NEW YORK REGIONAL RAIL Announces Re-Listing, Improved Annual Results and Contracts

    NEW YORK--May 9, 2002--NEW YORK REGIONAL RAIL CORPORATION (Symbol:NYRR) President and CEO, Ronald W. Bridges, announced today that effective immediately, NYRR will be re- listed for trading on the OTC Electronic Bulletin Board.
    Additionally, the Company recently announced improved results for the year ended December 31, 2001. The Company reported on its annual report revenues of $4,289,740 and a Net Loss of $837,077 for the year ended December 31, 2001, compared to revenues of $8,626,093 and a Net Loss of $1,650,227 for the prior year's period.
    Joel Marcus, Chief Financial Officer for NYRR said, "We are pleased with these improved results as they show a positive effect in steps management has undertaken to achieve profitability for our Company. During fiscal year 2001 the Company reported a dramatic improvement in net cash provided by operations of $329,009 as compared to net cash used in operations of $450,021 in the previous fiscal year. In addition, this Net Loss includes $510,843 in non-cash depreciation and amortization expense, $207,080 in interest expense and a bad debt reserve of $315,000 against current and long-term receivables. This reserve is primarily on fiscal year 2000 receivables, not on 2001 receivables," he concluded.
    Ronald Bridges, President and CEO of NYRR stated, "With the assimilation of JST's trucking operations with NYCH's rail operations we have been able to provide our customers with a complete turn-key solution to their transportation needs at a competitive price. In doing so we also have been able to increase our operating margins and efficiencies."
    Mr. Bridges also stated that the Company did not have the full year advantage from many of the contracts, which the Company announced in its annual report on Form 10-KSB. "We only began moves on the bio-solid transportation contract in July and the steel contract announced did not begin until late in the first quarter of 2002. With benefit of these contacts on a full year basis I am confident that we will be able to attain profitability during the current fiscal year."
    NEW YORK REGIONAL RAIL is a transportation holding company. Its two principal subsidiaries are New York Cross Harbor Railroad ("NYCH") and JS Transportation ("JST").
    NYCH owns the ONLY rail floatbarge operation that crosses New York Harbor, by virtue of its ICC certificate of necessity and convenience. NYCH's operation enables New York City, Long Island and Southern New England to connect to the national rail freight system.
    JST is a rapidly growing short-haul regional trucking company, whose clients include many Fortune 1,000 companies and other established companies. JST currently serves a six- state region including NY, NJ, PA, DE, MD and VA.

    This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control which may cause actual results or performance achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filing with the Securities and Exchange Commission.