Exhibit 99.1

FOR IMMEDIATE RELEASE

RailAmerica, Inc. Reports First Quarter 2011 Results

First Quarter Highlights

	•		Revenue increased 9% and carloads declined 1% versus first quarter 2010.
	•		Income from continuing operations of $0.07 per share.
	•		Adjusted income from continuing operations1 of $0.12 per share.
	•		Announced agreement to acquire three Alabama railroads.

JACKSONVILLE, FL, April 27, 2011 — RailAmerica, Inc. (NYSE: RA) today reported financial results for the quarter ended March 31, 2011. First quarter 2011 revenue increased 9% to $124.9 million from $114.9 million in the first quarter of 2010. Freight revenue increased 3% to $97.6 million with carloads down 1%. Non-freight revenue increased 36% to $27.3 million. Excluding the acquisition of Atlas Railroad Construction Company, non-freight revenue increased 22% versus first quarter 2010.

RailAmerica President and Chief Executive Officer John Giles, said “Our operations performed well in the quarter in the face of challenging weather and a sharp run up in fuel prices. We remain encouraged as we look ahead. The outlook for traffic is favorable and we continue to make progress on our growth and productivity initiatives. We are also continuing our strong, disciplined push in the corporate development area and were pleased to announce earlier this month an agreement to acquire three railroads in Alabama.”

RailAmerica reported first quarter 2011 income from continuing operations of $4.1 million, or $0.07 per diluted share. This compares to a loss from continuing operations of $2.5 million, or $0.05 per diluted share in the first quarter of 2010. Noteworthy items impacting the first quarters of 2011 and 2010 include:

	•		45G tax credits: Because the latest extension of the credits (for 2010 and 2011) did not occur until December 2010, no benefits were recognized in the first quarter of 2010. A $4.2 million income statement benefit was recorded in the first quarter of 2011.
	•		Amortization of swap termination costs: Non-cash charges of $3.7 million and $6.1 million were recorded in interest expense during the first quarters of 2011 and 2010, respectively, due to the June 2009 termination of an interest rate swap agreement.
	•		Severance costs: First quarter 2011 labor and benefits costs include $1.6 million in severance expenses related to consolidating dispatching services and other organizational changes.
	•		Styrene resolution: The Company resolved outstanding legal issues from a 2005 styrene car incident resulting in a $1.2 million favorable adjustment to casualty and insurance costs during the first quarter of 2011.

•

Taxes: Cash taxes paid in the first quarter of 2011 were $1.3 million compared to the financial statement provision for income tax expense of $2.1 million.

		For the Three Months Ended March 31,
		2011								2010
($ in thousands except EPS)		Pre Tax				EPS				Pre Tax				EPS
45G tax credits		$	4,150			$	0.05			$	0			$	0.00
Amortization of swap termination costs			(3,677	)			(0.04	)			(6,073	)			(0.07	)
Severance costs			(1,587	)			(0.02	)			—				—
Styrene resolution			1,200				0.01				—				—

Note: Effective tax rates of 39% and 40% for 2011 and 2010 respectively.

The Company reported operating income of $24.2 million in the first quarter of 2011 compared to $19.2 million in the first quarter of 2010. First quarter 2011 operating income and expenses were impacted by 45G tax credits, severance costs and the styrene matter discussed above. Other first quarter 2011 operating expenses were up due to higher fuel prices, weather and the inclusion of Atlas Railroad Construction Company. Operating income excluding the impact of the 45G tax credits and asset sales is shown below.

