Press Releases

Greenbrier Announces Improved Operating Results, Receives New Orders And Increases Manufacturing Backlog
Highlights - First quarter 2003 results from continuing North American operations were nearly break-even on revenues of $97 million. This compares to a loss of $.8 million on revenues of $71 million from North American operations in the first quarter of 2002. - Enhanced performance in North America and Europe in the first quarter of fiscal 2003 led to improved bottom line results. A net loss of $.7 million, or $.05 per share, was realized for the quarter. This compares to a net loss of $5 million, or $.36 per share, in the first quarter of fiscal 2002. - The Company received new orders for 1,700 freight cars in its first quarter of fiscal 2003, with a value of approximately $115 million. - New railcar manufacturing backlog in North America and Europe continued to rise to 5,700 units valued at $310 million at November 30, 2002, compared to 5,200 units valued at $280 million at August 31, 2002. - The Company continues to maintain strong liquidity. After debt paydowns of $7 million, first quarter 2003 cash balances were virtually unchanged at nearly $60 million; unused lines of credit approached $110 million in North America. - Subsequent to November 30, 2002, Greenbrier received a U.S. tax refund of nearly $15 million in cash related to tax benefits recorded in 2002.

The Greenbrier Companies today reported results for its first fiscal quarter ended November 30, 2002. Both North American and European operations showed significant financial improvement against the prior year's first quarter.

Results for continuing operations in North America were nearly break-even for the quarter, compared to a loss of $.8 million in the first quarter of 2002. Loss from discontinued European operations was $.6 million for the quarter, compared to a loss of $4.2 million in the first quarter of 2002.

The Company also disclosed that during its first fiscal quarter ended November 30, 2002, it received orders in North America and Europe for 1,700 new freight cars with a total value of $115 million. Production for sale during the quarter was 1,200 railcars, causing backlog to increase to 5,700 units valued at $310 million. This backlog compared to 5,200 units valued at $280 million at August 31, 2002.

Backlog grew in both North America and Europe. The November 30, 2002 backlog includes 4,500 units valued at $230 million from North American operations and 1,200 units valued at $80 million from European operations. The August 31, 2002 backlog included 4,200 units valued at $210 million in North America and 1,000 units valued at $70 million in Europe.

Significant new railcar orders during the quarter in North America included 600 Maxi-IV double-stack cars and 500 60' boxcars for TTX Company, as well as 200 riserless deck center partition cars for Canadian National Railway. In Europe, Greenbrier received orders for 150 coal wagons for DB Cargo and 104 box wagons and flat wagons for Freightliner.

Greenbrier's backlog includes 800 drop-deck center partition cars at its TrentonWorks, Nova Scotia facility. Production and delivery plans for these cars will be slowed as a result of a preliminary injunction expected to be issued this week, relative to patent litigation initiated by a competitor. The Company is pursuing an expedited trial in the case, as well as other remedies. Production of other cars in TrentonWorks' backlog will be accelerated while the litigation is being resolved. However, some temporary layoffs at TrentonWorks will occur while production plans are being revised.

Due to increased order backlog, production rates, and improved market outlook in North America, Greenbrier announced the re-opening of its Gunderson-Concarril facility in Sahagun, Mexico. Production of boxcars will commence in March 2003. Gunderson-Concarril is a 50%-owned joint venture between Greenbrier and Bombardier Transportation. All three of Greenbrier's new railcar plants in North America are expected to be operating at historically more normalized levels of employment and production during 2003. Production rates in the quarter ended November 30, 2002 were roughly double those of six months earlier, in the quarter ended May 31, 2002 and are expected to continue to increase during 2003.

William A. Furman, president and chief executive officer, said, "Greenbrier's business outlook in new freightcars continues to improve. Orders during the past two quarters were at dramatically higher levels than the previous six-month period, both for Greenbrier and the industry. We expect our outlook to continue to improve during 2003 due to strengths in the forest products and intermodal sectors, where Greenbrier has high market share. Prospects for railroad traffic increases in selected commodity sectors also look much better than in 2002. Railcar surpluses of good quality, high- capacity freightcars have declined. We expect to be back into a normalized replacement cycle for new freightcars as the economy improves. Also, we have very healthy business in our Rail Services, Marine Construction, Industrial Forge and Leasing & Services segments. Together, these units contribute approximately $170 million in revenue annually. Demand in these segments is strong."

