Exhibit 99.1

FOR IMMEDIATE RELEASE

RailAmerica, Inc. Reports Second Quarter 2011 Results

Second Quarter Highlights

	•		Revenue increased 17% versus second quarter 2010.
	•		Income from continuing operations of $0.17 per share.
	•		Adjusted income from continuing operations1 of $0.24 per share.
	•		Acquired three railroads in Alabama.

JACKSONVILLE, FL, July 27, 2011 — RailAmerica, Inc. (NYSE: RA) today reported financial results for the quarter ended June 30, 2011. Second quarter 2011 revenue increased 17% to $139.2 million from $119.5 million in the second quarter of 2010. Freight revenue increased 7% to $105.6 million with average revenue per car up 11% and carloads down 3%. Non-freight revenue increased 59% to $33.6 million. Excluding acquisitions, non-freight revenue increased 21% versus second quarter 2010.

RailAmerica President and Chief Executive Officer John Giles, said “Our second quarter financial performance was strong despite persistent weather challenges, low coal volumes and fuel price pressures. By controlling costs and capitalizing on non-freight revenue and pricing opportunities, we increased operating income 16% excluding the impact of 45G credits, asset sales and impairments. This represents a record second quarter for RailAmerica. On the strategic front, I continue to be optimistic about our growing pipeline of acquisition and industrial development opportunities.”

RailAmerica reported second quarter 2011 income from continuing operations of $8.7 million, or $0.17 per diluted share. This compares to a loss from continuing operations of $4.2 million, or $0.08 per diluted share in the second quarter of 2010. Noteworthy items impacting the second quarters of 2011 and 2010 include:

	•		45G credits: Because the latest extension of the tax credits (for 2010 and 2011) did not occur until December 2010, no benefits were recognized in the second quarter of 2010. A $5.1 million income statement benefit was recorded in the second quarter of 2011.
	•		Amortization of swap termination costs: Non-cash charges of $3.2 million and $5.6 million were recorded in interest expense during the second quarters of 2011 and 2010, respectively, due to the June 2009 termination of an interest rate swap agreement.
	•		Early retirement of debt: Second quarter of 2010 included $8.4 million of charges related to the early retirement of debt.
	•		Asset impairment: Second quarter of 2011 includes a non-cash, $3.2 million impairment charge resulting from a comprehensive evaluation of our locomotive fleet and the identification of surplus units.

•

Taxes: RailAmerica’s effective tax rate in the second quarter of 2011 declined to 21.3% from 39.6% in the second quarter of 2010 primarily due to state tax law changes. Cash taxes paid in the second quarter of 2011 were $0.8 million compared to the financial statement provision for income tax expense of $2.4 million.

		For the Three Months Ended June 30,
($ in thousands except EPS)		2011								2010
		Pre Tax				EPS				Pre Tax				EPS
45G credits		$	5,133			$	0.06			$	0			$	0.00
Amortization of swap termination costs			(3,201	)			(0.04	)			(5,635	)			(0.06	)
Loss on extinguishment of debt			—				0.00				(8,357	)			(0.09	)
Impairment of assets			(3,220	)			(0.04	)			—				0.00

Note: Effective tax rate of 39%.

     The Company reported operating income of $28.7 million in the second quarter of 2011 compared to $23.1 million in the second quarter of 2010. Second quarter 2011 operating income and expenses were impacted by 45G credits and the asset impairment as discussed above. Other second quarter 2011 operating expenses were up primarily due to higher fuel prices and the inclusion of Atlas Railroad Construction Company, which was acquired in July 2010. Operating income excluding the impact of 45G credits, asset sales and impairments is shown below.

		For the Three Months Ended June 30,
($ in thousands)		2011				2010
Operating revenue		$	139,215			$	119,457
Operating expense			110,517				96,397
Operating income, reported			28,698				23,060
Less: Benefit from 45G credit monetization			(5,133	)			—
Operating income excluding 45G Benefit 1			23,565				23,060
Net (gain) / loss on sale of assets			(64	)			25
Impairment of assets			3,220				—
Operating income excluding 45G Benefit, Asset Sales and Impairments 1		$	26,721			$	23,085

     As previously announced, RailAmerica, Inc. will present its second quarter earnings on Thursday, July 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 80929613. 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 August 4, 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 80929613.

RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 43 individual railroads with approximately 7,400 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
Vice President & Treasurer
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)

		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
		(In thousands, except per share data)
Operating revenue		$	139,215			$	119,457			$	264,152			$	234,398
Operating expenses:
Labor and benefits			41,859				37,885				83,476				75,636
Equipment rents			8,889				8,637				17,555				17,136
Purchased services			11,327				9,673				20,433				18,228
Diesel fuel			14,578				10,518				28,745				21,762
Casualties and insurance			4,955				4,806				7,089				8,439
Materials			5,928				3,874				11,013				7,799
Joint facilities			2,550				1,945				4,755				4,091
Other expenses			10,672				8,279				20,605				17,377
Track maintenance expense reimbursement			(5,133	)			—				(9,283	)			—
Net (gain) loss on sale of assets			(64	)			25				143				(9	)
Impairment of assets			3,220				—				3,220				—
Depreciation and amortization			11,736				10,755				23,500				21,678
Total operating expenses			110,517				96,397				211,251				192,137
Operating income			28,698				23,060				52,901				42,261
Interest expense (including amortization costs of $4,384, $6,870, $9,242 and $14,174, respectively)			(18,143	)			(22,153	)			(36,734	)			(44,857	)
Other income (loss)			495				(7,900	)			1,035				(7,441	)
Income (loss) from continuing operations before income taxes			11,050				(6,993	)			17,202				(10,037	)
Provision for (benefit from) income taxes			2,350				(2,772	)			4,417				(3,302	)
Net income (loss)		$	8,700			$	(4,221	)		$	12,785			$	(6,735	)
Basic earnings per common share:
Net income (loss)		$	0.17			$	(0.08	)		$	0.24			$	(0.12	)
Diluted earnings per common share:
Net income (loss)		$	0.17			$	(0.08	)		$	0.24			$	(0.12	)
Weighted Average common shares outstanding:
Basic			52,282				54,869				53,467				54,718
Diluted			52,282				54,869				53,467				54,718

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Unaudited)

		June 30,				December 31,
		2011				2010
		(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents		$	116,482			$	152,968
Accounts and notes receivable, net of allowance of $8,270 and $6,767, respectively			98,743				74,668
Current deferred tax assets			27,499				12,769
Other current assets			25,311				15,200
Total current assets			268,035				255,605
Property, plant and equipment, net			998,957				981,622
Intangible assets			140,032				140,546
Goodwill			212,772				212,495
Other assets			12,410				13,385
Total assets		$	1,632,206			$	1,603,653
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt		$	290			$	403
Accounts payable			81,114				66,258
Accrued expenses			56,618				36,913
Total current liabilities			138,022				103,574
Long-term debt, less current maturities			1,996				2,147
Senior secured notes			572,338				571,161
Deferred income taxes			222,718				202,985
Other liabilities			18,629				19,037
Total liabilities			953,703				898,904
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 400,000,000 shares authorized; 52,167,610 shares issued and outstanding at June 30, 2011; and 54,859,261 shares issued and outstanding at December 31, 2010			522				549
Additional paid in capital and other			589,005				636,757
Retained earnings			78,288				65,503
Accumulated other comprehensive income			10,688				1,940
Total stockholders’ equity			678,503				704,749
Total liabilities and stockholders’ equity		$	1,632,206			$	1,603,653

RAILAMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

		For the Six Months Ended
		June 30,
		2011				2010
		(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	12,785			$	(6,735	)
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			25,864				24,139
Amortization of swap termination costs			6,878				11,708
Net loss (gain) on sale or disposal of properties			143				(9	)
Impairment of assets			3,220				—
Loss on extinguishment of debt			—				8,357
Equity compensation costs			4,979				3,490
Deferred income taxes and other			1,533				(5,994	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable			(23,767	)			(12,399	)
Other current assets			(10,031	)			7,421
Accounts payable			11,914				6,677
Accrued expenses			19,691				21,884
Other assets and liabilities			(481	)			191
Net cash provided by operating activities			52,728				58,730
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(36,185	)			(30,582	)
NECR government grant reimbursements			6,954				—
Proceeds from sale of assets			2,788				652
Acquisitions, net of cash acquired			(12,706	)			—
Deferred costs and other			(45	)			—
Net cash used in investing activities			(39,194	)			(29,930	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt			(263	)			(380	)
Repurchase of senior secured notes			—				(76,220	)
Repurchase of common stock			(50,091	)			—
Costs associated with sale of common stock			—				(106	)
Deferred financing costs paid			(119	)			(224	)
Net cash used in financing activities			(50,473	)			(76,930	)
Effect of exchange rates on cash			453				(234	)
Net decrease in cash			(36,486	)			(48,364	)
Cash, beginning of period			152,968				190,218
Cash, end of period		$	116,482			$	141,854

RAILAMERICA, INC. AND SUBSIDIARIES

SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)

		Three Months Ended June 30,
		2011								2010
Operating revenue		$	139,215				100.0	%		$	119,457				100.0	%
Operating expenses:
Labor and benefits			41,859				30.1	%			37,885				31.7	%
Equipment rents			8,889				6.4	%			8,637				7.2	%
Purchased services			11,327				8.1	%			9,673				8.1	%
Diesel fuel			14,578				10.5	%			10,518				8.8	%
Casualties and insurance			4,955				3.5	%			4,806				4.0	%
Materials			5,928				4.3	%			3,874				3.3	%
Joint facilities			2,550				1.8	%			1,945				1.7	%
Other expenses			10,672				7.7	%			8,279				6.9	%
Track maintenance expense reimbursement			(5,133	)			(3.7	)%			—				0.0	%
Net (gain) loss on sale of assets			(64	)			(0.0	)%			25				0.0	%
Impairment of assets			3,220				2.3	%			—				0.0	%
Depreciation and amortization			11,736				8.4	%			10,755				9.0	%
Total operating expenses			110,517				79.4	%			96,397				80.7	%
Operating income		$	28,698				20.6	%		$	23,060				19.3	%

		Six months Ended June 30,
		2011								2010
Operating revenue		$	264,152				100.0	%		$	234,398				100.0	%
Operating expenses:
Labor and benefits			83,476				31.6	%			75,636				32.3	%
Equipment rents			17,555				6.7	%			17,136				7.3	%
Purchased services			20,433				7.7	%			18,228				7.8	%
Diesel fuel			28,745				10.9	%			21,762				9.3	%
Casualties and insurance			7,089				2.7	%			8,439				3.6	%
Materials			11,013				4.2	%			7,799				3.3	%
Joint facilities			4,755				1.8	%			4,091				1.7	%
Other expenses			20,605				7.8	%			17,377				7.4	%
Track maintenance expense reimbursement			(9,283	)			(3.5	)%			—				0.0	%
Net loss (gain) on sale of assets			143				0.0	%			(9	)			0.0	%
Impairment of assets			3,220				1.2	%			—				0.0	%
Depreciation and amortization			23,500				8.9	%			21,678				9.3	%
Total operating expenses			211,251				80.0	%			192,137				82.0	%
Operating income		$	52,901				20.0	%		$	42,261				18.0	%

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

		Three Months Ended												Three Months Ended
		June 30, 2011												June 30, 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)
Agricultural Products		$	18,044				34,146			$	528			$	14,405				31,032			$	464
Chemicals			16,324				24,496				666				15,275				24,549				622
Metallic Ores and Metals			11,335				18,388				616				9,439				16,010				590
Pulp, Paper and Allied Products			10,481				17,154				611				9,108				16,112				565
Non-Metallic Minerals and Products			10,437				22,774				458				9,293				21,439				433
Forest Products			7,925				12,656				626				7,385				12,825				576
Coal			7,802				34,682				225				9,774				44,191				221
Food or Kindred Products			7,578				14,253				532				7,326				14,939				490
Waste and Scrap Materials			6,436				15,517				415				6,681				16,015				417
Petroleum			4,304				8,346				516				4,682				10,156				461
Other			3,401				7,019				485				2,928				7,681				381
Motor Vehicles			1,500				2,664				563				1,966				3,319				592
Total		$	105,567				212,095			$	498			$	98,262				218,268			$	450

