GLOBAL RAILWAY REPORTS Q2 RESULTS FOR 2008

Second Quarter Investor Conference Call on August 14th, 2008 @11am ET

London, Ontario – August 13, 2008 - 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 second quarter financial results for the 3 month and 6 month periods ended June 30, 2008. All dollar figures are reported in Canadian currency unless otherwise noted.

2008 Q2 Financial Highlights - Three months ended June 30, 2008:

* Total revenue increased to $14.6 million compared with $9.2 million in 2007

* Net earnings of $99,788 compared with $1,086,628 in 2007

* Earnings per share of $0.01 (diluted) compared with $0.07 (diluted) in 2007

2008 Q2 Financial Highlights - Six months ended June 30, 2008:

* Total revenue increased to $30.1 million compared with $18.7 million in 2007

* Net earnings of $741,386 compared with $2,275,073 in 2007

* Earnings per share of $0.05 (diluted) compared with $0.15 (diluted) in 2007

2008 Q2 Operational Highlights:

* Global’s subsidiary G&B Specialties Inc. (“G&B”) was awarded multiple contract extensions valued at US $10.7 million. The first contract designates G&B as the sole supplier, during a 5 year term, of track & signal products for a US Class 1 Railroad, valued at approximately US $7.5 million. The second contract with another US Class 1 Railroad is to supply track & signal products over a 3 year term and is valued at approximately US $3.2 million.

* Global’s subsidiary Bach–Simpson Corporation (“Bach-Simpson”) signed contracts to provide event recorders with a major transit car builder and a large transit authority for $2.3 million during the next four years. If the options on these contracts are exercised, the contracts will be worth over $3.9 million. Revenues from these contracts will commence in 2009.

* Bach-Simpson signed a contract with a major rail OEM for a standard platform event recorder system for use on new passenger cars as well as new electric and locomotives built in Germany and supplied to North American and European customers. Revenue from this contract will commence in 2009.

* Global’s subsidiary CAD Railway Industries Inc. (“CADRI”) start up of the 5 year $101.5 million VIA Rail Canada (“VIA”) locomotive remanufacturing contract is progressing on schedule to release the first VIA unit in the first quarter of 2009 as per the contract.

* CADRI submitted a contract bid for the refurbishment 93 VIA Rail LRC passenger cars valued at over $100 million.

* CADRI completed the first environmentally friendly locomotive prototype for Electro Motive Diesel (“EMD”). The EMD 710ECO Repower locomotive achieves 25% fuel savings, 50% lube oil reductions and up to 70% reduction in green house gas emissions. The first 710ECO locomotive unit is in revenue service with a Class 1 Railroad and is receiving very positive reports. CADRI expects that this initiative with EMD will generate new sales for the Company in 2009 and beyond.

* Subsequent to the end of the second quarter, CAD was awarded a 1 year US $3.2 million contract from a major OEM of power generation units to provide diagnostics services measuring the performance, fuel efficiency and emissions for new engine products currently in development by the OEM.

“In Q2, Management continued the transformation of Global as we integrate the acquisition of CADRI (which doubles our size) and start up phase of the 5-year 101.5 million VIA Rail locomotive remanufacturing contract,” said Terry McManaman, CEO of Global. “These initiatives while on track, do have a negative short term impact on our earnings as we continue to invest management time and money in improving CADRI’s processes, procedures, training, testing and capital infrastructure to position the Company for future growth and improved financial results in 2009 and beyond.”

McManaman continues, “During Q2, we also experienced some softening of track and signal sales (“T&S”) at our G&B subsidiary. The reasons for reduced sales are primarily due to the unprecedented rise in fuel prices resulting in railroads tightening their belts in all expenditure categories as they deal with the increasing fuel costs. Although railroads have tightened their T&S spending in the short term to deal with their increased cost of operations due to spiraling fuel prices, in the long term, they will be seeking solutions to offset their increased fuel costs. This bodes extremely well for our locomotive remanufacturing business at CADRI. Once remanufactured, locomotives are over 20% more fuel efficient and remanufacturing costs are about 60% of a new locomotive.”

McManaman continues, “With the inclusion of CADRI, Global’s revenues jumped 58.6% to $14.6 million in the second quarter of 2008. Similarly for the first six months of 2008, revenues are up 61%% to $ 30.1 million. We continue to explore opportunities to accelerate our revenue growth by expanding product lines and services, and seeking accretive acquisitions as we continue to consolidate the railway supplier base.”

“Reflective of a growth company in a transformation period, net earnings for the second quarter of 2008 were $99,788 or $0.01 per diluted share compared with net earnings of $1.1 million or $0.07 per diluted share for the second quarter in 2007. For the first six months of 2008 net earnings were $741,386 or $0.05 per diluted share compared with net earnings of $2.3 million or $0.15 per diluted share for the same period in 2007,” said McManaman.

Second Half Outlook for 2008:

“We exited the second quarter of 2008 at the peak level of the up front costs associated with the first few locomotive units in the remanufacturing process for the $101.5 million VIA contract,” said McManaman. “As up front costs stabilize, we expect in the second half of 2008 earnings will improve with a more favorable contribution from CADRI to Global’s overall financial results.”

McManaman concludes, “Looking further ahead, despite a slowing US economy, the US Department of Transportation (DOT) recently forecasted that US freight railroad demand will rise 88% by 2035 which undoubtedly will require significant new investment in rail capacity to meet this demand in years to come. Future demand for rail will also be driven by rising oil prices and the substantial fuel savings achieved by moving long haul freight by rail compared to trucks. Long term the growth prospective of the rail industry remains very positive for diversified rail product and service suppliers like Global.”

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

THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY’S MOST RECENTLY FILED ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.

Q2 Investor Call:

A conference call to review the 2008 second quarter financial results will take place on Thursday August 14th, 2008 at 11AM ET.

Mr. Terry McManaman, CEO of Global, Bill Sturtz, COO of Global, and Brian McMullan, CFO of Global will speak on behalf of the Company. A question-and-answer forum will follow the review of the 2008 second quarter financial results and update on the Company's operations and growth strategies.

To listen and/or participate in this conference call, please dial 1-800-594-3790 (from Toronto: 416-644-3424) approximately 10 minutes prior to the beginning of the conference call.

For those unable to participate in the conference call, a recording of the conference call will be available from 2:00 PM ET, Thursday August 14, 2008, until 11:59 PM ET, Thursday August 21, 2008. Please dial 1-877-289-8525 (from Toronto use: 416-640-1917) and enter the reservation number 21278959 followed by the “pound sign” to listen to the rebroadcast.

About Global Railway Industries: Global Railway Industries Ltd. is a diversified rail product company serving the railway industry in North America. Global Railway is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". The Company has a total of 15.2 million shares outstanding. For more information: visit www.globalrailway.com or www.investorfile.com.

Company Contact:

Terry McManaman

Chairman, President& CEO

Tel: 585-419-9709

E-mail: [email protected]

Web: www.globalrailway.com