FOR IMMEDIATE RELEASE:

CONTACT:
Eric C. Bachman
Executive Vice President
RELCO Finance, Inc.

Fax:
www.relcolocomotives.com

Paul Jantsch
Executive Vice President
Joseph Transportation Services, Inc.

Fax:

RELCO Finance, Inc. Announces Acquisition of Joseph Transportation Services, Inc. Locomotive Leasing Division
 

Minooka, IL – June 8, 2004 – RELCO Finance, Inc., an affiliate company of RELCO Locomotives, Inc., announced today the acquisition of Joseph Transportation Services Inc.’s locomotive leasing division. The transaction, which closed on Thursday, June 3, 2004, includes all but one of Joseph Transportation’s locomotive operating leases in the United States. Also included as a part of the transaction were an undisclosed number of Joseph’s non-leased locomotive assets. The leases, many of which include full-maintenance provisions, will be managed out of RELCO’s corporate headquarters in Minooka, IL.

“The acquisition brings us almost 50 new operating leases and positions us as the largest operating lessor of switcher locomotives in North America. We look forward to continuing to provide these customers with excellent motive power and maintenance support services”, said Donald L. Bachman, RELCO’s Chairman and CEO. “The acquisition of Joseph’s locomotive lease assets is much in line with the long-term business strategy of our company. Over our 40+ years in this business, we have continuously strengthened our ability to provide complete motive power solutions. The acquisition is a perfect complement to our core business; providing high quality locomotives for lease and supporting those locomotives with complete, on-site maintenance programs and repair services. This acquisition further demonstrates RELCO’s on-going commitment to remain a leader in the locomotive leasing industry.”

Paul Jantsch, President of Joseph Transportation Services, Inc. said, “RELCO provides a natural transition of service for our locomotive customers and allows Joseph to continue to focus on our core railcar activities; acquiring, selling, leasing and financing new and used railcars.”

Since 1961, the RELCO companies have been a leading provider of quality locomotives and locomotive maintenance services throughout the United States and Canada. RELCO Finance, Inc. provides a full range of locomotive leasing options including both switcher and road power under net, full-service, financial, and sale/leaseback arrangements. RELCO Finance has become one of the largest operating lessors of locomotives in North America. RELCO Locomotives, Inc., carries a full line of switcher and road locomotives for sale and provides locomotive maintenance, remanufacturing, painting, system upgrades, rebuilt components, parts and nationwide field service. The RELCO companies have developed a reputation for providing the finest motive power and custom maintenance packages to fit any need for industrial rail users, commuter agencies, shortline, regional and Class Ones railroads.

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