Global Railway reports Q4 & annual results for 2007

17:18 EDT Wednesday, March 19, 2008

Stock Symbol: GBI

Listing: Toronto Stock Exchange

Outstanding Shares: 15.1 Million

Web Site: www.globalrailway.com

Investor conference call on March 20, 2008 @ 11am ET

LONDON, ON, March 19 /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 the Company's 2007 fourth quarter and annual audited financial results for the year endedDecember 31, 2007. All dollar figures are reported in Canadian currency unless otherwise noted.

Corporate Development Highlights - 2007:

- In March of 2007, Global's subsidiary, Bach-Simpson Corporation, won orders to supply rail event recorders valued at US $6.8 million
including options.
- In November of 2007, Global doubled its revenue base to over $65 million with the acquisition of Canada Allied Diesel Co. Ltd. ("CAD") and affiliated companies.
- In November 2007, Global entered into a $34.1 million credit facility agreement.
- In December 2007, Global's subsidiary, CAD Railway Industries Ltd. ("CADRI"), was awarded a 5-year $101.5 million contract to remanufacture VIA Rail Canada's fleet of 53 F40 locomotives.

2007 Q4 Financial Highlights - Three months ended December 31, 2007:
- Total revenue increased to $10.4 million (which includes about $3.5 million of revenue from CADRI) compared with $7.6 million in 2006.
- Net earnings of $408,687 compared with $787,785 in 2006.
- Earnings per share of $0.03 (diluted) compared with $0.05 (diluted) in 2006.

2007 Annual Financial Highlights - Twelve months ended December 31, 2007:
- Total revenue increased to $36.8 million (which includes about $3.5 million of revenue from CADRI) compared with $31.9 million in 2006.
- Net earnings increased to $3.3 million compared with $3.2 million in 2006.
- Earnings per share increased to $0.22 (diluted) compared with $0.21 (diluted) in 2006.

Terry McManaman, Chairman, President and CEO of Global commented, "Measured in local currencies on a combined basis, Global's subsidiaries, excluding the impact of CADRI, delivered record revenues for the fourth quarter of 2007 and also for the year endedDecember 31, 2007 . This accomplishment emphasizes the ability of Global's subsidiary management teams to drive revenue and capture their share of expanded capital spending by the North American Class 1 railroads."

McManaman continued, "The CAD acquisition and the subsequent $101.5 million contract award from VIA Rail Canada positions Global to make a significant penetration into the dynamic locomotive and rail car remanufacturing and parts markets at a time when North American railroads and commuter systems are making significant capital investments in the remanufacturing of their locomotive, freight and passenger rail car fleets to meet volume demands, fuel consumption efficiencies, and new environmental emission standards."

------------------------------------...
Three months Three months
ending ending
Summary December 31, December 31,
Income Statement 2007 2006 Change % Change
------------------------------------...
Revenues $10,432,403 $7,559,864 $2,872,539 +38.0%
Net earnings $408,687 $787,785 ($379,098) (48.1%)
Earnings per
share (diluted) $0.03 $0.05 ($0.02) (40.0%)
------------------------------------...

------------------------------------...
Three months Three months
ending ending
Summary December 31, December 31,
Income Statement 2007 2006 Change % Change
------------------------------------...
Revenues $36,812,686 $31,883,903 $4,928,783 +15.5%
Net earnings $3,293,154 $3,167,260 $125,89 +4.0%
Earnings pershare (diluted)

$0.22 $0.21 $0.01 +4.8%
------------------------------------...
The Company's 2007 audited annual financial statements and management's discussion and analysis are posted in the investor information section of Global's web site atwww.globalrailway.com and are also available on SEDAR at www.sedar.com.

Brian McMullan, CFO of Global said, "The effect of the fluctuating value of the Canadian dollar against the United States dollar negatively impacted the Company's 2007 annual and fourth quarter financial results. Going forward, the acquisition of CAD reduces the Company's net exposure to foreign exchange fluctuations. In 2008, Management estimates that approximately 40% to 45% of the overall Company's sales will be denominated in Canadian dollars."

"Our ongoing efforts to reduce costs through design improvements and off shore sourcing have helped offset increases in raw material and energy costs," saidBill Sturtz COO of Global. "Further, the subsidiaries continue to investigate and implement innovative design changes to reduce material and labor costs as well as increase value to our customers."

2008 Outlook

The American Association of State Highway and Transportation Officials estimate that as much as $195 billion in railroad investment is needed to carry projected rail-freight volumes by 2020. Despite a bleak economic environment in whichUnited States freight traffic is expected to be flat or down somewhat this year, due to softness in some parts of the economy, the North American Class 1 railroads appear poised to press ahead with aggressive long-term capital investment plans. All of the major North American Class 1 rail operators have announced plans to increase or least maintain capital spending for track, signaling, locomotives and other equipment in 2008.

"Global enters 2008 as a much different company. The acquisition of CADRI significantly transforms Global into a much larger integrated rail service company with a revenue base exceeding$65 million and with product coverage equally distributed over the three major railroad expenditure categories of track & signal, locomotive and railcars. 2008 will be a year of major transformation for Global as we integrate CADRI into the Company and the VIA Rail contract commences," said McManaman.
"The long term outlook for the railway industry in North America looks very healthy and the Company is well positioned to benefit from this railway renaissance period," concluded McManaman.