We have sent you this booklet and proxy on or about April 16, 2007 because the Board of Directors of Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation (“Wabtec”), is soliciting your proxy to vote at the company’s 2007 annual meeting of stockholders.

Who May Vote

Stockholders of Wabtec as reflected in our stock records at the close of business on March 26, 2007 may vote. You have one vote for each share of Wabtec common stock you own.

How to Vote

You may vote in person at the meeting or by proxy. Most stockholders of record have a choice of voting by proxy over the Internet, by telephone, or by using a traditional proxy card. Please check your proxy card or the information forwarded by your bank, stockbroker or other holder of record to see which options are available to you. We recommend you vote by proxy even if you plan to attend the meeting. You can always change your vote at the meeting.

How a Proxy Works

Giving us a proxy means you authorize us to vote your shares in accordance with your directions. If you do not make any selections, your shares will be voted in favor of our director candidates.

You may receive more than one proxy or voting card depending on how you hold your shares. Shares registered in your name are generally covered by one card. If you hold shares through someone else, such as a bank or stockbroker, you may get material from them asking how you want to vote.

Changing Your Vote

You may revoke your proxy before it is voted by submitting a new proxy with a later date, by voting in person at the meeting or by notifying Wabtec’s Secretary in writing.

Common Stock Outstanding

As of the close of business on March 26, 2007, approximately 49,335,828 shares of Wabtec common stock were issued and outstanding.

Quorum and Voting Information

To conduct the business of the meeting, we must have a quorum. This means at least a majority of the outstanding shares eligible to vote must be represented at the meeting, either in person or by proxy. You are considered a part of the quorum if you submit a properly signed proxy card, vote over the Internet or vote by telephone.

If a quorum is present at the meeting, the three director candidates receiving the most votes will be elected to fill the three open seats on the Board of Directors. Abstentions and broker non-votes are not relevant to the election of directors.

Approval of any other matter that properly comes before the annual meeting requires the favorable vote of a majority of shares present in person or by proxy, unless the matter requires more than a majority vote under statute or our by-laws.

Because the total shares voted “for,” “against,” or “abstain” are considered shares present, they are counted to determine the minimum votes required for approval of other proposals. Therefore, if you abstain from voting, it has the same legal effect as a vote “against” any other proposal. Broker non-votes will not be counted as a vote or used to determine the favorable votes required to approve any other proposal.

A broker non-vote occurs when a broker limits the number of shares voted on a proposal on its proxy card or indicates the shares represented by the proxy card are not being voted on a proposal.

Other Owners of More Than 5%

Based on our review of the filings required to be made with the Securities and Exchange Commission on Schedule 13G and Schedule 13D, there were no beneficial owners of more than 5% of Wabtec’s common stock as of December 31, 2006.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our directors and executive officers to file reports of beneficial ownership and changes in beneficial ownership of Wabtec stock. Directors and officers must furnish us with copies of these reports. Based on these copies and directors’ and executive officers’ representations we believe all directors and executive officers complied with the requirements of Section 16(a) in 2006.

Wabtec’s Board of Directors currently has nine members and three vacant seats. The Board is divided into three classes whose terms of office end in successive years. Robert J. Brooks, William E. Kassling and Albert J. Neupaver, whose terms of office are expiring, have been nominated to serve for new terms ending in 2010. The Board may act at a future date to fill the three remaining vacancies or reduce the size of the Board. All nominations were made by the Nominating and Corporate Governance Committee, as further described under “Nominating and Corporate Governance Committee” on page 6, and approved by the entire Board of Directors. Mr. Vande Steeg was appointed to Wabtec’s Board in February of 2007 to fill the vacancy created by the resignation of Mr. Davis.

Vote Required

Your proxy will be voted “for” the election of these nominees unless you withhold authority to vote for any one or more of them. If any nominee is unable or unwilling to stand for election, your proxy authorizes us to vote for a replacement nominee if the Board names one.

Only votes “for” a candidate are counted in the election of directors. The three nominees who receive the most votes will be elected as directors.

The Board recommends you vote FOR each of the following candidates.

The Board and Committees

The Board met 8 times during 2006. All directors attended all meetings of the Board and the committees on which they served in 2006. The Board committees that help the Board fulfill its duties

include the Nominating and Corporate Governance Committee, the Audit Committee and the Compensation Committee. The Board also holds regularly scheduled meetings of non-employee directors. Mr. Fernandez presides at these meetings.

In addition to the independence requirements set forth in the listing standards of the New York Stock Exchange (the “NYSE”), the Board has adopted categorical standards to assist it in determining whether its members meet the independence requirements of the NYSE. These standards provide that the following relationships are deemed to be immaterial and would not in and of themselves impair a director’s independence:

The Board has reviewed the independence of its members considering these standards and any other commercial, legal, accounting and familial relationships between the directors and Wabtec and has determined that a majority of its members are independent. Specifically, none of the following directors, Mr. Fernandez, Mr. Foster, Mr. Napier, Mr. Howell, Mr. Valade, Mr. Brooks and Mr. Vande Steeg, has a material relationship with Wabtec, and each such director meets the Board’s categorical independence standards and the independence requirements of the NYSE listing standards. Mr. Davis, who resigned from Wabtec’s Board in February of 2007, was also determined to be independent.