Furman continued, "Given our improved market outlook and the Company's strong balance sheet, Greenbrier will aggressively review strategic opportunities in the North American rail supply marketplace. Greenbrier has retained Bear Stearns and Babcock & Brown to assist in these efforts. Earlier, Greenbrier retained KPMG to assist in recapitalizing our European operations. We intend to successfully recapitalize European operations by the end of fiscal 2003. In the meantime, European financial performance has improved, as a result of measures taken in fiscal 2002 and a rebound in the marketplace."

Mark Rittenbaum, senior vice president and treasurer noted, "Greenbrier continues to maintain strong liquidity, with cash balances of nearly $60 million and pay downs of debt of $7 million. Manufacturing EBITDA from continuing operations for the quarter was $4.4 million. The first quarter results were impacted by higher legal fees related to patent litigation, and professional advisory fees. We expect such amounts to be reduced in future quarters. As well, we expect manufacturing margins to improve modestly in the second half of the year, as the result of higher production rates and improved pricing in our backlog."

The Greenbrier Companies, headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry in North America. Greenbrier builds new railroad freight cars in the U.S., Canada and Mexico, and repairs and refurbishes freight cars and wheels at thirteen locations across North America. The Company also builds new railroad freight cars and refurbishes freight cars for the European market through its manufacturing operations in Poland and various sub-contractor facilities throughout Europe. At Greenbrier's Portland, Oregon manufacturing facility, it builds ocean-going barges for the maritime industry. Greenbrier owns or manages a fleet of approximately 50,000 railcars.

Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements as to expectations, beliefs, and future financial performance. These forward-looking statements are dependent on a number of factors, business risks and issues, a change in which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such factors, risks and issues are set forth from time to time under "Forward-Looking Statements," in Management's Discussion and Analysis of Financial Condition and Results of Operations in Greenbrier's SEC filings and reports. Any forward-looking statement speaks only as of the date on which such statement is made. Greenbrier undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

The Greenbrier Companies will host a teleconference to discuss first quarter results. Teleconference details are as follows:

   Tuesday, January 7, 2003
   7:30 am Pacific Standard Time
   Real-time Audio Access:  ("Newsroom" at )

Please access the site 10 minutes prior to the start time. Following the call, a replay will be available on the same site.

                                   THE GREENBRIER COMPANIES, INC.
    Condensed Consolidated Balance Sheets
    (In thousands, unaudited)

                                                November 30,    August 31,
                                                    2002           2002
   Cash and cash equivalents                       $57,488        $58,777

   Accounts and notes receivable                    44,362         45,135

   Inventories                                      65,195         56,868

   Investment in direct finance leases              63,661         69,536

   Equipment on operating leases                   151,288        151,580

   Property, plant and equipment                    57,652         58,292

   Other                                            20,413         21,507

   Discontinued operations                          37,288         65,751
                                                  $497,347       $527,446

  Liabilities and Stockholders' Equity
   Revolving notes                                  $2,943         $3,571

   Accounts payable and accrued liabilities        118,385        108,244

   Deferred participation                           49,968         52,937

   Deferred income taxes                            11,935         13,823

   Notes payable                                   130,238        136,577

   Discontinued operations                          49,769         77,188

   Subordinated debt                                26,414         27,069

   Minority interest                                 4,898          4,898

   Stockholders' equity                            102,797        103,139
                                                  $497,347       $527,446

                                       THE GREENBRIER COMPANIES, INC.
    Consolidated Statements of Operations
    (In thousands, except per share amounts, unaudited)

                              Three Months Ended
                                 November 30,
                                                    2002            2001
   Manufacturing                                   $79,211        $53,217

   Leasing & services                               17,678         18,239
                                                    96,889         71,456

  Cost of revenue
   Manufacturing                                    74,335         49,692

   Leasing & services                               11,566         10,231
                                                    85,901         59,923

  Margin                                            10,988         11,533

  Other costs
   Selling and administrative expense                7,070          7,491

   Interest expense                                  3,282          4,249
                                                    10,352         11,740

  Earnings (loss) before income
   taxes, minority interest
   and equity in unconsolidated subsidiary             636          (207)

  Income tax benefit (expense)                       (228)             85

  Earnings (loss) before minority
   interest and equity in unconsolidated
   subsidiary                                          408          (122)

