 2006, between Express and the AFT, as amended from time to time.

Termination Event means any of the Operating Agreements is terminated, canceled, repealed, annulled,
rescinded or revoked by any Governmental Authority in Chile (whether in whole or in material part) on any
ground, in each case as such action could reasonably be expected to result in a Material Adverse Change.

Three-Year Budget is defined under Description of Notes and Finance AgreementsAffirmative

Covenants of the Issuer and the GuarantorsBudgets.

Transaction Documents means, collectively, the Finance Agreements, the Operating Agreements, any
termination and release agreements relating to the repayment of the Existing Indebtedness and the agreement
relating to the indirect acquisition of the 55% of the common shares of Express.

Transaction Checking Accounts is defined under Description of Notes and Finance Agreements
Establishment of Accounts.

Transactions is defined under Description of Notes and Finance AgreementsAffirmative Covenants of

the Issuer and the GuarantorsUse of Proceeds.

Transantiago means the public transportation system of the Santiago, Chile metropolitan area, which is
regulated by the Ministry.

Transfer Accounts is defined under Description of Notes and Finance AgreementsEstablishment of

Accounts.

Transfer Date is defined under Description of Notes and Finance AgreementsBi-monthly

Distributions.

Transfer Period is defined under Description of Notes and Finance AgreementsBi-monthly

Distributions.

D-21
 Trustee is defined under The Escrow.

Unrestricted Subsidiary means any Subsidiary of the Issuer or any Guarantor (and any Subsidiary thereof)
that (i) does not hold any Capital Stock or Debt of, or own or hold any Lien on any property or assets of, or have
any Investment in, the Issuer or any Guarantor, (ii) is a Person with respect to which neither the Issuer nor any
Guarantor has any direct or indirect obligation (x) to subscribe for additional equity interests or (y) to maintain or
preserve such Persons financial condition or to cause such Person to achieve any specified levels of operating
results, and (iii) has not guaranteed or otherwise directly or indirectly provided credit support for any Debt of the
Issuer or any Guarantor. Unrestricted Subsidiaries will not be subject to any of the covenants of the Indenture.

Unsettled Claims means outstanding claims in connection with a Repair Payment made by the
Concessionaires under an insurance policy in effect, net of insurance proceeds deposited into the Revenue
Account, but without reduction for deductibles in connection therewith.

Value means, with respect to a Sale and Lease-Back Transaction, as of any particular time, the amount
equal to the greater of (1) the net proceeds from the sale or transfer of the property leased pursuant to such Sale
and Lease-Back Transaction and (2) the fair value in the opinion of the Board of Directors of the Issuer or
applicable Guarantor of such Property at the time of entering into such Sale and Lease-Back Transaction, in
either case divided first by the number of full years of the original term of the lease and then multiplied by the
number of full years of such term remaining at the time of determination, without regard to any renewal or
extension options contained in the lease.

Variable Revenue means the variable portion of the revenue formula in our Concession Agreements,
which is based on a number of factors, including our Operating Plans, Passenger Validations and the Cost Index.
See a complete description of the formula for calculating Variable Revenue under The Concessions
Concession RevenueRevenue Formulas.

Vendor Financing means, collectively, any direct or indirect advance, loan or other extension of credit
from a company to either Concessionaire which is used by such Concessionaire to purchase, or enter into capital
leases in respect of, buses for the bus transportation and related operating systems subject to the Concession
Agreements (the Bus Network) from such company or an affiliate or related party thereof.

Voting Balances means the sum of (a) the outstanding principal amount of the Notes (excluding any
Notes held by the Company, the Guarantors or any of their respective Affiliates) and (b) the sum of Notes Hedge
Values. In determining the amount of Voting Balances, the Trustee and each Collateral Trustee may
conclusively rely upon reasonably detailed good faith calculations supplied by the relevant Notes Hedge
Counterparty pursuant to and in accordance with the Indenture as to the amount of such Notes Hedge Value in
respect of the Notes Hedge Agreement to which such Notes Hedge Counterparty is a party; provided that if the
relevant Notes Hedge Counterparty shall have failed to deliver such good faith calculations within 2 Business
Days following receipt by the Notes Hedge Counterparty of the Trustees request therefor in accordance with the
terms of the Indenture, then such Notes Hedge Values shall be deemed to be zero.

Voting Stock of any Person as of any date means the Capital Stock of such Person that is ordinarily
entitled to vote in the election of the board of directors of such Person.

D-22
 We, us, our and words of similar effect refer collectively to Alsacia and Express, affiliated companies
under common control by our Principal Shareholder upon completion of the acquisition transactions
contemplated under Use of Proceeds.

Weighted Average Life to Maturity means, when applied to any Debt at any date, the number of years
obtained by dividing:
(i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment,
sinking fund, serial maturity or other required payments of principal, including payment at final
maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment; by
(ii) the then outstanding principal amount of such Debt.

Unless otherwise indicated or the context otherwise requires, and except for the financial information
appearing in this Offering Memorandum, all discussions in this Offering Memorandum give effect to the
completion of the Acquisition and the financing described herein as if they have already occurred.

D-23
 U.S.$464,000,000

BRT Escrow Corporation SpA

expected to be combined with and into

Inversiones Alsacia S.A.

8.00% Senior Secured Notes due 2018
expected to be unconditionally guaranteed
by Inversiones Alsacia S.A.s affiliates,

Express de Santiago Uno S.A.,

Inversiones Eco Uno S.A.,
and
Panamerican Investments Ltd.

Joint Book-Running Managers

BofA Merrill Lynch J.P. Morgan

February 14, 2011