It is the company’s policy that all directors attend the annual meeting of stockholders if reasonably possible. All directors then serving, other than Mr. Howell, attended the 2006 annual meeting of stockholders.

The Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee reviewed and approved an amended and restated charter at its February 20, 2007 meeting. A current copy of the amended charter is available on Wabtec’s website at http://www.wabtec.com, and is available in print to any stockholder who requests it. The principal functions of the Nominating and Corporate Governance Committee are to:

The Committee met 4 times during 2006. The members of the Nominating and Corporate Governance Committee in 2006 were Mr. Davis, Mr. Fernandez and Mr. Howell, who were each independent, as independence for such members is defined in the listing standards of the NYSE. Mr. Fernandez is the Chairman of the Nominating and Corporate Governance Committee.

The Committee will consider director nominees recommended by stockholders. Stockholders wishing to recommend a director candidate for consideration by the Committee can do so by writing the Secretary of Wabtec at 1001 Air Brake Avenue, Wilmerding, PA 15148; giving the candidate’s name, biographical data and qualifications. Any such recommendation should be accompanied by a written statement from the individual of his or her consent to be named as a candidate and, if nominated and elected, to serve as a director. No candidates for Board membership have been put forward by stockholders for election at the 2007 annual meeting of stockholders.

In evaluating candidates for the Board, the Nominating and Corporate Governance Committee considers the entirety of each candidate’s credentials. The Committee is guided by the objective set forth in its charter of ensuring that the Board consists of individuals from diverse educational and professional experiences and backgrounds who collectively

provide meaningful counsel to management. The Committee considers the candidate’s character, integrity, experience, understanding of strategy and policy-setting and reputation for working well with others. In connection with this evaluation, the Nominating and Corporate Governance Committee determines whether to interview the prospective nominee, and if warranted, one or more members of the committee, and others as appropriate, interview prospective nominees. After completing this evaluation and interview, the Nominating and Corporate Governance Committee makes a recommendation to the full Board as to the persons who should be nominated by the Board, and the Board determines the nominees after considering the recommendation and report of the Nominating and Corporate Governance Committee. If candidates are recommended by the company’s stockholders, such candidates will be evaluated using the same criteria. With respect to nomination of continuing directors for re-election, the individual’s contributions to the Board are also considered.

Pursuant to authority granted under its charter, the Nominating and Corporate Governance Committee consulted with a search firm in 2006 for assistance with identifying and evaluating potential candidates for Board positions.

The Audit Committee

The Audit Committee acts under a written charter, which was amended and restated by the Board of Directors on February 18, 2004. The Audit Committee reviewed and approved the continued use of its written charter at its February 20, 2007 meeting. A current copy of the charter is available on Wabtec’s website at http://www.wabtec.com and is available in print to any stockholder who requests it.

The Audit Committee provides assistance to the Board in fulfilling its oversight responsibility to stockholders, the investment community and others relating to the integrity of Wabtec’s financial statements, its financial reporting process, its systems of internal accounting and financial controls, the performance of Wabtec’s internal audit function and independent registered public accountants, the independent registered public accountant’s qualifications and independence, and Wabtec’s compliance with ethics policies and legal and regulatory requirements. The Committee is directly

responsible for appointing, compensating, retaining and overseeing the work of the independent registered public accounting firm engaged by Wabtec. The Audit Committee has established procedures for the receipt, retention and treatment of complaints received by Wabtec regarding accounting, internal controls or auditing matters and the confidential anonymous submission by employees of concerns regarding questionable accounting or auditing matters.

The Audit Committee met 8 times in 2006. The current Audit Committee members are Mr. Fernandez, Mr. Foster, Mr. Howell and Mr. Valade, who are each independent, as independence is defined in the rules of the Securities and Exchange Commission and in the listing standards of the NYSE. The Board has determined that Mr. Valade, the Audit Committee’s Chairman, qualifies as an “audit committee financial expert” as defined in the regulations of the Securities and Exchange Commission.

Audit Committee Report

The Audit Committee is responsible for reviewing Wabtec’s financial reporting process on behalf of the Board of Directors. Management of the company has the primary responsibility for the financial statements and the reporting process, including the system of internal controls. In the performance of our oversight function, we meet with management periodically to consider the adequacy of the company’s internal controls and the objectivity of its financial reporting. We meet privately with the independent registered public accountants, who have unrestricted access to the audit committee. Specifically, we have reviewed and discussed with management and the independent registered public accountants the company’s consolidated financial statements as of and for the fiscal year ended December 31, 2006.

We have also discussed with the independent registered public accountants the matters required to be discussed by Statement on Auditing Standards No. 61, Communication with Audit Committees, as currently in effect.

Furthermore, we have received and reviewed the written disclosures and the letter from the independent registered public accountants required by Independence Standards Board Standard No. 1,

Independence Discussions with Audit Committees, as currently in effect, and have discussed with the independent registered public accountants their independence.

