New York Regional Rail Appoints Wayne A. Eastman as New Vice President.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 7, 2000

Ron Bridges, President of New York Regional Rail (OTCBB: NYRR), is pleased to announce the appointment of Wayne A. Eastman as Vice President of Operations.

"We are extremely excited to have Wayne join our team. Wayne has a proven track record in all aspects of operations including, customer management, train and switching, supervision/training of staff, regulations compliance, capital planning and budgeting. His knowledge, reputation and contacts will prove invaluable as we continue to foster our existing relationships with the Class 1 railroads (Norfolk Southern, CSX Transportation and Canadian Pacific), our connecting railroads (Conrail Shared Assets and New York & Atlantic), Governmental bodies (The Port Authority of New York & New Jersey, City of New York and Jersey City and the States of New York & New Jersey). Additionally, he will be instrumental in the development of transportation solutions for customers in order to successfully continue our revenue growth plan," said Mr. Bridges. "Wayne is a results oriented, customer service focused railroader. He is a creative problem solver who has been recognized for his efforts in safety, quality and customer service," Mr. Bridges concluded.

Wayne has had a very successful 30-year railroad career, recently retiring from his position as the District Superintendent for Conrail's North Jersey operations. As Superintendent, Wayne was responsible for all aspects of Northern New Jersey operations, which included its major classifications yards, multiple serving yards, numerous intermodal and automobile terminals, two automobile assembly plants, the Port of New York & New Jersey and over 300 customers. One of the many classification yards Wayne was responsible for was Conrail's Oak Island Yard, connecting the national rail freight network to NYRR's subsidiary, the New York Cross Harbor Railroad.

Previous to joining Conrail in 1988, he was superintendent of two regional railroads in the Midwest and spent eighteen (18) years with the Illinois Central Railroad, holding various management positions.

Wayne earned a bachelors degree in Economics and MBA from Governors State University prior to joining Conrail. He is currently an adjunct Professor of Economics at Middlesex College in Edison, NJ.

Wayne was instrumental in the development of the operating portion of our recently submitted proposal to the City of New York regarding operation of the 65th Street Rail Terminal Facility. This 30-acre Terminal contains loading docks, transload areas, storage tracks and two (2) brand new float bridges. If awarded the contract to operate this facility, the Company's efficiencies and potential capacity would more than double.

Mr. Eastman's knowledge and expertise will aid in developing a plan for our possible operations of the City of New York's newly proposed auto terminal facility located between 29th and 39th Streets in Brooklyn. This newly proposed facility would serve as the major east coast receiving/distribution center for the majority of the automobiles destined for the New York metropolitan and surrounding areas. This facility will contain a new float bridge and a rail terminal for autos either arriving by rail or imported automobiles to be shipped to their destination by rail.

NEW YORK REGIONAL RAIL is a transportation holding company. Its two principal subsidiaries are New York Cross Harbor Railroad ("NYCH") and JS Transportation ("JST").

NYCH owns the ONLY rail floatbarge operation that crosses New York Harbor, by virtue of its ICC certificate of necessity and convenience. NYCH's operation enables New York City, Long Island and Southern New England to connect to the national rail freight system.

JST is a rapidly growing short-haul regional trucking company, whose clients include many Fortune 1,000 companies and other established companies. JST currently serves a six state region including NY, NJ, PA, DE, MD and VA.

Except for historical matters contained herein, the matters discussed in this news release may contain forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may reflect assumptions and involve risks and uncertainties that may affect New York Regional Rail's and its subsidiaries' future business and prospects and could cause actual results to differ materially from these forward-looking statements.