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RAILAMERICA ACQUIRES ITS EIGHTH RAILROAD
Boca Raton, FL--August 5, 1996--RailAmerica, Inc., (Nasdaq:Rail) today announced that it has acquired a 40.4 mile rail line in southern Indiana for approximately $1,100,000. The new rail line, now operated by the Company's newly-formed Evansville Terminal Company, is the eighth rail line operated by RailAmerica providing freight transportation in seven states.
The new rail operations comprising the Evansville Terminal Company provide the Company with rail access to three connecting rail lines in Evansville, as well as a rail barge grain loading facility located along the Ohio River. Also included in the purchase was a locomotive and railcar repair facility located near Evansville. This facility will provide a home shop for RailAmerica's freight car fleet. It also has the capability to perform heavy repairs for the Company's locomotives.
In commenting on the acquisition, Gary O. Marino, President and Chief Executive Officer said, "This strategic purchase increases our Company's freight transportation capabilities in the midwest and strengthens our operations in an important grain producing region of the country. It also continues our corporate strategy of expanding into markets where we can service customer needs to transport products in a timely and cost-effective manner."
RailAmerica, Inc. is a diversified, publicly-held, multi-modal transportation company with two business groups-- (1) transportation and distribution, and (2) manufacturing and financial services. The Company owns and develops short-line and regional freight railroads and operates eight railroads with approximately 500 miles of rail lines in Indiana, Michigan, Minnesota, Tennessee, Pennsylvania, Delaware and Texas. The Company also owns a third party logistics management services company, an intermodal services company, a transportation equipment and finance company, and a specialty regional motor carrier based in Sault Ste. Marie, Ontario, Canada. Also, through its subsidiary, Kalyn/Siebert, Inc., the Company manufactures a broad line of heavy duty specialty truck trailers marketed throughout the U.S., Mexico and Canada.