  Minority interest                                   (18)          (171)

  Equity in loss of unconsolidated subsidiary        (517)          (508)

  Loss from continuing operations                    (127)          (801)

  Loss from discontinued operations (net of tax)     (616)        (4,242)

  Net loss                                          $(743)       $(5,043)

  Basic loss per common share:
   Continuing operations                            $(.01)         $(.06)

   Discontinued operations                           (.04)          (.30)

   Net loss                                         $(.05)         $(.36)

  Diluted loss per common share:
   Continuing operations                            $(.01)         $(.06)

   Discontinued operations                           (.04)          (.30)

   Net loss                                         $(.05)         $(.36)

  Weighted average common shares:
   Basic                                            14,121         14,121

   Diluted                                          14,121         14,121

                             THE GREENBRIER COMPANIES, INC.
    Condensed Consolidated Statements of Cash Flows
    (In thousands, unaudited)
                                                       Three Months Ended
                                                         November 30,
                                                    2002            2001
  Cash flows from operating activities:
   Net loss                                        $ (743)       $(5,043)
   Adjustments to reconcile net loss to
    net cash provided by operating activities:
     Loss from discontinued operations                 616          4,242
     Deferred income taxes                         (1,888)        (2,564)
     Deferred participation                        (2,969)          (988)
     Depreciation and amortization                   4,446          4,559
     Gain on sales of equipment                       (29)          (182)
     Other                                            (22)          (382)
     Decrease (increase) in assets:
      Accounts and notes receivable                    851         11,655
      Inventories                                 (10,817)        (9,979)
      Other                                            995            403
     Increase (decrease) in liabilities:
      Accounts payable and accrued liabilities      11,250          (456)
  Net cash provided by operating activities          1,690          1,265

  Cash flows from investing activities:
   Principal payments received under
    direct finance leases                            4,115          5,208

   Proceeds from sales of equipment                  4,018          3,241

   Purchase of property and equipment              (3,535)        (1,530)
   Net cash provided by investing activities         4,598          6,919

  Cash flows from financing activities:
   Changes in revolving notes                        (628)        (6,499)
   Repayments of notes payable                     (6,294)        (8,834)
   Repayments of subordinated debt                   (655)          (104)
   Dividends                                            --          (847)
   Net cash used in financing activities           (7,577)       (16,284)

  Decrease in cash and cash equivalents            (1,289)        (8,100)

  Cash and cash equivalents
   Beginning of period                              58,777         74,547

   End of period                                   $57,488        $66,447

                                     THE GREENBRIER COMPANIES, INC.

   Summarized results of operations of the discontinued operations are:

                                                    Three Months Ended
                                                       November 30,
  (in thousands, unaudited)                          2002           2001

  Revenues (A)                                     $41,900         $8,427

  Cost of revenue (A)                               39,498          8,592

  Margin                                             2,402          (165)

  Selling and administrative expense                 2,385          2,881

  Interest expense                                     652          1,239

  Loss before income taxes and minority interest     (635)        (4,285)
  Income tax benefit                                    19             --

  Minority interest                                     --             43

  Loss from discontinued operations                 $(616)       $(4,242)

  The following assets and liabilities of the European operation are
  classified as discontinued operations:
  (in thousands, unaudited)

                                                November 30,    August 31,
                                                    2002            2002
  Cash and cash equivalents                         $5,622         $8,953
  Accounts receivable                               11,850          9,645
  Inventories (A)                                   12,150         39,304
  Property, plant and equipment                      1,152          1,072
  Other                                              6,514          6,777
      Total assets - Discontinued operations       $37,288        $65,751

  Revolving notes                                  $22,723        $22,249
  Accounts payable and accrued liabilities (A)      19,874         47,385
  Notes payable                                      7,172          7,554
      Total liabilities - Discontinued operations  $49,769        $77,188

  (A) August 31, 2002 balance sheet includes $26.9 million in inventory
      and associated deferred revenue for railcars delivered to a customer
      for which cash was received, but revenue recognition delayed pending
      certification of the railcars.  Certification was obtained in October
      2002 and the remaining railcars were delivered allowing recognition of
      revenue of  $27.7 million and the associated costs of revenue in the
      three months ended November 30, 2002.

SOURCE: The Greenbrier Companies, Inc.

CONTACT: Mark Rittenbaum of The Greenbrier Companies, Inc.,