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GATX SUBSIDIARY TO PURCHASE RAILCAR LEASING BUSINESS FROM HAWKER SIDDELEY CANADA

CHICAGO, May 24 /PRNewswire/ -- General American Transportation Corporation announced today that it has reached agreement to purchase the 55 percent interest in CGTX Inc. that it does not already own from Hawker Siddeley Canada Inc. CGTX leases and operates a fleet of 8,400 railcars throughout Canada, of which 4,300 are railroad tank cars. Additionally, CGTX operates three service facilities to maintain its railcar fleet. General American Transportation Corporation is a subsidiary of GATX Corporation (NYSE: GMT). The purchase is in settlement of a favorable judgement issued by the Ontario Court of Justice on April 26, 1996, in the proceedings commenced by GATX against Hawker Siddeley and others.

Under the settlement, GATX will pay Hawker Siddeley C$115 million in cash for its 55 percent interest in CGTX, and all claims asserted by GATX against the defendants will be released. Completion of the transaction will be subject to obtaining all necessary regulatory approvals.

"We are pleased to resolve this matter and are excited about our expanded presence in the Canadian marketplace," stated D. Ward Fuller, president and chief executive officer of General American Transportation Corporation. We believe CGTX has significant opportunities for growth, and we look forward to working with the Canadian shippers and railroads in helping them achieve their business objectives," Fuller added.

General American Transportation Corporation leases the largest fleet of railroad tank cars in North America, as well as other specialized freight cars that transport chemicals, food, petroleum and minerals for major industries and users of bulk commodities. General American Corporation also operates railcar service centers and provides fleet management services.

GATX Corporation provides more than $5 billion of service-enhanced assets primarily used to help its customers transport, store or distribute their products. GATX's assets include railcars and locomotives, bulk liquid terminals and pipelines, ships, warehouses, commercial aircraft, technology equipment and other capital assets and related services worldwide. GATX also offers a variety of financial services focusing on owning or managing transportation and distribution assets.
 -0- 5/24/96


/NOTE TO EDITORS: Investor, corporate information and press releases may be found at http://www.gatx.com. GATX press releases may be obtained by automated Company News On-Call's automated fax service at 800-758-5804. The company identification number for GATX is 105121. GATX logo is available via Wieck Photo Database, 214-392-0888.

/CONTACT: George S. Lowman of GATX Corporation, 312-621-6599/

(GMT)

CO: General American Transportation Corporation; CGTX Inc.;

Hawker Siddeley Canada Inc.; GATX Corporation ST: Illinois IN: TRN SU: TNM

BS -- NYF048 -- 0192 05/24/96 12:38 EDT
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Publication:PR Newswire
Date:May 24, 1996
Words:420
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