Emons Transportation Group, Inc. Announces Merger of Two of Its Rail Subsidiaries in South-Central Pennsylvania.

YORK, Pa.--(BUSINESS WIRE)--December 2, 1999--

Emons Transportation Group, Inc. (The Nasdaq SmallCap Market: EMON), a rail freight transportation and distribution services company, today announced that it has merged two of its railroad subsidiaries, Maryland and Pennsylvania Railroad Company ("MPA") and Yorkrail, Inc. ("YKR"), into a new company, York Railway Company ("YRC"). The transaction was completed December 1, 1999, pursuant to an exemption under Surface Transportation Board ("STB") regulations that became effective on that date.

Robert Grossman, Chairman and President, commented, "The MPA and YKR operated in the same geographic area in south-central Pennsylvania and actually met or crossed at several locations. It made sense to merge the operations of these two carriers into a new railroad in order to provide better service and more efficiently meet our customers' transportation needs. We have been very successful in growing our business over the past several years, and we feel that this transaction will further our efforts to continue to grow by providing world class service to our customers."

Mr. Grossman further stated, "York Railway Company will offer our customers connections to three Class I railroads, CSX Transportation, Canadian Pacific Railway and Norfolk Southern Corporation. This will provide our customers with the most efficient alternatives in moving their finished goods or receiving raw materials."

Emons Transportation Group, Inc., is a rail freight transportation and distribution services company serving the Mid-Atlantic and Northeast regions of the United States and Quebec, Canada, through its Pennsylvania and New England/Quebec operations. Emons currently operates four short line railroads, operates rail/truck transfer facilities and a rail intermodal terminal, and provides its customers with warehousing and logistics services for the movement and storage of their freight.

This press release contains forward-looking statements regarding future events and the future performance of Emons that involve risks and uncertainties that could cause actual results to differ materially. Those risks and uncertainties include, but are not limited to, economic conditions, customer demand, service of connecting rail carriers, increased competition in the relevant market, and others. We refer you to the documents that Emons files from time-to-time with the Securities and Exchange Commission, such as the Company's Form 10-K, Form 10-Q, and Form 8-K reports, which contain additional important factors that could cause its results to differ from its current expectations and the forward-looking statements contained in this press release.