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United Industrial Services acquires Johnstown, PA facility from FreightCar America, Inc.Chicago, Illinois, August 11, 2006 - Johnstown America Corporation, a subsidiary of FreightCar America, Inc. (NASDAQ: RAIL), today announced the sale of a production facility in Johnstown, PA, known locally as the Shell Plant, to United Industrial Electro-Mechanical Services, Inc. The Shell Plant had been used sporadically by FreightCar America in recent years. United Industrial Services, headquartered in Johnstown, is acquiring the facility to expand its business by increasing its welding and fabrication capabilities, and plans to staff the new facility with workers from the local area. Glen T. Karan, vice president administration of FreightCar America, said, "We are happy to help create job opportunities for the Johnstown area with the sale of this facility to a strong local company." Matthew R. Wilks, United Industrial's president, said, "It gives us great pleasure to be able to provide employment opportunities in our own community as our business expands." FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds 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 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 estimates and assumptions only as of the date of this press release. Actual results may differ materially from the results described in or anticipated by forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of the business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; ability to maintain relationships with suppliers of railcar components; reliance upon a small number of customers that represent a large percentage of sales; the variable purchase patterns of customers and the timing of completion, delivery and acceptance of customer orders; the highly competitive nature of the industry; the risk of lack of acceptance of new railcar offerings by our customers; and the additional risk factors described in filings with the Securities and Exchange Commission. FreightCar America expressly disclaims 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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