Rail Monthly Update #3

8 June 2005

CWR PROGRAM OVER 75% COMPLETED!!!

To date, we have installed over 32 of the roughly 40 track miles scheduled to be completed by the end of the production season. The 30 miles scheduled to be laid by RJ Corman was completed before the end of May. This Corman crew was the same crew that laid over 60 track miles on the DM&E in 2004 and nearly 90 miles of CWR on the Pierre sub in 1996. The IC&E tie/rail crew and the LA Colo crew will complete the 2005 CWR program when they lay the curve patch rail as the year progresses.

¨ RJ Corman completed the first 15 miles of CWR between Revere and Sanborn on schedule on the 27^th of April.

¨ This same Corman crew completed the second 15 mile section of CWR north of Plymouth on the IC&E on Wednesday the 25th of May.

¨ Tim Meyer has been assisting with the supervision of the CWR installation on both properties before moving on to help with switch installation and tie crews.

¨ Jack Boxleiter is supervising the tie installation, curve rail replacement, surfacing and clean up efforts on the double track, and will continue to assist Mr. Goffinet with this year’s capital projects on the IC&E.

¨ Steve Koser’s crew has installed curve rail on 4 curves on the double track to complete his crew’s work in that area this year.

¨ The LA Colo crew has installed new rail in several curves on the east end of the Mason City sub to complete the capital work in this area for the year.

¨ Darren LeGarre’s switch and crossing crew has already assembled and installed 6 switches at Revere and Sanborn, Minnesota and several road crossings in the CWR project area. This crew will assist with the installation of 3 switches in Philip, SD over the next couple weeks and then will return to the New Ulm area to assist with the Hanska project.

¨ Randy Parmenter’s switch and crossing crew has been assembling switches and installing them this week on the Plymouth project and expects to have all seven new turnouts installed by the end of this week.