RailAmerica's Arizona Eastern Railway Wins Prestigious Industry Award.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--May 8, 2003

RailAmerica, Inc. (NYSE:RRA) today announced that its Arizona Eastern Railway (AZER) was selected for the Rail Business sixth annual "Win-Win" award, which recognizes an innovative partnership between a North American railroad and its customers resulting in improved efficiency and better overall rail service.

Through partnerships with Sierra Pacific Industries, Paneltech International and Union Pacific Railroad (NYSE:UNP), the AZER moved 1,800 carloads of burnt logs from the Apache-Sitgreaves National Forest, which suffered the largest wildfire in Arizona's history in June 2002. In order to harvest the logs successfully, AZER had to complete the move under significant time and space constraints and without disrupting service to existing customers.

"In a very short period of time the AZER was able to locate and qualify additional engineers, prepare the loading sight, equip flatcars and bring in additional locomotive power to successfully handle this very important move," said Al Altuna, AZER's Manager of Marketing & Sales. "AZER is now more confident than ever of its ability to handle new transload opportunities that are on the horizon. This challenge proved that we can react quickly to customer needs and work closely with local municipalities and our Class I connections to secure new business opportunities."

RailAmerica acquired the Arizona Eastern Railway through its acquisition of StatesRail in January 2002. Rail Business, the most widely read newsletter covering the rail freight industry, presented the "Win-Win" award at the National Association of Rail Shippers' annual meeting in Washington, D.C. on May 5.

RailAmerica, Inc. (NYSE:RRA) is the world's largest short line and regional railroad operator with 49 railroads operating approximately 12,900 miles in the United States, Canada, Australia and Chile. In Australia and Argentina, an additional 4,300 miles are operated under track access arrangements. The Company is a member of the Russell 2000(R) Index. http://www.railamerica.com

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements regarding future events and the performance of RailAmerica that involve risks and uncertainties that could cause actual results to differ materially including, but not limited to, fuel costs, foreign currency risks, failure to successfully integrate acquisitions, failure to service debt, failure to successfully market and sell non-operating/non-strategic/non-core properties and assets when scheduled or at all, failure to accomplish new marketing initiatives, economic conditions, customer demand, increased competition in the relevant market, and others. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K, which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release.