RailAmerica, Inc. announced that the Board of Directors has split the offices of Chairman of the Board and President & CEO. William G. Pagonis, who previously served as Vice Chairman of the Board and Chairman of the Corporate Governance and Nominating Committee, will serve as the new Chairman of the Board. Gary O. Marino will continue to serve as the President & CEO of the Company.

"The Board of Directors has determined that separation of the offices of Chairman and CEO is an important element in developing an effective corporate governance system," said Mr. Pagonis, noting that a number of Fortune 500 companies have recently taken similar action.

The Board also appointed Charles Swinburn, who currently serves on the Compensation and Government Relations Committees, as the new Chairman of the Corporate Governance and Nominating Committee to replace Mr. Pagonis, who has also resigned as a member of the Company's Compensation Committee. The Board has appointed John M. Sullivan to replace Mr. Pagonis on the Company's Compensation Committee.

Mr. Pagonis is currently Senior Vice President - Head of Supply Chain for Sears Roebuck and Company, and President of Sears Logistics Services, Inc., a wholly owned subsidiary of Sears. Mr. Pagonis is also a retired U.S. Army Lieutenant General. He served in Desert Shield / Desert Storm as logistics commander for General Schwarzkopf. Mr. Pagonis has served as a member of the Board of Directors of RailAmerica, Inc. since February 2000.