First Quarter Investor Conference Call on May 14th, 2008 @ 11am ET

Stock Symbol: GBI

Listing: Toronto Stock Exchange

Outstanding Shares: 15.1 Million

Web Site: www.globalrailway.com

LONDON, ON, May 13 /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 2008 first quarter financial results for the 3-month period endedMarch 31, 2008. All dollar figures are reported in Canadian currency unless otherwise noted.

    <<
    2008 Q1 Financial Highlights - Three months ended March 31, 2008:

    -   Total revenue increased to $15.5 million compared with $9.5 million
        in 2007
    -   Net earnings of $641,598 compared with $1,188,445 in 2007
    -   Earnings per share of $0.04 (diluted) compared with $0.08 (diluted)
        in 2007
    >>

Terry McManaman, Chairman, President and CEO of Global Railway Industries commented, "We are disappointed with the Q1 results. The harsh winter made it difficult for North America's railroads to perform track and signal maintenance, resulting in the deferral of work programs and related spending. Early indications are that railway spending on track and signal components will return to normal levels throughout the remainder of the year."

"On the positive side, the inclusion of CAD Railway Industries ("CAD") is beginning to yield the anticipated benefits, contributing significantly to Global's revenue jump of 64% to$15.5 million in the first quarter of 2008. I am also pleased to report that the CAD integration and the $101.5 million VIA Rail contract startup are progressing on schedule. We continue to attract new customers to CAD and are also expanding its traditional customer base both inNorth America and internationally," said McManaman.

McManaman continues, "As anticipated, CAD has provided balance to our revenue base and operations between Canada and the United States, and reduced our relative exposure to foreign exchange currency fluctuations. During the first quarter of 2008, approximately 57% of the Company's sales were transacted inUnited States dollars, a reduction of nearly 30% compared with the first quarter of 2007. The improved currency balance achieved in 2008 resulted from the high percentage of Canadian dollar denominated CAD sales during the quarter, an expected benefit of the CAD acquisition."

"Additionally, Global's product coverage is now better distributed over the three major expenditure categories of the railroads; track & signal, locomotive and railcars," said McManaman. "This is significant as sales and orders in the locomotive, rail car, rail gear and instrumentation markets were ahead of 2007 levels and are in line with Management's expectations for 2008, whereas the track and signal market appears to be flattening as compared to 2007."

McManaman continues, "Reflective of a company in a transformation period, net earnings for the first quarter of 2008 were $641,598 or $0.04 per diluted share compared with net earnings of $1.2 million or $0.08 per diluted share for the same period in 2007."

"2008 is a transformation year for Global with the integration of CAD and the start up of the VIA Rail contract. We continue to evaluate incremental opportunities to enhance the Company's long-term growth by bidding on major locomotive and railcar remanufacturing contracts and utilizing our expanded platform for potential synergistic acquisitions," said McManaman.

McManaman concluded, "We also very excited about Global's growth story in the dynamic "green" marketplace. CAD's remanufacturing business has very positive environmental ramifications and is the ultimate form of recycling. Remanufacturing costs are about 60% of a new locomotive, adding 20 plus years to an older locomotive's life while improving the locomotive's performance and fuel efficiency and reducing green house emissions. Today the railroads are being mandated to reduce emissions and are actively seeking greener ways to operate."

    <<
    -------------------------------------------------------------------------
                         Three months Three months
                               ending       ending
    Summary                  March 31,    March 31,
    Income Statement             2008         2007       Change     % Change
    -------------------------------------------------------------------------
    Revenues              $15,519,107   $9,493,045   $6,026,062       +63.5%
    Net earnings             $641,598   $1,188,445    ($546,847)      (46.0%)
    Earnings per share
     (diluted)                  $0.04        $0.08       ($0.04)      (50.0%)
    -------------------------------------------------------------------------
    >>

The Company's 2008 first quarter financial statements and management's discussion and analysis will be posted later today in the investor information section of Global's web site atwww.globalrailway.com and are also available on SEDAR at www.sedar.com.