Global Railway Industries Ltd. signs binding asset purchase agreement to acquire the assets of Canada Allied Diesel Co. Ltd. and affiliated companies ("CAD")



    Stock Symbol: GBI
    Listing: Toronto Stock Exchange
    Outstanding Shares: 15.0 Million
    Web Site: www.globalrailway.com

    PITTSFORD, NY, Oct. 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, announced that the Company has signed a binding Asset Purchase
Agreement to acquire substantially all of the net working capital, land,
building, plant equipment and machinery, and other intangible assets of Canada
Allied Diesel Co. Ltd., and its affiliated companies, CAD Railway Services
Inc., Engine System Development Centre Inc. and Lachine Rail Center Inc.
("CAD"), located in Lachine, Quebec.
    The signing of the binding Asset Purchase Agreement between Global and
CAD supersedes the non-binding letter of intent to acquire CAD announced by
Global on July 30, 2007.
    The purchase price for CAD's assets is $22.0 million; including the
acquisition of net working capital of $12.5 million. The purchase price is
subject to increase or decrease on closing to the extent that the net working
capital of CAD at closing is higher or lower than $12.5 million.
    "Global originally planned to close this significant acquisition in early
September. Unfortunately, delays attributable to administrative processes
behind the transaction could not be avoided," said Terry McManaman, Chairman,
President and CEO of Global. "We are currently finalizing the financing
arrangements and expect to close this transaction prior to the end of the
year."

    Canada Allied Diesel Co. Ltd. is an international seller of new and
refurbished locomotive engines and parts. CAD Railway Services Inc. is an
international refurbisher of locomotives and rail cars. Engine System
Development Centre Inc. provides locomotive emission testing and engine
diagnostic services. Lachine Rail Center Inc. holds title to the CAD land and
building.
    For more information on CAD visit www.cadiesel.com and www.cadrail.ca.

    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 15.0 million shares outstanding. For more information:
visit www.globalrailway.com or www.investorfile.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.

    %SEDAR: 00010076E




For further information:

For further information: Investor Relations: Terry McManaman, Chairman,
President & CEO, Tel: (585) 419-9720, E-mail: tmcmanaman@globalrailway.com,
Web: www.globalrailway.com; Gerry Wimmer, INVESTORFILE.com, Tel: (416)
360-8895, Toll Free: 1-888-894-8222, E-mail: gwimmer@investorfile.com, Web:
www.investorfile.com

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