RailAmerica announced that President and Chief Executive Officer (CEO) Gary O. Marino has decided to retire from the Company effective immediately.

Mr. Marino, age 59, had served as RailAmerica's Chairman of the Board of Directors since the Company's formation in 1992. He also served as CEO since 1994 and as President since 1996. Under his leadership, RailAmerica grew from a private company owning one railroad, with revenues of approximately $1 million to a New York Stock Exchange listed public company owning 47 railroads with revenues of approximately $360 million.

"Gary has been a dedicated leader of RailAmerica since the Company was founded and has achieved a long list of enviable accomplishments," said William (Gus) Pagonis, Chairman of RailAmerica's Board of Directors. "The Company is highly appreciative of Gary's leadership and vision in helping transform the Company from one short line railroad to a railroad holding company that is one of the largest in North America. We thank him for his dedicated service and wish him well in his future endeavors."

"With the recent announcement of the execution of an agreement to sell Freight Australia," said Gary Marino, "my work at RailAmerica is now complete. The Company is well positioned for future, sustained growth and the proceeds to be received from the pending Australia railroad sale will further strengthen the balance sheet and provide the capital for the Company to bolster its strong footprint in the North American railroad industry. I enjoyed tremendously helping to build RailAmerica over the last 18 years. I could not have done it without the dedicated service from a very talented, motivated management team and staff, and a supportive Board of Directors. I expect to now have time to pursue other projects that interest me and to focus on other personal priorities."

"The Board will commence a search for a new President and CEO. In the interim, we expect that our strong management team led by Donald D. Redfearn, Acting President, Michael Howe, CFO, and Joe Conklin, COO will continue to effectively manage the business. I will be actively involved in helping them manage the Company, and the Board will continue to provide oversight, governance and support," stated William G. Pagonis.

In connection with Mr. Marino's retirement, the Company will record a charge of approximately $0.18 - $0.20 per share in the second quarter for his retirement benefits. Approximately 50% of the charge relates to non-cash items for the extension of his stock options and the vesting of certain equity awards.