Press Releases

Greenbrier's Quarterly Earnings More Than Double to $.31 Per Share on Revenues of $255 Million; Backlog Remains Strong; Strategic Initiatives Continue to Reap Benefits

   *  Net earnings for the second quarter of fiscal 2005 were $4.8 million,
      or $.31 per diluted share, more than double the net earnings of $2.2
      million, or $.15 per diluted share, for the second quarter of fiscal
   *  Revenues for the second quarter grew 53% to $255 million, from $167
      million in the prior year's second quarter.
   *  New railcar deliveries for the quarter were 3,100 units, up 35% from
      2,300 units for the second quarter of fiscal 2004.
   *  New railcar manufacturing backlog in North America and Europe was
      12,300 units valued at $720 million at February 28, 2005 compared with
      10,000 units valued at $560 million at February 29, 2004.
   *  During the quarter, the Company received orders for approximately
      5,000 railcars, including 4,500 double-stack intermodal railcars.
   *  Greenbrier now owns 100% of Gunderson-Concarril, the builder of
      freight cars in Mexico.  In December 2004, the Company acquired
      Bombardier's 50% interest in the operations.  Gunderson-Concarril is
      meeting its financial objectives and will play an increasingly major
      role in Greenbrier's North American footprint.
   *  Greenbrier strengthened its senior management team with the hiring of
      Alejandro Centurion, as head of the Company's Mexican operations.  Mr.
      Centurion has more than 25 years of manufacturing experience, with
      recent responsibilities at Bombardier Transportation for five railcar
      plants and 3,500 employees.
   *  Subsequent to quarter end, the Company acquired from GE two railcar
      repair and refurbishment facilities located in the southeastern U.S.
      GE will provide Greenbrier with a minimum base load of work at the two
      facilities over the next 10 years.

  Financial Results:

The Greenbrier Companies today reported net earnings of $4.8 million, or $.31 per diluted share, on revenues of $255 million for its second fiscal quarter ended February 28, 2005.

William A. Furman, president and chief executive officer, said, "Demand for our products and services remain strong, and our railcar and marine backlog provides good financial visibility well into 2006. Earnings for the quarter were in line with our expectations. We anticipate earnings will be higher in the second half of the year than in the first half, similar to the pattern we experienced in fiscal 2004."

Furman added, "Strategic initiatives in our core railcar businesses continue. We continue to seek out acquisitions that will be accretive to earnings and initiatives that will increase shareholder value."

Cash Flow, Liquidity, Deliveries:

Mark Rittenbaum, senior vice president and treasurer, said, "We remain on pace to deliver nearly 13,000 railcars in fiscal 2005. EBITDA for the quarter was $17.9 million, compared with $8.6 million in the prior comparable quarter. The manufacturing margin compression for the quarter, compared with the first fiscal quarter, was principally due to inclement weather at our Canadian facility, production line change-overs and the inclusion of our Mexican operations in the consolidated results this quarter. The margins of our Mexican operation are currently lower than other facilities. However, we expect them to improve significantly in the second half of the fiscal year, now that Gunderson-Concarril is under Greenbrier's control."

Rittenbaum added, "The increased usage of our revolving credit lines is consistent with increased working capital needs associated with operating at higher production rates. We plan to complete a debt financing during the fiscal year to provide additional growth capital, take advantage of favorable market conditions, and maintain our highly liquid capital position."

The Greenbrier Companies (, headquartered in Lake Oswego, OR, is a leading supplier of transportation equipment and services to the railroad industry. In addition to building new railroad freight cars in the U.S., Canada, and Mexico and to repairing and refurbishing freight cars and wheels at 16 locations across North America, Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 10,000 railcars, and performs management services for approximately 125,000 railcars.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release may contain forward-looking statements. Greenbrier uses words such as "anticipate," "believe," "plan," "expect," "future," "intend" and similar expressions to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, actual future costs and the availability of materials and a trained workforce; steel price increases and scrap surcharges; changes in product mix and the mix between manufacturing and leasing & services segment; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment; all as may be discussed in more detail under the heading "Forward Looking Statements" on pages 3 through 4 of Part I of our Annual Report on Form 10-K for the fiscal year ended August 31, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. We undertake no obligation to revise or publicly release the results of any revision to these forward- looking statements.

The Greenbrier Companies will host a teleconference to discuss second quarter fiscal 2005 results. Teleconference details are as follows:

   Wednesday, March 30, 2005
   8:00 am Pacific Standard Time
   Phone #: 630-395-0143, Password: "Greenbrier"

   Webcast Real-time Audio Access:  ("Newsroom" at
   Please access the website 10 minutes prior to the start time.  Following
   the call, a replay will be available on the same website.

   Condensed Consolidated Balance Sheets
  (In thousands, unaudited)

                                                February 28,    August 31,
                                                    2005           2004
   Cash and cash equivalents                       $12,063        $12,110
   Restricted cash                                     530          1,085
   Accounts and notes receivable                   143,729        120,007
   Inventories                                     147,636        113,122
   Investment in direct finance leases              13,253         21,244
   Equipment on operating leases                   174,911        162,258
   Property, plant and equipment                    67,598         56,415
   Other                                            18,819         22,512

                                                  $578,539       $508,753

  Liabilities and Stockholders' Equity
   Revolving notes                                 $74,166         $8,947
   Accounts payable and accrued liabilities        182,279        178,550
   Participation                                     4,750          2,550
   Deferred revenue                                 21,052         37,107
   Deferred income taxes                            25,349         26,109
   Notes payable                                    98,742         97,513

   Subordinated debt                                10,573         14,942

   Subsidiary shares subject to mandatory
    redemption                                       3,746          3,746

   Stockholders' equity                            157,882        139,289

                                                  $578,539       $508,753

                                 THE GREENBRIER COMPANIES, INC.

