FOR RELEASE: January 25, 2006

Florida East Coast Railway to Purchase New Locomotives

St. Augustine, FL - (January 25, 2006) - Florida East Coast Railway ("FEC"), the transportation subsidiary of Florida East Coast Industries, Inc. (NYSE: FLA) ("FECI"), announced an agreement with Electro-Motive Diesel, Inc. (EMD) to purchase four new SD70M-2 diesel locomotives. FEC expects to take delivery of all four locomotives in the 3rd quarter of 2006.

"The four newly produced locomotives will support new business and provide additional capacity in the movement of our aggregate and intermodal businesses. As the new units will be able to haul greater capacity, they will provide FEC a cost effective opportunity to haul additional revenue tonnage. FEC is proud to continue its affiliation with Electro-Motive and is excited to add this new locomotive technology to our fleet, our first in over 20 years," said Gary Griffiths, Vice President and Chief Mechanical Officer of FEC.

The new locomotives, which were developed by EMD to meet the needs of the North American freight market, are rated at 4,300 horsepower, meet strict EPA (Environmental Protection Agency) emission standards and meet all current safety requirements.

About Electro-Motive Diesel, Inc.:
Founded in 1922, Electro-Motive Diesel, Inc. is one of two U.S. original equipment manufacturers of diesel-electric locomotives. Headquartered in LaGrange, Illinois, with additional facilities in London, Ontario, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide. The Company is the only diesel-electric locomotive manufacturer to have produced more than 70,000 engines and has the largest installed base of diesel-electric locomotives in both North America and internationally. In addition to its locomotive manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts and a range of value-added services for its locomotives. The Company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. In April 2005, Greenbriar Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired EMD from General Motors Corporation. Additional information may be found at www.EMDiesels.com.

Florida East Coast Railway operates a Class II freight railroad along a 351-mile corridor between Jacksonville and Miami. It serves the densely populated east coast of Florida and is the only rail-service provider to the Port of Palm Beach, Port Everglades (Ft. Lauderdale) and the Port of Miami. Through drayage services and alliances with connecting carriers, FECR extends its reach throughout the Southeast and to Chicago, New York/New Jersey and Baltimore. For more information, visit the Company's Web site at www.fecrwy.com.

Florida East Coast Industries, Inc., headquartered in St. Augustine, FL, conducts operations through two wholly owned subsidiaries, Flagler Development Company and Florida East Coast Railway, L.L.C. (FECR). Flagler owns, leases and manages 7.8 million square feet of commercial and industrial space, as well as an additional 430,000 square feet under construction, and owns approximately 657 acres of entitled land and approximately 2,511 acres of additional Florida properties. FECR is a regional freight railroad that operates 351 miles of mainline track from Jacksonville to Miami and provides intermodal drayage services at terminals located in Atlanta, Jacksonville and Miami. For more information, visit the Company's website at www.feci.com.

FOR FURTHER INFORMATION:

FEC Media Contact: Brian J. Nicholson
(904) 819-2119

EMD: Scott Garman
scott.garman@emdiesels.com
+1 (708) 387-5041