Based on the review and discussions referred to above, we recommended to the Board of Directors that Wabtec’s audited financial statements, as of and for the fiscal year ended December 31, 2006, be included in the company’s Annual Report on Form 10-K, for the year ended December 31, 2006, to be filed with the Securities and Exchange Commission.

Respectfully submitted,

Gary C. Valade, Chairman

Emilio A. Fernandez

Lee B. Foster, II

Michael W. D. Howell

The Compensation Committee

The Compensation Committee provides assistance to the Board relating to the compensation of Wabtec’s officers and directors. The Compensation Committee has authority, pursuant to its charter, to make recommendations to the Board, which then establishes compensation. The Compensation Committee’s principal responsibilities include:

The Compensation Committee members in 2006 were: Mr. Davis, Mr. Fernandez, Mr. Foster and Mr. Napier, who were each independent, as independence for such members is defined in the listing standards of the NYSE. Mr. Foster serves as the Compensation Committee’s Chairman. Our Nominating and Governance Committee of our Board of Directors recommends the Compensation Committee members who are approved by the full Board of Directors. The Compensation Committee met 4 times in 2006. The Compensation Committee reviewed and approved an amendment of its written charter at its February 20, 2007 meeting. A copy of

the written charter is available on Wabtec’s website at http://www.wabtec.com and is available in print to any stockholder who requests it.

The Compensation Committee recommends executive compensation to the Board, which then establishes these items. Base salaries are established at the beginning of the fiscal year and bonuses are awarded after fiscal year results are available. Base salaries depend mainly on the executive officer’s office and responsibility, while bonuses are based on pre-established performance factors. These factors are established at the beginning of the year and include (i) a financial performance factor measuring earnings before interest and taxes and working capital management and (ii) a personal performance factor which measures whether the individual executive attained certain quantitative and measureable goals established for that executive.

Executive officers also receive long-term incentive compensation. With respect to the long-term incentive portion of executive compensation, the Compensation Committee has discretion to grant long-term incentive awards under the 2000 Stock Incentive Plan. Such awards take the form of stock options, performance units and restricted share awards. The Compensation Committee bases the amount of the award upon the executive’s job level, as well as other factors. These factors include benchmarking the total compensation an executive may earn to ensure it is competitive, compensating executives in a “pay for performance” manner and aligning the interests of the executives with the interests of the shareholders. The Committee also reviews the ratio of total compensation to total target cash compensation to ensure that the mix of long term compensation is appropriate for each executive.

The Chief Executive Officer and the Vice President of Human Resources suggest guidelines in discussions with the Compensation Committee regarding executive compensation. They provide recommendations and information regarding the competitiveness of the industry, key employees, performance of individuals, succession planning and other relevant data to the committee. Neither the Chief Executive Officer nor the Chairman is present during any discussions concerning their compensation. The Compensation Committee also has the authority to retain compensation consultants

as it deems necessary and has the sole authority to approve such consultants’ fees. At the beginning of 2006, Wabtec utilized a compensation consultant to provide assistance in setting long-term economic profit goals as part of the long-term incentive plan for the 2006–2008 performance period under the plan.

During 2006, the Compensation Committee agreed to a recommendation to change the compensation pay structure for the non-employee directors effective May 2006. Wabtec monitored and benchmarked the directors’ pay to ensure that Wabtec was competitive. The company used surveys by the National Association of Corporate Directors (NACD) and surveys from the Conference Board to ensure competitiveness. In addition, the company created an independent index of similar sized publicly held manufacturing companies. These companies include: Tecumseh Products, Briggs and Stratton, Thomas and Betts, Regal Beloit, Woodward Governor, IDEX Corp., Sauer-Danfross, Milacron, Stewart and Stevenson, Kennametal, Trinity Industries, Flowserve and Greenbrier Companies. As a result, the Compensation Committee agreed with management recommendations to increase the cash retainer for non-employee directors from $25,000 to $35,000 to ensure that Wabtec can continue to attract new, and retain existing, non-employee directors. This increase places Wabtec near the 3^rd Quartile in cash compensation for similar sized publicly held manufacturing companies and Wabtec’s total compensation paid to directors would be above the index average. The benchmarking study also noted that the trend in director compensation reflected significant increases in compensation over the past few years and Wabtec’s practice of paying both a cash and a stock retainer is considered a best practice by the NACD.

Compensation Committee Interlocks and Insider Participation

During 2006, Wabtec had no interlocking relationships in which (i) an executive officer of Wabtec served as a member of the compensation committee of another entity, one of whose executive officers served on the Compensation Committee of Wabtec; (ii) an executive officer of Wabtec served as a director of another entity, one of whose executive officers served on the Compensation Committee of Wabtec; or (iii) an executive officer of Wabtec

served as a member of the compensation committee of another entity, one of whose executive officers served as a director of Wabtec. No member of the Compensation Committee was at any time during the 2006 fiscal year or at any other time an officer or employee of the company, and no member had any relationship with us requiring disclosure under Item 404 of Securities and Exchange Commission Regulation S-K.

