Florida East Coast Railway has signed a Letter of Intent to purchase four (4) 4300 horsepower Electro-Motive Diesel SD70M-2s for 2006 delivery.

The letter was signed October 7 and calls for delivery of the four units for the third quarter of 2006 at a total purchase price of $7.6 million. This price is subject to change should FEC request additional features and options not included in the purchase price.

Two of the new locomotives will provide for anticipated future volume increases and two will replace three leased locomotives.

FEC would be obligated to pay cancellation charges to a maximum of $0.2 million should the railroad fail to finalize terms and conditions of a written agreement by November 11, 2005.