Ties Monthly Update #6

14 September 2005

SEVERAL TIE PROJECTS COMPLETED, FOUR REMAINING!!

The tie crews on both properties have already installed nearly 140,000 ties. This is over 75% of the 185,000 ties now allocated for the 2005 production season. The remainder of these ties are still scheduled to be installed with our three railroad crews by the end of October or early in November.

¨ The DM&E West tie gang, (foreman Jim Nemec), has already installed ties on the Crawford sub, the east end of the PRC, west end of the PRC and the upper Black Hills subs this year. They will now spend the rest of the year on projects on the PRC near Wall and Van Meter on the PRC sub.

¨ The DM&E east tie gang (foreman Kim Camp) has already completed two small projects on the Hartland and Waseca subs and has been working on a major project on the Tracy sub for this year thus far. If time permits this crew will install ties in the Huron yard when the Tracy project is complete.

¨ Steve Koser’s IC&E tie crew started this year on the double track at Kansas City and has completed the installation of 20,000 ties scheduled for this area. This crew has installed another 20,000 ties on the single track of the Kansas City sub and will finish their 60,000 tie 2005 program, when they complete the installation of 20,000 ties on the River sub in November.

¨ Contractor LA Colo started his production this year on the Chicago sub where he installed 12,000 ties to complete an early project at that location. Another 19,000 ties were installed on the Chicago sub in June and July, bringing the total number of ties installed on the Chicago sub in 2005 to 31,000.

¨ LA Colo has also installed 10,000 ties on the Owatonna sub and 7,500 on the Mason City sub to complete his crews’ 2005 work for the two properties.

¨ As of September 13^th 2005, all 185,000 ties have been delivered and unloaded on the two properties.

¨ As of September 13^h, over 140,000 ties have already been installed.