Amtrak and FEC Railway Sign Operating Agreement; First Step in Expanding Amtrak Service for Florida's East Coast.

Business Editors

ST. AUGUSTINE, Fla.--(BUSINESS WIRE)--May 3, 2001

Amtrak today announced that it will double its passenger rail service in Florida, add a new coastline route from Jacksonville to West Palm Beach and Miami, and serve eight new communities under an agreement with FEC Railway (FEC).

According to the agreement, Amtrak will add two daily round-trip services on FEC's track between Jacksonville and West Palm Beach with new stops in eight communities: St. Augustine, Daytona Beach, Titusville, Cocoa/Port Canaveral, Melbourne, Vero Beach, Fort Pierce and Stuart, and continuing on to Miami.

"Our new partnership with FEC will provide benefits to our guests and - importantly - to the communities and tourist destinations of Florida," said Amtrak President and CEO George D. Warrington. "This is a fantastic opportunity to serve Florida's most popular destinations and also provide an attractive alternative to ever-more crowded highways. Our expanded service in Florida will be one more reason for guests to experience the comfort, ease and enjoyment of going by rail."

"We are pleased with the agreement. We took the time necessary to ensure that the operating plan addresses safety issues first and foremost, that on-time service will be possible for both carriers and that the business terms are fair to both parties," said John D. McPherson, president of FEC Railway.

Amtrak and FEC are dedicated to high-quality on-time service for passenger and freight customers. The two companies worked diligently to identify necessary capacity improvements allowing FEC to continue providing the high level of service its customers deserve and expect while providing Amtrak with the reliability and running times necessary for a successful passenger operation.

Before the new agreement can be implemented, the parties need to secure funding for station construction and infrastructure improvements including signal work, and track and siding installation. The companies are working with the Florida Department of Transportation and the communities along the route to identify funding sources needed to accommodate passenger operations.

Once a commitment for funding is secure, the first phase of capital improvements can begin. Phase I would take approximately 10 months to complete, after which the first train would begin operation. Should the first phase begin this July, service would begin approximately one year from now. Additional improvements and a second coastline service between Jacksonville and West Palm Beach would be phased in over a three-year period.

The Jacksonville - West Palm Beach expansion is part of a larger Amtrak plan to restructure and increase service in Florida. When facility improvements have been completed, Amtrak will offer six daily north-south roundtrips within Florida, doubling the current three.

Under Amtrak's plan, two roundtrips will operate between Jacksonville and Miami along the coastline route, two will serve Jacksonville - Orlando - Tampa, one will operate Jacksonville - Tampa through Ocala and Dade City, and one will serve Jacksonville - Miami through Orlando, Winter Haven and Sebring. Service on the Sunset Limited will be unaffected in the restructuring.

In addition to the new coastline service, this restructuring triples the roundtrip service between Tampa and Jacksonville, and continuing on to New York. Future plans call for one of these roundtrips to be extended north to Boston. Amtrak currently operates over two inland routes, providing three roundtrips per day between Miami, Jacksonville and New York on the Silver Meteor, Silver Palm and Silver Star. The restructuring will maintain these service names.

Amtrak guests enjoy satisfaction-guaranteed service in more than 500 communities in 45 states throughout a 22,000-mile route system. In just the past year, Amtrak introduced high-speed rail service in the northeast, initiated a nationwide unconditional guest Satisfaction Guarantee, set all-time records for passenger ridership and overall revenue, and unveiled a bold new brand identity. For more information, including schedules, fares and reservations, visit Amtrak's Web site at www.amtrak.com.

Florida East Coast Industries, Inc. (NYSE:FLA) (NYSE:FLA.b) (FECI), headquartered in St. Augustine, Fla., conducts operations through four wholly-owned subsidiaries: Flagler Development Company (Flagler), Florida East Coast Railway, L.L.C. (FECR), Florida Express Carriers, Inc. (FLX) and EPIK Communications Incorporated (EPIK). Flagler owns, develops, leases and manages approximately 6 million square feet of commercial space and owns approximately 16,000 acres of land, all in Florida. FECR is a regional freight railroad that operates 351 miles of main line track, from Jacksonville to Miami. FLX provides truckload service, intermodal drayage and transportation logistics and brokerage services. EPIK, based in Orlando, Fla., is a carrier's carrier that provides bandwidth capacity, dark fiber leases and collocation services to telecommunications providers. For more information, visit FECI's website at www.feci.com.