Florida East Coast Industries, Inc. Announces Series of Appointments At Florida East Coast Railway Company and International Transit, Inc.

ST. AUGUSTINE, Fla.--(BUSINESS WIRE)--Sept. 17, 1999--

Florida East Coast Industries, Inc. (FECI) (NYSE:FLA) today announced a series of appointments at Florida East Coast Railway Company ("FECR"), the Company's freight rail subsidiary and International Transit, Inc., ("ITI") the Company's trucking subsidiary. Gene A. Tonsager, most recently Senior Vice President - Marketing and Sales of FECR has assumed the position of President of ITI. Richard Knock, formerly President and Chief Executive Officer of ITI, has assumed the position of Vice Chairman of ITI. Both Tonsager and Knock will report to Robert W. Anestis, Chairman, President and Chief Executive Officer of Florida East Coast Industries, Inc. Reginald M. Thompson of Brewster, Ohio has been appointed Vice President - Marketing and Sales at FECR, reporting to John McPherson, Chief Operating Officer.

"Dick Knock formed ITI in 1990 and built it into a strong, service oriented carrier operating throughout the Southeast and Midwest with operating revenues of approximately $30 million. Dick has decided to retire earlier than originally planned. Gene brings three decades of transportation experience to his position at ITI. He has worked in all facets of marketing transportation services in successive strong leadership roles. As a result of his previous positions with Chicago & Eastern Illinois Railroad, FECR and Crowley Maritime Corporation, as well as a two year stint at Intermodal Transportation Services, an intermodal trucking company founded by Dick Knock in the early 1970's. Gene has a complete understanding of what it takes to meet the needs for comprehensive transportation services for today's businesses. In his capacity as Senior Marketing Officer for the Railway, he has worked with ITI and many other truck carriers to supply seamless door to door transportation and logistic services for not only national and international companies such as the U.S. Postal Services, UPS and major steamship lines but also businesses based throughout the Southeast," said Mr. Anestis. Tonsager will be based at ITI's Jacksonville facilities.

Reginald M. Thompson has been appointed Vice President-Marketing and Sales at FECR effective September 27, 1999. In his position as Vice President and Chief Marketing Officer for the Wheeling and Lake Erie Railway Company, Mr. Thompson helped build a diversified traffic base focusing on attracting major new rail customers and growing that railroad's aggregate and intermodal business. He also held leadership positions in the marketing group of The Kansas City Southern Railway from 1980 to 1992. He holds a Bachelor of Science degree from the University of Kansas with graduate studies at Princeton and the University of Missouri. He currently resides in Brewster, Ohio with his wife, Jennifer, a former professor of English at the University of Kansas, his eight-year-old son, Mason and six-year-old daughter, Charlotte. "Reggie brings to FECR experience in rail freight marketing and sales in all components of FECR's traffic base. He has a demonstrated ability to be creative and grow the railway's market share of industry's transportation needs. We are delighted to have Reggie as part of our management team as we work to increase our freight revenues and improve our operating efficiencies," said John D. McPherson.

Florida East Coast Industries currently conducts operations through four wholly owned subsidiaries, Gran Central Corporation (GCC), Florida East Coast Railway Company (FECR), International Transit, Inc. (ITI) and FEC Telecom, Inc. GCC develops, leases and manages approximately 5.0 million square feet of office, service and warehouse space, including a number of industrial and commercial parks in Jacksonville, Orlando and Miami, and owns approximately 18,000 acres of real estate primarily along the east coast of Florida. FECR is a regional freight railroad with operations on 351 miles of main line track, from Jacksonville to Miami. ITI provides truckload service, intermodal drayage and transportation logistics and brokerage services throughout the mid-west and the southeastern United States. FEC Telecom is based in Orlando, Florida and will utilize and seek to expand Florida East Coast's "Florida Footprint" telecom assets. Florida East Coast controls 12,600 fiber miles of "dark fiber" fiber optic cable and telecommunications conduit assets comprising a 780-mile "telecommunication loop" that will reach 13 of Florida's 15 largest population centers and 73 percent of its total population.

This release contains "forward-looking statements" within the meaning of section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties, including, but not limited to, changes in general economic condition, and changing competition which could cause actual results to differ materially from those indicated herein. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.