Contact:

Ed McKechnie   (620) 231-2230                                           Roger Nelson (817) 571-2356
Watco Companies, Inc.                                                          North American RailNet, Inc.

            (LEWISTON, IDAHO) – Watco Companies, Inc., Pittsburg, Kans., and North American RailNet, Inc., Bedford, Texas, have announced agreement of the sale of the Camas Prairie RailNet to Watco. Operations are expected to begin by Watco at 12:01 a.m. on Monday, March 1, 2004.

            “We are extremely pleased to be adding this railroad to the Watco family of properties,” said Rick Webb, President and CEO, said. “We have operated railroads in Idaho and Washington for 14 years and believe in the customers, the communities and the future of this region of America.”

            Watco Companies operates the largest shortline railroad in Idaho, The Eastern Idaho Railroad, headquartered in Twin Falls, Idaho, and the largest shortline in Washington, The Palouse River & Coulee City Railroad, headquartered in Rosalia, Wash.

            With the transaction, the name of the railroad will become The Great Northwest Railroad, Inc. There are about 177 miles of track in the transaction: 72 miles from Riparia, Washington, east to Lewiston, Idaho; 74 miles from Lewiston east to Kooskia, Idaho; and 31 miles from Orofino, Idaho northeast to near Jaype, Idaho. The Orofino to Jaype segment is currently out of service.

            “The Camas Prairie has had a great tradition, and The Great Northwest Railroad has a great future serving the Customers and communities of the Inland Northwest,” Webb said. “Our company got into the railroad business in order to provide great service to our rail Customers. We have built our company by believing in our Customers and listening to their needs. We are going to continue that on The Great Northwest Railroad.”

            “The Camas Prairie has been a great property for North American RailNet,” said Roger Nelson, President and CEO. “This was a good transaction for us and an opportunity for Watco to grow in the Northwest. We have known the folks at Watco for many years and believe they will be a tremendous fit for our customers.”

            “I want to thank the many good people in the area who have been supportive of Camas Prairie RailNet and the work we have done here. In particular I want to express my sincere appreciation to the customers who have been so great to work with.”

            Camas Prairie RailNet was established in April of 1998 with the purchase of the Camas Prairie Railroad by North American RailNet, Inc. from Burlington Northern Santa Fe Railway and Union Pacific Railroad".  North American RailNet, Inc. is a Bedford, Texas short line railroad holding company.

            “I personally very much have appreciated the way the folks at RailNet have worked to make this transaction occur,” Webb said. “Since RailNet purchased this line they have been very good stewards of the railroad and have built good Customer loyalty. This should make for a seamless transition for operations on the first day.

            “Watco will continue to work on the relationships that RailNet has fostered and we will be working very hard to grow the business on this line. We will also be seeking enhanced public-private partnerships to ensure the entire line can be preserved for the long-term. This railroad can and will be successful for the long-term, if all parties work together with a long-term vision in mind.

            “Our business model is to build regional networks around the United States that can improve service for our Customers and provide value to our Class I Railroad partners. There will be definite synergies between The Great Northwest Railroad and our current Palouse River & Coulee City Railroad in eastern Washington. Sharing the resources of locomotives, track and crews in this region will help make both railroads more successful,” Webb said.

This acquisition positions Watco for the long-term in Idaho and Washington as the owners of the dominate shortline railroads in the two states.

            “With a certain size comes the ability to obtain certain synergies to better serve our Customers,” said Ed McKechnie, Executive Vice President of Strategic Development for Watco Companies, Inc. “Our message to our Customers and our communities is clear: we want to be your partners for economic development and meet your transportation needs.”

            One service enhancement will be a centralized customer service department located at the corporate office in Pittsburg, Kans. Customer service can be reached toll free at (866) 889-2826 and representatives are available 24-hours a day, seven days a week.

Watco Companies has shortline railroad and railroad services in 23 states, with more than 900 employees. Founded in 1983, Watco is one of the largest privately held railroad companies in the United States. Watco Companies owns seven shortline railroads in the United States. The Kansas & Oklahoma Railroad based in Wichita, Kans.; the South Kansas & Oklahoma Railroad, based in Cherryvale, Kans.; the Eastern Idaho Railroad, based in Twin Falls, Idaho; The Palouse River & Coulee City Railroad, based in Rosalia, Washington; The Timber Rock Railroad, based in Jasper, Texas; and the Pennsylvania Southwestern Railroad, based in Midland, Penn. Watco also operates major railroad support facilities based in Jacksonville, Flor., Coffeyville, Kans., Pittsburg, Kans., and Baytown, Texas.

 A detailed map will be available at www.watcocompanies.com after 3 p.m. CST today. Click on railroads and a PDF format will be available for use under Great Northwest Railroad.