At the Board of Directors meeting on March 15, 2004, Mr. J. Michael Carr was nominated to assume the position of President of Pioneer Railcorp by Mr. Guy Brenkman.

The Board accepted the nomination, and Mr. Carr was elected President. The new President's position will be in charge of all daily railroad operations of the company.

Mr. Brenkman remains as Chairman of the Board, Chief Executive Officer and the senior company executive with Mr. Carr reporting to Mr. Brenkman. As Mr. Brenkman explained to the Board, "Pioneer has grown to the point that it is difficult for one person to manage and control all aspects of the operation. I have grown to trust Mike to make the appropriate decisions concerning the daily operations of the company. By delegating the daily operations to Mike, I can concentrate my efforts on growing the overall company and maintaining our position as a premiere short line holding company."

Effective this date, all senior managers will report to Mr. Carr concerning daily operations of the railroads. Mr. Carr will continue as Pioneer Railcorp's Chief Financial Officer.