The Andersons to Form LLC to Acquire Railcars and Locomotives Second Quarter Cash Dividend Announced

PRNewswire-FirstCall
MAUMEE, Ohio
Mar 11, 2003

The Andersons, Inc. today announced it has signed a letter of intent to acquire selected railroad leasing assets from Railcar, Ltd. Railcar, Ltd., a Progress Rail Services Company, is a full-service railcar and locomotive leasing and management firm based in Atlanta, Georgia. Railcar, Ltd. and Progress Rail Services Corporation are part of Progress Energy a Fortune 250 diversified energy company.

Under the new arrangement, Railcar Ltd. will sell approximately 7,000 railcars and 48 locomotives, most of which are currently under lease, to a Limited Liability Corporation (LLC) that will be owned by a consortium of investors. The Andersons will own a minority stake. The Andersons' Rail Group will manage the assets for the newly formed company for a management fee. Other terms of the purchase agreement and the terms of the LLC agreement and management agreement have not been finalized. The transaction is subject to financing, due diligence and completion of the final definitive purchase agreement.

Mike Anderson, President and CEO of The Andersons, says our participation in the new LLC supports our strategic growth initiative for the Rail Group. "We have been in the railcar leasing, fabrication, maintenance, and component manufacturing business for over ten years. The business has been profitable and has good growth potential. It fits very nicely with our core competencies. It also gives us the ability to offer our customers expanded services and unique lease opportunities. This new arrangement will create additional revenues for the Rail Group through the management fee to be paid by the LLC."

Rasesh Shah, President of The Andersons Rail Group says, "This arrangement will nearly triple the number of cars under our management and we look forward to providing exceptional customer service and being the Total Rail Solutions(SM) provider to Railcar, Ltd.'s existing customers."

In addition, the Company announced a cash dividend of 7 cents per share, payable on April 22, 2003 to shareholders of record on April 1, 2003. This is The Andersons' 26th consecutive quarterly cash dividend since its listing on Nasdaq on February 20, 1996.

About The Andersons, Inc.

The Andersons, Inc., is a regional grain merchandiser with diversified businesses in agriculture, fertilizer distribution, turf product production, railcar marketing and general merchandise retailing that generate revenues of approximately $1.1 billion per year. Founded in 1947, the company maintains grain and production facilities throughout the Midwest and six retail locations in northern and central Ohio. The Andersons' corporate headquarters is located in Maumee, Ohio. Additional information is available online at www.andersonsinc.com .

SOURCE: The Andersons, Inc.

CONTACT: Gary Smith, Vice President, Finance and Treasurer of The
Andersons, Inc., +1-419-891-6417, or gary_smith@andersonsinc.com


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