Genesee & Wyoming Inc. reported February 2006 traffic volumes for its North American and 50%-owned Australian operations.

On February 13, 2006 GWI announced that the Company and its joint venture partner, Wesfarmers Limited, entered into a definitive agreement to sell their Western Australia operations and certain other assets of the Australian Railroad Group. GWI also entered into an agreement to simultaneously purchase Wesfarmers' 50% ownership interest in the Australian Railroad Group's remaining operations, which are principally located in South Australia and the Northern Territory. The Adelaide-based business will be renamed Genesee & Wyoming Australia Pty Ltd and will be a 100 percent-owned subsidiary that is reported on a consolidated basis in GWI's financial statements. The sale is subject to customary closing conditions, including certain government approvals, and is expected to close in the second quarter of 2006.

North American traffic in February 2006 was 64,327 carloads, an increase of 11,011 carloads, or 20.7%, compared with February 2005.

Australian traffic in February 2006 was 76,893 carloads, an increase of 4,252 carloads, or 5.9%, compared with February 2005.

North American carloads in February 2006 increased by 11,011 carloads, or 20.7%. Excluding 1,091 carloads from the First Coast Railroad which GWI started operating April 9, 2005, and 10,472 carloads from the former Rail Management Corp. railroads which GWI started operating June 1, 2005, North American traffic in February 2006 decreased by 552 carloads, or 1.0%. This decrease was primarily due to a 729 carload decrease in U.S. lumber & forest products traffic and a 584 carload decrease in GWI's Mexico region, which continues to be negatively affected by the impact of Hurricane Stan. These decreases were partially offset by an 805 carload increase in coal coke & ores traffic. All other commodities decreased by a net 44 cars.

Starting in February 2006, GWI is including haulage traffic within the other commodity group which previously had not been included our carloading data. This haulage traffic is associated with the Rail Management Corp. railroads.

North American carloads in the first quarter of 2006 through February increased by 30,573 carloads, or 28.8%. Excluding 2,781 carloads from the First Coast Railroad which GWI started operating April 9, 2005, and 23,017 carloads from the former Rail Management Corp. railroads which GWI started operating June 1, 2005, North American traffic in the first quarter of 2006 through February increased by 4,775 carloads, or 4.5%. This increase was primarily due to a 2,632 carload increase in coal coke & ores traffic and a 1,502 carload increase in metals traffic. All other commodities increased by a net 641 cars. Quarter to date haulage traffic for 2006 is included in the other commodity group.

Australian traffic in February 2006 increased by 4,252 carloads, or 5.9%, compared with February 2005. The increase was primarily due to a 1,748 carload increase in gypsum traffic and an 834 carload increase in bauxite traffic. Grain traffic increased 571 carloads despite a decline of 1,125 carloads in New South Wales due to the planned exiting of a grain haulage contract. All other commodities increased by a net 1,099 carloads.

Australian traffic in the first quarter of 2006 through February increased by 1,547 carloads, or 1.0%, compared with first quarter of 2005 through February. The increase was primarily due to a 2,020 carload increase in gypsum traffic, which was partially offset by a 1,708 carload decrease in grain traffic. Quarter to date results have also been affected by temporary service disruptions caused by Cyclone Clare in January 2006 as well as a 2,488 carload decrease in grain shipments in New South Wales due to the planned exiting of a grain haulage contract. All other commodities increased by a net 1,235 carloads.