Global Railway reports ytd earnings up 21%



    Investor conference call on November 13, 2007 @ 11am ET

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

    PITTSFORD, NY, Nov. 12 /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 third quarter financial results for
the three month and nine month periods ended September 30, 2007. All dollar
figures are reported in Canadian currency.

    
    Financial Highlights - Three months ended September 30, 2007:

    -   Total revenue $7.7 million compared with $7.8 million in 2006
    -   Net earnings essentially unchanged at $609,000 compared with $617,000
        in 2006
    -   Earnings per share of $0.04 (diluted) were unchanged compared with
        2006
    -   Cash and cash equivalents of $9.3 million and no debt as of
        September 30, 2007

    Financial Highlights - Nine months ended September 30, 2007:

    -   Total revenue increased to $26.4 million compared with $24.3 million
        in 2006
    -   Net earnings increased to $2.9 million compared with $2.4 million in
        2006
    -   Earnings per share increased to $0.19 (diluted) compared with $0.16
        (diluted) in 2006
    

    "When I reflect on this quarter and year-to-date operating results, I am
proud of the financial results Global and its subsidiary management teams have
accomplished in the face of the historical rise of the Canadian dollar against
the US dollar." said Terry McManaman, Chairman, President and CEO of Global.
"Despite the fact that about 88% of Global's year-to-date revenues was
transacted in United States dollars and the Canadian dollar strengthened by
7.1% against the United States dollar this quarter, we are still able to
report year-to-date revenue growth of almost nine percent."
    Measured in local currencies on a combined basis, Global's three
subsidiaries, G&B Specialties, Bach-Simpson and Prime Steel delivered record
revenues for the third quarter of 2007 and also for the nine month period
ended September 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
said.
    Revenues for the three month period ended September 30, 2007 were
$7.7 million; a decrease of 1.9% compared with the same quarter of 2006.
Revenues for the nine month period ended September 30, 2007 were $26.4
million; an increase of 8.5% compared with the first nine months of 2006.
    Brian McMullan, Global's Chief Financial Officer said, "Had the exchange
rate remained constant year over year, 2007 third quarter revenues would have
increased by 5.0% compared with revenues in the same period of 2006 and 2007
year to date revenues would have increased by 11.0% compared with revenues of
the same period in 2006."
    "Year-to-date and third quarter results show higher salary expenses
largely attributed to our expansion of the senior management team in
preparation for current and future acquisitions. Higher general and
administrative expenses for both periods in 2007 are attributed to the rising
cost of being a public company which includes director costs, higher
professional fees related to audits, taxation support, quarterly reviews, and
legal support." said McMullan.
    "Notwithstanding the higher costs, Global increased its earnings 21.2%
year to date. During this period, our senior management team was orchestrating
the major acquisition of Canada Allied Diesel (CAD), a very time consuming
task. However, we never took our eyes off the ball and therefore were equally
committed in continuing to optimize Global's existing operations." continued
McMullan.
    Net earnings for the three month period ended September 30, 2007 were
$609,000 compared with $617,000 in 2006, essentially unchanged at $.04 per
share (diluted). Net earnings for the nine month period ended September 2007
were $2.9 million and $0.19 per share (diluted) compared with $2.4 million in
net earnings and $0.16 per share (diluted) for the same period in 2006.
    "Consistent with prior quarters, is the continued strength of our balance
sheet and the growth in our cash position, which is up $2.5 million
year-to-date," said McMullan.
    As of September 30, 2007, Global had $9.3 million in cash-on-hand, no
debt, and a working capital ratio of 6.5 to 1. Shareholders' equity was
$32.6 million.
    With respect to the acquisition of CAD, McManaman said "We are very close
to completing this significant transaction and our entire management team is
excited about bringing the CAD business and CAD employees in under the Global
umbrella."

    
    2007 Q3 Financial Summary

    -------------------------------------------------------------------------
                      Three months  Three months
                            ending        ending
                      September 30, September 30,
                              2007          2006
    Income Statement    (unaudited)   (unaudited)       Change      % Change
    -------------------------------------------------------------------------

    Revenues            $7,671,270    $7,817,343     ($146,073)        -1.9%
    Net earnings          $609,394      $616,994       ($7,600)        -1.2%
    Earnings per
     share (diluted)         $0.04         $0.04         $0.00          0.0%
    Weighted average
     number of common
     shares outstanding
     (diluted)          15,310,383    15,060,349       250,034         +1.7%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                       Nine months   Nine months
                            ending        ending
                      September 30, September 30,
                              2007          2006
    Income Statement    (unaudited)   (unaudited)       Change      % Change
    -------------------------------------------------------------------------

    Revenues           $26,380,283   $24,324,039    $2,056,244         +8.5%
    Net earnings        $2,884,467    $2,379,475      $504,992        +21.2%
    Earnings per
     share (diluted)         $0.19         $0.16         $0.03        +18.8%
    Weighted average
     number of common
     shares outstanding
     (diluted)          15,199,444    14,992,118       207,326         +1.4%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                      September 30,  December 31,
                              2007          2006
    Balance Sheet       (unaudited)     (audited)       change      % change
    -------------------------------------------------------------------------

    Cash                $9,333,449    $6,830,949    $2,502,500        +36.6%
    Current assets     $20,501,590   $18,577,535    $1,924,055        +10.4%
    Total assets       $37,199,042   $35,283,009    $1,916,033         +5.4%
    Current
     liabilities        $3,161,906    $2,389,097      $772,809        +32.3%
    Total liabilities   $4,596,620    $3,970,832      $625,788        +15.8%
    Shareholders'
     equity            $32,602,422   $31,312,177    $1,290,245         +4.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Company's 2007 Q3 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.

    Investor Conference Call

    A conference call to review the 2007 third quarter financial results will
take place on Tuesday November 13, 2007 at 11AM ET.
    Mr. Terry McManaman, Chairman, President and CEO, Bill Sturtz COO, and
Brian McMullan CFO, will speak on behalf of the Company. A question-and-answer
forum will follow the review of the 2007 third quarter financial results and
update on the Company's operations and growth strategies.
    To listen and/or participate in this conference call, please dial
1-800-733-7560 (from Toronto: 416-644-3423) 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 2:00 PM ET, Tuesday November 13,
2007, until 11:59 PM ET, Wednesday November 21, 2007. Please dial
1-877-289-8525 (from Toronto: 416-640-1917) and enter the reservation number
21251347 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 15.0 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: 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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