Compensation Committee Report

The Compensation Committee of the Board of Directors has reviewed and discussed the Compensation Discussion and Analysis included on pages 9 through 14 of this proxy statement with management.

Based on this review and discussion, the Compensation Committee recommends to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.

Respectfully submitted,

Lee B. Foster, II, Chairman

Emilio A. Fernandez

James V. Napier

Kim G. Davis

Compensation Discussion and Analysis

Overview. This compensation discussion describes the material elements of compensation awarded to, earned by, or paid to each of our executive officers who served as named executive officers during 2006. This discussion focuses primarily on the fiscal year 2006 information contained in the following tables and related footnotes and narrative. We discuss compensation actions taken prior to 2006 if we believe it provides relevant information.

The principal elements of our executive compensation program are base salary, annual cash incentives, and long-term equity incentives in the form of restricted stock, stock options and performance units. Our other benefits and perquisites consist of life and health insurance benefits, financial planning services, social and health club dues, automobile allowances for certain executive officers, tax gross-up payments and a qualified 401(k) savings or comparable foreign plan (including company matching contributions). Our philosophy is to position the aggregate of these

elements at the average of that paid to executives with similar responsibilities. To ensure that the company is able to attract and retain high potential executives, the company benchmarks executive compensation using compensation surveys of similar sized companies and also using an index average of similar sized manufacturing companies. This index includes the following companies: Tecumseh Products, Briggs and Stratton, Thomas and Betts, Regal Beloit, Woodward Governor, IDEX Corp., Sauer-Danfross, Milacron, Stewart and Stevenson, Kennametal, Trinity Industries, Flowserve and Greenbrier Companies.

Objectives and Philosophy. The overall objectives of our executive compensation program are to (i) enable us to attract, motivate and retain key executive talent

essential to the achievement of our short-term and long-term business objectives; (ii) provide compensation competitive with others in our industry; (iii) reward senior executive officers in a “pay for performance” manner for accomplishment of pre-defined business goals and objectives; and (iv) align the interests of our executives with our stockholders. A significant portion of total executive compensation is variable compensation linked to corporate, business unit and individual performance. Our objective is to provide between 22% and 33% of an executive’s total compensation as salary with the remainder contingent upon achieving established performance goals. In regard to compensation based on performance, our objective is to provide between 50% and 67% in the form of equity awards.

Generally, the compensation of our executive officers is composed of a base salary, an annual incentive compensation award and long-term incentive awards in the form of restricted stock, stock options or performance units. In setting base salaries at the beginning of the year, the Compensation Committee generally reviews information about compensation practices and levels in Wabtec’s industry and the office and responsibility of the particular executive. The Company uses benchmarking to establish base salaries as discussed below. The annual incentive award for 2006 is a cash award determined by the Compensation Committee based on pre-established performance factors. These factors are established at the beginning of the year and include (i) a financial performance factor measuring earnings before interest and taxes and working capital management and (ii) a personal performance factor which measures whether the individual executive attained certain goals established for that executive. Long-

term incentives in the form of stock options, restricted stock and performance units are granted to provide the opportunity for long-term compensation based upon the performance of the company’s common stock and based upon the performance of the company and its ability to meet its long term goals and objectives.

Compensation Process.

Compensation Committee. Executive officer compensation is administered by the Compensation Committee of our Board of Directors, which is composed of 4 members. Those members during 2006 were Messrs. Davis, Fernandez, Foster and Napier. The Compensation Committee recommends base salaries and bonuses of executive officers to the Board, which then approves these items. Messrs. Davis, Fernandez, Foster and Napier approved the 2006 compensation arrangements described in this compensation discussion and analysis and

recommended them to the full board, which then approved them. Mr. Napier served as Chairman of the Compensation Committee from January to May of 2006; Mr. Foster served as Chairman of the Compensation Committee from May to December 2006. Our Board of Directors delegates to the Compensation Committee the direct responsibility for, among other matters:

Role of Compensation Experts. Pursuant to its charter, the Compensation Committee is authorized to engage compensation consultants to assist it with its duties. The Compensation Committee has the sole authority to retain and terminate any outside counsel or other experts or consultants to assist it in the evaluation of compensation of our directors and executive officers, including the sole authority to approve such consultants’ fees and other retention terms. The company utilized a compensation consultant in conjunction with determining long-term goals and objectives as part of the company’s long-term incentive compensation plan for the 2006–2008 performance period. The Compensation Committee may also obtain advice from legal, accounting, human resources and other advisors as it considers issues.

Role of Our Executive Officers in the Compensation Process. The Chief Executive Officer and the Vice President of Human Resources suggest guidelines in discussions with the Compensation Committee regarding executive compensation. They provide recommendations and information regarding the competitiveness of the industry, key employees, performance of individuals, succession planning and other relevant data to the committee. Neither the Chief Executive Officer nor the Chairman is present during any discussions concerning their compensation.

Components of Compensation.

Our 2006 compensation program elements were primarily structured to reward our executive officers for achieving certain financial and business objectives.

