Florida East Coast Industries, Inc. announced that the United States District Court for the Southern District of Florida has ruled that several mining permits for the Lake Belt area in South Florida were granted to its aggregate customers without issuance of an adequate Environmental Impact Statement (EIS) and other deficiencies.

The ruling was made by a federal judge in Miami on a challenge by environmentalists to certain permits issued by the U.S. Army Corps of Engineers (Corps) for mining in the Lake Belt district near Miami, Florida. The judge has ruled that there were deficiencies in the procedures and analysis undertaken by the Corps in connection with the EIS. The judge has remanded the matter to the Corps and the Fish and Wildlife Service (FWS) for a supplemental EIS and consideration of the other deficiencies. A hearing will be held before the judge on May 10th to evaluate the status of mining pending the outcome of the Corps' and FWS's additional analysis. Mining will be unaffected prior to that hearing.

FECI's subsidiary, Florida East Coast Railway (Railway), transports aggregate mined by customers under permits in the Lake Belt. For the year ended December 31, 2005, the Railway generated approximately $70 million or 29% of its revenue from the movement of aggregate. The Company believes that a significant portion of the aggregate the Railway transports is mined under these permits.

The financial impact of this ruling on Florida East Coast Industries cannot currently be assessed due to the uncertainty of how mining operations will be affected pending the Army Corps of Engineers' reconsideration of the permits.

Adolfo Henriques, Chairman, President and Chief Executive Officer of Florida East Coast Industries, stated, "We believe a solution can be reached that allows for mining while protecting the environment."