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8-K - FORM 8-K - American Railcar Industries, Inc. | c96597e8vk.htm |
Exhibit 99.1
News Release | AMERICAN RAILCAR INDUSTRIES, INC. 100 Clark Street, St. Charles Missouri 63301 www.americanrailcar.com |
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For Release: February 18, 2010 | Contact: | Dale C. Davies Michael Obertop |
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Phone: | 636.940.6000 |
AMERICAN RAILCAR INDUSTRIES, INC. ANNOUNCES FORMATION
OF US RAILCAR COMPANY, LLC JOINT VENTURE
OF US RAILCAR COMPANY, LLC JOINT VENTURE
ST. CHARLES, MO (February 18, 2010) American Railcar Industries, Inc. (NASDAQ: ARII) (ARI) and
Ohio-based US Railcar, LLC (USR) announced the formation of a joint venture to be named US Railcar
Company, LLC (US Railcar Company). The joint venture is being formed to design, manufacture and
sell Diesel Multiple Units (DMUs), which are self-propelled passenger railcars in both single- and
bi-level configurations. ARI is majority owned by Icahn Enterprises L.P. (NYSE: IEP).
ARI is excited to participate in this opportunity to join USR and bring ARIs freight rolling
stock manufacturing heritage to the passenger equipment sector, said ARI President and CEO James
Cowan. Our commitment to expand and diversify ARIs manufacturing program results from ARIs
desire to grow, and build on the expected federal commitment to passenger rail as part of a
balanced national transportation system. Through this partnership, we look forward to being an
integral part of that new growth with modern passenger rail equipment built in the USA.
US Railcar Company will be led by President & CEO Michael P. Pracht, a rail industry veteran with
extensive experience with the worlds leading rail transportation companies. These are
extraordinary times with growth opportunities for passenger rail in the US. said Mr. Pracht. The
US Railcar Company DMU is designed to enable new cost-effective and environmentally friendly
passenger rail service across a range of corridors and routes, all with a proven, existing
equipment platform already in service.
According to Barry H. Fromm, one of US Railcar Companys directors, One of US Railcar Companys
goals is to reestablish American owned passenger train production in the United States. As
Chairman and CEO of Value Recovery Group, Inc. (VRG), Mr. Fromm led a group that purchased USR
assets from the former Colorado Railcar Manufacturing Co. (Colorado Railcar) that ceased operations
in late 2008.
ARI will provide US Railcar Company with its experience in the production of railcars and ARI
representatives will comprise half of the Board of the joint venture. Representatives of VRG will
comprise half of the Board and will bring to the venture government contracting experience. Once
established, the joint venture plans to produce railcars on order for public authorities and
communities to improve public transit, commuter and regional rail service.
The US Railcar Company DMU was prototyped by Colorado Railcar through a demonstration project in
2002 and is currently the only DMU that is fully compliant with Federal Railroad Administration
passenger equipment safety regulations as stated in 49 CFR Part 238. Available in both regional and
intercity configurations, the US Railcar Company DMU is well suited for incremental corridor
development at speeds from 79-to-90 mph. Platform enhancements currently anticipated include a
diesel-electric upgrade, increasing speeds to 125 mph, making this American-made DMU an attractive
solution for both mature and emerging passenger rail agencies around the country.
About American Railcar Industries, Inc.
American Railcar Industries, Inc. is a leading North American manufacturer of hopper and tank
railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs
and manufactures certain railcar and industrial components used in the production of its railcars
as well as railcars and non-railcar industrial products produced by others. ARI provides its
railcar customers with integrated solutions through a comprehensive set of high quality products
and related services. ARI is controlled by Carl C. Icahn, the chairman of ARIs board of directors,
through his affiliate, Icahn Enterprises L.P.
About Value Recovery Group
VRG is an economic development consulting, government advisory services and asset recovery and
management firm that represents state and local governments, commercial banks, private investors
and several federal agencies.
Forward Looking Statement Disclaimer
This press release contains forward-looking information that involves risks and uncertainties,
including statements regarding the joint ventures plans, objectives, expectations and intentions.
Such statements include, without limitation, statements regarding the joint ventures prospects, the
anticipated performance of its railcars, and the anticipated growth of the market and market
acceptance for those railcars. These forward-looking statements are based upon assumptions made as
of the date hereof and are subject to known and unknown risks and uncertainties that could cause
actual results to differ materially from those anticipated. Joint ventures and the commencement of
a new business involve numerous risks, including difficulties associated with cooperation and
conflicts of interest among the parties, delays, unexpected costs, and the risk that newly
introduced products may contain undetected errors or defects or otherwise not perform as
anticipated. Moreover the development of the market for the joint ventures products is anticipated
to be dependent on government support of passenger rail development and there can be no assurance
that such support will be forthcoming or, even if forthcoming, that the joint ventures railcars
will otherwise be able to compete successfully. Other potential risks and uncertainties relating to
ARIs business and the production of railcars are described in ARIs filings with the Securities
and Exchange Commission. ARI 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.