Base Salaries. Base salaries for our executive officers are reviewed annually and depend mainly on their office and responsibility and are based on the competitive average for executives with similar responsibilities in peer group companies. In this regard, the company uses two different benchmarks, one a broader benchmark study based on manufacturing companies that are between $1.0 billion and $1.9 billion in revenue size and a second study that is an index average of specific manufacturing companies that are similar to the company in size, geography, and industry. In this context, similar companies are defined as those that are comparable to us in size and scope, and in the nature of their businesses. This specific index includes the following companies: Tecumseh Products, Briggs and Stratton, Thomas and Betts, Regal Beloit, Woodward Governor, IDEX Corp., Sauer-Danfross, Milacron, Stewart and Stevenson, Kennametal, Trinity Industries, Flowserve and Greenbrier Companies. The average base salary increase for executive officers in 2006 was 4.09%. Individual salaries may be above or below the competitive average based on the individual’s contribution to business results, capabilities and qualifications, potential and the importance of the individual’s position to our success.

For fiscal year 2006, the base salary increases of our named executive officers ranged from 0% to 5.60%, excluding Mr. Kassling as discussed further below. These increases are discussed further in connection with the “Summary Compensation Table” which follows.

Annual Cash Incentive Awards. Our annual incentive award plan is intended to: (i) compensate participants directly if strategic and financial performance targets are achieved and (ii) reward participants for performance on those activities that are most directly under their control and for which they are held accountable. Corporate, business unit and individual performance goals under the annual incentive plan are linked to the annual business plan and budget. Bonuses are a function of the company’s overall financial performance, the participant’s individual performance and Board approval. Bonuses are based upon the success of two factors: a financial performance factor or “FPF” (ranging from 0 to 1.5 maximum), which measures earnings before interest and taxes and working capital management; and a personal performance factor or “PPF” (ranging from

0 to 1.5 maximum) which measures whether the executive has attained certain goals agreed to by the executive, his supervisor, and the Board. The bonus formula is based on the product of the participant’s base salary, the participant’s target bonus percentage, the FPF and the PPF. To qualify for a minimum payout under the bonus plan, the business unit must achieve at least 80% of its plan’s EBIT and 90% of its working capital plan target for the year. We believe that this philosophy encourages Wabtec and our executives to establish ambitious goals and that it promotes teamwork, productivity and profitability. Overall, total cash compensation (the sum of salary and bonus) for our executive officers are competitive with market practice for similar executive positions in similar companies when performance goals under

the annual bonus plan are achieved. Target bonuses and performance factors were approved by the Compensation Committee at its meeting in February 2006. For 2006, the company achieved a financial performance factor of 1.2545 based on exceeding EBIT and working capital plan targets. The personal performance factors achieved by each of our named executive officers were the following: Albert J. Neupaver—1.378, Alvaro Garcia-Tunon—1.348, Barry Pennypacker—1.355, Anthony J. Carpani—1.451, Timothy J. Logan—1.178. If both the financial performance factor and the applicable personal performance factor were achieved, the named executive officers would earn 100% of their target bonus.

Mr. Neupaver, Mr. Garcia-Tunon, Mr. Pennypacker, Mr. Logan and Mr. Carpani each participated in the annual incentive plan and each of them, due to their individual performance and the company’s performance, exceeded their target bonus. The bonuses received as a result are reflected in the non-equity incentive plan compensation column of the “Summary Compensation Table” below. Mr. Kassling did not participate in the annual bonus program; instead the Compensation Committee awarded him an annual bonus for 2006 equal to $300,000 based on his leadership and his performance as Chairman of Wabtec during 2006.

Long-Term Incentive Compensation. We currently administer our long-term incentive compensation through the 2000 Stock Incentive Plan under which we grant stock options, restricted stock and performance units. A total of 2,424,012 shares of common stock are available for issuance under the plan. The plan is administered by the Compensation Committee. During 2006, stock options to purchase 7,500 shares of common stock, 197,500 shares of restricted stock and 90,500 performance units were granted under the plan. In the past years, options

were generally granted to employees, including our executive officers, each February. Restricted stock was granted to certain officers as part of their long term compensation. As discussed below, in February of 2006, restricted stock grants were made to the named executive officers rather than options. Performance units are generally awarded each year for a 3-year performance period and were granted in February of 2006. The primary purposes of the long-term incentive program are to align the interests of executive officers and other key employees with those of our stockholders and to attract and retain key executive talent and to provide an incentive to meet and exceed long-term financial goals. Employees eligible for the long-term incentive program include those who are determined by the Compensation Committee to be in key policy-setting and decision-making roles, and to have responsibilities that contribute significantly to achieving our earnings goals. The size of an individual’s long-term incentive award is based primarily on individual performance, the individual’s responsibilities and position with our company. Long-term incentive award values are competitive with market practice for similar executive positions in similar companies.

Stock options are a part of our long-term incentive compensation program that seeks to align the interests of our executives with our stockholders. We have typically granted stock options in February of the applicable year. However, in 2006, no stock options were awarded to named executive officers of the company. We have historically awarded stock options to purchase our common stock to executive officers at the fair market value of our common stock at the grant date. We have not back-dated any option awards. The vesting schedule for each grant is determined by the Compensation Committee and has typically been in one-third increments over a 3-year period.

