| RailAmerica Sells Minnesota Railroad for $7.6 Million |
| BOCA RATON, Fla., Dec 26, 2001 /PRNewswire via COMTEX/ --
RailAmerica, Inc. (Nasdaq: RAIL), the world's largest operator of short
line and regional freight railroads, today announced that it has entered
into an agreement for the sale of its 44-mile Dakota Rail Railroad (DAKR)
to Hennepin County Regional Rail Authority for total consideration of
$7.6 million. The rail line runs between Wayzata and Hutchinson,
Minnesota (suburban Minneapolis). This transaction is part of
RailAmerica's asset rationalization plan to sell non-core, non-strategic
assets and reduce debt.
Gary O. Marino, Chairman, President and CEO of RailAmerica, said, "Due to insufficient shipper demand, RailAmerica suspended regular freight service on this line over a year ago. As a consequence, there is negligible loss of revenue and EBITDA associated with this transaction. In addition, we will realize substantial debt reduction and enhanced cash flow from the sale. The County, however, believes the rail line is capable of producing long-term benefits to the region through the re-establishment of rail freight service." |