Breaking News
Global Railway Earns $0.04 per Share in Q3

17:51 EST Tuesday, November 11, 2008

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Third Quarter Investor Conference Call on Wednesday November 12th, 2008
@ 11am ET

Stock Symbol: GBI
Listing: Toronto Stock Exchange
Outstanding Shares: 15.2 Million
Web Site: www.globalrailway.com

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LONDON, ON, Nov. 11 /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 third quarter financial results for the 3 month and 9 month periods endedSeptember 30, 2008. All dollar figures are reported in Canadian currency unless otherwise noted.

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2008 Financial Highlights - Three months ended September 30, 2008:

- Total revenue increased to $15.1 million compared with $7.7
million in 2007
- Net earnings of $541,869 compared with $609,394 in 2007
- Earnings per share of $0.04 (diluted) compared with $0.04
(diluted) in 2007

2008 Financial Highlights - Nine months ended September 30, 2008:

- Total revenue increased to $45.2 million compared with $26.4
million in 2007
- Net earnings of $1.3 million compared with $2.9 million in 2007
- Earnings per share of $0.08 (diluted) compared with $0.19
(diluted) in 2007
>>

"Both the integration of our acquisition of CADRI (which doubles our size) and the VIA contract are generally on track. CADRI is planning to release the first remanufactured VIA locomotive in the first quarter of 2009, as per the contract." said Terry McManaman, CEO of Global.

"We continue to achieve improvements in CADRI's production processes and procedures, training, resources, hiring, management control systems, quality assurance testing and capital infrastructure. Although this will be an ongoing process of continuous improvement, Management expects the majority of these changes to be in place and operating efficiently and effectively early in 2009," said McManaman.

McManaman continues, "During Q3, we continued to experience some softening of track and signal sales at our G&B subsidiary. The decreased track and signal sales are a direct result of railroads prioritizing discretionary spending and capital projects. Despite the slowdown in spending by the railroads, G&B's rail gear products sales continue to climb in part driven by new customer demand from a major Mexican railroad. We believe that G&B rail gear sales volumes will continue to grow as we increase our market penetration in Latin American in 2009."

"With the inclusion of CADRI, Global's revenues jumped 96% to $15.1 million in the third quarter of 2008. Similarly for the first nine months of 2008, revenues are up 71% to $45.2 million," said McManaman.

"Net earnings for the third quarter of 2008 were $541,869 compared to net earnings of $609,394 for the third quarter of 2007. Third quarter of 2008 earnings per share on a diluted basis were $0.04, unchanged," said McManaman. "Reflective of the integration and investment in CADRI and VIA contract start up costs in the first nine months of 2008, net earnings were$1.3 million or $0.08 per share diluted compared with net earnings of $2.9 million or $0.19 per share diluted for the same period in 2007.

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Financial Summary:
------------------------------------...
------------------------------------...
Three months Three months
Summary ending ending
Income Statement September 30, September 30,
Unaudited 2008 2007 Change % Change
------------------------------------...
Revenues $15,068,561 $7,671,270 $7,397,291 96.4%
Net earnings $541,869 $609,394 ($67,525) -11.1%
Earnings per
share (diluted) $0.04 $0.04 $0.00 0%
------------------------------------...


------------------------------------...
------------------------------------...
Nine months Nine months
Summary ending ending
Income Statement September 30, September 30,
Unaudited 2008 2007 Change % Change
------------------------------------...
Revenues $45,203,538 $26,380,283 $18,823,255 71.4%
Net earnings $1,283,255 $2,884,467 ($1,601,212) -55.5%
Earnings per
share (diluted) $0.08 $0.19 ($0.11) -57.9%
------------------------------------...
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Outlook

"The record earnings in the third quarter of 2008 reported by the majority of the North American Class 1 Railroads is confirmation that the railroad industry is very healthy which bodes well for Global's long term future as the railroads will continue to invest in plant replacement and capacity expansion programs, " said McManaman. "However in the short term we express a caution that railroad spending could be negativity impacted given the current economic uncertainty in US and global economy that could have a material impact in the railroads. This could result in some deferred spending by railways on railroad products and maintenance in the coming quarters."

McManaman concludes, "With Global's multiyear backlog for its locomotive and commuter rail products and services, very strong customer relationship in all of our key products markets, commitment to lean manufacturing and lower costs, a solid balance sheet and strong banking relationships, we feel the Company is positioned well to weather the uncertainty in the economy."

The Company's 2008 third 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.

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

Q3 Investor Call:

A conference call to review the 2008 third quarter financial results will take place on Wednesday November 12th, 2008 at 11am ET.

Mr. Terry McManaman, Chairman, President & 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 third quarter financial results and update on the Company's operations and growth strategies.

To listen and/or participate in this conference call, please dial 1-800-814-4861 (from Toronto: 416-644-3434) 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 1:00 PM ET, Wednesday November 12, 2008, until 11:59 PM ET, Wednesday November 19, 2008. Please dial 1-877-289-8525 (from Toronto use: 416-640-1917) and enter the reservation number 21287951 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 inNorth America. Global Railway is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". For more information: visit www.globalrailway.com or www.investorfile