First American Railways signs trackage agreement with Florida Department of Transportation.

HOLLYWOOD, Fla.--(BUSINESS WIRE)--Jan. 14, 1996--First American Railways, Inc. (NASDAQ, Small Cap: FTRN), an entertainment-based passenger rail company, announced today that its previously-announced letter of intent with the State of Florida Department of Transportation has been reduced to a definitive agreement. This agreement will allow First American to operate its Florida Fun-Train on the Department's South Florida rail corridor between Hialeah and West Palm Beach, FL.

As previously announced, First American Railways has a long- term track rights agreement with CSX Transportation, Inc. for the use of CSXT's tracks along the West Palm Beach/Greater Orlando rail corridor. "These two routes, when linked, will enable our Fun-Train to provide riders with a high-quality, entertaining and safe overland alternative to other means of transportation between these major Florida tourist destinations," according to Raymond Monteleone, First American's president. The Fun-Train is expected to begin operations later this year, and will offer a wide variety of onboard entertainment and dining experiences.

First American Railways, Inc. is a publicly-held, entertainment-based passenger rail company with headquarters in Hollywood, FL., whose mission is:

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

CONTACT: L.B. Stauffer Thomas Gibson, Media Consultant

Porter, Le Vay & Rose, Inc. Porter, Le Vay & Rose,Inc.

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Raymond Monteleone, President

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