May 28, 2002

News Release: Awarded Major Contract From Canadian National

GLOBAL RAILWAY INDUSTRIES LTD ("GBI-T")
Global Railway Industries Ltd., www.globalrailway.com, ("Global"), a provider of railway maintenance products and service equipment, announced that the Company's wholly-owned subsidiary Rafna Industries Ltd. ("Rafna") has been awarded a major contract from Canadian National for the immediate supply of rail gear units. The contract is valued at approximately $500,000. Rafna is a leader in the design, manufacture, supply and installation of rail gear equipment for the railway industry. Rail gear is hardware equipment, which allows standard road service vehicles to be driven directly on rail lines. The rail gear can be raised and lowered rapidly to convert the service vehicle from highway to rail travel. Rail gear saves operators the need for highly specialized and expensive rail equipment, which obstructs the bypass of trains in revenue service.

CN is a Class 1 North American railway, with about 18,000 route miles of track in Canada and the United States. In 2001 CN earned $5.6 billion in revenue and had the lowest operating ratio among Class 1 railroads.

About Global Railway Industries: Global Railway Industries is a fast- growing manufacturer of railway equipment. The Company is pursuing an acquisition strategy of industry manufacturers that produce and sell the railways the equipment they need to run and maintain their operations efficiently. Global Railway Industries Ltd. is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSE) under the symbol "GBI". The Company has a total of 7,438,672 fully diluted shares outstanding.

This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities. TEL: (403) 262-6501 Mike Kohut, President FAX: (403) 262-6563 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. Internet: www.globalrailway.com TEL: (604) 713-8010 Investor Relations: Micro Cap et al FAX: (604) 713-8018 TEL: 1-877-642-7622 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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