Central Railroad of Indianapolis, a Subsidiary of RailAmerica, Inc. to Lease Rail Line From CSX Transportation Inc.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--May 25, 2004

RailAmerica, Inc. (NYSE:RRA) today announced that its subsidiary, Central Railroad of Indianapolis, notified the Surface Transportation Board (STB) that it intends to lease 276 miles of railroad from CSX Corporation's (NYSE: CSX) subsidiary, CSX Transportation, Inc., subject to negotiation and execution of a definitive agreement.

The line, known as the Fort Wayne Corridor, runs west from Crestline, Ohio to Tolleston, Indiana, which is due east of Chicago. Central Railroad of Indianapolis anticipates moving approximately 42,000 carloads on the Fort Wayne Corridor annually.

RailAmerica's Indiana & Ohio Railway directly connects and interchanges traffic with the Fort Wayne Corridor. Traffic on the line also interchanges with CSXT, Norfolk Southern and Indiana Harbor Belt Railroad Company (IHB), as well as all western & Chicago-based carriers through the IHB. Major customers on the line are Central Soya, Steel Dynamics, Procter & Gamble, Cargill and National Lime & Stone. Commodities shipped on the line include agricultural products, chemicals, metals, paper and minerals.

RailAmerica, Inc., based in Boca Raton, Fla., is the world's premier short line and regional railroad operator, with 47 railroads operating approximately 12,000 miles in the United States, Canada, and Australia. The Company is a member of the Russell 2000(R) Index. Its website may be found at www.railamerica.com.

CSX Corporation, based in Jacksonville, Fla., owns one of the largest rail networks in the United States. CSX Transportation Inc. and its 34,000 employees provide rail transportation services over a 23,000 mile route network in 23 states, the District of Columbia and two Canadian provinces. CSX Corporation also provides intermodal and global container terminal operations through other subsidiaries.

Disclaimer Regarding Forward-Looking Statements:

This press release contains forward-looking statements regarding future events and the performance of RailAmerica that involve risks and uncertainties that could cause actual results to differ materially including, but not limited to, fuel costs, foreign currency risks, failure to consummate and/or successfully integrate acquisitions, failure to service debt, failure to successfully market and sell non-operating/non-strategic properties and assets when scheduled or at all, failure to accomplish new marketing initiatives, economic and weather conditions, customer demand, increased competition in the relevant market, and others. In particular, forward-looking statements regarding the performance and earnings of the Company and entities to be acquired are subject to inherent economic, financial and operating uncertainties, including changes in economic and weather conditions, the ability to retain key customers and the impact of unforeseen costs and liabilities of such entities. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Form 10-K, Form 10-Q and Form 8-K, which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release.