Restricted stock also plays a role in our long-term incentive program. In February of 2006, we granted restricted stock to all named executive officers. The Compensation Committee decided to utilize restricted stock instead of stock options as a means of delivering long-term compensation and use it as a means of more readily determining the total value of compensation for each executive officer. The company intends to continue to use restricted stock as a more integral part of its compensation program. In February of 2007, we again granted restricted stock to our named executive officers as part of their long term compensation with the company.

We granted 90,000 shares of restricted stock to Mr. Neupaver upon execution of his employment agreement in February 2006. Mr. Neupaver’s shares of restricted stock vest in annual 25% increments from February 1, 2006, so that 22,500 shares vest on each of February 1, 2007, February 1, 2008, February 1, 2009 and February 1, 2010. If Mr. Neupaver voluntarily terminates his employment from Wabtec or is terminated for cause, he will receive only the portion of his restricted stock that has vested. If he is terminated for other than cause, he will receive the entire amount of the restricted stock granted, regardless of its vesting status. The Compensation Committee approved this grant of restricted stock which was designed to compensate Mr. Neupaver for unvested stock options and restricted stock he lost upon his departure from AMETEK, Inc.

In addition, in 2004, the company implemented a 3-year long-term incentive program. This plan is designed to reward executives on meeting or exceeding economic profit growth goals. The plan is structured as a rolling 3-year plan, meaning each year would start a new performance cycle, i.e. (2004–

2006), (2005–2007), (2006–2008). For each executive selected to participate in this plan we establish a target grant of performance units at the beginning of each 3-year performance cycle. A performance unit is equal to a share of Wabtec common stock. If Wabtec achieves its 3-year cumulative economic profit goal, then participants will earn the target grant of performance units. In general, the goals increase each year taking into account expected market conditions, and are intended to reflect a superior performance by management. If Wabtec achieves the maximum 3-year cumulative economic profit goal, a participant will earn a maximum number (equal to 2 times the target level) of performance units. If Wabtec achieves the threshold 3-year cumulative economic profit goal, a participant will earn a threshold number (equal to one-half of the target level) of performance units. No performance units will be earned for performance below the 3-year cumulative economic profit threshold and no additional performance units will be earned for performance exceeding the 3-year cumulative economic profit maximum. This plan is intended to encourage the long-term stability of Wabtec’s management by establishing ambitious goals designed to promote the long-term productivity and profitability of the company. If a plan participant leaves the company voluntarily, or is terminated for cause, prior to the end of the performance period, he or she is not eligible to receive any performance units he or she may have earned under the plan. If a plan participant otherwise leaves the company, his or her payout will be pro-rated in accordance with the amount of time he or she participated in the plan relative to the performance period. For the 2006–2008 performance cycle, the Compensation Committee approved target goals based on cumulative economic profit for the performance period. These goals were based on a range of considerations including expected demand in Wabtec’s key end user markets, investor expectations and management’s business plan which includes year over year growth. During 2006, Wabtec exceeded its target 3-year performance goals for the 2004–2006 performance cycle, which resulted in the following payouts in March 2007:

Stock Ownership Requirements. In February 2007, Wabtec approved stock ownership guidelines for executive management and for non-employee board members. These guidelines were established to encourage our key employees and board members to own and retain shares of stock. These ownership guidelines are to be achieved in 3-5 years and are defined as a multiple of base salary for executives and a multiple of cash compensation for the non-employee board members. As of March 15, 2007, our directors and executive officers as a group owned approximately 7.2% of our outstanding common stock.

Perquisites and Other Personal Benefits. Supplemental benefits are offered to selected executive officers with the goal of attracting and retaining key executive talent. We provide the following perquisites to our executive officers: life and health insurance benefits, financial planning

services, social and health club dues, automobile allowances for certain executive officers, and tax gross-up payments.

Post-termination Compensation.

The company does not generally provide employment, severance or change in control agreements to its executive officers. As discussed below certain of our benefit plans contain provisions that address termination of an individual or a change in control of the company. Mr. Neupaver, however, was granted post-termination benefits in his employment agreement effective February 1, 2006. The terms of this agreement were approved by the Compensation Committee and are discussed under “Potential Payment on Termination or Change in Control” on page 21 of this proxy statement.

Tax Implications of Executive Compensation. Our aggregate deductions for each named executive officer’s compensation are potentially limited by Section 162(m) of the Internal Revenue Code of 1986, as amended, to the extent the aggregate amount paid to an executive officer exceeds $1.0 million, unless it is paid under a predetermined objective performance plan meeting certain requirements, or satisfies one of various other exceptions specified in the Internal Revenue Code.

