First American Railways announces passenger commitments for its Florida Fun Train reach 300,000.

HOLLYWOOD, Fla.--(BUSINESS WIRE)--May 13, 1997--First American Railways, Inc. (Nasdaq: FTRN), an entertainment-based passenger rail company, today announced that the response to its pre-launch marketing and sales efforts for its Florida Fun-Train continues to grow with commitments from travel industry sources now reaching 300,000.

The Company's Florida Fun-Train will carry passengers between the popular vacation destinations of Central and South Florida and is scheduled to begin operation in October 1997.

Written contracts representing 150,000 passengers have been received from a number of travel companies, including American Airlines Fly AAway, Go Go Tours and Galaxy Tours, to deliver passengers. This level of ridership would be expected to produce gross revenues of between $12 million and $14 million. In addition, oral commitments for 150,000 passengers, which the Company believes will be translated into written commitments, have been received for the Florida Fun-Train. Gross revenues from this level of passengers are also expected to range between $12 million and $14 million.

First American Railways, Inc. provides innovative, quality entertainment passenger rail service through the development of "Fun-Trains" and the acquisition of "Scenic Destination Railroads". The Company is currently preparing the launch of the Florida Fun-Train which is anticipated to commence operations between Central and South Florida in October 1997. The Company acquired also operates the Colorado-based Durango & Silverton Narrow Gauge Railroad, a registered National Historic Landmark, which accommodates approximately 200,000 passengers annually. First American Railways' mission is:

To be the recognized leader in providing innovative, quality entertainment-based passenger rail service, offering our customers, communities, employees and shareholders an experience which exceeds their expectations.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements contained herein regarding the consummation of certain written and oral commitments, as well as expectations with respect to future revenues and business expansion, including those resulting from joint promotional and marketing opportunities, and recently acquired businesses are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of First American Railways, Inc., which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements include, among others, overall economic and business conditions, the demand for the company's services, competitive factors, regulatory approvals and the uncertainty of consummation of pending or proposed third party agreement or commitments. Additional factors which may affect the company's business and performance are set forth in the company's filings with the Securities and Exchange Commission.

CONTACT: FIRST AMERICAN RAILWAYS, INC.

Ray Monteleone, [phone]

or

MWW/STRATEGIC COMMUNICATIONS

Investor Relations - [phone]

Rob Swadosh ([e-mail])

Carolyn Bancone ([e-mail])