KNOXVILLE LOCOMOTIVE WORKS ANNOUNCES LOCOMOTIVE LEASING

FOR IMMEDIATE RELEASE

January 11, 2007

Knoxville, TN – Knoxville Locomotive Works (KLW) has created a new company to handle marketing and leasing of locomotives to customers. KLWX, Inc., the locomotive leasing company, announced the addition of four locomotives to the lease fleet bringing the total to 25 units including GP-38s, SD40-2 and several switchers.

Knoxville Locomotive Works qualifies locomotives at the 27,000 sq. ft. shop in downtown Knoxville.  After moving into larger facilities in September of 2006, KLW increased the number of employees and increased orders for locomotive repair. KLW installs BELTPACK® radio remote control systems and maintains Gulf & Ohio Railways fleet of locomotives.

The locomotives have a fresh coat of black exterior paint with bold white numbering. KLW can install custom components to these locomotives, like a flange lubricator or remote control, if a customer requires the additional piece for railroad operations.

"Our mechanics ensure each locomotive we repair is the highest quality and every customer is satisfied," said Tom German, Knoxville Locomotive Works General Manager.  "Another benefit for our new and current customers needing repairs is that they will be able to lease a locomotive and keep operating instead of incurring any down time."

Knoxville Locomotive Works is a locomotive repair company owned by Gulf & Ohio Railways, a short line and regional railroad holding company headquartered in Knoxville, Tennessee. The Company currently owns eight short line railroads in Alabama, North Carolina, and Tennessee. For more information about KLW or Gulf & Ohio, contact Mike Schoenberger at (865) 525-9400 ext 33, or visit www.KnoxvilleLocomotiveWorks.com.

April 3, 2007

For quick access to current inventory, visit www.buylocomotives.com. Visitors will be directed to the lastest equipment available from KLWX, Inc.