		For the Three Months Ended
		March 31,
($ in thousands)		2011				2010
Operating revenue		$	124,937			$	114,941
Operating expense			100,734				95,740
Operating income, reported			24,203				19,201
Less: Benefit from 45G tax credit monetization			(4,150	)			—
Operating income before 45G Benefit 1			20,053				19,201
Less net (gain) / loss on sale of assets			207				(34	)
Operating income before 45G Benefit and Asset Sales 1			20,260				19,167

As previously announced, RailAmerica, Inc. will present its first quarter earnings on Thursday, April 28, 2011 at 8:30 a.m. Eastern Time via live teleconference and webcast. Those interested in participating via teleconference may dial (877) 756-2088. Callers outside the U.S. may dial (706) 643-9763. The conference ID number is 57447874. Participants should dial in no later than 10 minutes prior to the call. Presentation materials and access to the live webcast will be available in the Investors section of RailAmerica’s website (www.railamerica.com). Following the earnings call, a webcast replay will be archived on the Company’s website. A telephone replay will be available through May 12, 2011 beginning approximately two hours after the call. The recording can be accessed by dialing (800) 642-1687 or (706) 645-9291. The conference ID number is 57447874.

RailAmerica, Inc. owns and operates short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,300 miles of track in 27 U.S. states and three Canadian provinces.

Cautionary Note Regarding Forward-Looking Statements

Certain items in this press release and other information we provide from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “appears,” “may,” “will,” “would,” “could,” “should,” “seeks,” “estimates” and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. RailAmerica, Inc. can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. Factors that could have a material adverse effect on our operations and future prospects or that could cause actual results to differ materially from RailAmerica, Inc.’s expectations include, but are not limited to, prolonged capital markets disruption and volatility, general economic conditions and business conditions, our relationships with Class I railroads and other connecting carriers, our ability to obtain railcars and locomotives from other providers on which we are currently dependent, legislative and regulatory developments including rulings by the Surface Transportation Board or the Railroad Retirement Board, strikes or work stoppages by our employees, our transportation of hazardous materials by rail, rising fuel costs, goodwill assessment risks, acquisition risks, competitive pressures within the industry, risks related to the geographic markets in which we operate; and other risks detailed in RailAmerica, Inc.’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. In addition, new risks and uncertainties emerge from time to time, and it is not possible for RailAmerica, Inc. to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. RailAmerica, Inc. expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

###

INVESTOR CONTACT
Ira Berger
Office: 904.538.6332

MEDIA CONTACT
Donia Crime
Office: 904.645.6200
Cell: 404.271.1437

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

		For the Quarters Ended March 31,
		2011				2010
Operating revenue		$	124,937			$	114,941
Operating expenses:
Labor and benefits			41,617				37,751
Equipment rents			8,666				8,499
Purchased services			9,106				8,555
Diesel fuel			14,167				11,244
Casualties and insurance			2,134				3,633
Materials			5,085				3,925
Joint facilities			2,205				2,146
Other expenses			9,933				9,098
Track maintenance expense reimbursement			(4,150	)			—
Net loss (gain) on sale of assets			207				(34	)
Depreciation and amortization			11,764				10,923
Total operating expenses			100,734				95,740
Operating income			24,203				19,201
Interest expense, including amortization costs			(18,591	)			(22,704	)
Other income			540				459
Income (loss) from continuing operations before income taxes			6,152				(3,044	)
Provision for (benefit from) income taxes			2,067				(530	)
Net income (loss)		$	4,085			$	(2,514	)
Basic earnings (loss) per common share:
Net income (loss)		$	0.07			$	(0.05	)
Diluted earnings (loss) per common share:
Net income (loss)		$	0.07			$	(0.05	)
Weighted average common shares outstanding:
Basic			54,651				54,568
Diluted			54,651				54,568

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Unaudited)