		Six Months Ended												Six Months Ended
		June 30, 2011												June 30, 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)
Agricultural Products		$	32,979				64,856			$	508			$	29,890				64,974			$	460
Chemicals			32,489				49,398				658				29,290				47,961				611
Metallic Ores and Metals			21,533				34,987				615				19,061				33,069				576
Pulp, Paper and Allied Products			20,214				34,161				592				18,227				31,485				579
Non-Metallic Minerals and Products			19,490				42,628				457				17,187				39,203				438
Coal			16,389				75,427				217				19,359				86,966				223
Forest Products			14,759				24,088				613				13,977				24,311				575
Food or Kindred Products			14,669				27,889				526				14,178				28,957				490
Waste and Scrap Materials			11,671				28,610				408				11,987				29,130				412
Petroleum			9,953				19,662				506				10,327				21,979				470
Other			5,974				14,070				425				5,842				14,923				391
Motor Vehicles			3,082				5,361				575				3,772				6,560				575
Total		$	203,202				421,137			$	483			$	193,097				429,518			$	450

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 transaction costs related to debt extinguishment, acquisitions, impairment of assets and swap termination. The following table sets forth the reconciliation of Adjusted income from continuing operations.

		2011
(In thousands, except per share data)		Q1									Q2									Q2 YTD
		After Tax				Per Share					After Tax				Per Share					After Tax				Per Share
Income from continuing operations		$	4,085			$	0.07				$	8,700			$	0.17				$	12,785			$	0.24
Add:
Amortization of swap termination costs			2,243				0.04					1,953				0.04					4,196				0.08
Impairment of assets			—				—					1,964				0.04					1,964				0.04
Acquisition costs			44				0.00					148				0.00					192				0.00
Adjusted income from continuing operations		$	6,372			$	0.12				$	12,765			$	0.24				$	19,137			$	0.36
Weighted Average common shares outstanding (diluted)			54,651									52,282									53,467

		2010
(In thousands, except per share data)		Q1									Q2									Q2 YTD
		After Tax				Per Share					After Tax				Per Share					After Tax				Per Share
Loss from continuing operations			($2,514	)		$	(0.05	)			$	(4,221	)		$	(0.08	)			$	(6,735	)		$	(0.12	)
Add:
Amortization of swap termination costs			3,644				0.07					3,437				0.06					7,081				0.13
Loss on extinguishment of debt			—				—					5,098				0.09					5,098				0.09
Acquisition (income) expense			—				—					159				0.00					159				0.00
Adjusted income from continuing operations		$	1,130			$	0.02				$	4,473			$	0.08				$	5,603			$	0.10
Weighted Average common shares outstanding (diluted)			54,568									54,869									54,718

     Note: Numbers may not add due to rounding

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

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

($ in thousands)		Q2 2011									Q2 2010
Operating revenue		$	139,215								$	119,457
Operating expense			110,517									96,397
Operating Income, reported			28,698									23,060
Operating ratio Reported							79.4	%								80.7	%
Less: Benefit from 45G credit monetization			(5,133	)			3.7	%				—				0.0	%
Operating income excuding 45G Benefit			23,565									23,060
Operating ratio excluding 45G Benefit							83.1	%								80.7	%
Net (gain) loss on sale of assets			(64	)			0.0	%				25				0.0	%
Impairment of assets			3,220				-2.3	%				—				0.0	%
Operating income excluding 45G Benefit, Asset Sales & Impairments		$	26,721								$	23,085
Operating ratio, excluding 45G Benefit, Asset Sales & Impairments							80.8	%								80.7	%

Note: Numbers may not add due to rounding