WASHINGTON, D.C. (Jan. 12, 2000) — RailAmerica Inc. and RailTex Inc. said that the U.S. Surface Transportation Board (STB) has approved the merger of the two companies. The ruling is effective Jan. 14, 2000. The deal would give RailAmerica control of RailTex, and indirect control of RailTex’s rail network, the largest short line rail system in North America.

The transaction is expected to be complete in February.

As previously announced in October, RailAmerica will acquire all of the outstanding stock of RailTex in a transaction valued at approximately $325 million.

RailTex operates 26 railroads over approximately 4100 route miles in the southeastern, midwestern and New England regions of the United States, as well as Eastern Canada and Mexico.

RailAmerica owns or has equity interests in 25 short line and regional railroads operating more than 8,400 route miles in the United States, Australia, Canada and the Republic of Chile. The company also owns Kalyn/Siebert, which builds custom truck trailers at plants in Gatesville, Texas, and Trois-Rivieres, Quebec, Canada.

In December, RailAmerica put Kalyn/Siebert up for sale, primarily to raise capital for its rail operations.