		March 31,				December 31,
		2011				2010
		(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents		$	130,054			$	152,968
Accounts and notes receivable, net of allowance of $7,440 and $6,767, respectively			77,931				74,668
Current deferred tax assets			25,809				12,769
Other current assets			19,136				15,200
Total current assets			252,930				255,605
Property, plant and equipment, net			986,188				981,622
Intangible assets			140,102				140,546
Goodwill			212,721				212,495
Other assets			12,936				13,385
Total assets		$	1,604,877			$	1,603,653
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt		$	290			$	403
Accounts payable			72,780				66,258
Accrued expenses			38,885				36,913
Total current liabilities			111,955				103,574
Long-term debt, less current maturities			1,997				2,147
Senior secured notes			571,750				571,161
Deferred income taxes			218,701				202,985
Other liabilities			18,687				19,037
Total liabilities			923,090				898,904
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 400,000,000 shares authorized; 53,166,672 shares issued and outstanding at March 31, 2011; and 54,859,261 shares issued and outstanding at December 31, 2010			532				549
Additional paid in capital and other			603,602				636,757
Retained earnings			69,588				65,503
Accumulated other comprehensive income			8,065				1,940
Total stockholders’ equity			681,787				704,749
Total liabilities and stockholders’ equity		$	1,604,877			$	1,603,653

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

		Quarters Ended March 31,
		2011				2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	4,085			$	(2,514	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including amortization of debt issuance costs classified in interest expense			12,945				12,151
Amortization of swap termination costs			3,677				6,073
Net loss (gain) on sale or disposal of properties			207				(34	)
Equity compensation costs			2,609				1,525
Deferred income taxes and other			615				(1,952	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable			(3,025	)			(9,980	)
Other current assets			(3,924	)			6,618
Accounts payable			4,198				9,220
Accrued expenses			2,124				4,169
Other assets and liabilities			(388	)			164
Net cash provided by operating activities			23,123				25,440
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(15,786	)			(11,679	)
NECR government grant reimbursements			2,400				—
Proceeds from sale/disposition of assets			848				343
Net cash used in investing activities			(12,538	)			(11,336	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principle payments on long term debt			(263	)			(292	)
Repurchase of common stock			(33,634	)			—
Costs associated with sale of common stock			—				(106	)
Deferred financing costs paid			(119	)			(95	)
Net cash used in financing activities			(34,016	)			(493	)
Effect of exchange rates on cash			517				319
Net (decrease) increase in cash			(22,914	)			13,930
Cash, beginning of period			152,968				190,218
Cash, end of period		$	130,054			$	204,148

RAILAMERICA, INC. AND SUBSIDIARIES

SELECTED FINANCIAL INFORMATION
(Amounts in thousands)
(Unaudited)

		Quarters Ended March 31,
		2011								2010
Operating revenue		$	124,937				100.0	%		$	114,941				100.0	%
Operating expenses:
Labor and benefits			41,617				33.3	%			37,751				32.8	%
Equipment rent			8,666				6.9	%			8,499				7.4	%
Purchased services			9,106				7.3	%			8,555				7.4	%
Diesel fuel			14,167				11.3	%			11,244				9.8	%
Casualties and insurance			2,134				1.7	%			3,633				3.2	%
Materials			5,085				4.1	%			3,925				3.4	%
Joint facilities			2,205				1.8	%			2,146				1.9	%
Other expenses			9,933				7.9	%			9,098				7.9	%
Track maintenance expense reimbursement			(4,150	)			-3.3	%			—				0.0	%
Net loss (gain) on sale of assets			207				0.2	%			(34	)			0.0	%
Depreciation and amortization			11,764				9.4	%			10,923				9.5	%
Total operating expenses			100,734				80.6	%			95,740				83.3	%
Operating income		$	24,203				19.4	%		$	19,201				16.7	%

RAILAMERICA, INC. AND SUBSIDIARIES
Railroad Freight Revenue, Carloads and Average Freight Revenue
Per Carload
Comparison by Commodity Group
(Unaudited)

