RRA Railamerica

RailAmerica, Inc. (NYSE:RRA) (the "Company") today reported its freight carloads for the month ended June 30, 2006. Total carloads for June 2006 were 102,824, down 2.5% from 105,429 in June 2005. The sale of the San Luis and Rio Grande Railroad, the E&N Railroad and the three Alberta properties, net of the impact of the acquisition of the Alcoa railroads and the Fremont line in Michigan, accounted for a decrease of 1,632 carloads. On a "same railroad" basis, June 2006 carloads decreased 973 carloads, or 1.0%, to 99,707 from 100,680 in June 2005. The Company's railroads had decreased shipments in June 2006 in ten out of fourteen commodity groups. The 973 carload decrease relates primarily to lower shipments of Paper Products, Petroleum Products, and Lumber & Forest Products, partially offset by increases in Coal and Agricultural & Farm Products. Shipments of Paper Products continue to be negatively impacted by a work stoppage at a shipper's facility in Nova Scotia. In addition, the Company's Southern Ontario Railway continued to be affected by a Native Indian blockade in Caledonia, Ontario, until June 14, which was preventing traffic from moving southward on the Hagersville Subdivision. This primarily affected shipments of Petroleum Products. For the six months ended June 30, 2006, total carloads decreased 2.7% to 638,932 from 656,948 in 2005. On a "same railroad" basis for the same period, carloads were 617,255 down 1.7% from 628,243 in 2005. "Same railroad" totals exclude carloads associated with railroads, or portions of railroads, sold or acquired by the Company after January 1, 2005. Historically, the Company has found that carload information may be indicative of freight revenue on its railroads, but may not be indicative of total revenue, operating expenses, operating income or net income. Attached is a comparison of carloads by commodity group for the periods ended June 30, 2006 and 2005. RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 42 railroads operating approximately 7,800 track miles in the United States and Canada. The Company is a member of the Russell 2000(R) Index. Its website may be found at http://www.railamerica.com. DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements regarding future events that involve risks and uncertainties that could cause actual results to differ materially. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Form 10-K, Form 10-Q and Form 8-K, which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release. -0- *T RailAmerica, Inc. Carload Comparisons by Commodity Group Month/Year-to-Date Ended June 30, 2006 and 2005 Consolidated Carloads JUNE YEAR-TO-DATE ---------------------------------------------------------------------- Commodity Group 2006 2005 % Chg 2006 2005 % Chg ---------------------------------------------------------------------- Bridge Traffic 15,647 15,341 2.0% 107,452 105,805 1.6% ---------------------------------------------------------------------- Coal 13,035 11,455 13.8% 79,047 74,447 6.2% ---------------------------------------------------------------------- Lumber & Forest Products 10,450 12,169 -14.1% 64,345 69,470 -7.4% ---------------------------------------------------------------------- Agricultural & Farm Products 9,166 8,885 3.2% 56,118 59,027 -4.9% ---------------------------------------------------------------------- Chemicals 8,418 9,011 -6.6% 55,688 59,599 -6.6% ---------------------------------------------------------------------- Metals 7,793 7,706 1.1% 45,918 49,486 -7.2% ---------------------------------------------------------------------- Metallic/Non-metallic Ores 7,701 6,160 25.0% 44,539 32,870 35.5% ---------------------------------------------------------------------- Food Products 7,325 7,054 3.8% 43,587 44,282 -1.6% ---------------------------------------------------------------------- Paper Products 6,758 9,045 -25.3% 40,486 53,492 -24.3% ---------------------------------------------------------------------- Minerals 4,889 5,122 -4.5% 29,892 28,986 3.1% ---------------------------------------------------------------------- Other 3,686 3,754 -1.8% 21,791 19,551 11.5% ---------------------------------------------------------------------- Petroleum Products 3,354 4,854 -30.9% 22,456 29,607 -24.2% ---------------------------------------------------------------------- Intermodal 2,654 2,967 -10.5% 16,291 17,636 -7.6% ---------------------------------------------------------------------- Autos 1,948 1,906 2.2% 11,322 12,690 -10.8% ---------------------------------------------------------------------- TOTAL 102,824 105,429 -2.5% 638,932 656,948 -2.7% ---------------------------------------------------------------------- *T -0- *T "Same Railroad" Carloads JUNE YEAR-TO-DATE ---------------------------------------------------------------------- Commodity Group 2006 2005 % Chg 2006 2005 % Chg ---------------------------------------------------------------------- Bridge Traffic 15,647 15,340 2.0% 107,451 105,798 1.6% ---------------------------------------------------------------------- Coal 13,035 11,455 13.8% 79,047 74,447 6.2% ---------------------------------------------------------------------- Lumber & Forest Products 10,450 11,321 -7.7% 63,798 63,961 -0.3% ---------------------------------------------------------------------- Agricultural & Farm Products 9,148 8,134 12.5% 55,639 54,706 1.7% ---------------------------------------------------------------------- Chemicals 8,224 8,678 -5.2% 54,462 57,421 -5.2% ---------------------------------------------------------------------- Metals 7,570 7,660 -1.2% 44,775 49,136 -8.9% ---------------------------------------------------------------------- Food Products 7,296 6,978 4.6% 43,163 43,974 -1.8% ---------------------------------------------------------------------- Paper Products 6,642 7,651 -13.2% 38,805 45,291 -14.3% ---------------------------------------------------------------------- Metallic/Non-metallic Ores 5,477 5,716 -4.2% 30,864 30,304 1.8% ---------------------------------------------------------------------- Minerals 4,826 5,099 -5.4% 29,419 28,902 1.8% ---------------------------------------------------------------------- Other 3,669 3,706 -1.0% 21,621 19,299 12.0% ---------------------------------------------------------------------- Petroleum Products 3,197 4,069 -21.4% 21,000 24,678 -14.9% ---------------------------------------------------------------------- Intermodal 2,654 2,967 -10.5% 16,291 17,636 -7.6% ---------------------------------------------------------------------- Autos 1,872 1,906 -1.8% 10,920 12,690 -13.9% ---------------------------------------------------------------------- TOTAL 99,707 100,680 -1.0% 617,255 628,243 -1.7% ---------------------------------------------------------------------- *T