First American Railways announces strategic alliance with Amtrak.

HOLLYWOOD, Fla.--(BUSINESS WIRE)--May 13, 1997--

Amtrak to Provide Equipment and Services for Florida Fun-Train

In an important step in the introduction of the Florida Fun-Train, First American Railways, Inc. (Nasdaq: FTRN), an entertainment-based passenger rail company, today announced a definitive long-term agreement with the National Railroad Passenger Corporation ("Amtrak").

Pursuant to the agreement, Amtrak will provide operational crews and maintenance services as well as leased locomotives. The agreement establishes a new strategic alliance between First American Railways and Amtrak. 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.

Commenting on the announcement, Raymond Monteleone, President and Chief Operating Officer of First American Railways, said, "This agreement marks another important milestone for the Company. Our partnership with Amtrak provides the Florida Fun-Train with the required expertise in railway operations and services. The agreement also marks the start of a relationship that both parties hope will lead to additional business opportunities for train services elsewhere in Florida and across the United States."

Mark Cane, President of Amtrak's InterCity Business Unit, added, "Amtrak is very pleased about joining First American Railways in helping to launch the Florida Fun-Train and is excited by the prospects for this innovative new rail service. We look forward to providing our passenger railway experience to the Florida Fun-Train as well as pursuing additional opportunities with First American Railways throughout the country."

The Florida Fun-Train will provide the millions of tourists that vacation in Florida each year an opportunity to take a convenient and fun-filled travel experience between Central and South Florida. The trip will connect the state's most popular tourist destinations including Walt Disney World, Universal Studios and Sea World with the beautiful beaches, cruise ports and vibrant nightlife of Fort Lauderdale, Boca Raton, Miami and South Beach.

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])