RailAmerica retains Rickel & Associates for warrants

Business Wire, Dec 1, 1994

ALEXANDRIA, Va.--(BUSINESS WIRE)--Dec. 1, 1994--RailAmerica Inc. (NASDAQ:RAIL) announced today it has retained the investment banking firm of Rickel & Associates, headquartered in Milburn, N.J., as its warrant solicitation agent.

RailAmerica Inc. Class A (RAIL W) warrants entitle the holder to purchase one share of common stock at $3.09 per share through Dec. 30, 1994. The Class B (RAILZ) warrants entitle the holder to purchase one share of common stock at $3.50 per share and are exercisable until November of 1997. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

RailAmerica Inc. is a diversified, publicly-held transportation holding company which owns and develops short-line and regional freight railroads. It currently operates four railroads with approximately 300 miles of rail lines in Michigan, Tennessee, Pennsylvania and Delaware. Through its subsidiary, Kalyn/Siebert Inc., the company also manufactures a broad line of heavy duty specialty truck trailers which are marketed through a network of 163 dealers in 46 states, as well as governmental agencies.

CONTACT: RailAmerica Inc., Alexandria

              Gary O. Marino, 407/994-6015
                          or
              KCSA, New York
              Joseph A. Mansi/Herbert L. Corbin, 212/682-6300,
               ext. 205/200