Project Status: Design Initiated development of alternative station design concepts for stations in the vicinity of USC and Expo Park Received 85% design from FFP for Work Package A3, Trench Structure Received 60% designs from FFP for: Work Package A2, Corridor Improvements 23 rd Street to Vermont Work Package B1, Utility Improvements Vermont to Harcourt Work Package B2, Corridor Improvements Vermont to Harcourt 1

Project Status: Construction Completed main storm drain lines between Adams and Washington in Flower Street Started sidewalk modifications on West side of Flower Street between 23 rd and Washington Started procurement of the 61” water line for Work Package A4, 61” Water Line Relocation Continued potholing for utilities in segment A FFP submitted construction submittals for trench construction Performed exploratory drilling at Flower/Exposition grade separation to support final trench design 2

Project Status: CPUC Grade Crossing Applications 44 crossings on the project require CPUC approval 36 grade crossing applications have been filed 8 grade crossing applications require additional analysis prior to submittal to the CPUC  28 th /Flower  Flower/HOV  30 th /Flower  Farmdale Ave.  Watt Way  Trousdale Pedestrian Crossing  Menlo Ave.  Vermont Ave. Protests have been filed on 34 grade crossing applications  CPUC Staff have protested 8 grade crossing applications 3

Project Status: Real Estate Currently 22 parcels required for the Project 9 property appraisals are complete Offers have been made for 7 parcels 1 parcel has been acquired 4

Project Status : Third Party Agreements 10 Third Party Agreements are necessary for the project 2 agreements have been executed: Caltrans City of Los Angeles Execution of agreement with AT&T awaiting Board Authorization 7 agreements are still being processed: LADWP Culver City Gas Co. County of Los Angeles Golden state Water Time Warner USC Fiber Optics 5

Project Status: Government/Community Relations Conducted a Project Status briefing for State and Federal elected official deputies Conducted Construction Safety Presentations at 36 th Street Early Education Center, Turning Point School, Virginia Rd. Elementary School, Bright Elementary School, Baldwin Hills Elementary, Transfiguration Elementary, Martin Luther King Elementary, 32rd Street Elementary and West Angeles Academy Hosted two construction Project Status Update Meetings for Segment A; Business Merchants Meeting and Community Meeting Conducted an Urban Design Committee meetings at Staples Center Site on January 9, 2007 and Bahai Center Site on January 13, 2007 Hosted Public Scoping Meetings Phase 2 at Culver City Senior Center on February 27, 2007 and Hamilton High School on February 28,

Project Status: Government/Community Relations (continued) Participated in various community events for the Martin Luther King Celebration Continued meeting with Business Owners in Segment A, B & C to discuss construction timeline and access issues Continued meeting with LAUSD Environmental Health and Safety Staff to discuss ongoing school safety mitigation measures. 7

Planned Activities: Design Submit 85% design on 3 Work Packages: Work Package A2, Corridor Improvements 23 rd Street to Vermont Work Package B1, Utility Improvements Vermont to Harcourt Work Package D2, Track Procurement Submit 60% design for Work Package D4, Traction Power Submit 30% design for Work Package E2, Metro Blue Line Tie-ins 8

Planned Activities: Construction Start sewer line relocation between Adams and Washington on the East side of Flower Street Complete demolition and reconstruction of curb and sidewalk on West side of Flower Street Start installing street lighting system along West side of Flower Street between 23 rd and Washington Start Utility relocation to support trench construction 9

Planned Activities: Government/Community Relations Continue meeting with administrators, parents and teachers in school sites identified in the EIR to provide construction schedule and safety information tips Host Construction Project Status Update Meetings for Segment B Host Urban Design Committee Meetings Host Phase 2 Scoping Meetings Real Estate Continue real estate acquisition and lease termination activities 10

Planned Activities: Third Party Agreements Negotiate Master Cooperative Agreements with Gas Company, LADWP and Time Warner Draft Letter of Agreement with LA County 11

Project Status: Construction Progress 12 Placing Shield

Project Status: Construction Progress 13 Excavating for 30” Pipe

Project Status: Construction Progress 14 Lowering 30” Pipe

Project Status: Construction Progress 15 Setting 30” Pipe

Project Major Milestones Dec 2006Jan 2007 Authority Actions Feb 2007 Mar 2007 Apr 2007 Design Build Contract Community Outreach May 2007 Legend : Urban Design Committee Meeting Mid-Corridor Community Meeting Downtown and West End Community Meetings Negotiate LNTP for Procurement 60” & 48 Pipe Work Package A2 Approve LNTP for Procurement 60” & 48 Pipe Work Package A2 Approve NTE for Design of Ballona Creek Bridge & USC/ Expo Park Station Downtown Project Status Update Meeting West End Project Status Update Meeting 16 Negotiate Construction Packages A3 (Trench) & CCTV Approve Construction Pkg. A3 (Trench) & CCTV Negotiate Construction Package B1 Utilities Vermont - Harcourt Mid-Corridor Project Status Update Meeting Approve Construction Package B1 Utilities Vermont to Harcourt Negotiate Construction Package A2 Corr Impmnts 23 rd -Vermont Approve Construction Package A2 Corr Impmnts 23 rd -Vermont Negotiate LNTP Procure TPSS Prefab Bldg Package D3 Downtown Project Status Update Meeting Project Scoping Meetings Phase 2 Project Scoping Meeting Phase 2

January/February 2007 Awarded contract to PVJobs to help recruit local residents to participate in the Expo Local Jobs Program. PVJobs will coordinate with the Chrysalis organization to prepare selected program participants. Hired eight (8) new construction workers through community outreach efforts. Workers reside in zip codes along the Expo Corridor alignment. A total of 21 workers have been hired from September through February through the Expo Local Jobs Program. Continued to hire workers through PV Jobs for intermittent work to distribute construction notices throughout the Corridor Helped sponsor Los Angeles Urban League’s Annual Job Workforce Fair in February. Continued to update database of individuals interested in seeking employment with the Expo Local Jobs Program. Jobs Program Activities: 17