RRA Railamerica

RailAmerica, Inc. (NYSE:RRA) ("RailAmerica" or the "Company") today reported its freight carloads for the month ended July 31, 2006. Total carloads for July 2006 were 100,540, down 1.6% from 102,157 in July 2005. The sale of the San Luis and Rio Grande Railroad, the E&N Railway 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 1,623 carloads. On a "same railroad" basis, July 2006 carloads were flat at 97,587 compared to 97,581 in July 2005. The July 2006 carloads were primarily affected by an increase in shipments of Metal Products, offset by lower shipments of Lumber & Forest Products, Paper Products and Coal. Lumber & Forest Products carloads were affected by the continued slow down in the housing market and shipments of Paper Products continue to be negatively impacted by a work stoppage at a shipper's facility in Nova Scotia. For the seven months ended July 31, 2006, total carloads decreased 2.6% to 739,472 from 759,105 in 2005. On a "same railroad" basis for the same period, carloads were 714,842 down 1.5% from 725,824 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 July 31, 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 July 31, 2006 and 2005 Consolidated Carloads JULY YEAR-TO-DATE ------------------- ------------------------ ------------------------ Commodity Group 2006 2005 % Chg 2006 2005 % Chg ------------------- -------- -------- ------ -------- -------- ------ Bridge Traffic 15,456 15,129 2.2% 122,908 120,934 1.6% ------------------- -------- -------- ------ -------- -------- ------ Coal 11,528 12,307 -6.3% 90,575 86,754 4.4% ------------------- -------- -------- ------ -------- -------- ------ Lumber & Forest Products 9,027 11,480 -21.4% 73,372 80,950 -9.4% ------------------- -------- -------- ------ -------- -------- ------ Agricultural & Farm Products 8,835 9,037 -2.2% 64,953 68,064 -4.6% ------------------- -------- -------- ------ -------- -------- ------ Metals 8,434 7,104 18.7% 54,352 56,590 -4.0% ------------------- -------- -------- ------ -------- -------- ------ Chemicals 8,782 9,502 -7.6% 64,470 69,101 -6.7% ------------------- -------- -------- ------ -------- -------- ------ Metallic/Non- metallic Ores 8,051 5,699 41.3% 52,590 38,569 36.4% ------------------- -------- -------- ------ -------- -------- ------ Paper Products 6,571 8,722 -24.7% 47,057 62,214 -24.4% ------------------- -------- -------- ------ -------- -------- ------ Food Products 6,448 6,406 0.7% 50,035 50,688 -1.3% ------------------- -------- -------- ------ -------- -------- ------ Minerals 4,932 4,957 -0.5% 34,824 33,943 2.6% ------------------- -------- -------- ------ -------- -------- ------ Petroleum Products 4,176 4,361 -4.2% 26,632 33,968 -21.6% ------------------- -------- -------- ------ -------- -------- ------ Other 3,967 3,457 14.8% 25,758 23,008 12.0% ------------------- -------- -------- ------ -------- -------- ------ Intermodal 2,751 2,698 2.0% 19,042 20,334 -6.4% ------------------- -------- -------- ------ -------- -------- ------ Autos 1,582 1,298 21.9% 12,904 13,988 -7.7% ------------------- -------- -------- ------ -------- -------- ------ TOTAL 100,540 102,157 -1.6% 739,472 759,105 -2.6% ------------------- -------- -------- ------ -------- -------- ------ *T -0- *T "Same Railroad" Carloads JULY YEAR-TO-DATE --------------------- ---------------------- ------------------------ Commodity Group 2006 2005 % Chg 2006 2005 % Chg --------------------- ------- ------- ------ -------- -------- ------ Bridge Traffic 15,456 15,127 2.2% 122,907 120,925 1.6% --------------------- ------- ------- ------ -------- -------- ------ Coal 11,528 12,307 -6.3% 90,575 86,754 4.4% --------------------- ------- ------- ------ -------- -------- ------ Lumber & Forest Products 9,027 10,668 -15.4% 72,825 74,629 -2.4% --------------------- ------- ------- ------ -------- -------- ------ Agricultural & Farm Products 8,824 8,456 4.4% 64,463 63,162 2.1% --------------------- ------- ------- ------ -------- -------- ------ Metals 8,234 6,992 17.8% 53,009 56,128 -5.6% --------------------- ------- ------- ------ -------- -------- ------ Chemicals 8,716 9,041 -3.6% 63,178 66,462 -4.9% --------------------- ------- ------- ------ -------- -------- ------ Paper Products 6,445 7,361 -12.4% 45,250 52,652 -14.1% --------------------- ------- ------- ------ -------- -------- ------ Food Products 6,434 6,397 0.6% 49,597 50,371 -1.5% --------------------- ------- ------- ------ -------- -------- ------ Metallic/Non-metallic Ores 5,822 5,427 7.3% 36,686 35,731 2.7% --------------------- ------- ------- ------ -------- -------- ------ Minerals 4,871 4,940 -1.4% 34,290 33,842 1.3% --------------------- ------- ------- ------ -------- -------- ------ Petroleum Products 3,990 3,462 15.3% 24,990 28,140 -11.2% --------------------- ------- ------- ------ -------- -------- ------ Other 3,964 3,407 16.3% 25,585 22,706 12.7% --------------------- ------- ------- ------ -------- -------- ------ Intermodal 2,751 2,698 2.0% 19,042 20,334 -6.4% --------------------- ------- ------- ------ -------- -------- ------ Autos 1,525 1,298 17.5% 12,445 13,988 -11.0% --------------------- ------- ------- ------ -------- -------- ------ TOTAL 97,587 97,581 0.0% 714,842 725,824 -1.5% --------------------- ------- ------- ------ -------- -------- ------ *T