Global Railway Receives Extension From Lenders for Meeting Credit Agreement Conditions

<< Company: Global Railway Industries Ltd. Stock Symbol: GBI Listing: Toronto Stock Exchange Web Site: www.globalrailway.com >>

LONDON, ON, Jan. 29 /CNW/ - Global Railway Industries Ltd., - (GBI:TSX): Global Railway Industries Ltd., www.globalrailway.com, ("Global" or the "Company"), a leading North American provider of railway products and services, today reports that the Company's Lenders have agreed to extend the deadline for meeting their first condition of the Second Amending Agreement to the Credit Agreement.

The November 12, 2009 amendments to the Company's credit facility required the Company to enter into a final offer of purchase for one or more subsidiaries before January 31, 2010, with a transaction close date of no later than February 28, 2010; or, alternatively, to obtain a commitment by January 31, 2010 for a new facility of not less than $5,000,000, for a combination of equity and subordinated debt, which is to include a minimum equity injection of $2,500,000, to be completed by March 31, 2010.

The extended deadlines require a final offer of purchase for one or more subsidiaries before March 1, 2010, with a transaction close date of no later than March 31, 2010; or, alternatively, a commitment by March 1, 2010 for a new facility of not less than $5,000,000, for a combination of equity and subordinated debt, which is to include a minimum equity injection of $2,500,000, to be completed by March 31, 2010.

Global's Management team will continue to work closely with the Company's Lenders, keeping them well advised of the Company's progress towards completing either a subsidiary sale or alternative financing transaction. We extend our thanks to our Lenders who continue to be a valued partner of Global.