Wabtec’s named executive officers do not generally have employment agreements. However, Albert J. Neupaver became President and Chief Executive Officer of Wabtec effective February 1, 2006. In connection with this appointment Wabtec entered into an employment agreement, effective February 1, 2006, with Mr. Neupaver. Pursuant to the agreement, Mr. Neupaver receives a salary of $600,000 and is entitled to participate in Wabtec’s annual incentive plan, long-term incentive plan and stock incentive plan. Mr. Neupaver was also granted 90,000 shares of restricted stock, which vest in annual 25% increments from February 1, 2006 so that 22,500 shares vest on each of February 1, 2007, February 1, 2008, February 1, 2009 and February 1, 2010. The Compensation Committee approved this grant of restricted stock which was designed to compensate

Mr. Neupaver for unvested stock options and restricted stock he lost upon his departure from AMETEK, Inc. Mr. Neupaver is also entitled to executive perquisites such as a company car, club memberships and reimbursement for tax preparation and estate planning services. As discussed above, under the terms of the agreement, if Mr. Neupaver is terminated during his first 2 years of employment for reasons other than cause, death or disability, he is entitled to receive 24 months base salary and his target bonus, and is entitled to participate in Wabtec’s benefit programs for 2 years from his termination date.

Mr. Kassling’s salary was adjusted from $700,000 to $480,000 in connection with his departure from the office of Chief Executive Officer.

Mr. Neupaver’s Employment Agreement

Under Mr. Neupaver’s employment agreement, if Mr. Neupaver is terminated during his first 2 years of employment for reasons other than cause, death or disability, he is entitled to receive 24 months base salary and his target bonus, and is entitled to participate in Wabtec’s benefit programs for 2 years from his termination date. Such benefits are consistent with the company’s compensation philosophy, as they are similar to post termination provisions for similarly situated chief executive officers and, as such, were a key element in attracting Mr. Neupaver’s services. This post-termination benefit package is similar to the post-termination benefit received by the Chief Executive Officer and President of Freightcar America Corp., Mr. John E. Carroll, Jr. (which provides for 3 years of salary, bonus, and benefits upon termination for Good Reason), which is a company in the company’s peer group. Not all companies in Wabtec’s peer group provide for post-termination benefits. If Mr. Neupaver had been terminated at December 31,

2006 for reasons other than cause, death or disability, the value of this benefit to be paid to him would have been approximately $1,518,000. Additionally, under the terms of the employment agreement, if Mr. Neupaver voluntarily terminates his employment from Wabtec or if he is terminated for cause, he will receive only the portion of his restricted stock that has vested. If he is terminated for other than cause, he will receive the entire amount of the restricted stock granted, regardless of its vesting status. If Mr. Neupaver had been terminated other than for cause at December 31, 2006, the value of this benefit to him would have been $2,734,200, based on Wabtec’s closing stock price of $30.38 on December 29, 2006, as none of the 90,000 shares had vested. If Mr. Neupaver is terminated due to a change of control, his severance would be equal to 2 times his base and target bonus and he would be eligible to participate in Wabtec’s medical benefit program for 2 years from his termination date. If Mr. Neupaver had been terminated due to a change of control at December 31, 2006, the value of the benefit to him would have been $1,518,000.

During 2006, Wabtec implemented changes to its compensation structure for non-employee directors. In summary each non-employee director of Wabtec receives an annual cash retainer equal to $35,000 for their services as a director. In addition, each director is entitled to receive $1,500 for each Board meeting or Board committee meeting that they attend in person and $1,000 for each Board meeting or Board committee meeting in which they participate by telephone. All directors are reimbursed for their out-of-pocket expenses incurred in connection with attendance at meetings and other activities relating to the Board or its committees.

In addition, the non-employee directors also participate in the Amended and Restated 1995 Non-Employee Directors’ Fee and Stock Option Plan. Under this plan, newly elected directors are eligible to receive 5,000 stock options (vesting one-third on each subsequent anniversary date) and 1,500 shares of Wabtec common stock upon their initial election to the Board (unless his or her first election was at an annual meeting or within 3 months prior to the anniversary date of the last annual meeting).

Each non-employee director is entitled to receive 1,500 shares of Wabtec common stock annually on the first

business day following the annual meeting of stockholders. Each non-employee director serving on the Board at that time received 1,500 shares of Wabtec common stock on May 17, 2006. Each non-employee director also receives 4,000 stock options each January 2nd during the term of his or her service on the Board. Such grants are priced at the average of the high and low stock price on the date granted. On January 3,

2006, each non-employee director serving on the Board at that time received 4,000 options at a grant price of $26.66. These options vest over a 3-year period. The committee administering the plan has authority to modify the number of options granted upon election and annually as well as the vesting periods of these options.

Audit Fees

Audit fees include fees for audit services in connection with Wabtec’s annual financial statements, review of financial statements included in Wabtec’s quarterly reports on Form 10-Q and Securities and Exchange Commission filings, and audit of internal control over financial reporting.

Audit-Related Fees

Audit-related fees include fees for services related to the audits of employee benefit plans, international accounting issues and implementation of rules related to the Sarbanes-Oxley Act of 2002.

Tax Fees

Tax fees include fees for services related to tax return preparation, tax compliance and tax planning.

All Other Fees

This category includes the aggregate fees billed for products and services provided by the independent accountants that are not reported above under “Audit Fees,” “Audit-Related Fees,” or “Tax Fees.” We were not billed any fees in this category during either 2006 or 2005.

