Company Overview

Today’s discussion covers four topics 1)Background 2)Improvements made at RailAmerica to date 3)Things we’re working on 4)Our plans going forward 1

Let’s start with some history Fortress Investment Group acquired – –RailAmerica, Inc., in February 2007 –Florida East Coast Railway (“FECR”) in July 2007 (as part of the Florida East Coast Industries acquisition) RailAmerica/FECR is the leading short-line rail portfolio in North America with unique, highly profitable, and irreplaceable assets –RailAmerica, Inc. –  Publicly traded when acquired  Had been struggling, recording a series of disappointing quarters with operating ratios in the 89-90% range –FECR –  Part of Florida East Coast Industries  Strong and consistent regional nameplate/performer 2

3 Fortress sees value in railroads Favorable Macro Environment Significant pricing power Growing businesses, with continued growth in key commodities – coal, grain, chemicals; coming soon: Honda automobiles Limited supply: No new North American railroads (high replacement cost) High fuel prices and increasing highway congestion further strengthen railroads’ competitive position (RR’s are 4x more fuel-efficient than trucks) Long-Lived, Irreplaceable Assets Irreplaceable infrastructure High barriers to entry with cost of constructing new railroads prohibitively expensive ($1-2mm per mile + land) Valuable Real Estate & Right-of-Way Revenue-growth opportunities Substantial additional value potential Short Lines Greater free cash flow Lower cost of operations and capex Opportunities for improvements Operational Improvement Potential Centralize key functions Control capital spending Streamline corporate structure Fortress Investment Thesis

4 The company operates a portfolio of 42 individual railroads in 26 states and three Canadian provinces Sizes range from 13 miles in total length to 604 miles FECR is one of the 42 railroads and the largest revenue and EBITDA contributor in the RailAmerica family –351 miles of mainline track between Miami and Jacksonville –One of North America’s best-performing regionals –Further diversifies the portfolio RailAmerica (minus FECR) owns or leases approximately 7,800 track miles and serves over 2,300 customers RailAmerica operates in 26 states and Canada West Region Southeast Region FEC Region Mideast Region Northeast Region Central Region

5 The rails serve different customers and carry different commodities The railroads have diverse sources of revenue Well Diversified Revenue Mix RailAmerica, Inc Freight Revenue by Commodity (Total: $654 million) Intermodal Aggregates Coal Bridge Chemicals Metals Auto Farm Products Food Paper Lumber Ores Petroleum Minerals Other

And revenues have been growing 6 Fortress Acquisition 2/ RailAmerica FECR

Each railroad now contributes to earnings No single property accounts for more than 10% of EBITDA We are not a network Portfolio diversified by commodity, by customer, by geography, and by property 7 Largest delivers <10% Note: Excludes FECR.

The combined RailAmerica/FECR has already made significant improvements Revenues up Expenses down Revenue per car up Operating ratio better by nearly 10 points In 2008, the combined FECR/RailAmerica properties will achieve an 80% operating ratio Through July 2008 the FRA injury-frequency ratio improved from 2.23 to 1.05 Through July 2008 the FRA train accident ratio improved from 0.63 to

We started with several underperforming properties and have whittled the list to three Operating Ratio Ranges YTD +90 percent843 Below 70 percent

Case Study: West Coast Property Written-off as unmanageable and too complicated Operating ratio is now 17 points better –Added strong field leadership –Brought clarity of purpose –Focused on safety and operating rules –Improved service brought more business and customer growth –Began billing and collecting for all of our services –Judiciously applied capital –Mastered and applied governing contracts 10

Case Study: Midwest Property Within RailAmerica the property was believed to be a perennial “loser” Operating ratio has improved by 13 points –Brought in strong leadership and good, accountable management –Focused on caring, operating practices, education and training –Intelligently added capital in modest amounts –Mastered and applied governing contracts –Nurtured customers yielding growth thru service –Controlled costs –Established pricing excellence and hands-on marketing 11

Objective: Make RailAmerica better each day What we are working on: Focus on people, customers, assets, and operational excellence Create value Strengthen relationships with Class I’s Special attention on underperforming assets 12 Goal: Become a High-Performance Organization

Our plans going forward Primary focus will be building the value of our $1.1B investment in the railroad industry Will consider other North American railroad acquisitions if attractive 13

Two last advertisements 1)We are an ideal place for industrial development  Tailored service – “We do it your way”  Sites located on short lines give the customers connections to multiple Class I’s.  Short lines have become the driveway to industrial development – nobody stops on the expressways!  Short lines are not capacity-constrained 2)Remember the Section 45G Railroad Track Maintenance Credit  Three-year legislation expired 12/31/07  Goal: improve rail service to 12,000 short line-served employers  Strong bi-partisan support, but extension not yet enacted Thank you. 14