Ties Monthly Update

26, March 2007

NEARLY 230,000 TIES TO BE INSTALLED IN 2008 CAPITAL PROJECTS. ELEVEN MAJOR PROJECTS PLUS SEVERAL MINOR ONES WILL HIGHLITE THE PRODUCTION YEAR!

Tie crews on the two properties will again have another banner year installing nearly 230,000 main line and yard track ties. More details of all tie projects scheduled for 2008 are below:

¨ The IC&E tie gang will start its production season on March 31^st in Liberty, Missouri and will follow the schedule listed below:

1. KC sub, 12,000 ties on track #1 between Airline Jct and Moseby J ct.

2. KC sub, 22,000 ties on single track between Polo and Ottumwa in three different areas. First area is between Polo and Chillicothe, second area is between Newtown and Sewell and last area is in Ottumwa.

3. There are 2500 yard ties for yard tracks in Muscatine, Nahant and West Davenport in the current schedule.

4. On the river, there are over 10,000 ties scheduled to be installed in two locations, the first is near the waterworks area and the second area is between the UP/IC&E 5^th street plant at Clinton and Sabula Jct.

5. Marquette sub 17,000 ties between Bellevue and Dubuque.

6. The remainder of the IC&E crew’s year will be occupied with curve rail replacement.

¨ The DM&E tie crew will start its production season on April 14^th and is now prepared to follow the schedule listed below:

1. West Mason City sub, 45,000 ties, between Hartley and Mason City.

2. 1,000 ties for Mason City yard.

3. 7,000 ties on Mason City sub between Mason and Nora.

4. Owatonna sub, 5,000 ties in the Austin/Ramsey area.

5. 1,000 ties for the Austin yard.

6. Jackson sub, 10,000 ties across the sub in tangent track areas to tie into curve tie projects that were done last year.

7. Waseca sub 10,000 ties between Dodge Center and Waseca.

8. 2,000 ties for the Waseca yard.

9. 6,000 ties between Waseca and Eagle Lake on the Tracy sub.

10. 2,000 Huron yard ties.

11. 5,000 ties on the lower Black Hills sub south of Smithwick.

¨ We are currently scheduling the following work for the LA Colo contracting tie crew which is now scheduled to start tie installation on April 7^th and follow the schedule listed below:

1. Marquette sub, 15,000 ties, between Marquette and New Albin.

2. 1,000 ties in Marquette yard.

3. Mason City sub, 7,000 ties between MP 14 and 25.

4. Chicago sub, 43,000 ties between Davis Jct and Sabula Jct.

5. Marquette sub, 7,000 ties between Sabula Jct and Green Island including the Samoa siding.