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News Release

FirstCity Crestone Acquires Additional Short-line Railroad

May 19, 2009 -- FirstCity Crestone ("Crestone") announced the acquisition of a short-line railroad located in the state of New York through its majority owned portfolio company Regional Rail, LLC. The railroad’s location in the greater New York City area ideally positions the company to serve transload and manufacturing customers targeting the Tri-State area.

"Regional Rail continues to be one of our more successful investments thanks primarily to the strength of our management team,” commented Rich Horrigan. “We hope this is the first of many add on investments.”

Crestone is well-capitalized and is actively seeking new special situation investments and distressed loan acquisitions from $1 to $20 million dollars. Please give us a call to discuss a transaction or to find out more about our recent investment. (720) 470-4401.