FOR IMMEDIATE RELEASE
4 P.M. EDT, November 25, 2009

Contact: John F. Kennedy
Phone: (508) 771-8400, X101

MASSACHUSETTS COMPANY TO PURCHASE FREIGHT RAIL RIGHTS FROM CSX TRANSPORTATION IN THREE-WAY AGREEMENT

HYANNIS, MA, NOVEMBER 25, 2009: Massachusetts Coastal Railroad (Mass Coastal), a subsidiary of Hyannis, MA headquartered Cape Rail, Inc., announced today that it has entered into agreements with Jacksonville, FL based CSX Transportation (CSXT) and the Commonwealth of Massachusetts regarding the purchase of CSXT freight rail operating rights on the New Bedford and Fall River rail lines, known as the "South Coast Lines." The addition of the nearly 33 miles of railroad lines brings Mass Coastal's current operations to nearly 100 miles in Eastern Massachusetts (see the Mass Coastal System Map with permission to reprint at: http://www.masscoastal.com/map.php ).

In its press release today, the Patrick - Murray Administration hailed the benefits of the deal by stating, "The freight agreement with Mass Coastal and purchase of the lines are important steps forward in the plan to reconstruct the lines to bring passenger rail service to the South Coast, including Fall River and New Bedford, and provide the foundation for sustained freight rail service and economic development within this important region of the Commonwealth." This historic transition to Mass Coastal is scheduled to occur on May 14, 2010.

"Mass Coastal and our Cape Rail companies have always been partnership-focused," said Cape Rail CEO, John F. Kennedy. "We fully intend to capitalize on the strong partnerships we've forged with the Commonwealth and CSXT to provide excellent rail service to the South Coast. We will partner with the region's cities and communities in an energetic, creative and substantive way, in order to enhance the economic benefits of freight rail. We have committed to CSX and the Commonwealth that we will approach the operation of these lines as a team."

CSXT Chairman, President and CEO Michael Ward stated that, "Commonwealth residents, CSXT and its customers will benefit from this transaction, which will lead to additional commuter service and alleviate the congestion on Massachusetts highways."

The transition from CSXT to Mass Coastal gives the region's customers and residents a local focus from its freight rail provider. "Much like we have been able to accomplish on our existing rail lines," Kennedy said, "we intend to make improvements wherever possible."

CSXT currently handles approximately 2,000 rail cars over the South Coast lines, which equates to taking 7,000 truck trips off of the region's roadways and highways. Mass Coastal intends to intensify efforts to increase the number of rail cars to and from customers on the lines.

Mass Coastal has been providing safe and quality freight rail service over the Commonwealth's rail lines in Southeastern Massachusetts since January of 2008. Its sister company, Cape Cod Central Railroad, has been providing excursion passenger and award-winning dinner train service since 1999.

Mass Coastal has offices in Hyannis, Buzzards Bay and Wareham, Massachusetts. More information on Mass Coastal can be found at www.MassCoastal.com .

All product and company names herein may be trademarks of their respective owners.

Contact information (press members only):

John F. Kennedy
Mass Coastal Railroad
252 Main Street, Hyannis, MA 02601
508-771-8400, x101
Email