BOCA RATON, Fla. -- (Business Wire)

Banyan Rail Services Inc. (OTCBB: BARA), announced today that its wholly-owned subsidiary, The Wood Energy Group, Inc. (“Wood Energy”), has entered into an amended service agreement with Kansas City Southern Railway Company (“KCS”) (NYSE: KSU) for the gathering, pick-up and disposal of scrap rail ties. Wood Energy, based in St. Louis, Missouri, is one of the nation’s largest railroad tie reclamation and disposal companies.

Under this amended service agreement, Wood Energy has been selected to pick up and remove more than 500,000 railroad ties per year for the next two years. The original service agreement designated Wood Energy to dispose of the ties once delivered by KCS to Wood Energy. This agreement covers the gathering, pick-up and disposal of rail ties along KCS’ 3,500-mile, 10-state rail system serving the central and south central U.S.

Greg Smith, President of The Wood Energy Group, said, “This new KCS tie contract is an excellent addition to our core business. By virtue of this amended agreement, Wood Energy will increase its total tie reclamation volume to well over 2 million ties annually. It has been a pleasure to work with the folks at the KCS and we are excited about this opportunity to expand our services with them.”

Banyan Rail Services Inc. is a railroad support services company headquartered in Boca Raton, Florida. The Company owns The Wood Energy Group, Inc., one of the nation’s largest railroad tie reclamation and disposal companies.

Safe Harbor Regarding Forward-Looking Statements

Some of the statements that we make in this press release, including statements about our confidence in the Company’s prospects and strategies are forward-looking statements within the meaning of §21E of the Securities Exchange Act. Some of these forward-looking statements can be identified by words like “believe,” “expect,” “will,” “should,” “intend,” “plan,” or similar terms; others can be determined by context. Statements contained in this release that are not historical facts are forward-looking statements. These statements are necessarily estimates reflecting our best judgment based upon current information, and involve a number of risks and uncertainties. Many factors could affect the accuracy of these forward-looking statements, causing our actual results to differ significantly from those anticipated in these statements. You should not place undue reliance on our forward-looking statements, which reflect our analysis only as of the date of this release. The risks and uncertainties listed above and in documents that we file with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and any current reports on Form 8-K, must be carefully considered by any investor or potential investor in the Company.

Contacts:

Banyan Rail Services Inc.
Larry Rutstein, 561-997-7776

Source: Banyan Rail Services Inc.