RailAmerica Enters into New Transportation Agreements Valued at over $26 Million.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--April 11, 2003

RailAmerica, Inc. (NYSE:RRA) today announced that two of its railroads have entered into transportation agreements for more than $26 million in new business with customers in Washington State and Nova Scotia, Canada.

RailAmerica's Puget Sound & Pacific Railroad (PSAP) has entered into two new transportation agreements with the Port of Grays Harbor in Aberdeen, Washington, and Ag Processing, Inc. (AGP), the world's largest "cooperative" soybean processing company, to move grain products from the Midwest to the Port for export. The contracts, with terms of up to 30 years, have a potential value to PSAP of more than $25 million. The Port, in conjunction with AGP, is in the process of developing an export elevator, along with a deepwater, 600-foot long berth dedicated to this business. The Port and PSAP expect that these enhanced facilities should also result in attracting new customers, which will benefit both the Port and PSAP.

Gary Nelson, Executive Director of the Port of Grays Harbor said, "The AGP business has the potential to double the number of ships calling Grays Harbor in the first five years of operation. Having this project come to fruition is another example of the positive impact that our short line railroad, the Puget Sound and Pacific, has had on our community. It has been a pleasurable experience working with the PSAP team, especially Senior Vice President Tom Schlosser and Marketing Director Tom Foster."

RailAmerica's Cape Breton & Nova Scotia Railroad (CBNS) has signed a new transportation agreement with American Metals & Coal, Inc. (AMCI) to move 4,000 carloads of coal from Sydney, Nova Scotia to the Nova Scotia Power plant in Trenton, Nova Scotia. The one-year contract is expected to generate approximately $1 million in revenue in 2004 and has the potential for additional revenue thereafter. CBNS also entered into an agreement facilitated by the province of Nova Scotia to continue rail operations on this portion of its rail line, which was previously approved and scheduled for abandonment. The agreement guarantees rail service at least until the end of 2004 for CBNS' 18 current customers on the eastern part of the railroad, including Superior Propane, Irving Oil, Copol International, Canwell Distribution and Trans Atlantic Perform.

"The province is pleased to have played a role in helping to facilitate a business case solution that will allow for the continued rail service in Cape Breton," said Cecil Clarke, Nova Scotia Economic Development Minister. "It's a win-win-win for Cape Breton, Nova Scotia, CBNS and all of its private sector partners and customers." In addition to facilitating a deal between CBNS, Canadian National (CN), VIA Rail Canada, Nova Scotia Power and AMCI, the province of Nova Scotia and the federal government of Canada, through Enterprise Cape Breton, have agreed to fund nearly $1 million in capital improvements for CBNS over the next two years to sustain this vital resource.

The PSAP, based in Elma, Washington, operates 149 miles of rail line between Hoquiam, Centralia and Bangor, Washington. The railroad, which moves approximately 23,000 carloads of lumber, logs and pulp annually, interchanges traffic with Class I partners Union Pacific and Burlington Northern Santa Fe. The PSAP was acquired by RailAmerica in early 2002 as part of the acquisition of ParkSierra Corp.

The CBNS, based in Stellarton, Nova Scotia, Canada, operates 245 miles of rail line from Truro to Sydney, Nova Scotia. The railroad, which moves approximately 28,000 carloads of coal, pulp, paper and liquefied petroleum gas annually, interchanges traffic with Class I partner CN. The CBNS was acquired by RailAmerica in early 2000 as part of the acquisition of RailTex, Inc.

"Our ability to work closely with customers and the local governments to grow the business on our railroads continues to be a strength of our North American short line marketing and operations team," said Gary O. Marino, Chairman, President & CEO of RailAmerica. "These projects are two fine examples of public-private partnerships. At PSAP, our team worked for more than three years with stakeholders several thousand miles apart to consummate a long-term business arrangement. While at CBNS, we were able to preserve rail service for customers, which should allow for continued economic growth of the entire Cape Breton community, as well."

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. In particular, forward-looking statements regarding earnings and EBITDA of the Company are subject to inherent economic, financial and operating uncertainties, including changes in economic conditions, realization of operating and personnel synergies, the ability to retain key customers and the impact of unforeseen costs and liabilities. 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. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. 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.