The Audit Committee considered the compatibility of the non-audit-related services provided by and fees paid to Ernst & Young LLP in 2006 and the proposed services for 2007 and determined that such services and fees are compatible with the independence of Ernst & Young LLP.

Audit Committee Pre-Approval Policies and Procedures

The Audit Committee is responsible for the appointment, compensation and oversight of the work of the independent registered public accounting firm. As part of this responsibility, the Audit Committee is required to pre-approve the audit and non-audit services performed by the independent registered public accounting firm to assure that the provision of such services does not impair the independent registered public accounting firm’s independence.

The annual audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. All other permitted services are also pre-approved by the Audit Committee. The Audit Committee approved a list of pre-approved services. Unless a type of service has received pre-approval by inclusion on the list, it will require specific pre-approval by the Audit Committee. The Chief Financial Officer determines whether services to be provided require specific pre-approval or are included within the list of pre-approved services.

The Audit Committee has delegated its pre-approval authority to its Chairman, if the fee to be approved does not exceed $100,000.

All services provided by Ernst & Young LLP for fiscal year 2006 were pre-approved by the Audit Committee.

Pursuant to the terms of Wabtec’s amended and restated by-laws, William E. Kassling and Emilio A. Fernandez will be members of the Board so long as each person is able and willing to serve and each person beneficially owns a certain percentage of Wabtec common stock.

Related Party Transaction Approval Policy. It is our policy that the Nominating and Corporate Governance Committee review and approve in advance all related party transactions that are required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the Securities and Exchange Commission. If advance approval is not feasible, the Nominating and Corporate Governance Committee must approve or ratify the transaction at its next scheduled meeting. Transactions required to

be disclosed pursuant to Item 404 include any transaction between Wabtec and any officer, director or certain affiliates of Wabtec that has a value in excess of $120,000. In reviewing related party transactions, the Nominating and Corporate Governance Committee evaluates all material facts about the transaction, including the nature of the transaction, the benefit provided to Wabtec, whether the transaction is on commercially reasonable terms that would have been available from an unrelated third-party and any other factors necessary to its determination that the transaction is fair to Wabtec. Our board of directors has adopted written Related Party Transaction Policies and Procedures, a copy of which is available on Wabtec’s website at http://www.wabtec.com and is available in print to any stockholder who requests it.

Independent Registered Public Accounting Firm

As negotiations with Ernst & Young LLP for the 2007 audit fees have not been completed, the Audit Committee has not appointed an independent registered public accounting firm to audit our financial statements for the fiscal year ended December 31, 2007.

Ernst & Young LLP served as our independent registered public accounting firm for the fiscal year ended December 31, 2006. A representative of Ernst & Young LLP is expected to be present at the annual meeting of stockholders to answer appropriate questions and make a statement if they so desire.

Code of Ethics

Wabtec has adopted a Code of Ethics for executive officers that includes the provisions required under applicable Securities and Exchange Commission regulations for a code of ethics. A copy of the Code of Ethics for executive officers is posted on our website at http://www.wabtec.com and is available in print to any stockholder who requests it. In the event that we make any amendments to or waivers from this code, we will disclose the amendment or waiver and the reasons for such on our website.

Other Corporate Governance Information

Wabtec has adopted Corporate Governance Guidelines and a Code of Conduct that is applicable to all directors, officers and employees, each of which includes the provisions required under the NYSE regulations. Copies of our Corporate Governance Guidelines and Code of Conduct are posted on our website at http://www.wabtec.com and are available in print to any stockholder who requests them.

Other Business

We do not expect any business to come before the annual meeting other than the election of directors. If other business is properly raised, your proxy authorizes its holder to vote according to their best judgment.

Communication with the Board

The Board provides a process for interested parties to send communications to the Board or any of the directors of Wabtec. Communications to the Board or any director should be sent c/o the Secretary of Wabtec, 1001 Air Brake Avenue, Wilmerding, PA 15148. All such communications will be compiled by the Secretary of Wabtec and submitted to the Board or the individual director at the next regularly scheduled meeting of the Board. Interested parties may also communicate directly with the non-employee directors at the email address nonmanagementdirectors@wabtec.com.

Expenses of Solicitation

Wabtec pays the cost for proxy solicitation. In addition to mailing, officers and employees may solicit proxies in person by telephone or facsimile. Wabtec will pay approximately $17,000 to LaSalle Bank Shareholder Services for sending the proxy materials and the 2006 Annual Report to stockholders. We will also reimburse other nominees, custodians or fiduciaries who forward these materials to stockholders for their reasonable expenses in doing so.

Stockholder Proposals for Next Year

To be eligible for inclusion in next year’s proxy for the 2008 annual meeting, the deadline for stockholder proposals is December 13, 2007. Additionally, the advance notice provision in our by-laws requires that notice must be submitted to us between December 13, 2007 and February 11, 2008 for business to be properly brought before the 2008 annual meeting of stockholders. Stockholder proposals should be sent c/o the Secretary of Wabtec, 1001 Air Brake Avenue, Wilmerding, PA 15148.

By order of the Board of Directors,

Alvaro Garcia-Tunon

Senior Vice President, Chief Financial Officer and

Secretary