FOR IMMEDIATE RELEASE – December 31, 2010

CHICAGO - Iowa Pacific Holdings (IPH) announced today that Devon and Cornwall Railways, Ltd. (DCR), a subsidiary of IPH’s U.K. affiliate, British American Railway Services, has been granted a freight operating license effective December 24 by the Office of Rail Regulation, the U.K. government’s rail regulator. This license gives DCR the ability to operate open-access rail freight services throughout the United Kingdom.

Ed Ellis, president of IPH and DCR, said “Issuance of this license reaffirms the UK’s commitment to competition among open-access freight operators. We are pleased that the ORR has, after careful evaluation, enabled DCR to take the next steps toward implementing our strategy of becoming an effective, responsive operator focused on atypical and innovative flows in the UK rail freight market. We look forward to working with customers, Network Rail, and other interested parties to develop freight operations.”

DCR’s parent British American Railway Services, Ltd. through its subsidiary Rail Management Services also provides mainline and switcher locomotive leasing and maintenance, track construction and track maintenance. U. K. Shortline operating subsidiaries include Weardale Railways, CIC, and Dartmoor Railway CIC. In addition, IPH operates six shortline railroads across the US.