5-Year Program to Remanufacture 53 VIA Rail Locomotives
Stock Symbol: GBI Listing: Toronto Stock Exchange Outstanding Shares: 15.0 Million Web Site: www.globalrailway.com

LACHINE, QC, Dec. 11 /PRNewswire-FirstCall/ - Global Railway Industries Ltd. (GBI:TSX): Global Railway Industries Ltd., www.globalrailway.com, ("Global" or the "Company"), an integrated rail products and services provider, announced that the Company's wholly owned subsidiary CAD Railway Industries Ltd. ("CAD") was awarded a 5-year $101.5 million contract excluding cost escalation provisions, to remanufacture a fleet of 53 VIA Rail Canada ("VIA") locomotives.

"In October 2007, the Federal Government announced approximately $700 million in capital programs for VIA's future; including programs to remanufacture their locomotives and intercity passenger railcars," said Terry McManaman Chief Executive Officer of Global. "We are delighted to be selected by VIA as the locomotive remanufacturer for one of the largest passenger rail infrastructure investment programs in recent Canadian history. This contract award positions Global as the largest re-manufacturer of locomotives in Canada and as a major competitor in locomotive remanufacturing in North America."

This program is one of the first to be announced following a significant capital investment from the federal government. "We are extremely pleased to announce that CAD Railway Industries Ltd. is our first partner following the Government's investment," explained Paul Cote, President and CEO of VIA Rail Canada Inc. "By rebuilding 70% of our fleet of locomotives, CAD will help us reach our goals of increasing reliability while decreasing maintenance costs. It is one of the many steps we are undertaking to modernize our fleet while ensuring all locomotives are in compliance with safety, environmental and other regulations all as a means to providing our customers with the best travel experience."

Beginning in 2008, CAD will begin the remanufacturing program for VIA's 53 F40 locomotives. The VIA fleet renewal program will see the full remanufacturing of their F40 locomotives. Included in the remanufacture are several technological upgrades. The remanufactured VIA locomotives will improve service reliability and fuel efficiency of these twenty year old locomotives. The remanufacturing program for all 53 VIA locomotives is expected to be completed by the end of 2012.

CAD will embark on an infrastructure expansion program as a result of this contract award. "Detailed plans are already in place to invest capital into upgrading our engine remanufacturing department and significantly add to CAD's workforce," said Bill Sturtz, Chief Operating Officer of Global. "As a result, CAD will be fully equipped for all future locomotive and engine remanufacturing program opportunities."

Sturtz continues, "The synergies of locomotive and engine remanufacturing programs extend to Global's subsidiaries, Bach-Simpson, a supplier of locomotive instrumentation, and Prime Steel, a fabricator of steel components for the rail industry."

"A CAD remanufactured F40 prototype unit has been successfully running in revenue service for VIA for approximately one year and has demonstrated the as-new reliability and fuel efficiency that a CAD remanufactured locomotive can deliver," said Fausto Levy, President of CAD. "Delivery of the first 9 remanufactured VIA locomotives will occur in 2009. The delivery run rate of remanufactured VIA locomotives will increase in each subsequent year of the program until completed in 2012."

"The size and length of the VIA contract will have a major impact on Global's future growth," said Brian McMullan, Chief Financial Officer of Global. "CAD will invest an estimated $1.0 million in upgrading its production facilities. In 2008, initial revenues will be offset with expenditures relating to non-recurring startup and development costs. In 2009, CAD will begin to generate significant increases in revenues and earnings from the VIA contract."

"The business activity generated from this contract, which is denominated in Canadian dollar currency, provides further balance to Global's overall operations between Canada and the United States," said McMullan.

"North American railroads and commuter systems today are making significant capital investments in the remanufacturing of their locomotive, freight car and passenger railcar fleets to meet volume demands, fuel efficiency targets and new environmental and emission standards. Once the F40 locomotive remanufacturing program is complete, VIA Rail will have one of the most reliable and fuel efficient fleets of diesel locomotives of any passenger rail operator in North America," said McManaman.

Based in Lachine (Montreal) Quebec, CAD Railway Industries Ltd. is an international re-manufacturer of locomotives, rail cars, power generation units and components. For more information on CAD visit www.cadrail.ca.

About Global Railway Industries: Global Railway Industries Ltd. is an integrated rail product and service provider for the locomotive, rail car and track & signal railway markets 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 15.0 million shares outstanding. For more information: visit www.globalrailway.com or www.investorfile.com.