New York Regional Rail merges with Bestsellers Group to become key player in NYC freight transport

Business Wire, May 30, 1996

NEW YORK--(BUSINESS WIRE)--May 30, 1996--New York Regional Rail Corp. ("NYRR") announced this morning that it has merged with Bestsellers Group Inc. ("BSLR"--NASD-Bulletin Board) to become the largest intermodal freight railroad to operate in New York City.

Robert R. Crawford, president and CEO of the surviving corporate entity, NYRR, is bullish on the future growth of rail freight and particularly, intermodal rail, throughout the NY/NJ/LI metro region.

He also indicated his optimism at the prospects of offering New York the most economical, efficient and environmentally sound means of exporting the region's municipal solid waste, New York City sewerage sludge and waste oil, as well as other environmentally sensitive products.

This in light of recent developments in Staten Island where it is clear that the Governor of New York, in response to growing pressure from the New York Congressional Delegation and others, is considering omnibus action on capping the Fresh Kills Landfill and, in consultation with Mayor Guiliani, contemplating other ways of managing New York City's spiralling waste flows.

NYRR has assumed the operational and management control of the New York Cross Harbor Railroad Terminal Corp. and its affiliated companies.

Providing direct rail access to the largest, most concentrated freight market in the country, NYRR acts as the downstate region's direct link to the national rail freight network by connecting with ConRail in New Jersey.

NYRR operates from the Greenville Yard in Jersey City, N.J. and the Bush Terminal Rail Yard in Sunset Park, Brooklyn, as well as the Atlantic Terminal in Red Hook, Brooklyn.

In addition to the waste-related items listed above, other product moved across the Harbor include such items as salt, rice, lumber, cement, raw plastics (for manufacturing) and an assortment of other general freight commodities.

As part of an overall plan for regionalizing rail and intermodal rail freight, NYRR anticipates submitting its RFP application to acquire the operations of the Long Island Rail Road Freight Division this week.

It is forecast that with these developments, NYRR will assume a key leadership position in the regional freight transportation network, and will have the capability of handling fully ten (10) times the current general freight volumes for the area.

CONTACT: NYRR

Robert R. Crawford

212/809-0376