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MEDIA CONTACT
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Kevin Bagby
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TEL.
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(814) 533-5005
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FOR IMMEDIATE RELEASE
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October 26, 2006
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FreightCar
America
Selected to Supply TXU Generation Coal Car Requirements
FreightCar America, Inc. (NASDAQ:RAIL) today
announced it has entered into an agreement with TXU Generation Development
Company LLC to be TXU's exclusive supplier of up to
7,650 aluminum AutoFlood III(TM) coal-carrying
railcars to be delivered in the second half of 2008 through 2009.
TXU's actual requirements may change at TXU's discretion, depending chiefly on the timely
permitting of its new generating units in the Electricity Reliability Council
of Texas power grid. TXU is expanding its power generation capacity by adding
production units at its Monticello,
Martin Lake,
Big Brown, Tradinghouse, Lake Creek, Valley, and Morgan
Creek sites in Texas.
As TXU provides FreightCar America
with notice to proceed with the production of railcars, FreightCar
America will
enter unqualified orders into its backlog.
Edward J. Whalen, senior vice president marketing and sales of FreightCar America, said, "We are pleased to expand
our existing relationship with TXU and supply new railcars to serve TXU's growing coal-fired electric power generation
capabilities. The new coal cars will help TXU meet the increased demand for
electricity in its service territory." TXU currently has 520 FreightCar America-built AutoFlood
III coal cars and will be taking delivery of additional cars under a prior
agreement to supplement those serving its existing power generation
facilities.
FreightCar America, Inc. manufactures railroad
freight cars, with particular expertise in coal-carrying railcars. In
addition to coal cars, FreightCar America
designs and builds steel hopper cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle
carriers. It is headquartered in Chicago,
and has manufacturing facilities in Danville,
IL, Roanoke,
VA and Johnstown,
PA.
This press release may contain statements relating to our expected
financial performance and/or future business prospects, events and plans that
are "forward-looking statements" as defined under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
represent our estimates and assumptions only as of the date of this press
release. Our actual results may differ materially from the results described
in or anticipated by our forward-looking statements due to certain risks and
uncertainties. These potential risks and uncertainties include, among other
things: the cyclical nature of our business; adverse economic and market
conditions; fluctuating costs of raw materials, including steel and aluminum,
and delays in the delivery of raw materials; our ability to maintain
relationships with our suppliers of railcar components; our reliance upon a
small number of customers that represent a large percentage of our sales; the
variable purchase patterns of our customers and the timing of completion, delivery
and acceptance of customer orders; the highly competitive nature of our
industry; the risk of lack of acceptance of our new railcar offerings by our
customers; and the additional risk factors described in our filings with the
Securities and Exchange Commission. We expressly disclaim any duty to provide
updates to any forward-looking statements made in this press release, whether
as a result of new information, future events or otherwise. More information
about FreightCar America
is available on its website at www.freightcaramerica.com.
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