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(erielack) M&NJ sale closes

http://biz.yahoo.com/prnews/060502/nytu193.html?.v=32

Chartwell International Completes Acquisition of Short-Line Railroad
Tuesday May 2, 2:00 pm ET

CHARLESTON, W.Va, May 2 /PRNewswire-FirstCall/ -- Chartwell International,
Inc. (OTC Bulletin Board: CHWN; "Chartwell") today announced it completed
the acquisition of Middletown and New Jersey Railway Company, Inc., a
privately held New York Corporation ("M&NJ"), which owns and operates a
regional short-line railroad.

Overview of Acquisition & Vision

The timing and fit of the acquisition of M&NJ short-line is exceptional as
the rail properties are in an excellent geographic location, in the fast
growing Orange County of New York.  Approximately 60 miles north of New
York City, Orange County is located between three major highways, an
international airport, Class 1 rail facilities, and the Hudson River. 
Middletown's proximity to major population centers and transportation
arteries would make it a logical center of a regional intermodal system,
attracting regional distribution centers, warehouses, commercial,
industrial and residential developers. M&NJ connects with the Class 1
Norfolk Southern Railway System in Middletown.

As has been the trend during the past decade, short-line railroads across
the country, such as the M&NJ, are providing shippers with cost-effective
transportation, especially for heavy and bulky commodities including
product mixes such as timber, chemicals-plastics, minerals such as clay,
limestone, crushed stone, gravel, road salt, and in some instances
construction and demolition debris which cannot be recycled or disposed
locally.  The trend toward short-line railroad growth is becoming
increasingly important as trucking is adversely affected by a shortage of
drivers, increasing highway congestion and high fuel costs.

Imre Eszenyi, Chartwell's Chairman commented: "M&NJ has before been a key
element of regional economic development and growth, and we believe, rail
freight can again be an important factor in retaining and attracting
existing and new industries and services jobs.  Now that we own M&NJ, we
look forward to working with State, County and local officials in
developing a long-term mutually beneficial relationship.

Financing

The total acquisition for M&NJ was $2.2 million, funded from proceeds of
Chartwell's recent equity private placement.

On December 6, 2005, New York State Governor Pataki announced a five-year,
$100 million rail funding program that will help New York railroads make
infrastructure and capacity improvements, which will modernize the State's
rail network and keep it competitive.  Known as the Rail Freight and
Passenger Rail Assistance Program, the funding will provide approximately
$20 million for improvements each year through 2010.  In the first round
of funding 19 railroads have been awarded $40 million for the 2005 - 2006
fiscal years, which includes $750,000 for M&NJ for track rehabilitation. 
M&NJ will use the grant funds for critical works and safety improvements
on the railroad in Middletown, allowing it to continuously serve its
current customers, and develop new customer business.  Chartwell expects
the acquired business will require substantial annual capital expenditures
and investments in continuous operational upgrades, infrastructure
expansions of the railroad and its personnel.

Mr. Eszenyi commented: "We are pleased with the possibility of making
immediate improvements to the railroad from the grant funds, which will
also create a number and variety of local job opportunities.  Currently,
M&NJ is seeking to add locomotive operators and maintenance support."

History of M&NJ

Founded in 1947, M&NJ, headquartered in Middletown, New York has
historically been an integral part of the growth of Orange County.  M&NJ
and its predecessors transported milk, milk products, livestock, feed and
coal.  As recently as in the mid 1980s, M&NJ serviced a chemical and a
fertilizer plant on its short-line.  The business is currently serving
Genpak, a plastic packaging company, and Orange & Rockland Utilities. 
Detailed information on the history of the railroad and how it benefited
the region and its communities for over a century can be found on the
Middletown & New Jersey Railroad Historical Society's website at
http://www.mnjrhs.org .

For additional information, please refer to Chartwell's current report on
Form 8-K filed with the Securities and Exchange Commission with respect to
this event.

NOTE: The foregoing is news relating to Chartwell and contains forward-
looking statements.  The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
the forward-looking statements.  When used in this release, the words
"anticipate," "believe," "estimate," "expect" and similar expressions as
they relate to Chartwell or its management are intended to identify such
forward-looking statements.  Chartwell's actual results, performance or
achievements could differ materially from the results expressed in, or
implied by these forward-looking statements.  For information that is more
detailed the reader is referred to Chartwell's 10-KSB and other related
documents filed with the Securities and Exchange Commission.  This does
not constitute an offer to buy or sell securities by the Company and is
meant purely for informational purposes.

Source: Chartwell International, Inc.

Gary R. Kazin
DL&W Milepost R35.7
Rockaway, New Jersey

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