American Railcar Industries, Inc. (NASDAQ: ARII) (the “Company” or “ARI”) announced today that it plans to invest in railcar leasing as it seeks to expand and diversify its business in response to customer demands and market conditions. The Company remains Agile, Responsive and Innovative in responding to new opportunities to support its customers.

“ARI is very excited to offer railcar leasing and provide another option for customers to utilize our quality railcars,” said President and CEO James Cowan. “We remain committed to meeting the needs of our customers. The economy and railcar market have been challenging over the last couple of years and ARI is responding to those challenges with an expanded market strategy.”

ARI has excellent customer relationships in the railcar industry through sales of new railcars, railcar repair, refurbishment, and fleet management services. Through railcar leasing, ARI intends to provide customers with a broader offering of services.

ARI is currently in negotiations with American Railcar Leasing LLC (“ARL”), an affiliate, to enter into an agreement pursuant to which ARL would identify potential leasing customers for ARI in exchange for fees payable by ARI to ARL. ARL is well-known in the railcar industry and has long-standing relationships with customers that exclusively lease railcars. ARL is controlled by Mr. Carl C. Icahn, the Company’s principal beneficial stockholder (through Icahn Enterprises L.P.) and the chairman of the Company’s board of directors. Any agreements with ARL are the product of arm’s length negotiations and are approved by the independent directors of the Company’s board of directors.

ARI also anticipates that the leasing business will provide a more consistent stream of cash flows and revenue, which management expects would diversify the Company and improve performance during the down cycles of the railcar market. ARI currently plans to fund leasing operations through existing cash. As of September 30, 2010, ARI reported cash of approximately $310 million. Investing existing cash in railcars built to order for leasing customers is expected to enhance returns.

About American Railcar Industries, Inc.

American Railcar Industries, Inc. is a leading North American manufacturer of hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services. ARI is controlled by Mr. Carl C. Icahn, the chairman of ARI’s board of directors, through his affiliate, Icahn Enterprises L.P.

Forward Looking Statement Disclaimer

This press release contains statements relating to our expected financial performance, future business prospects, events, plans, objectives, expectations and intentions that are forward-looking statements. Forward-looking statements represent the Company’s estimates and assumptions only as of the date of this press release. Such statements include, without limitation, statements regarding the Company’s prospects, the anticipated performance of its leasing and other railcar businesses, the anticipated market and market acceptance for railcars built for lease, anticipated benefits of an expanded marketing strategy and entry into a new market, anticipated customer demands and expectations regarding ongoing and new customer relationships, anticipated benefits from the Company’s relationship with Mr. Carl C. Icahn and ARL, any implications that the Company will be able to enter into an agreement with ARL and, if so, the anticipated advantages to the Company from entering into any such agreement, expected sources of financing for the leasing business and anticipated effects on the Company’s financial results as a result of utilizing existing cash to fund the leasing business. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. The Company’s entry into a new business and market involves numerous risks and uncertainties, including without limitation, difficulties associated with pricing, delays, unexpected costs, credit risk and integrating the Company’s new business with its existing businesses. Other potential risks and uncertainties relating to ARI’s business are described in ARI’s filings with the Securities and Exchange Commission. ARI expressly disclaims any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

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