Global Railway reports Q4 & annual results for 2007



    Stock Symbol: GBI
    Listing: Toronto Stock Exchange
    Outstanding Shares: 15.1 Million
    Web Site: www.globalrailway.com

    Investor conference call on March 20, 2008 @ 11am ET

    LONDON, ON, March 19 /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 2007 fourth quarter and annual audited
financial results for the year ended December 31, 2007. All dollar figures are
reported in Canadian currency unless otherwise noted.

    
    Corporate Development Highlights - 2007:

    -  In March of 2007, Global's subsidiary, Bach-Simpson Corporation, won
       orders to supply rail event recorders valued at US $6.8 million
       including options.
    -  In November of 2007, Global doubled its revenue base to over
       $65 million with the acquisition of Canada Allied Diesel Co. Ltd.
       ("CAD") and affiliated companies.
    -  In November 2007, Global entered into a $34.1 million credit facility
       agreement.
    -  In December 2007, Global's subsidiary, CAD Railway Industries Ltd.
       ("CADRI"), was awarded a 5-year $101.5 million contract to
       remanufacture VIA Rail Canada's fleet of 53 F40 locomotives.

    2007 Q4 Financial Highlights - Three months ended December 31, 2007:

    -  Total revenue increased to $10.4 million (which includes about
       $3.5 million of revenue from CADRI) compared with $7.6 million in
       2006.
    -  Net earnings of $408,687 compared with $787,785 in 2006.
    -  Earnings per share of $0.03 (diluted) compared with $0.05 (diluted) in
       2006.

    2007 Annual Financial Highlights - Twelve months ended December 31, 2007:

    -  Total revenue increased to $36.8 million (which includes about
       $3.5 million of revenue from CADRI) compared with $31.9 million in
       2006.
    -  Net earnings increased to $3.3 million compared with $3.2 million in
       2006.
    -  Earnings per share increased to $0.22 (diluted) compared with
       $0.21 (diluted) in 2006.
    

    Terry McManaman, Chairman, President and CEO of Global commented,
"Measured in local currencies on a combined basis, Global's subsidiaries,
excluding the impact of CADRI, delivered record revenues for the fourth
quarter of 2007 and also for the year ended December 31, 2007. This
accomplishment emphasizes the ability of Global's subsidiary management teams
to drive revenue and capture their share of expanded capital spending by the
North American Class 1 railroads."
    McManaman continued, "The CAD acquisition and the subsequent
$101.5 million contract award from VIA Rail Canada positions Global to make a
significant penetration into the dynamic locomotive and rail car
remanufacturing and parts markets at a time when North American railroads and
commuter systems are making significant capital investments in the
remanufacturing of their locomotive, freight and passenger rail car fleets to
meet volume demands, fuel consumption efficiencies, and new environmental
emission standards."

    
    -------------------------------------------------------------------------
                          Three months  Three months
                                ending        ending
    Summary                December 31,  December 31,
    Income Statement              2007          2006       Change   % Change
    -------------------------------------------------------------------------
    Revenues               $10,432,403    $7,559,864   $2,872,539     +38.0%
    Net earnings              $408,687      $787,785    ($379,098)    (48.1%)
    Earnings per
     share (diluted)             $0.03         $0.05       ($0.02)    (40.0%)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                          Three months  Three months
                                ending        ending
    Summary                December 31,  December 31,
    Income Statement              2007          2006       Change   % Change
    -------------------------------------------------------------------------
    Revenues               $36,812,686   $31,883,903   $4,928,783     +15.5%
    Net earnings            $3,293,154    $3,167,260     $125,894      +4.0%
    Earnings per
     share (diluted)             $0.22         $0.21        $0.01      +4.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Company's 2007 audited annual financial statements and management's
discussion and analysis are posted in the investor information section of
Global's web site at www.globalrailway.com and are also available on SEDAR at
www.sedar.com.
    Brian McMullan, CFO of Global said, "The effect of the fluctuating value
of the Canadian dollar against the United States dollar negatively impacted
the Company's 2007 annual and fourth quarter financial results. Going forward,
the acquisition of CAD reduces the Company's net exposure to foreign exchange
fluctuations. In 2008, Management estimates that approximately 40% to 45% of
the overall Company's sales will be denominated in Canadian dollars."
    "Our ongoing efforts to reduce costs through design improvements and off
shore sourcing have helped offset increases in raw material and energy costs,"
said Bill Sturtz COO of Global. "Further, the subsidiaries continue to
investigate and implement innovative design changes to reduce material and
labor costs as well as increase value to our customers."

    2008 Outlook

    The American Association of State Highway and Transportation Officials
estimate that as much as $195 billion in railroad investment is needed to
carry projected rail-freight volumes by 2020. Despite a bleak economic
environment in which United States freight traffic is expected to be flat or
down somewhat this year, due to softness in some parts of the economy, the
North American Class 1 railroads appear poised to press ahead with aggressive
long-term capital investment plans. All of the major North American Class 1
rail operators have announced plans to increase or least maintain capital
spending for track, signaling, locomotives and other equipment in 2008.
    "Global enters 2008 as a much different company. The acquisition of CADRI
significantly transforms Global into a much larger integrated rail service
company with a revenue base exceeding $65 million and with product coverage
equally distributed over the three major railroad expenditure categories of
track & signal, locomotive and railcars. 2008 will be a year of major
transformation for Global as we integrate CADRI into the Company and the VIA
Rail contract commences," said McManaman.
    "The long term outlook for the railway industry in North America looks
very healthy and the Company is well positioned to benefit from this railway
renaissance period," concluded McManaman.

    Investor Conference Call

    A conference call to review the 2007 fourth quarter and annual financial
results will take place on Thursday March 20th, 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 2007 fourth
quarter and annual financial results and update on the Company's operations
and growth strategies.
    To listen and/or participate in this conference call, please dial
1-800-589-8577 (from Toronto: 416-644-3428) 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, Thursday March 20,
2008, until 11:59 PM ET, Thursday March 27, 2008. Please dial 1-877-289-8525
(from Toronto: 416-640-1917) and enter the reservation number 21265212
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 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 15.1 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: Company Contact: Terry McManaman, Chairman,
President & CEO, Tel: (585) 419-9709, E-mail: tmcmanaman@globalrailway.com,
Web: www.globalrailway.com; Investor Relations: 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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