   Consolidated Statements of Operations
  (In thousands, except per share amounts, unaudited)

                          Three Months Ended         Six Months Ended
                         Feb. 28,     Feb. 29,     Feb. 28,     Feb. 29,
                           2005         2004         2005         2004
   Manufacturing        $233,808     $148,725     $434,205     $266,028
   Leasing & services     21,105       17,836       38,756       35,732
                         254,913      166,561      472,961      301,760

  Cost of revenue
   Manufacturing         217,796      138,993      400,658      243,582
   Leasing & services     10,570       10,404       20,950       21,241
                         228,366      149,397      421,608      264,823

  Margin                  26,547       17,164       51,353       36,937

  Other costs
   Selling and
    administrative        14,044       10,924       26,116       20,984
   Interest and foreign
    exchange               4,295        2,604        7,355        5,205
   Special charges            --        1,234           --        1,234
                          18,339       14,762       33,471       27,423

  Earnings before
   income taxes and
   equity in
   subsidiaries            8,208        2,402       17,882        9,514

  Income tax benefit
   (expense)             (3,397)        1,309      (6,951)      (1,330)
  Earnings before
   equity in
   subsidiaries            4,811        3,711       10,931        8,184

  Equity in loss of
   subsidiaries              (9)      (1,474)        (739)      (1,792)

  Net earnings            $4,802       $2,237      $10,192       $6,392

  Basic earnings per
   common share            $0.32        $0.15        $0.68        $0.44

  Diluted earnings per
   common share            $0.31        $0.15        $0.66        $0.42

  Weighted average
   common shares:
   Basic                  14,954       14,517       14,924       14,435
   Diluted                15,573       15,178       15,542       15,051

                                             THE GREENBRIER COMPANIES, INC.

   Condensed Consolidated Statements of Cash Flows
   (In thousands, unaudited)

                                                      Six Months Ended
                                                February 28,  February 29,
                                                    2005           2004
  Cash flows from operating activities
   Net earnings                                    $10,192         $6,392
   Adjustments to reconcile net earnings to net
    cash used in operating activities:
    Deferred income taxes                            (587)        (1,503)
    Depreciation and amortization                   10,693         10,327
    Gain on sales of equipment                     (3,518)          (190)
    Special charges                                     --          1,234
    Other                                              901            774
    Decrease (increase) in assets:
     Accounts and notes receivable                (49,217)       (26,167)
     Inventories                                    12,709       (26,895)
     Other                                           (717)          2,262
    Increase (decrease) in liabilities:
     Accounts payable and accrued liabilities     (18,069)       (12,508)
     Participation                                (16,055)       (19,550)
     Deferred revenue                                1,679        (2,606)
   Net cash used in operating activities          (51,989)       (68,430)

  Cash flows from investing activities
   Principal payments received under direct
    finance leases                                   3,285          5,227
   Proceeds from sales of equipment                 20,005          9,922
   Investment in and advances to unconsolidated
    subsidiary                                        (34)        (1,005)
   Acquisition of joint venture interest             8,435             --
   Decrease in restricted cash                         662          3,543
   Capital expenditures                           (34,844)       (18,192)
   Net cash used in investing activities           (2,491)          (505)

  Cash flows from financing activities
   Changes in revolving notes                       63,001          9,248
   Repayments of notes payable                     (8,907)       (12,477)
   Repayment of subordinated debt                  (4,369)        (4,701)
   Dividends                                       (1,793)             --
   Proceeds from exercise of stock options           2,140          3,265
   Purchase of subsidiary shares subject to
    mandatory redemption                                --          (968)
   Net cash provided by (used in) financing
    activities                                      50,072        (5,633)

  Effect of exchange rate changes                    4,361          1,517

  Decrease in cash and cash equivalents               (47)       (73,051)

  Cash and cash equivalents
   Beginning of period                              12,110         77,298

   End of period                                   $12,063         $4,247

                                   THE GREENBRIER COMPANIES, INC.

   Supplemental Disclosure
   Reconciliation of Net Cash Provided by Operating Activities to EBITDA (1)
   (In thousands, unaudited)

                          Three Months Ended          Six Months Ended
                         Feb. 28,     Feb. 29,     Feb. 28,     Feb. 29,
                           2005         2004         2005          2004
  Net cash used in
   activities          $(29,481)   $ (49,518)    $(51,989)    $(68,430)
  Changes in working
   capital                35,717       53,501       69,670       85,464
  Deferred income taxes    1,432        4,491          587        1,503
  Gain on sales of
   equipment               3,432           44        3,518          190
  Special charges             --      (1,234)           --      (1,234)
  Other                    (890)         (17)        (901)        (774)
  Income tax expense       3,397      (1,309)        6,951        1,330
  Interest and foreign
   exchange                4,295        2,604        7,355        5,205

  EBITDA from operations $17,902       $8,562      $35,191      $23,254

  (1)   EBITDA is not a financial measure under GAAP.  We define EBITDA as
        earnings from operations before interest and foreign exchange,
        taxes, depreciation and amortization.  We consider net cash provided
        by operating activities to be the most directly comparable GAAP
        financial measure.  EBITDA is a liquidity measurement tool commonly
        used by rail supply companies and we use EBITDA in that fashion.
        You should not consider EBITDA in isolation or as a substitute for
        cash flow from operations or other cash flow statement data
        determined in accordance with GAAP.  In addition, because EBITDA is
        not a measure of financial performance under GAAP and is susceptible
        to varying calculations, the EBITDA measure presented may differ
        from and may not be comparable to similarly titled measures used by
        other companies.

SOURCE: The Greenbrier Companies

CONTACT: Mark Rittenbaum of Greenbrier Companies, +1-503-684-7000