Savage Companies acquire Alberta RailNet from
parent company North American RailNet
April 26, 2005
Savage Companies of Salt Lake City, Utah announced on April 21, 2005, that through its wholly owned subsidiary, Savage
CANAC Corporation, it has entered into a definitive agreement with North American RailNet, Inc. of Bedford, Texas to acquire
Alberta RailNet, Inc. (“ARN”), a short line railway operation based in Grande Prairie, Alberta, Canada.  The closing of the
purchase is expected to be effective May 1, 2005.

ARN’s operations are comprised of 345 miles of railway in energy-rich northwestern Alberta and connect the Canadian National
Railway (“CN”) to its shippers of coal, lumber, grain, fertilizer, aggregates and many other products. ARN’s service territory is
located exclusively in Alberta and stretches from Swan Landing (near Hinton, Alberta) in the south to Hythe, Alberta in the
northwest branch (near Dawson Creek, British Columbia) and Wanham, Alberta in the northeast branch. The railway currently
moves approximately 25,000 carloads per year, but Savage expects that growth, particularly in coal traffic, will result in the
movement of more than 40,000 carloads by 2006.

Savage is a North American leader in providing materials management and transportation systems services to meet the unique
needs of its customers in the electric power generation, oil refining, chemicals, coal production and Class I railroad industries.
Savage views its entry into the short line railway industry as an opportunity to extend its nearly 60-year tradition and legacy of
quality service to its customers, and to expand its service offerings to the rail industry. Savage and its subsidiary CANAC, Inc.
(“CANAC”), currently provide industrial rail switching services at over 30 industrial locations and rail transloading services at over
35 locations throughout North America. In addition, CANAC has served railroads and railway projects in 71 countries with
capacity planning, infrastructure, track construction and rehabilitation and training services. CANAC further provides technical
assistance and management services to Transrail, S.A., the owner of the 1,200-mile railway concession to operate the former
national railways in Senegal and Mali in western Africa.

In addition to its rail services operations, Savage owns and/or operates large bulk terminals for the handling of coal and petroleum
coke, with vessel-loading ports in Los Angeles, California and Port Arthur, Texas, as well as major coal storage and loading unit-
train terminals in Utah and California. Savage is also a joint venture partner and the operator of Gulf Sulphur Services Ltd., LLLP,
the owner of the largest liquid-sulphur transportation and logistics system in the U.S., which includes the operation of vessels,
barges and terminals on the U.S. Gulf Coast in support of oil refiners, gas processors and fertilizer producers. Savage also
provides in-plant operating and fuel management services for several large utility concerns at various power plants in the U.S.
Altogether, Savage handles over 60 million tons of products on behalf of its customers each year.

Savage President and CEO, Allen B. Alexander stated, “We are extremely excited to make this strategic move to expand our rail
services operations to serve CN, one of the premiere Class I railroads in North America, and to serve the shippers along the
Alberta RailNet railway. Our entry into the North American short line business follows our overall strategy to meet the materials
management and transportation systems needs of customers engaged in the distribution of large volume products and materials.
We are also attracted to the opportunity to further expand our operations geographically in energy-rich Alberta. We look forward
to the prospect of working with the shippers in Grande Prairie and elsewhere along the line, and becoming part of the
communities which the railway serves.”

Rob McKenney, Chairman and CEO of North American RailNet, comments, “This railroad has provided excellent service to its
shippers and connecting carriers, and we are confident it will continue to grow and prosper under the management of Savage
Companies.”

Robert W. Baird & Co. served as financial advisor to North American RailNet, Inc. in connection with the transaction.

Source:  Savage Companies

CAW welcomes news of Savage Companies acquiring Alberta RailNet
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