Florida East Coast Railway (‘FEC’), the transportation subsidiary of Florida East Coast Industries, Inc., announced an agreement with Electro- Motive Diesel, Inc. to purchase four new SD70M-2 diesel locomotives. FEC expects to take delivery of all four locomotives in the 3rd quarter of 2006.

‘The four newly produced locomotives will support new business and provide additional capacity in the movement of our aggregate and intermodal businesses. As the new units will be able to haul greater capacity, they will provide FEC a cost effective opportunity to haul additional revenue tonnage. FEC is proud to continue its affiliation with Electro-Motive and is excited to add this new locomotive technology to our fleet, our first in over 20 years,’ said Gary Griffiths, Vice President and Chief Mechanical Officer of FEC.

The new locomotives, which were developed by EMD to meet the needs of the North American freight market, are rated at 4,300 horsepower, meet strict EPA (Environmental Protection Agency) emission standards and meet all current safety requirements.