GUILFORD RAIL ANNOUNCES PERSONNEL CHANGES

Guilford Rail System announced a series of managerial changes which respond to recent news regarding the expansion of the company. In commenting about the changes Guilford Rail’s Chairman David Fink stated, "Guilford Rail has changed into a company which is not just the largest regional rail carrier in New England but a company whose family now includes, Perma Treat, a wood products and treatment company, Guilford Motor Express, a warehouse and transportation logistics company, Guilford Real Estate which manages the company’s real estate holdings, and Pan American World Airways. These appointments respond to the need to change the way we manage our growing rail transportation system."

As part of these changes Guilford Rail’s former President David Fink will move to the railroad’s holding company, Guilford Transportation Industries located in Nashua, New Hampshire where he will serve as President. Mr. Tom Steiniger, formerly Guilford Rail’s Senior Vice President of Marketing and Sales has been appointed President, Guilford Rail System and Mr. David Armstrong Fink, formerly president of Perma Treat Corp will be the rail system’s Executive Vice President.

A brief background of the above individuals follows along with information about other managerial changes announced by the railroad. All appointments have been made effective August 1, 1998.

Thomas F. Steiniger, President - Guilford Rail System

Tom Steiniger began his career in transportation with the Missouri-Kansas-Texas (MKT)

Railroad in the operating department during the summer months while attending Washington University, St. Louis, Missouri. Upon graduation, he served in various positions in sales and marketing with the MKT, PRR, Penn Central and Union Pacific. During the course of his career, Mr. Steiniger also served as Industrial Traffic Manager with Granite City Steel, and in his spare time he taught transportation and logistics courses at Washington University and at the University of Missouri, Saint Louis.

As Vice President-Marketing for MKT, Mr. Steiniger supervised all traffic activities relating to pricing and marketing for transportation services. Upon the merger with UP, he transferred to Omaha as Assistant Vice President-Marketing. Mr. Steiniger joined Guilford Rail System in June, 1989, as Vice President, Marketing and Sales.

David Armstrong Fink, Executive Vice President - Guilford Rail System

After graduation from Northeastern University with a B.S. in transportation and Pennsylvania State University with a M.S. in business logistics, Fink began his career in transportation with General Motors Corporation. He served in various transportation and materials management positions in Detroit, MI, Kansas City, KS and Los Angeles, CA.

In 1988, Mr. Fink joined Perma Treat Corporation, a treated lumber company located in Durham, CT as its President. In 1994, after the purchase of the Forster Manufacturing plant in Mattawamkeag, ME, Fink was also named President of Aroostook and Bangor Resources, a sawmill and electrical co-generation company.

Sonya A. Clay, Vice President-Finance - Guilford Rail System

Sonya Clay worked 24 years for The Delaware and Hudson Railway Company. While working there full time in various accounting positions, she earned a Bachelor of Science degree in accounting from Russell Sage College, Troy, NY. She transferred to Springfield Terminal Railway as Director-Corporate Accounts in February 1987. Later she became Assistant Comptroller-Financial Accounting. As Comptroller since October 1992, she supervised all accounting activities of Guilford Rail System.

Joseph L. (Lenny) Carey, Assistant Vice President/Treasurer - Guilford Rail System

12 years working at State Street Bank and Trust Company, Keystone Custodian Funds and The Massachusetts Company in mutual funds and private portfolio management accounts. Held positions such as Accountant and Manager – Client/Portfolio Accounting.

11 years at The Kendall Company, a hospital and surgical manufacturing company. Held positions such as Divisional Accountant, Accounts Payable Manager, Inventory Accountant, Senior Consolidations Accountant and Manager – International Accounting.

7 years at Guilford Rail System, initially in charge of financial reporting and for the past 6 years as Treasurer.

Robert A. Auclair, Comptroller - Guilford Rail System

Bob Auclair came to the railroad after many years of accounting experience. Prior to joining the railroad, he worked in a manufacturing environment.

Mr. Auclair pursued a career in finance after attending Quinnipiac College and graduating from Plymouth State College in 1975. He joined Guilford Rail as a general accountant for Springfield Terminal in the spring of 1989. Later in 1993, he became Assistant Comptroller-Financial Reporting. His duties included compiling consolidated financial statements and supervising all general accounting activities.

Richard M. Willey, Senior Vice President-Marketing and Sales - Guilford Rail System

Dick began his career with the Boston & Maine Railroad in the intermodal department in 1962. In 1965 he moved into the traffic department and has held various positions throughout the years. His latest responsibilities were as Senior AVP-Sales and Industrial Development for the Guilford Rail System. As Senior AVP, he supervised the sales activities and industrial development programs for the entire rail system.

Joseph K. Crawford, Vice President Marketing - Guilford Rail System

Joe Crawford started his railroad career as a trackman with the Portland Terminal Company during the summer months while attending Boston College. Following graduation, he held various positions in the Accounting, Engineering and Marketing and Sales departments of the Maine Central Railroad Company.

In his most recent position as AVP-Marketing, Crawford supervised all pricing related activities for Guilford Rail System.

Philip D. Kingman, Vice President Sales - Guilford Rail System

Phil Graduated from Trinity College in Hartford, CT and embarked on his career in sales with several different industries. He spent a majority of his time in the pharmaceutical and health-care fields. He joined Guilford Rail System in 1996 as the National Accounts Manager. In 1998 Phil became AVP-Sales.