System-Wide Weekly Update #1

13, April 2005

The 2005 production season and capital programs have had preliminary budgets and schedules set for some time and we now have started into the production season on most parts of both Railroads. We have decided to update this site on a monthly basis this year on the second Wednesday of each month, so we can accurately report the total production accomplishments from the previous month.

¨ Thirty track miles (over 320,000’) of new 136# CWR has already been unloaded on the properties during the winter, 15 track miles on each property. The DM&E’s Rail project will run from Revere, Minnesota to east of Sanborn, Minnesota on the Tracy subdivision. The IC& E’ s Rail’s project will run from Plymouth, Iowa to north of Carpenter, Iowa on the Owatonna sub.

¨ The “Curve Patch” program for 2005 will include laying over 75,000 feet of premium rail on over 35 curves between Nora Junction, on the Mason City sub, to Airline Junction on the Kansas City sub.

¨ Major tie projects in 2005 will be on the Kansas City and Chicago subs of the IC&E and the Tracy sub of the DM&E with lesser projects on the River and Mason City subs on the IC&E and the Hartland, Waseca, PRC and Black Hills subs on the DM&E.

¨ The most notable bridge projects of 2005 are the complete rebuild of Bridge 1506 at Fort Pierre, South Dakota and the Bridge 434.5 bridge at Sleepy Eye, Minnesota on the DM&E. Several lesser projects will be completed on both properties.

¨ All materials for all projects seem to be in good supply and will be readily available, although high steel and fuel prices have hampered some deliveries and have raised the prices on many items.

¨ There are currently 22 new premium turnouts in the 2005 capital plan with most of them being associated with the CWR projects.

¨ Current estimates are for about 200,000 tons of ballast for the 2005 season’s 650 miles of surfacing.