FLA Florida East Coast Inds

-- Over two years of failure free service continues -- JACKSONVILLE, Fla., July 12 /PRNewswire-FirstCall/ -- Florida East Coast Railway, L.L.C. ("FECR"), the transportation subsidiary of Florida East Coast Industries, Inc. (NYSE:FLA) ("FECI"), has been recognized by UPS as one of two Rail Carriers of the Year for 2006. The award recognizes FECR's continuing commitment to UPS for daily on-time delivery. UPS, which is the Railway's largest domestic intermodal customer, has a long-standing partnership spanning well over a decade. John D. McPherson, President, FECR stated: "We value excellence in customer service and are honored to receive this prestigious award from an internationally renowned entity like UPS. I congratulate all my partners at the Railway for their dedication and hard work that led to this distinguished honor. Our continuing failure-free service record demonstrates FECR's total commitment to provide world-class service." Randy Welch, Vice President of Transportation, UPS stated: "We rely on building strong relationships with partners like FECR who provide great customer centric service. UPS strives to provide leading edge service to our customers on a daily basis and FECR helps to facilitate that goal." David A. MacInnes, Assistant Vice President of Intermodal Marketing, FECR added: "Being chosen by UPS as a Rail Carrier of the Year is a powerful recognition of our ability to meet their service performance levels and our ability to adapt in critical situations to deliver high quality service, under adverse conditions. UPS takes advantage of our scheduled intermodal service with multiple daily departures. By striving to continually improve our network performance for UPS, we have created an intermodal service that is competitive to over-the-road transit time and more reliable than trucking." Senior executives of the Railway and UPS are scheduled to meet with FECR and UPS employees from Jacksonville to Miami over a three-day period starting today to commemorate and celebrate this system-wide achievement. In addition to working directly with National Accounts in the retail market within the Southeast, FECR's Intermodal Division builds relationships with Intermodal Marketing Companies (IMCs), Parcel carriers, Less-Than- Truckload Companies (LTLs), Truckload carriers, Ocean carriers and railroads. 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 http://www.fecrwy.com/. About Florida East Coast Industries, Inc. Florida East Coast Industries, Inc., headquartered in Jacksonville, FL, conducts operations through two distinct businesses, Flagler Development Group (Flagler), its commercial real estate operation, and Florida East Coast Railway, L.L.C. (FECR). Flagler owns, develops, leases and holds in joint ventures, approximately 8.6 million square feet of Class-A office and industrial space, as well as an additional 1,916,000 square feet under construction. Flagler space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, and South Florida counties of Palm Beach, Broward and Miami-Dade. In addition, Flagler provides construction, consulting, third party brokerage and property management (includes Flagler's wholly-owned portfolio, as well as approximately 10.5 million square feet for third parties) services and owns directly or in joint venture 853 acres of entitled land in Florida, which is available for development of up to an additional 15.9 million square feet and Flagler owns approximately 3,089 acres of other 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, Ft. Pierce, Ft. Lauderdale and Miami. For more information, visit the Company's Web site at http://www.feci.com/. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include the Company's present expectations or beliefs concerning future events. These statements may be identified by the use of words like "plan," "expect," "aim," "believe," "project," "anticipate," "intend," "estimate," "will," "should," "could," "may", and other expressions that indicate future events and trends. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties that could cause actual results to materially differ from those contained in these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the changing general economic, business, competitive, regulatory and market conditions (particularly in the state of Florida, the Southeast US and the Caribbean); the impact of weather related damages/problems such as power outages and the Company's ability to recover its estimated losses and additional costs from insurers and others and other risks inherent in the real estate and other businesses of the Company. Further information on these and other risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Forms 10-K and 10-Q. The Company assumes no obligation to update the information contained in this news release, which speaks only as of its date. DATASOURCE: Florida East Coast Industries, Inc. CONTACT: Investor Contact: Bradley D. Lehan, +1-904-996-2817, Media Contact: Brian J. Nicholson, +1-904-996-2818, both of Florida East Coast Industries, Inc. Web site: http://www.feci.com/ http://www.fecrwy.com/

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