RailNet to join OmniTRAX

BEDFORD, Texas and DENVER, Col.- North American RailNet (NAR) and OmniTRAX have jointly announced a transaction whereby an OmniTRAX affiliate will merge with NAR and acquire NAR’s U.S.-based rail operations.

The transaction is subject to regulatory approval and is expected to be completed in early May, 2005. The transaction excludes NAR’s Canadian subsidiary, Alberta RailNet, which will be owned post-transaction by current NAR shareholders.

The three U.S.-based short lines being acquired by OmniTRAX include: Georgia & Florida RailNet (GFRR), a network of approximately 297 miles of track radiating from its Albany, Georgia, headquarters, and extending into northwestern Florida near the Gulf of Mexico, Illinois RailNet (IR), comprised of four track segments aggregating 113 miles of track just west of the Chicago suburbs. The third acquisition is Nebraska, Kansas & Colorado RailNet (NKCR), which operates approximately 559 miles of track in three states and carries a diverse mix of wheat, corn, coal, fertilizer.

“These three short-line railways are an ideal match with our strategic expansion and service plans,” said Bob Parker, OmniTRAX Chief Operating Officer. “Under OmniTRAX management, the addition of these railroads is significant step in the plans for expansion of the regional railway holdings as well as diversification of the customer base.”

Parker said that the addition of the three brings the OmniTRAX family to 18 railroad operations in North America.

"These three railroads have provided excellent service to their shippers and connecting carriers, and we are confident they will continue to grow and prosper under the management of OmniTRAX,"said Rob McKenney, Chairman and CEO of North American RailNet.