FreightCar America Selected to Supply TXU Generation Coal Car Requirements.

CHICAGO -- FreightCar America, Inc. (NASDAQ:RAIL) today announced it has entered into an agreement with TXU Generation Development Company LLC to be TXU's exclusive supplier of up to 7,650 aluminum AutoFlood III[TM] coal-carrying railcars to be delivered in the second half of 2008 through 2009.

TXU's actual requirements may change at TXU's discretion, depending chiefly on the timely permitting of its new generating units in the Electricity Reliability Council of Texas power grid. TXU is expanding its power generation capacity by adding production units at its Monticello, Martin Lake, Big Brown, Tradinghouse, Lake Creek, Valley, and Morgan Creek sites in Texas. As TXU provides FreightCar America with notice to proceed with the production of railcars, FreightCar America will enter unqualified orders into its backlog.

Edward J. Whalen, senior vice president marketing and sales of FreightCar America, said, "We are pleased to expand our existing relationship with TXU and supply new railcars to serve TXU's growing coal-fired electric power generation capabilities. The new coal cars will help TXU meet the increased demand for electricity in its service territory." TXU currently has 520 FreightCar America-built AutoFlood III coal cars and will be taking delivery of additional cars under a prior agreement to supplement those serving its existing power generation facilities.

FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds steel hopper cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, and has manufacturing facilities in Danville, IL, Roanoke, VA and Johnstown, PA.

This press release may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and acceptance of customer orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; and the additional risk factors described in our filings with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. More information about FreightCar America is available on its website at www.freightcaramerica.com.