		Quarter Ended March 31, 2011												Quarter Ended March 31, 2010
										Average Freight												Average Freight
		Freight								Revenue per				Freight								Revenue per
		Revenue				Carloads				Carload				Revenue				Carloads				Carload
		(Dollars in thousands, except average freight revenue per carload)
Chemicals		$	16,165				24,902			$	649			$	14,015				23,412			$	599
Agricultural Products			14,935				30,710				486				15,486				33,942				456
Metallic Ores and Metals			10,197				16,599				614				9,623				17,059				564
Pulp, Paper and Allied Products			9,733				17,007				572				9,119				15,373				593
Non-Metallic Minerals and Products			9,053				19,850				456				7,893				17,764				444
Coal			8,587				40,745				211				9,585				42,775				224
Food or Kindred Products			7,091				13,636				520				6,852				14,018				489
Forest Products			6,834				11,432				598				6,592				11,486				574
Petroleum			5,649				11,316				499				5,645				11,823				477
Waste and Scrap Materials			5,235				13,093				400				5,305				13,115				404
Other			2,573				7,055				365				2,914				7,242				402
Motor Vehicles			1,583				2,697				587				1,806				3,241				557
Total		$	97,635				209,042			$	467			$	94,835				211,250			$	449

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

     Adjusted income from continuing operations is a supplemental measure of profitability that is not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We use non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. However, Adjusted income from continuing operations has limitations as an analytical tool. It is not a measurement of our profitability under GAAP and should not be considered as an alternative to Income (loss) from continuing operations as a measure of profitability.

     Adjusted income from continuing operations assists us in measuring our performance and profitability of our operations without the impact of foreign exchange loss (gain) on debt and transaction costs related to debt extinguishment, acquisitions and swap termination. The following table sets forth the reconciliation of Adjusted income from continuing operations.

		Q1 2011									Q1 2010
(In thousands, except per share data)		After Tax				Per Share					After Tax				Per Share
Income (loss) from continuing operations		$	4,085			$	0.07				$	(2,514	)		$	(0.05	)
Add:
Amortization of swap termination costs			2,243			$	0.04					3,644			$	0.07
Acquisition costs			44			$	0.00					—				—
Adjusted income from continuing operations		$	6,372			$	0.12				$	1,130			$	0.02
Weighted Average common shares outstanding (diluted)			54,651									54,568

     Note: Numbers may not add due to rounding

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

     Operating Income Before 45G Benefit, Operating Ratio Before 45G Benefit, Operating Income Before 45G Benefit and Asset Sales and Operating Ratio Before 45G Benefit and Asset Sales are supplemental measures of profitability that are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We use non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. However, Operating Income Before 45G Benefit, Operating Ratio Before 45G Benefit, Operating Income Before 45G Benefit and Asset Sales and Operating Ratio Before 45G Benefit and Asset Sales have limitations as an analytical tool. They are not measurements of our profitability under GAAP and should not be considered as an alternative to Operating Income or Operating Ratio as a measure of profitability.

     Operating Income Before 45G Benefit and Operating Ratio Before 45G Benefit assists us in measuring our performance and profitability of our operations without the impact of monetizing the 45G Tax Benefit. Operating Income Before 45G Benefit and Asset Sales and Operating Ratio Before 45G Benefit and Asset Sales assists us in measuring our performance and profitability of our operations without the impact of monetizing the 45G Tax Benefit and Asset Sales. The following table sets forth the reconciliation of Operating Income Before 45G Benefit from our Operating Income, Operating Ratio Before 45G Benefit from our Operating Ratio, Operating Income Before 45G Benefit and Asset Sales from our Operating Income and Operating Ratio Before 45G Benefit and Asset Sales from our Operating Ratio.

($ in thousands)		Q1 2011									Q1 2010
Operating revenue		$	124,937								$	114,941
Operating expense			100,734									95,740
Operating Income, reported			24,203									19,201
Operating ratio Reported							80.6	%								83.3	%
Less: Benefit from 45G tax credit monetization			(4,150	)			3.3	%				—				0.0	%
Operating income before 45G Benefit			20,053									19,201
Operating ratio before 45G Benefit							83.9	%								83.3	%
Net (gain) loss on sale of assets			207				-0.2	%				(34	)			0.0	%
Operating income before 45G Benefit and Asset Sales		$	20,260								$	19,167
Operating ratio, before 45G Benefit and Asset Sales							83.8	%								83.3	%

Note: Numbers may not add due to rounding